This article was first published on ICONOMI - Medium
ICONOMI Financial Report — Q1 2019
Heraclitus, a Greek philosopher, said that change is the only constant in life. And with that in mind, we also started 2019. As a team, we became leaner and our focus on the users gave its first results: launching new webpage, accompanied by more active status on our social media networks. The direction is set and ICONOMI Next is our new manifestation.
In Q1 our book value decreased slightly from 37.2 to 36 million USD. In January, we converted the second tranche of ICN to ETH. We partially sold positions in MANA, Aergo, and Bitcoin. Going forward we will disclose major positions we hold, while other transactions will be mentioned in comments. Regarding the previously undisclosed investments, these investments are Aergo, Arweave, Carry, Hypernet 1, Hypernet 2, Thunder, Oasis, Origo, Witnet, and Nucypher. We are proud to be an investor in these great projects, some of which are now trading at up 5x our investment multiples.
We will continue with selling alt coins and streamline our portfolio to core investments, while at the same time maintaining enough fiat for funding our operations.
Looking at our burn rate, we see significant improvement. While revenues in Q1 did not change much (platform fees were 40k, while staking fees were 38k), we decreased expenditures by almost a third. The main cut was in salaries (smaller team) and services costs. Legal costs (mainly related to eICN process and AML) and marketing costs are the main contributors to service costs.
Some of the effects of restructuring will also be seen in Q2, for which we expect even lower burn rate numbers. Of course, these numbers are heavily correlated to the market conditions, which are now turning more green. On top of that, we also made some special partnerships that will generate extra ...
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