CyberTrust will act as a conventional bank that provides basic needs for crypto resources. In this regard, CyberTrust's approach depends on advances and techniques which have been used by considerable financial organizations for quite a long time. The main focus area of cybertrust is the institutional investors. These customers are in the time spent expanding into the recently rising crypto assets classes.
The CyberTrust website is https://cybertrust.io
CyberTrust Business Strategy and Operations
The CyberTrust Platform will work as an open answer for crypto securitisation and subordinate items advertise making. CyberTrust will give access to ClearStream Banking, and OTC markets, together with institutional deals and research operation, such as institutional investment banking. CyberTrust’s main office is located in Luxembourg. Additional offices will be created over time.CyberTrust plans to set legitimate and specialized models for crypto custodial administrations. This procedure of securitisation secures crypto resources and gives titled responsibility for crypto asset-backed securities with all important legitimate, assess, Know Your Client, Anti Money Laundering, and administrative highlights. As a result, these securities at that point give connection to customary markets with a huge decrease in exchanging settlement and clearing dangers.
The crypto tokens that have been changed to securities are eliminated from the crypto world inasmuch as the significant securities exist. They can be returned to their initial form after the security has been cancelled.
CyberTrust Technology
A secured solution for cryptocurrencies has been provided by CyberTrust. In order to shield the deposited crypto from being released or stolen, all approaching exchanges come to one-time/brief time accounts. Private keys are generated for these accounts in a secure network. They are revealed to blockchain just for a short time that the transfer will spend in carrying out. These private keys will not be released immediately by the secure networks in order to avoid security breaches.Some of the devices that will be used for this technology are;
- In-Memory Data Grids (IMDG): In-memory data grids store data in its memory, and it makes large amount of data highly available. This will be used for easy expansion and to improve performance.
- Network Isolation: This will be used to safely store private keys and keep highly sensitive data.
- Neural Networks and machine learning: the neural networks system and machine learning will help in detecting any act of fraud in the system, and also spot any security breach.
- Strong security on the client accounts. It will have features like authorization by sms or voice messages which will ensure authentication.
Problems of Cryptocurrency and Solutions Provided by Cybertrust
The main problems of cryptocurrency that have been identified by cybertrust.- No titled and auditable ownership: Crypto assets are not capable of being traced within fiat systems, they do not have titled rights that b can be used by institutional investors, crypto assets cannot be audited also, and cannot be used as collateral within standard bank scheme.
- Abnormality in clearing and settlement risks: All crypto trading is done through ‘over the counter’ or crypto exchanges such as Bitfinex, and those exchange channels have compelling clearing and settlement risks.
- No legal recovery process, provided there is any problem: Blockchain transactions are final and irreversible regardless of what a person’s legal contract states. There is no principal body that is governing crypto assets, although many investors prefer it that way, but it might be dangerous for all financial institutions.
- Risk of theft through cyber security breach: There can be significant threats to cryptocurrencies in many ways. One of it is the tendency for the wallet to be hacked when transactions are not done by dependable hardware but carried out on untrusted applications or websites. Also, there might be hacking on the crypto exchange platforms.
Cybertrust plans to eliminate these problems in the following ways
● By turning cryptocurrency into a security claimThey have taken the following steps and planned on doing the following in order to bring this to pass.
- Create Global Crypto Notes (GCN). This will enable each holder of a GCN have a legal claim to its basic crypto assets like bitcoin, ethereum and bitcoin cash.
- There will be Off-chain storage which will be provided by Xapo to secure the private keys of the basic crypto assets in a specialized Cold Vault secure facility, together with insurance on all Hot Wallet Transactions.
- All Global Crypto Notes will have a registered International Securities identification Number.
- There will be a safe and regulated clearing in all trade.
● Creation of a token that will be used to increase the safety process.
Token and Token Sale details
The name of the token is ‘Crypto Asset Backed Securitisation’ token and it is represented by CABS. The CABS token is a token based on ethereum ERC-20 standard and it supports values up to eight decimal places.The Initial Token Offering (ITO) date is from 27th November, 2017 to 21st December, 2017.
A total of 500,000 tokens will be available during the initial token sale.
Accepted cryptocurrencies for the token sale are bitcoin, ethereum and bitcoin cash. Also, USD Tether, Swiss Franc and Euro are accepted.
0.5 ETH, which is equivalent to 0.025 BTC or $150 will be able to get a 2.5% securitisation premium.
Bonus on Tokens
For every CABS token sold, 0.2 additional tokens will be allocated to teammembers, early buyers, partners, advisors and bounty participants. At the same time,
0.3 additional tokens will be allocated to the token reserve. Bonuses will be paid
out of this reserve. Some of these bonuses will be time locked.
