CEU Electronic Theses and Dissertations, 2018
| Author | Arora, Manshul |
|---|---|
| Title | Financial Model of a Decentralized Payment Platform - Uppcoin |
| Summary | Summary In the field project, I have worked on developing a financial model for Uppcoin. The current world of peer to peer lending is mostly governed by two financial infrastructures; Banks and Fintech Firms. Banks are based upon the concept of trust and act as third parties to process the payments. However, it has been found that the transaction using banks are time consuming, costly and there has been various cases of security breaches.Some of the Fintech Firms which tried to solve above stated problems are PayPal, Venmo, Square, Facebook payments, ApplePay, Google Wallet, Mpesa, WeChat Pay, TransferWise. These services act as a middleman, are relatively cheaper with respect to banks and the transfer can easily be done on your mobile phone/computer. However, we have seen that the transactions are often delayed if an account is blocked by the service provider due to unusual activity or if the platform experiences an outage. Uppcoin is a blockchain based firm which is aiming to enter the peer to peer transactions market. The firm is aiming to make peer to peer transactions more seamless and accessible to general customers by adding more security and making cheaper transactions using the power of blockchain. Uppcoin is a blockchain based fintech firm whose goal is to make faster payments with less costs along with inbuilt consumer information protection. The aim is to use the power of blockchain to make transactions information distributed in a wide way so as to make it practically impossible to hack. In addition, Uppcoin aims to depend on blockchain for transaction and hence removing the various intermediaries for the transaction and thus making the transactions fast and cheap for customers. The financial model is constructed by first making the basic assumptions about the company’s industry as information services and then the various sources such as Statista, Damodaran etc are used to get the data about the similar firms in the industry. Due to the unavailability of most reliable data for Information Services Companies in Central Eastern Europe Region, it has been further assumed that the Uppcoin financials would be much similar to Information Services Companies in Western Europe These industry statistics’ ( ratios ) were further assumed to make the key assumptions for calculation of firm’s revenues , costs and valuation etc. After making the key assumptions, the main financial reports such as Balance Sheet, Income Statement and Cash Flow Statement have been modeled for a period of 5 years (2018 – 2022) along with providing the key graphical representations with respect to the period. Further, Free Cash Flow Calculations and valuation calculation including the IRR calculation has been done. Finally, the competitive analysis has been presented based upon the important ratios and key conclusions & suggestions are provided. < br> < br> < br> < br> < br> < br> < br> < br> \ < br> < br> End |
| Supervisor | Szilágyi, Péter Gábor |
| Department | Economics MSc |
| Full text | https://www.etd.ceu.edu/2018/arora_manshul.pdf |
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