A Report on

“CoinSewa-The Future of Cryptocurrency”

As a Pre-Task 2
Of
Spectrum 2018

Conducted on
Ace Institute of Management

Submitted By:

Team Nike
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Table of Contents
CoinSewa..............................................................................................................................................3
Features of CoinSewa..........................................................................................................................4
How it is different from other currencies?........................................................................................7
Initial Coin Offering............................................................................................................................8
The Human Resources Structure and Cost.......................................................................................9
Finances..............................................................................................................................................11
Capital, Revenue Model and Future Pans.......................................................................................13
CoinSewa iii

CoinSewa

Cryptocurrency — Well the name says it all! These are digital tokens built over
cryptographic functions. In other words, cryptocurrencies are sequence of encrypted bits
transmitted and stored over a network. Just like the way we have multiple fiat currencies in
the real world (eg. USD, GBP, EUR, INR, RMB etc), there are multiple cryptocurrencies as
well. These digital currencies are developed using different cryptographic functions and have
different values based on its creation date, number of users, extent of the network and
transaction volumes.

CoinSewa is the USD of cryptocurrencies, it is the gold standard or more like the reserve
currency in crypto-world. There are many other cryptocurrencies like dogecoin, litecoin etc
which are valued in relation to bitcoin.

CoinSewa is a Nepali cryptocurrency trading in USD and was established in 2017 with a
bunch of Nepalese students.
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Features of CoinSewa

 Easy access

CoinSewa is readily available to the general public. Almost anyone can make use of it. It is a
decentralized operation and investors from all over the world have easy access to them.
Almost anyone that can make online fund transfers can become part of CoinSewa.

 Quick and easy payments

Making payments using CoinSewa is very easy.  You can do it in just a matter of a few
seconds. It is very fast because you don’t require to feed many details, you don’t even need to
enter your credit/debit card details. All you need is the address of the wallet of the person or
enterprise to whom you wish to make the payment too. The amount shall credit to the
receiver within few seconds to a few minutes depending on the crypto. The ease of transfer
and the low transaction fees makes it very desirable.

 Fast Settlements

With CS, you don’t need to wait a couple days for your business to receive the money. Due to
the technology cryptocurrencies like CoinSewa are based on, the blockchain, it removes
delays, payment of fees and a host of other third party approval that might have been present.
For traditional businesses, there are often hiccups and bottlenecks due to the number of
middlemen that you have to cut through. With cryptocurrency transactions, there is a quick
settlement as the peer-to-peer nature of the networking structure cuts off the middleman.

 Lower Fees

With cryptocurrency, the costs are nil or negligible. With credit cards or debit cards, the seller
is the one paying a fee but for crypto’s, it is the buyer paying the small fee. The issue with
these fees is that they often pile up and could quickly pile up. Transaction fees are very
miniscule and only the buyer gets hit with it. Even some crypto currencies like Bit Coin
cgarges high transaction fees but CoinSewa fees are as low as zero.

 Private
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You don’t need to share your identity or whereabouts or the details of the transactions made
between you and the beneficiary. No information is required to share with the government
and the bank regarding the deal. It is truly decentralized with CoinSewa.

 Highly secured

All your transactions will be secure as it is using NSA created cryptography. It is next to

impossible for any person other than the owner of the wallet to make any payment from the
wallet, unless they were hacked which there are many ways to protect yourself from.

 Remain anonymous

Some coins can help you stay anonymous but contrary to popular belief, not all of them can.
CoinSEwa is pseudonymous which means people won’t know exactly who you are on the
blockchain but they can get some information from it.

 Identity Theft

Nobody can steal your personal information from merchants, which ensures the privacy of
your sensitive data. By creating a proxy ID, you can make sure that no one knows anything
about you. Among the benefits that come from using CoinSewa is the protection of your
online identity. CoinSewa transactions are also unique each time you make them even when
the parties are similar

 No chargebacks

Once you made the payment, you cannot chargeback. This considerably depletes the chances
of a fraud. Once the transfer has completed, it cannot reverse. Nobody can file chargeback
like you can on credit cards.

