The Ziggurat token was registered in connection with the Planetziggurat OÜ development project in 2017. Here is a plan written at that time, which characterizes the beginning of blockchains. Important parts of the plan, such as the depository and playfulness, have survived to this day.
PlanetZiggurat OÜ will develop project: ECEX.EXCHANGE TRADING PLATFORM
Here is some insight:
- Legal Parties, Value and Monetization
The process, from a legal point of view, is an assignment.The assignment is a process where the rights and obligations under an agreement are assigned to another person, including the right to claim money and/or other benefits owed to the assignor.
There are three types of legal parties involved: the creditor (assignor, assignee), the debtor and the trading platform provider (PlanetZiggurat, Ecex.Exchange)
The creditor (assignor, assignee)
The creditor can sell his claim every moment and this is his sole right.
To make it happen, Ecex.exchange uses simple contract of assignment and adds the necessary documents with a file container to the deal.
The debtor can use Ecex.Exchange not only as a passive observer, but there is a lot of opportunities where the debtor can make useful agreements helping himself with payment deadlines, lower costs, better cash flow.
One and the most interesting development can be the right to issue the debt. Then it is the debtor just selling a claim against himself, it mean that he can sell the agreements with accessories to possible creditors and can finance himself that way.
Value delivery and linkages
Value is delivered via a complex controlled linkage by Ecex.Exchange. The transfer of value is facilitated by all parties involved – assignment sellers and investors. The main component is SigmaCapital OÜ running and maintaining the Ecex.Exchange trading platform, which allows for assignors to place their assignments for sale and buyers can buy assignments.
Ecex.Exchange has a built-in monetization model, that where Ziggurats are transferred out to fiat currency, a transaction fee will be charged partly in Ziggurats. Hence, both assignors and investors will be contributing to the revenue of Ecex.Exchange. The transaction fee will be a fixed percentage that is levied on every withdrawal.The platform includes a “game-like”, „traider-like” component where investors can compete in bidding for assignments to invest in. The winner will be the highest proposed price for assignment. The bid and askwill be open for 24 hours, where the winner will then proceed with the winning assignment price bid. Ecex.exchange ecosystems look like the stock trading platform.
- The platform provider Ecex.Exchange
Historically, exchanges were the locations where buyers and sellers met and negotiated. Our platform are between the creditor and the debtor, but they buy and sell contracts in a very similar way. Ecex.exchange provides a trading platform with listings of instruments (claims, loan agreements) and bid/ask possibilities and all the means and steps to complete transactions the way the contracting parties agreed.
Technical Solution, Software, and Hardware
1. For Securities Registry and Depository functions, we plan to use Depend, developed by Percival Software Ltd. (http://www.percival.co.uk/). This company has been in the Depository and Exchange business since 1986. They have many international clients from Royal Bank of Canada (RBC Trust (Trinidad & Tobago) to Nasdaq-OMX. They have integration with several systems like T2S, Swift, Crest etc.
2. The Trading platform is planned to be developed. Percival is the primary choice. It will also guarantee maximal compatibility with the Depository.
3. Additional development is planned to integrate the Trading Platform and the Depository with external signing authority like blockchain.
4. Depending on further developments, there will be the need for some or all:
– Integration with external payment systems
– Integration with external systems to exchange info, e.g. brokerages
– Web-interface to online trading
– Mobile applications
5. Web, https://ecex.exchange/
In the first stage, the software can be set up on some hosting or Azure. Next stages will need proper analysis and decisions how do set up hardware solution. The core system is in rapidly developing Microsoft dot.net framework. It ensures corporate support in future.
Core system diagram
- Indirect Market Indicators
1. The trading ecosystem is growing. For example, Interactive Brokers accounts number increased from 97 K in 2008 to 385 K in 2016 and the volume increased from 2.3 B shares to 12.3 B shares.
2. It is a matter of time when fintech will tear apart companies’ balance sheets and will offer different financial opportunities. Receivables are already in focus of three startups: arex.io, marketinvoice.com and theinvoicemarket.com.au. All three are dealing with invoice financing and developing new approaches.
3. The development of technology will lead us to automatization and in some point financial ecosystem needs solutions for fast realization of claims, invoices and factoring agreements.
4. Baltics: Distressed claims are usually sold at auctions, which sellers hold yearly, quarterly or monthly. Sizes of portfolios vary from thousands to several million. PlanetZiggurat estimates the market size to be nearly 100 M EUR, measured as the total value of the claims sold. Distressed claims are the first target for testing our systems.
5. Lending clubs and others alternative finance companies in some ways trade claims and consumers, investors are already aware and confident about the claim market.
6. Liquidx, auction-based marketplace provides a transparent platform for financial assets. This means that bigger institutions are already dealing in the claim market through marketplaces.
- Financial Projections
PlanetZiggurat is aiming for 1 million trades per day by the end of the third year. Our revenue will come from services including: trading fees, issuer background check systems, digital signing, exchange member fees etc. The cash flow will be similar to stock exchange business. The only difference will be instruments and a set of agreements.
We cannot predict the volume of the trades, but we can estimate if we look at the data of the claims, invoices and factoring trades in the world. The factoring volume in the world is approximately 6 B USD .
PlanetZiggurat exchange will produce information flow which is similar to stock exchange information flow. If our trading platform connect to automated trading platform and electronic order book trading platforms, the flow of clients will be guaranteed.
- Funding overview
We plan to start in Estonia because of the price. Keeping our costs low, we can also create a more attractive price list.
Our budget for phase 1 (two periods) is roughly 3.57 M EUR.
Phase 2 budget will be clear by the end of phase 1.
An example for us is IEX Group http://www.marketswiki.com/wiki/IEX_Group. IEX raised first, second and third round 1.5, 9.4 and 15 M USD respectively during two years.
Period 1 December 2017 – April 2018
1. The first stage Depend license for one server
2. Trading Platform development
3. Additional integration work
4. Depend goes live (no UI)
5. Trading Platform Modulus
6. Server (hosting agreements)
7. Internal testing
8. Ecex.Exchange goes live
9. Customer testing
Period 2 March 2018 – December 2018
3 – 5 months (together with phase 1, maximum 9 months)
1. Additional development is planned to integrate the Trading Platform and the Depository with external signing authority like blockchain.
2. Integration with external payment systems
3. Smart contract Integration and development works
4. Integration with external systems to exchange info, e.g. brokerages
5. Trading Platform Modulus global integration
6. Web-interface to online trading
7. Mobile applications
8. First steps to expand globally
In the first period, approximately 2 – 4 months, we will open the trading platform under Estonian laws and regulations. In the second period, we will start platform launch in several languages and jurisdictions. We are looking for investors willing to finance phase 1 and willing to continue with us for minimum next 3 years (phase 2+).
Our phase 2 goal is to expand globally, open trading platform for claim market in Shenzhen/Hong Kong area, in London and in New York.