Naos Blockchain presents this report with the following objectives: 1. Describe the evolution of the crypto market and give a comprehensive summary of the current market situation. 2. Provide detailed information regarding major factors influencing the market. Drivers, restraints, opportunities, and challenges. 3. Present the outlook as perceived by the NAOS Team. This report was created at the beginning of 2019, therefore all data up to February 2019 is historical data, with the base year for calculations being 2018.

1. 1
BLOCKCHAIN MARKET
OUTLOOK
2019-2022

2. 2

3. 3
MARKET OUTLOOK
Objectives
Describe the evolution of the crypto market and give a
comprehensive summary of the current market situation.
Present the outlook as perceived by the NAOS Team.
Provide detailed information regarding major factors
influencing the market. Drivers, restraints, opportunities,
and challenges.
1
2
3

4. 4
MARKET OUTLOOK
Research Methodology
The following report contains information from various sources. Research was conducted across different platforms including: reports,
papers, articles, and data sites. For further information, see the reference section at the end of this report.
This report is informational only. It doesn’t constitute an investment recommendation. Investors in crypto-assets must be aware on the inherit risks embedded in cryptocurrency,
considering market risk and regulatory risk.
Important information prior to reading this report
• The report assumes basic knowledge on crypto assets.
• The report was created at the beginning of 2019, therefore all data up to February 2019 is historical data, with the base
year for calculations being 2018.
• The forecasting period is 2019-2022.

5. 5
MARKET OUTLOOK
Table of Contents
1. An Introduction to the Blockchain
2. Bitcoin - A New Economic System
3. Historical Background
4. Applications: Leveraging the Underlying Technology
5. Market Drivers, Restraints, Challenges, and Opportunities
6. Adoption
7. Forecast

6. 6
An Introduction to
the Blockchain

7. 7
MARKET OUTLOOK
Simple Innovation, Lack of Awareness
Blockchain
fundamentals
Cryptocurrency is a disruptive concept presenting an
alternative to our current monetary system, with the
ability to create a means of exchange without a
central bank, in digital format.
A cryptocurrency is a digital token created and
recorded electronically on a blockchain. The
emission is controlled by specified rules and
changes don’t rely on a central entity.
Encryption techniques control the creation of units of
value and verify the transfer of funds.
Ethereum extended Bitcoin’s idea incorporating
smart contracts, which essentially allow
programmatic control of units of value.
“[A] blockchain is an incorruptible digital ledger of
economic transactions that can be programmed to
record not just financial transactions but virtually
everything of value.”1
Blockchain Cryptocurrency
Crypto as Money Encryption
Bitcoin Ethereum SECURE
FAST
IMMUTABLE
AUDITABLE
TRANSPARENT
DECENTRALIZED
HIGH COST
TO ATTACK
Crypto-assets rely on cryptography and distributed ledger technology. Understanding this asset class requires a
basic understanding of concepts like blockchain, cryptocurrency, crypto as money and encryption mechanisms.
Bitcoin, the first crypto currency where distributed
layered technology was incorporated, created the
ability to send money around the globe cheaply and
easily without having to trust a third party.
1. Tapscott, Don. Blockchain Revolution. Penguin USA, 2016.

8. 8
Steps leading to a disruptive financial ecosystem
MARKET OUTLOOK
Throughout history, humanity has placed its trust in financial institutions to play the part of the bookkeeper. Value is then stored by such
institutions and individuals rely upon them to transact; ultimately playing by their rules and subject to their inefficiencies and barriers.
Since Bitcoin’s conception in 2008 the market has shifted. What started as the evolution of currency towards the
digital era, has now become a revolutionary movement. Applications keep leveraging Bitcoin’s technological
solutions to the double-spending problem in ways we couldn’t have imagine in the previous decade.

9. 9
Fungible
Portable
Divisible
Immutable
Transferable
Recognized
Durable
MARKET OUTLOOK
Same Fundamentals, Increased Efficiencies
1
2
3
4
5
6
7
FIAT
• No need for a central authority to validate
transactions
• Completely auditable
• Full transparency
• Decentralized
• Elimination of intermediaries
• Easy cross boarder transactions
• Low transaction fees
• Scarce
• Censorship resistant
Blockchain’s Key AdvantagesBITCOIN
Units are essentially
interchangeable.
Able to be easily carried or
moved.
The whole can be divided into
smaller pieces.
Unchanging over time or unable
to be changed.
Able to be transferred or made
over to the possession of
another person.
General acknowledgement of
the existence, validity, or legality
of.
The ability to withstand wear,
pressure, or damage.
Digital assets have the same fundamental characteristics as government issued currencies, with better performance and additional
advantages.

10. 10
Bitcoin - A New
Economic System

11. 11
Unprecedent Impact to the Global Economy
MARKET OUTLOOK
ARK is a fund that seeks to research and invest in technologically enabled innovation that cuts across economic sectors and changes
the way our world works. According to ARK’s research, the global economy is undergoing the largest technological transformation in
history.