 No third party

You are the master of your money. You can keep it in your wallet and use it as per your
wishes. There is no third party involved like a bank on whom you need to trust.

 Facilitate International Trades

When you talk about transactions using cryptocurrencies like CoinSewa then there are no
limits. You may be in a different part of the world and the receiver might be in some other
hemisphere, you can still transfer the amount without any hassle. The inter-country
transaction is extremely easy with cryptocurrency because its function is not under the
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control of any central bank.  This makes it easier for users to transact with it without having
levies imposed on them or have their value reduced by exchange rates. This makes it quite
suitable for cross-border transfers without any form of hindrance.
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How it is different from other currencies?

 easy to understand

Most of the crypto currencies are very complex and difficult to understand. Cryptocurrencies
are relatively new and come with a learning curve however, CoinSewa comes with a user-
friendly feature which will help users to understand the function and the way of using the
currency.

 Wider Application

Not many websites and companies accept digital currencies yet. Very few countries have
legalized the use of cryptocurrencies. It makes it impractical for everyday use. Due to lack of
acceptance, before buying or investing online or offline, you need to make sure that it’s
accepted at that place where you want to use it. However, CoinSewa is widening its
application scope through continuous lobbying with the policies and regulations of the
neighboring countries.

 Restore wallet

There is a possibility of losing your wallet. If you have stored the money in the form of
digital currency on your phone or computer, you better remember your password and not lose
those devices. However, CoinSewa wallets have backup and restore mechanisms that helps
user to find the wallet if lost.
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Initial Coin Offering

ICOs are a type of crowdfunding or crowd investing tool conducted entirely on the
blockchain. Originally, the main idea of an ICO was to fund new projects by pre-selling
coins/tokens to investors interested in the project. Entrepreneurs present a whitepaper
describing the business model and the technical specifications of a project before the ICO.
They lay out a timeline for the project and set a target budget where they describe the future
funds spending (marketing, R&D, etc.) as well as coin distribution (how many coins are they
going to keep for themselves, token supply, etc.).

The ICO of CoinSEwa:

a. the number of coins being offered:

Since CoinSewa is a new company, it will issue 250000 tokens of CoinSewa

b. the price of each coin

The price of each coin would be $400 and the total amount of ICO will be $100 million.

c. the maximum limit of production of that coin

Unlike Bitcoin which has a fixed maximum limit of 21 million, CoinSewa doesn’t have such
boundaries.

d. miners’ fees

The miner’s fee of CoinSewa is $0.12 per to process, validate and verify the transactions of
that cryptocurrency.

e. Way of distribution of the coin to the people who invest in the ICO

The coins or the tokens will be distributed to the investors through “Uncapped First-Come
First-Served” technique as a “Smart Contract”. An unlimited number of tokens is sold at a
fixed price over an extended period. All buyers can buy as many tokens as they desire. There
is a no cap on the amount raised. Insiders (i.e. foundation, investors and/or development
team) are allocated a fixed percentage of the total token supply. Similarly, in smart contract,
developer of CoinSewa put the code by which the investors who send CS to the smart
contract address receive their tokens. One can add the payment dates too in smart contract.
CoinSewa ix

The Human Resources Structure and Cost

The HR structure of the CoinSewa includes founders, Development community and Miners.
Founders, the people involved in commencing the currency and the initial Coin Offering,
comprises of 4 individuals. The Development Community, involves people in the R&D of the
currency, comprises of 20 individuals. Miners are the individuals involved in the process in
which transactions for CoinSewa are verified and added to the blockchain digital ledger.

Team Required for Development Community and their salaries:

 One backend developer working full time for half a year(950 hours) charging
$40/hour to develop the backend service, database, etc. = $38,000

 1 Android developer working half a year at $45/hour to develop an Android

application = $42,750

 1 iOS developer for half a year at $50/hour to develop an iOS application = $47,500

 1 front end web developer to develop backend and frontend websites at $55/hour =
$52,000
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 1 graphic designer, a quarter of a year at $40/hour to develop designs for the website
and apps = $38,000

 2 QA engineers for half a year at $35/hour who will begin testing immediately =
$67,000

 1 PM who organizes all the work within half a year at $55/hour = $52,000

This project’s budget is approximately $337,250 USD.

