What exactly is the BDIC business model - a marketing/acquisition platform for the insurance providers to underwrite and issue new policies?
BDIC is an insurance company that focuses on the digital asset class known as cryptocurrency. BDIC’s offerings consist of regulated insurance products provided to retail investors as well as institutions, offering asset protection for BDIC qualified cryptocurrencies while under the custody of BDIC qualified custodians. The web-based and app versions will be capable of displaying and managing multiple wallets for fluid consumer navigation, facilitating the insuring, adding, and growing of their crypto portfolio with confidence.
Is there a BDIC platform/website being built?
Yes, see attached the technical details regarding the MVP/app/web platform.
Is there any custodial aspect to this, or not touching any of the currency/wallets?
We will not provide custodial services for clients at this time.
How does BDIC make money vs. how do insurance providers make money on the [$30/month subscription cost]? Is there another assumed source of income for BDIC?
- The subscription fee tiered model is based on the average dollar balance. Most users on an exchange have ~$5,000 USD in balance.
- NOTE: There will be a special insurance policy product that we will offer to BDIC qualified HNW customers and institutional customers who will want a BDIC insurance policy on their wallet(s). Those premiums will be much higher than our subscription fees. Our subscription model is for the masses and will be incredible for our marketing efforts to grow our users/customers worldwide and gain the interest of investors for our ICO.
What is it expected to look like at time of launch versus in [3-5 years]?
- BDIC at the time of launch (Summer 2024) will be the first subscription based insurance company providing insurance coverage plans to the digital asset class. We will have media awareness on digital asset/currency blogs, round tables, as well as social media endorsements from several top known names in the digital asset class sector leading up to the launch. We will also have brand name strategic partners for consumer credibility that we will divulge closer to the launch with co-branded advertising.
- BDIC is an obvious benefactor of the emerging exchange threat by cyber attack, platform hack/implosion, or just the fear of apocalyptic times. We believe digital insurance is going to emerge as a priority, much like we see our existing FDIC insurance during this time. We see this as the perfect storm coming into an election season, with existing money supply and a pending deflationary environment, jobless growth and confidence issues overall pushing consumers to this alt asset class who will be able to secure insurance just like they have been trained to do on their auto, home and valuables.
- In addition, our multifaceted strategy of cash-reserves + Insurance + Reinsurance + ICO will see gradual to immediate growth within our first calendar year of business. We expect to go from 20K-40K monthly subscriber growth to upwards of several million in short order once we are exposed to the platforms mentioned (*specifically at the SAAS level at launch once MVP is commercially ready in 2 to 3 months) as we will have a few key platforms under contract for revenue sharing based on user adoption and a marketing campaign for awareness of product availability.
- The growing awareness and adoption of cryptocurrency will only continue to increase during years 2 and 3 while additional countries and governments embracing blockchain technology become fully engaged, thereby lending credibility for more of the world’s population to join the cryptocurrency community. This means a massive opportunity for BDIC insurance products to see more adoption.
What is the business model behind the "zero/negative coupon bond" business line that's reinvesting premiums and the revenue share behind that?
- The mention of this negative coupon bond was only to compare to the similarity in the “yield to maturity calculation” theory, example only.
- Separately, the revenue sharing of the premiums deposited:
○ 10% of the premium would go to the platform exchange
○ 90% would go to the BDIC fund which will be handling the reinvestment strategy
of the premiums on deposit based on investment policy statement.
○ BDIC will employ strategic investments in digital asset currencies, platforms and
it’s own platform/security
What is actually being insured (i.e., what specific events of loss) - theft, hacks, lost passwords/cold storage devices, insolvency of a deposit taker, hedge fund going belly-up?
Theft, hacks of exchange wallets, exchange system failure, exchange internal fraud.
Where is BDIC headquartered (US or non-US?) Will customers all be non-US?
BDIC headquarters will be both Bermuda and Bahamas with offices in Asia and Europe. Customers will be non-US citizens at launch and eventually US-citizens will be offered our insurance services.
What is the assumed customer demographic (location and age)?
- Age range of 18-60 years old, with Gen Z and Millenials making up the majority.
- Top countries will be Singapore, Switzerland, Germany, Canada, Malta, El Salvador,
United Kingdom, Indonesia, Portugal, Japan, India, Brazil, Hong Kong, Bermuda,
Bahamas, Cyprus, Dubai, Luxembourg, The Netherlands, Taiwan and eventually China
and the United States.
Who determines customers that are acquired (BDIC or the Insurance underwriters)?