12. 12
Satoshi’s Vision
MARKET OUTLOOK
In 2008, a new financial system was introduced by Satoshi Nakamoto; one governed by decentralized agents converging in a common
consensus.
Bitcoin: A Peer-to-Peer Electronic Cash
System
“A purely peer-to-peer version of electronic cash would
allow online payments to be sent directly from one party
to another without going through a financial institution.
[ … ] The network timestamps transactions by hashing
them into an ongoing chain of hash-based proof-of-work,
forming a record that cannot be changed without redoing
the proof-of-work. ”
A little over a decade ago it all started; the word was out. The possibility of fast transactions without borders provided by a decentralized
consensus mechanism.
Today, there is much more than that. Bitcoin was merely the match that ignited the revolution.
1
1. Nakamoto, Satoshi. "Bitcoin: A Peer-to-Peer Electronic Cash System." October 31, 2008.
https://bitcoin.org/bitcoin.pdf..
Sources: Coinmarketcap, Coinatmradar, Bitcoin.org, Statista

13. 13
$10
$100
$1,000
$10,000
$100,000
$1,000,000
$10,000,000
2013 2014 2015 2016 2017 2018
TRANSACTIONVOLUME(BILLION$USD)
A New International Payment Network
MARKET OUTLOOK
Annual Transaction Volumes
A currency’s value comes from a social agreement and trust among users, the transaction volume in USD for the Bitcoin network shows
individuals transacting with the implied social agreement in Bitcoin’s currency.
The current annual volume transacted on Bitcoin has
surpassed that of Paypal, with close to half the number
of transactions.
Regardless of Bitcoin’s notorious scalability issues
arising from a limited number of transactions (
approximately 220,752,00 a year).
Low transaction fees
No borders
Decentralization
Worldwide acceptance
WHY?
Notes: Lines show data comparison for one year (2018).
Sources: SWIFT, VISA, Statista, Coinmetrics, Ark, US Department of Treasury

14. 14
Historical
Background

15. 15
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Price(Thousands)
Trasnactions(Millions)
Total Transactions Price
MARKET OUTLOOK
10 years of Block-Change
October 31, 2009
The first bitcoin exchange, the
Bitcoin Market, is established
May 22, 2010
Bitcoins are used to make a purchase for
the first time: two pizzas were bought for
10,00 BTC
February 9, 2011
Bitcoin exchange value reaches
parity with the US dollar
June, 2016
The DAO loses a third of its ether – approx. $50m – in a
vulnerability attack
December, 2015
The Linux Foundation
establishes the
Hyperledger Project
September, 2015
Blockchain tech company R3 is founded
by a consortium of financial institutions
including Barclays, Credit Suisse,
Goldman Sachs, JP Morgan and RBS
May, 2016
The DAO (Decentralized
Autonomous
Organization) sets a
crowdfunding record by
raising more than
$150MM.
April, 2015
NASDAQ begins a blockchain trial
July, 2014
The Ethereum Project is
launched via crowdfunding
as the first smart contract
February, 2014
HMRC in the UK classifies bitcoin as private money: VAT will not be
charged on the mining or exchange of bitcoin. Bitcoin exchange
Mt.Gox is hacked
December, 2013
Vitalik Buterin introduces Ethereum and smart
contracts in a white paper. China’s central
bank bars financial institutions from handling
bitcoin
March, 2013
Market Capitalization of bitcoin
reaches $1bn
June, 2013
The first major virtual currency theft:
25,000 bitcoin stolen from Bitcoin Forum
founder’s wallet
January 3, 2009
The first Bitcoin transactions
are mined –‘Genesis Block’
January 12, 2009
The first bitcoin transaction takes place (Satoshi
Nakamoto - Hal Finney)
Bitcoin’s transaction volume shows a roughly exponential growth. Although volatility levels remain very high in today’s market, prices show a
historical upwards trend with one of the highest possible returns achievable today in any asset class.
Sources: See reference section

16. 16
January, 2017
Seven major European banks announce Digital Trade Chain, a partnership to offer a trade
finance platform via blockchain.
April, 2017
Virtual currencies are officially recognized in Japan.
May, 2017
Over 1,00 cryptocurrencies are listed on CoinMarketCap.
June, 2017
The DAO is hacked, 3.6M ETH were stolen.
August, 2017
The number of bitcoins in circulation reaches 16.5M.
November, 2017
ICO Boom, market expansion.
December, 2017
bitcoin price reaches $19,500 USD. Bitcoin futures commence trading and total value of
cryptocurrency surpasses $600 billion USD.
MARKET OUTLOOK
10 years of Block-Change - 2017
2017