Reserve and Token Buyback
The fundamental reason for the reserve is to shield CABS token holders from fluctuations of token value following the Initial Token Offering. The reserve will be utilized to ensure the token cost by buying back the tokens. Every net fund raised that surpass an equivalent of 35 million Swiss Franc (CHF) will be utilized as a hold until 31 December 2018 or until an ISIN for CABS-linked Worldwide Crypto Notes or an equivalent of it has been disbursed and the same are exchanged and settled by means of Clearstream Banking S.A. The funds may likewise be utilized as working capital for securitisation pools. After the above date, there might be an extension on the utilization of these funds to different regions by CyberTrust. The exact rates held in every money may fluctuate at CyberTrust's prudence.Purchase Process
Purchases can be made at the site https://tokensale.cybertrust.io. Token purchasers should first enroll by entering and affirming their email address. After enlistment, clients access their own records at https://tokensale.cybertrust.io where they can pick the coveted number of CABS Tokens and pay for them with one of the cryptocurrencies offered, or create a receipt for a wire transfer.As soon as the payment is made, the information about CABS Tokens credited to the
CABS buyers will appear in their accounts at the purchase site, https://tokensale.cybertrust.io The cryptocurrency exchange rate is fixed at the time when the transfer is received, time stamped in UTC.
After the CABS token sale is over, an individual account will be consequently produced at https://tokensale.cybertrust.io for each CABS Token holder. CABS tokens will be issued and sent to these accounts. After this step, the Token holders may transfer their CABS Tokens to any outsider ETH wallet supporting ERC-20 standard that they wish, including the downloadable independent version of "MyEtherWallet".
All returns from the CyberTrust CABS Token sale will be kept in escrow. All the escrow funds will be exchanged to BTC, ETH, BCH and EUR during the escrow reserve period.
The funds will then be discharged from escrow to CyberTrust S.A. in two stages with the
satisfaction of CyberTrust commitments to CABS Token holders in this order:
30% will be released at the end of Token Sale;
70% will be released after BTC GCN ISIN is enrolled AND Clearstream Banking S.A. begins to clear and settle new BTC GCN.
Benefits of Being a CABS Token Holder
One CABS token will give the holder the right to the following.- The right to exchange one btc into one bc global crypto note.
- The right to convert ethereum and bitcoincash into global crypto notes at prices linked to btc.
Functions of the CABS token
● It grants the accredited investors that are buying tokens permission to secure cryptocurrencies for up to 35 percent or more, to the present BIT premium.● It gives the public that is investing a device to contemplate on the size of the premium.
Risks Associated With Being A CABS Token holder
As we all know, there might be risks in anything we plan to venture into, no matter how sweet it may be. These are some of the risks as stated by the CyberTrust whitepaper;The value of bitcoin or other cryptocurrencies may go to zero: Although bitcoin is the most widely used decentralized cryptocurrency, anything can happen and it might just become insignificant and turn to zero value.
Price difference between securitisedbtc and btc: Around the start of the second half of 2017, the market for securitised Bitcoin was exchanging at a noteworthy premium to the cost of basic Bitcoin on the crypto markets. In spite of the fact that this premium may hold on as the demand from institutional financial specialists develops, there can be no confirmations or ensures, express or verifiable that such a premium will keep on existing. Something similar will have to do with ethereum, bitcoin cash or other crypto assets securitised by CyberTrust later in the future.
Risk of hacker attacks and dependence on IT infrastructures: CyberTrust relies on software applications , computer hardware and the internet to function. There can be no assurance that there will not be bad effects on the use of CABS in case of system failure. In spite of all security measures taken by CyberTrust, there can still be cases of vulnerability to computer viruses and physical or electronic hijackings. This may bring about intrusion, delay or suspension, or altogether end of CyberTrust administrations, which would constrain, or in a portion of the most pessimistic scenarios, may end the utilization for the CABS.
Value of CABS token could decrease to zero; CABS may be highly volatile and the value of the token could go to zero. CyberTrust cannot guarantee the specific period of time that the token will have a good value.
Regulatory Risks: Blockchain innovation, including, however not restricted to the issue of tokens, may be a new idea in some areas of authority, which may then implement existing laws or, then again present new directions with respect to blockchain technology-based applications. Such directions may strife with the present CABS smart contract setup and Taxis Token idea. This may bring about the need to make significant adjustments to the CABS smart contract, including yet not restricted to its end, the loss of CABS Tokens, and the interruption or end of CyberTrust securitisation exercises.
Execution Risks: The CyberTrust group may be unable to achieve set KPI's and developments on the set time. The task is earnest. Key Performance Indicators (KPI), for example, the registration of BTC ISIN, the agreement with Clearstream, and the start of clearing and settlement may take longer than anticipated. Luxembourg may change its administrative system, which may influence existing lawful and assessment structure in an unfavorable way. This may bring about a decrease in the value of CABS token, taking it to zero or the task not having the capacity to be actualized.
Risks Related to Smart Contracts: The development of smart contract technology is still underway, and its application is still being tested. This may convey compelling risks relating to operation, technology, regulation, finance and reputation. Thus, in spite of the fact that the audit directed by an autonomous outsider expands the level of security, unwavering quality and precision, this review can't fill in as any type of guarantee, including any communicated or suggested guarantee, that the CABS Smart Contract is fit for a reason or, on the other hand, that it contains no defects, vulnerabilities or issues which could cause specialized issues or the total loss of CABS tokens.