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Finances

Cost of building the network:

The Price of the ICO

In order to create a successful ICO you’ll need to spend money and time on the following
things:

 The whitepaper: Cost: $0 USD

 The website of the company: When one runs an ICO, they want to cause the best
possible impression to the future investors so we will have to spend at least $5.000
USD because in that range the price-quality ratio is the highest.

 The token Smart Contract: A good Smart Contract developer with experience easily
charge more than $100 USD per hour. The creation of a custom ERC20 token, we
would need about 2 weeks to write the code, test all the possible changes and run
security audits.

Working full time 8 hours at that rate, 5 days a week will cost $8.000 USD dollars to finish
your custom token.

 The Crowdsale ICO Smart Contract: This is the program that will run the ICO to
distribute tokens to investors.

Therefore, to create a secure Crowdsale ICO Smart Contract with all the testing we would
need about 2–3 weeks of development. At a rate of $100 USD it will be about $10,000 USD
dollars for this contract.

 Smart Contract audits: These contracts will handle real money so security is a must.
It’s impossible to guarantee the complete security of a contract but there’re things like
Smart Contract audits that will help you find the most suble vulnerabilities.

The price of a professional audit from a reputable company could cost as much as $50,000
USD dollars but we can get by with an audit from an experienced individual for
about $10,000 USD dollars.
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 Marketing: Probably the most important step. Our ICO won’t get anywhere unless
the curious investors notice it’s presence. That’s why we will have to spend a lot of
time and resources promoting our ICO

 Communication channels:  We will hire a community manager to spend time on

social media, creating facebook post or Instagram images. We could hire one for as
little as $10 USD per hour.

If he works full time from monday to friday, that will be about $400 USD per week. Which is
roughly $2000 per month. Likewise, we will need to go where the investors use to spend their
time on internet. Cryto dedicated subreddits, ethereum news websites, social media and
forums. With paid advertising from google ads, facebook ads and forum ads, we’ll gain faster
traction with good results. About $5.000 USD dollars will give us a decent user base of
capable investors.

 Cost: $2000 USD per month for a community manager and content creator and
$5000 USD for paid advertising

 Legal Stuff: Our ICO needs a corporate entity for its legal structure.So, we would
spend $20,000 USD for legal fees.

 The Result

Finally, summing up everything it will cost us:

 $0 for the whitepaper + $5,000 for your website + $8,000 for the token +
$10,000 for the crowdsale contract + $10,000 for audits + $2,000 for a
community manager and content creator + $5,000 for paid advertising +
$20,000 for legal fees

 The total is $60,000 USD dollars to create a prosperous ICO and at least 3
months to create a polished presentation of our product, whitepaper and so on.
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Capital, Revenue Model and Future Pans

The Capital

Since, we will be offering 250,000 coins to the public through ICO costing $400 per coin. It
would generate us the capital of $100 million.

Revenue Model

In the first year of ICO, we would have a total inflow of capital of $100 million whereas the
cost of developing the network as well as the salaries paid to the developers and engineers
would amount to $ 397,250.

So, the revenue for our company in the first year after deducting the expenses would be a
total of $ 99,602,750 out of which 30% would be kept as reserve and 20% would be used to
develop the network and make it more advanced and secure.

Future Plans

 We have decided to make 3-years long term plan. The roadmap primarily will cover
technical improvements and changes designed to facilitate scalability, i.e. CoinSewa’s
capacity to handle transactions.

 Through our partnership with e-sewa and other international payment companies, we
will enable our users to buy CoinSewa with their mobile credit.

 We are also working on making CoinSewa for portable and freedom from the policies
and regulation.

 While different other currencies are facing the problems of legality and recognition, in
the next 3 years, we have targeted to be the most recognized and legally accepted
cryptocurrency in the most of the nation and we expect 90% recognition only from
South Asia.