17. 17
January, 2018
-Peter Thiel’s Founders Fund bought around $15-to-$20 million of dollars in Bitcoin.
-Bitcoin’s value dropped 50% to below $10,000 USD.
-Coincheck (Exchange) lost $534m in cyber heist.
-Facebook banned ads involving ICOs and cryptocurrency.
February, 2018
-Sweden’s Central Bank, the Riskbank, planed to launch its national cryptocurrency.
-Lloyds Banking Group, UK bank, banned customers form buying cryptocurrency.
-Over $60 billion of the cryptocurrency market capitalization was wiped out in 24 hours.
March, 2018
-Google announced in a blog post it will be banning all cryptocurrency-related adverts.
-Twitter banned adds later that month.
-The Financial Times reported some of the world’s best-known economists plans to
create the academic’s cryptocurrency, known as Saga.
April, 2018
-The New York Times reported that political data firm Cambridge Analytica had a
cryptocurrency in the works.
-Carrefour SA, a France-based grocery chain, started using blockchain technology to
give buyers insight into the life of its chickens.
May, 2018
-The New York Times reported that Goldman Sachs is looking into opening a bitcoin
trading desk
-New report states that Bitcoin mining will consume 0.5 percent of the world’s electricity
by the end of 2018.
MARKET OUTLOOK
10 years of Block-Change - 2018
July, 2018
-Malta slowly asserted itself as “blockchain island”
-IBM launches a new research center with Columbia University that aims to boost
blockchain application development and education initiatives.
August, 2018
-The World Bank, in partnership with the Commonwealth Bank of Australia, has launched
the world’s first “blockchain bond.”
-Intercontinental Exchange Inc (ICE.N), plans on creating a trading platform, called Bakkt,
for digital assets, as well as a bitcoin futures product.
September, 2018
-Japanese city of Tsukuba is the country’s first city to trial online voting using blockchain.
-In addition to Columbia’s President announcing support for cryptocurrencies, he also
invited cryptocurrency companies to his country.
October, 2018
-TransferGo, the platform for “fast & cheap money transfers”, announced the usage of
Ripple’s Xcurrent technology
-Utorrent surpassing 1 million active users
November, 2018
-Bitcoin Cash hardfork, due to scalability issues.
-bitcoin price drops to $4,000 USD
December, 2018
-Transition from a bearish market in 2018 to a new year, 2019, with the start of a bullish
trend.

18. 18
JPMorgan Chase CEO Jamie Dimon told Fox
Business he “regrets” calling bitcoin a “fraud”.
"I was wrong to think there was no use
for a form of currency based on
blockchain technology. I don't think this
will turn out to be a complete delusion," -
Ferguson
Expert Stance on Crypto is Drifting
MARKET OUTLOOK
“Oh no it’s still bad, but Bitcoin its
ingenious and blockchain is
important. But bitcoin has no unique
value at all, it doesn't produce anything.
You can stare at it all day an no little
bitcoins come out or anything like that;
it’s a delusion” - Warren Buffet
Bitcoin is "trying to solve a problem that does not exist” - Lisa Ellis (Business executive,
entrepreneur, executive producer)
Cryptocurrencies - "are potentially
disruptive to private payment
systems.” - Lisa Ellis
2012
2013
2014 2015 2016
2017
2018 2019
Bitcoin: “probably rat poison squared” - Warren Buffet (Investor, Business magnate, speaker and
philanthropist)
Not Scaled*
Current Bear Market
Investors start to see the value of a disruptive technology.
“Bitcoin has no shot as a long-term digital currency.” - Mark Cuban (Businessman and
investor

19. 19
Applications:
Leveraging the
Underlying Technology

20. 20
Infrastructure Will Boost Usability
MARKET OUTLOOK
Infrastructure will reinforce Bitcoin’s layered architecture.
Casa
Bakkt
Lightning Labs
TxTenna
CoinJoin
Bitrefill
Category
Security
Trade
Scaling
Payment
Privacy
Adoption
Personal key security system for Bitcoin, Ethereum, Litecoin, and more. Multi-signature key
service with hardware wallets.
An open, seamless global network to enable purchases, sales, storage, and ecommerce simply,
safely, and efficiently. Increasing liquidity, accessibility and adoption.
An open protocol layer that leverages the power of blockchains and smart contracts to make
cheap, fast, private transactions.
An app that enables off-grid broadcast of Bitcoin transactions from Samourai Wallet.
A decentralized method of combining multiple bitcoin payments from multiple spenders into a
single transaction, making it difficult for outside parties to determine which spender paid which
recipient or recipients.
An ecosystem that refills prepaid phones & buys gift cards online using cryptocurrencies.
Project Description

21. 21
BLOCKCHAIN
Currency
Services
NetworkToken
Investrm
ent
Real world payments
Unbanked
Micropayments
Privacy coins
Fast transactions
Store of value
Derivatives
Security tokens (Debt)
Equity tokens
Asset-backed tokens
Computing
Prediction markets
Identity
Media / Enterteinment / Advertising
Gambling and prediction markets
Internet 4.0
Infrastructure for
blockchain solutions
Decentralized
Applications
The Commonly Unknown Uses for Blockchain
MARKET OUTLOOK
Blockchain technology is now being used to
develop a widespread variety of applications which
leverage the inherent benefits of distributed ledgers
and cryptography.
There are many ways to classify the use cases
currently present in the space. The taxonomy we
use at Naos Blockchain is presented to the left.