- BDIC protocol during our strict underwriting process will determine which customers can
be insured by our coverage plans and become policyholders of BDIC insurance. This
SOP was created based on coupling KYC/AML with existing insurance industry
guidelines.
How is ICO being done, how much and what FD valuation, what is exact use of funds from ICO (versus the [$1.5mm-$3mm] of strategic capital being raised)?
TO BE DISCUSSED ONLY
MARKETING AND MEDIA FAQ’s
1. Target Media Outlets:
Please provide your preferred target media outlets for reference:
Forbes; Wall Street Journal; The Economist; Bloomberg; Business Week; Fortune; Inc Magazine; Harvard Business Review; Barrons; CNBC; CNNMoney; Investors Business Daily Fast Money; MIT Sloan management review; Financial Times; Entrepreneur Magazine; The Street; Market Watch; Kiplinger Magazine; New York Times; LA Times; Chicago Tribune Consumer Reports; Coin desk; Coin telegraph; Bitcoin magazine; Decrypt; The Block; Blockworks; CryptoNews; Coin geek; The Defiant; UToday; Bankless.
2. Public-Facing Web Asset:
A primary necessity for a marketing/branding initiative is having a central web asset to
point back to. At what point in the upcoming 6-month runway do you anticipate having a public-facing site (even if it’s basic)? The full web app will take longer, but getting a homepage or blog live ASAP would help drive traffic in tandem.
We will have a Homepage website and we will have our weekly BDIC blog newsletter.
We would also want Status Labs to create our Wikipedia page as soon as possible. Very important for us to have the Wikipedia page early. We would also have our X/Twitter account, instagram fan page BDIC LinkedIn account and Facebook fan page.
3. Product Launch Stages:
How phased do you envision the product launch?
Pre-launch for general public
Pre-launch for the investment community (90 days duration) Launch (90 days duration) Post Launch
4. Key Influencers:
Please provide us with a few names of key influencers you envision as a good fit:
Raoul Paul, CEO of Real Vision
Anthony Pompliano, CEO Professional Capital Management James Altucher, Founder Invest Answers
5. Influencer Strategy:
target specific demographics early on, such as the crypto-savvy younger generation or older, more conservative investors that likely require more education to tap into or in tandem?
We will target the older conservative investor and the younger crypto-savvy in tandem.
6. B2C/B2G Marketing Efforts:
Regarding digital/paid ads and B2C/B2G marketing efforts, when do you envision going to market with a product offering? How early in the process should we begin reaching out to influencers?
We believe that we should engage our influencers after we have a handful of published articles online. The publications will allow for the influencers to read about us and educate themselves about our business model making it easier to understand why they should work with us.
7. Tone and Style:
What tone and style resonate most with you for this campaign? Are there any brands or ad campaigns you find particularly effective?
Forbes and Vanity Fair articles. The font, layout and style of investigative journalism.
8. Insurance Model Language:
Could you elaborate on how you want to position BDIC’s insurance offering as “real” compared to competitors’ custodianship?
BDIC will launch with our lead product being Deposit Insurance coverage. We will be the first subscription service model insurance provider. We will be the only insurance provider in the space that would implement a cash reserve backstop as an additional safety measure behind our insurance policies. We would be the only insurance company in the space that has our own cryptocurrency. We will distribute the BDICoins to our first 100,000 clients once our initial coin offering process is complete. We will pledge never to sell a third (33%) of our total available coins, as the 33% of our coins will serve as an additional reserve asset currency backup to our
cash reserve account and our insurance policies.
9. Non-US Market Messaging:
Since you’re targeting key regions like China, India, Latin America, and Dubai, do you have preferences on specific countries or markets with adopted crypto user base? Hong Kong, Shanghai, Beijing, Singapore, London, Monaco, Switzerland, Tokyo, Luxembourg, Frankfurt, Paris, Dubai, India, Taiwan, South Korea, Macau- these are the major financial hubs.
10. Regional Focus:
How heavily do you want to prioritize specific regions (US vs. international markets) at this stage? Any preferences for balancing between them?
Palo Alto, San Francisco, New York City, Chicago, Greenwich, Palm Beach, Miami, Los Angeles, Atlanta, Austin and St Augustine are the US market and we believe penetrating markets will guarantee success in our market awareness campaign.
11. Investor Messaging:
How do you want to position BDIC to potential investors in markets like Palo Alto, Palm
Beach, NYC, and Greenwich? We believe a unified messaging approach will suffice.