22. 22
Simple Diversification with more than 2,000 Crypto-assets
MARKET OUTLOOK
Since Bitcoin’s inception, several projects have arisen exploiting BTC’s unique technological
advantages for distinct use cases. Cryptography and distributed ledgers have become the
scaffolding for numerous applications, enabling competitive advantages and opportunities in:
Most of these projects still find themselves in the development stage. Both as an investment opportunities and as solutions to real life
problems, projects leveraging the blockchain to provide real world solutions are worth users’ attention.

23. 23
There are more than 1,900
DApps
New ways of leveraging the blockchain’s
benefits arise constantly. Adoption will grow
with the incorporation of tokens in real life
products (Smartphones).
APPLICATIONS
Decentralized Applications (DApps)
MARKET OUTLOOK
Decentralized applications are applications that run on a Peer-to-Peer network of computers where no single entity has the power to control
the app once it is released.
Currently there are ~200,000
daily users across all DApps
According to DappRadar the number of
decentralized applications built on top of
blockchains now amounts to 1,920. Each
Dapp targets a market with potential users.
USERS
Decentralized applications benefit from the lack of central entities participating in the ecosystem to develop solutions that
could potentially bypass humans’ shortsighted vision and eliminate physical and ideological barriers.
The average 24 hour volume
for DApp tokens is close to
~$50,000,000
Applications ranging from games to
decentralized predictions markets are
generating an average comparable to the
trading volume of stocks.
TRANSACTIONS
Source: "Ranked List of Blockchain Dapps." DappRadar. https://dappradar.com/.

24. 24
The Future is Digital
MARKET OUTLOOK
Tael is a loyalty token used in the Techrock ecosystem of verifiably safe and authentic products.
A supply chain management solution to validate the authenticity of a product and track it.
Augur is a decentralized prediction market protocol owned and operated by the people that use it. Decentralization
allows the platform to leverage a gambling market for many uses, with no censorship.
Plutus is a fully decentralized debit card provider that uses tap & pay technology like a regular debit card but with the
added benefit of a crypto loyalty token named pluton that is paid to users for every transaction.
Basic Attention Token radically improves the efficiency of digital advertising by creating a new token that can
be exchanged between publishers, advertisers, and users; offering a variety of advertising and attention-based
services.
Golem is a global, open source, decentralized supercomputer that anyone can access. It’s made up of the combined
power of users’ machines, from PCs to entire data centers working together to render users’ requests.
Doc.com intends to universalize medicine by providing free basic healthcare in the form of telemedicine for the world
whilst creating a decentralized medical and biological database to further mankind’s advancement, paying users for
their medical data with their Medical Token Currency.
Tokenization covers a widespread number of opportunities.

25. 25
Market Drivers,
Restraints,
Challenges, and
Opportunities

26. 26
Institutional investors start contemplating crypto as an investment. Examples such as University endowments, ETFs, and banking
industry giants have been showing interest for the last couple years.
Trends
MARKET OUTLOOK
University Endowments
have entered the space
New institutional players like endowments
from Harvard University, Sanford, MIT, and
Michigan University, amongst others investing
in the space will push governments to seek
regulation, which will in turn lead to more
efficient markets and less speculation.
ENDOWMENTS
Increasing interest from
both the financial and tech
industries
Companies are looking into blockchain for
solutions that range from a payment protocols
to a wallet on a smartphone.
PLAYERS
ETPs as a reaction to
consumers’ desires
New ETPs are appearing around the globe,
ones tracking performance of companies
related to the blockchain space and others
tracking crypto directly. Approval is pending for
many new players.
EXCHANGE-TRADED PRODUCTS

27. 27
Adoption is growing and developers are arising
around the world, collaborating to ensure the
blockchains’ immutability and fixing scalability
issues.
Countries acceptance of cryptocurrency is
growing with examples such as the Russian
president setting a deadline for cryptocurrency
laws and both Japanese and American banks
(MUFG & JPMorgan) seeking blockchain
solutions with an interest in implementing them in
the near future.
The growing tendency for eco-friendly and
socially driven projects is shifting the market
towards new solutions. From the growing push to
change from of PoW (mining protocol based on
computing power and electricity) to PoS (protocol
based on token holding and staking) to the
implementation of blockchain technology for
climate change and water security, among others.
G-8 Leading Crypto
MARKET OUTLOOK
Source: Cambridge Center for Alternative Finance. 2nd global cryptoasset benchmarking study

28. 28
Legal Status Timeline
MARKET OUTLOOK
2014 2019
In 2015, Sweden was
the first country to
authorize trading of two
Bitcoin exchange traded
notes.
In 2014 the government and
regulators started imposing strict
rules on cryptocurrencies on the
Chinese market. PBoC closes
accounts which included virtual
currencies.
Exchange Mt.Gox is hacked
In 2014, Germany was the
first European country to
accept bitcoin as a currency.
In late 2014, the IRS issued a
first guidance for the taxation
of virtual currencies such as
bitcoin, explaining how to
apply general tax principles.
By 2017 China banned
initial coin offerings and
prohibited local exchanges.
South Korea, tried to
shut down domestic
exchanges in 2017 but
was unsuccessful due to
a petition.
By 2017, Japan allowed merchants
to accept bitcoin as a payment
July 2017, the US
was the first country
to regulate initial coin
offerings through the
SEC.
In 2018, Japan set up a
government-backed research
group on crypto.
In April 2018 lawmakers agree on
the fifth Anti-Money Laundering
Directive to tackle the problem of
money laundering, tax evasion and
fraud with cryptocurrencies.
In 2018, BaFin’s report on
distributed ledger technology and
a policy contribution from
Brussels-based think tank
Bruegel is published.
In Malta, 3 specific crypto
bills are passed into law.
In July 2018, the IRS set up a
taskforce to combat transnational tax
crime and money laundering,
pressing matters in the crypto space.
2015
2016
2017
2018

29. 29
Legal Status Worldwide
MARKET OUTLOOK
Pioneers, taking steps to promote regulation Not yet providing legal regulatory protection Banned, countries with prohibition or unfavorable regulation movements
Sources: See reference section

30. 30
Uncertain regulatory status – The market is likely to continue acting as a gossip driven market, prone to
manipulation and scams so long as the proper authorities don’t address the lack of regulation. News concerning
these matters are usually an important market driver.
Lack of awareness and technical understanding regarding cryptocurrency – If people in general have a mislead
idea that cryptocurrencies are bad, and furthermore that crypto-assets are all the same, as in Bitcoin derivatives,
there is no way to achieve the necessary adoption levels for the space to grow.
High volatility and lack of financial instruments – The uncertainty and inefficiencies surrounding the market
lead to high levels of intra-day volatility. The lack of regulation makes it difficult to implement new financial
instruments that could bring stability to the market with the entrance of institutional players.
Development stage for a great number of projects – The fact that most projects are still in their developing
phases makes it difficult to grasp the potential these projects might have, additionally there are no valuation
standards when it comes to network tokens, thus investments can sometimes feel like a gamble.
Manipulation – Markets will be subject to manipulation until the tools are developed to more accurately
quantify value embedded in a token, and liquidity reduces the impact of large orders in market prices. Regulation
is key to offset incentives for manipulation.
Market Limitations
MARKET OUTLOOK

31. 31
Blockchains’ Challenges & Opportunities
MARKET OUTLOOK
Finance IoT
Public &
Social
Service
Reputation
System
Security
and
Privacy
Blockchain
as a
service
Key areas of development 2019-2022
Challenges Opportunities

32. 32
Security
Privacy
Control/Regulation Status
Awareness
Scalability
Intrinsic Value
Lack of Developers/Development Stage
Market Manipulation
MARKET OUTLOOK
There’s Always Room for Improvement (Challenges)
Solid tools and underlying theory provide an enabling
environment in which security shan’t present an issue if it
weren’t for implementation through human coding. Security
breaches diminish reliability and tarnish reputation.
Current scalability issues prevent decentralized
blockchains from maintaining transaction levels similar to
that of SWIFT, VISA or MasterCard.
Privacy is one of the advantages inherent to
cryptocurrency. We must lookout for the illegal and
malicious behavior that smudges the name of crypto.
Current disbelief in crypto’s intrinsic value is slowing
down adoption as people remain resilient to invest.
Niche coding languages make it difficult to obtain
widespread cheap programmers.Uncertain regulatory status allows malicious players to
enter the space both, as users and service providers.
Lack of regulation permits a volatile environment.
The public is unaware of the true value underlying crypto
assets and the benefits that come with this asset class.
Lack of tangible market benchmarks/success cases.
Many projects are currently in a development phase.
Immature market, prone to manipulation. The low 24hr
volumes and lack of regulation make it possible for
players to manipulate prices.

33. 33
MARKET OUTLOOK
Emerging Markets
Growing Acceptance
High Fungibility
Countries Seeking to Stand Out
Supply Chain Management Efficiencies
Low Costs of Issuance and Trading
Smart Contracts
Cross Border Barrier Elimination
Digital Payments DApps
There’s Always Room for Improvement (Opportunities)
Countries involved in adverse political situations might find a
safe haven in cryptocurrency.
Current inefficiencies can be eliminated with the use of
blockchain, while increasing transparency.
Acceptance will continue to grow as developers improve UX
and functionality.
Low costs allow projects and investors to benefit from a peer
to peer network, excluding intermediaries.
Countries seeking to become pioneers, will lead the way with
the implementation of blockchain solutions.
Digital payments are becoming the standard for some
developed countries.
Decentralized peer-to-peer networks enabling the transfer
of money and information without borders, cheaply.
Applications without censorship, manipulation, or
restrictions.
The high level of fungibility and low transaction costs are a
great incentive for cross boarder transactions.
Open the world to limitless opportunities. Applications and
contracts coded for any number of purposes.

34. 34
Adoption

35. 35
Adoption Curves for the XX Century
MARKET OUTLOOK
Nearly all global-impact technologies, particularly
communications networks, follow a similar adoption
curve referred to as a logistical function, which plots as
an S-curve over time.
Historical Technology
Trends
S

36. 36
Early stages of adoption for cryptocurrency.
Signs of adoption include.
• Growing number of wallets, both for bitcoin and
alt-coins.
• Institutions showing interest in the market.
• Banks implementing blockchain solutions.
• Increased 24 hour volume across exchanges.
• Mobile providers such as HTC and Samsung
including wallets in their flagship phones.
• Increasing number of establishments accepting
cryptocurrency.
• Growing userbase for DApps.
Adoption by Number of Users
MARKET OUTLOOK
With new players entering the space, developers improving usability features, and a growing interest in the technology; user
adoption will continue to experience double digit growth for the foreseeable future.
Source: Cambridge Center for Alternative Finance. 2nd global cryptoasset benchmarking study

37. 37
Forecast

38. 38
Forecast – General Adoption
MARKET OUTLOOK
• Transaction volumes keep increasing
• Individuals constitute the largest share
of the user base
• Firms serve regionally rather than
globally
• bitcoin remains the market dominant
asset with 50% value share.
• Cross border transaction with double
digit growth.
• Initial steps in global regulation
• User interactions remains mainly in
exchanges, payment service
providers and storage providers
• Transaction volumes will continue to
increase
• Both individuals and institutions will be
interacting with blockchain solutions
• Firms will serve globally. As
permitted by regulation
• bitcoin’s dominance will decrease
and market consolidation will focus
in projects using different use cases
• Cross border transactions continue to
grow, with developing countries
playing a major part
• Regulation or stances will be
established by most countries
• User will continue to use current
services adding more use cases

39. 39
Forecast – Currency Adoption
MARKET OUTLOOK
2014
20192015
2016
2017
2018
ATMs
Adoption of cryptocurrencies as payment methods for goods and services will continue to grow.
According to Coinmap there are currently 14,486 venues accepting crypto. According to CoinATMRadar
there are 4,481 Crypto ATMs. And thanks to projects like Bitrefill you can use crypto to purchase several
gift cards and services with more than 1,000 companies.
Source: Coinmap.org

40. 40
Forecast – DApp Adoption
MARKET OUTLOOK
• Negatively biased coverage on
conventional media platforms
• Misconceptions surrounding blockchain
• Low number of transactions per user
• >100 new DApps a month, for the
past year
• Increasing retention rates for new
users
• New players such as EOS & Tron
overtake the market
• 2018 was going live. 2019-2022 is user
acquisition and UX improvement
• Small user base. <200,000 daily
users
• Gaming & gambling forecasted to
become the core of decentralized
applications. Users in those areas
show less friction when adopting new
technologies
• Decentralized Crypto Exchanges adoption
delayed due to liquidity and usability
• EOS & Tron will continue increasing market
share over ETH (User base & transactions)
• Established tech giants entering the space will
boost adoption as new users commence
interacting with DApps.

41. 41
Forecast – Market Stability
MARKET OUTLOOK
Volatility
Scams
Market Manipulation
Prices
Market Capitalization
Will decrease as new institutional players enter the
market
Scams will decrease as regulation emerges
It will become harder as more money will be needed to
shift the market and laws will discourage such actions
Prices will rise in a moderate bullish trend
Market Capitalization will increase drastically with the
entrance of institutions and individuals
With the coming implementation of regulation across the globe, the market will shift from a speculative and
gossip driven market to a more formal, analysis driven market. Without the current information
asymmetries we’ll be facing a more complete market. Finally, with the entrance of institutional money and
with the proper regulation that enables institutions to generate proper financial tools there will be lower
levels of volatility.
There’s still hard work to be done with respect to valuation methodologies and investment analysis. The
market and its participants will continue to evolve with time.

42. 42
Forecast – Project Consolidation
MARKET OUTLOOK
BLOCKCHAIN
Currency
Services
Netw
orkToken
Investrm
ent
Real world
payments
Unbanked
Micropayments
Privacy coins
Fast
transactions
Store of value
Derivatives
Security tokens
(Debt)
Equity tokens
Asset-backed
tokens
Computing
Prediction markets
Identity
Media / Enterteinment /
Advertising
Gambling and prediction
markets
Internet 4.0
Infrastructure
for blockchain
solutions
Decentralized
Applications
Current number of
Cryptocurrencies listed on
Coinmarketcap
~2100
Different use cases
<100
The number of assets present today is huge when compared with the number of truly unique use cases
that can benefit from the blockchain’s technology.
The crypto space presents what might be called a blue ocean market -an un unexplored market space
where competitors enter without friction vs previously established rivals. This will soon shift to a red ocean
market, as projects attempt to implement similar solutions; however, numerous projects offer no
competitive advantages.
Adoption and user acquisition will play a crucial part in determining which of these projects survive past
the development phase.

43. 43
MARKET OUTLOOK
Forecast – Stablecoins
Stablecoin adoption will grow. These assets will serve for many as a gateway into crypto, as both
institutions and individual seek to exploit the blockchain’s advantages without the inherent risk of price
fluctuation.
By 2022, stablecoins will find a niche in developing countries where political and economical instability
force individuals to seek alternative means to store value.
Blockchain solutions will implement payment mechanisms using stablecoins, seeking standard payment
mechanisms for users and for the platforms themselves.

44. 44
MARKET OUTLOOK
Forecast – ICOs
$-
$2,000
$4,000
$6,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMILLIONS
2018
$-
$10
$20
$30
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MILLIONS
2016
$-
$200
$400
$600
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MILLIONS
2017
ICO funding had a remarkable hype during the most recent short term expansion, in 2017. Since then, the
number of ICO’s has decrease dramatically. Current unfavorable regulation and ambiguity regarding Initial
Coin Offerings and Securities Laws is driving entrepreneurs to seek funding elsewhere.
Remarkably, in 2018 there were fewer successful ICOs but these had higher average funding.
There will be funding via blockchain in the future, but ICO’s as we currently know them will cease to exist.
Source: ICO WATCHLIST

45. 45
MARKET OUTLOOK
Forecast – Exchanges
Volume
Reputation
Fees
Payment Methods
Transparency
1Q-2019 2022
Growing adoption in conjunction with the entrance of institutional money to the crypto market will lead to
rising volumes and a resulting increase in profitability.
In the long run, many will disappear, as fees decrease in a price war and liquidity concentrates in fewer
exchanges. Furthermore, current business models will evolve with the emergence of regulation as many
are currently under scrutiny by the community for allegations regarding volume inflation and a lack of
transparency.

46. 46
Team
MARKET OUTLOOK
Report research & execution
Supervisors
Jorge Villalobos
Analyst
Jorge.villalobos@naosblockchain.com
Renato Carregha
CIO
Renato@naosblockchain.com
Abraham Cobos
COO
Abraham@naosblockchain.com

47. 47
Thank you for your attention.
For further inquiries contact Jorge Villalobos

48. 48
Risk and Disclosure
MARKET OUTLOOK
The content of this presentation is for informational purposes only and is subject to change without notice. This presentation does not
constitute, either explicitly or implicitly, any provision of services or products by NAOS and investors are encouraged to consult
counsel and/or other investment professionals as to whether a particular investment management service is suitable for their
investment needs. All statements made regarding companies or securities are strictly beliefs and points of view held by NAOS and are
not endorsements by NAOS of any company or security or recommendations by NAOS to buy, sell or hold any security. Historical
results are not indications of future results. Certain statements contained in this presentation may be statements of future
expectations and other forward-looking statements that are based on NAOS’ current views and assumptions and involve known and
unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or
implied in such statements. NAOS assumes no obligation to update any forward-looking information contained in this presentation.
Certain information was obtained from sources that NAOS believes to be reliable; however, NAOS does not guarantee the accuracy
or completeness of any information obtained from any third party. NAOS and its clients as well as its related persons may (but do not
necessarily) have financial interests in securities or issuers that are discussed.
NAOS’ statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. It should not be
assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list.
NAOS encourages people to use this report as an informative read. It does not constitute an investment
recommendation. Investors are encouraged to consult legal and financial advisement prior to any investment.

49. 49
References
MARKET OUTLOOK
Page 7. Tapscott, Don. Blockchain Revolution. Penguin USA, 2016.
"What Is Blockchain Technology? A Step-by-Step Guide For Beginners." Blockgeeks. https://blockgeeks.com/guides/what-is-blockchain-technology/
Page 8. Hakemy, Sulaiman. Debt: The First 5000 Years. London: Taylor and Francis, 2017
Page 11. Big Ideas 2019. Report. January 14, 2019. https://research.ark-invest.com/hubfs/1_Download_Files_ARK-Invest/White_Papers/Big-Ideas-2019-ARKInvest.pdf?hsCtaTracking=389fa33c-10c9-4345-8c9e-
e457b82977f8|7114deb8-15db-4540-81d7-4a5f7de51e66
Page 12. Nakamoto, Satoshi. "Bitcoin: A Peer-to-Peer Electronic Cash System." October 31, 2008. https://bitcoin.org/bitcoin.pdf..
"Cryptocurrency Market Capitalizations." CoinMarketCap. https://coinmarketcap.com/
Coinmama.com. "History of Bitcoin." Coinmama. https://www.coinmama.com/guide/history-of-bitcoin.
"Bitcoin ATM Map – Find Bitcoin ATM, Online Rates." – Find Bitcoin ATM, Online Rates. https://coinatmradar.com/.
Page 13. 3270. "Bitcoin Transactions Value Passes PayPal, Visa Next? | Finance Magnates." Finance Magnates | Financial and Business News. August 30, 2018. https://www.financemagnates.com/cryptocurrency/news/bitcoin-
transactions-value-passes-paypal-visa-next/
Big Ideas 2019. Report. January 14, 2019. https://research.ark-invest.com/hubfs/1_Download_Files_ARK-Invest/White_Papers/Big-Ideas-2019-ARKInvest.pdf?hsCtaTracking=389fa33c-10c9-4345-8c9e-e457b82977f8|7114deb8-
15db-4540-81d7-4a5f7de51e66
Page 15, 16 & 17."The Most Important Facts and Milestones on Bitcoin and Blockchains." XING â For a Better Working Life. https://www.xing.com/news/insiders/articles/the-most-important-facts-and-milestones-on-bitcoin-and-
blockchains-895549.
“The blockchain timeline.” Grant Thornton. https://www.grantthornton.global/globalassets/1.-member-firms/global/insights/blockchain-hub/blockchain-timeline_final.pdf
"Bitcoin Timeline." CryptoQ8. https://cryptoq8.com/cryptoq8-portal/cryptocurrency/bitcoin/.
Page 23. "Ranked List of Blockchain Dapps." DappRadar. https://dappradar.com/.
Page 27. Rauchs, Michel, et al. 2ND GLOBAL CRYPTOASSET BENCHMARKING STUDY. Report. Cambridge Center for Alternative Finance, University of Cambridge.
https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-finance/downloads/2018-12-ccaf-2nd-global-cryptoasset-benchmarking.pdf.
Page 28. Regulation of Cryptocurrency Around the World. Report. June 2018. https://www.loc.gov/law/help/cryptocurrency/cryptocurrency-world-survey.pdf.
Blockpit.io. "THE DEVELOPMENT OF CRYPTO REGULATIONS-A TIMELINE." Cryptocurrency Hub. November 15, 2018. https://cryptocurrencyhub.io/the-development-of-crypto-regulations-a-timeline-37e0baf22ad3.
Page 29. Digital image. A World of Cryptocurrency. https://blogs.thomsonreuters.com/answerson/wp-content/uploads/sites/3/2017/10/World-of-Cryptocurrencies-graphic.pdf.
Page 36. Rauchs, Michel, et al. 2ND GLOBAL CRYPTOASSET BENCHMARKING STUDY. Report. Cambridge Center for Alternative Finance, University of Cambridge.
https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-finance/downloads/2018-12-ccaf-2nd-global-cryptoasset-benchmarking.pdf.
Page 39. Coinmap. https://coinmap.org/welcome/.
Page 44. "ICO Statistics - By Year." ICO Watch List. https://icowatchlist.com/statistics/year.
Other sources used for analysis and forecasting.
https://www.blockchain.com/charts
https://www.fincen.gov/sites/default/files/shared/Appendix_D.pdf
https://www.docdroid.net/FbgH1WS/bitcoin-institution-riga.pdf#page=18
https://www.financemagnates.com/cryptocurrency/news/bitcoin-transactions-value-passes-paypal-visa-next/
https://www.cnbc.com/2018/05/05/warren-buffett-says-bitcoin-is-probably-rat-poison-squared.html
https://cryptonews.com/news/another-famous-expert-changes-stance-on-crypto-3485.htm

50. 50
https://www.coindesk.com/information/what-is-bitcoin
https://cdn.invictuscapital.com/reports/crypto20_2018_q4.pdf
http://www3.weforum.org/docs/WEF_Building-Blockchains.pdf
https://www.marketsandmarkets.com/Market-Reports/cryptocurrency-market-158061641.html
https://www.wikitribune.com/article/33747/
https://ambcrypto.com/cryptocurrency-rundown-2018-the-year-in-numbers-and-events/
See individual information pages for each of the assets mentioned in this report. Information regarding projects is as reported by the projects themselves.
References
MARKET OUTLOOK