Whitepaper English

Cuffcoin

As a business or entrepreneur you are not waiting for uncollectible receivables, but sooner or later everyone will have to deal with customers who do not pay their payments. Claims are time-consuming, costly and it is always uncertain whether the claim can be recovered successfully. Juristu is a specialist in the area of ​​debt collection services and in 2017 and 2018 had a collection portfolio in management worth approximately € 100 million.

Juristu is the initiator of Cuffcoin, the first blockchain-based platform that makes it possible to buy every claim worldwide. For example, Cuffcoin makes it possible to collect millions of debts through crowdsourcing that would otherwise not be collected. Often costs have to be incurred for a legal procedure to collect the receivables. Many creditors see this and exchange their claim for a number of Cuffcoins. Approximately € 500,000 worth of claims have already been exchanged for Cuffcoins in the pilot phase.

Resume

This summary should be read as an introduction to this Whitepaper. Any decision by potential claimants to exchange them for the Cuffcoin must be based on an examination of this White Paper, including the attachments.

Issuing institution: Cuffcoin B.V.

Website issuer: https://cuffcoin.com/

Type of issue: Security Token Offering Cuffcoins where each Cuffcoin represents the Economic Righteousness on a share

Sales volume: 100,000,000 Cuffcoins)

Barter price: € 1,- each Cuffcoin

Purpose Issue: Barter capital

Risk profile: High

Target group issue: Claims in general, which must be legal, judgments and difficult to collect receivables

Expected return: Not predetermined, depending on the financial results of the issuing institution

In total, 100,000,000 Cuffcoins have now been issued. The issued Cuffcoins represent a percentage of the profits of the underlying shares in Cuffcoin B.V. As of October 17, 2018, there are already about 390,000 Cuffcoins in exchange for which € 390,000 in receivables have been obtained. The Cuffcoins are used to take over claims.

Which underlying economic righteousness does a Cuffcoin offer?

The holders of Cuffcoins are entitled to the profit of Cuffcoin B.V;

The holders of Cuffcoins are entitled to a distribution of the value upon sale of Cuffcoin B.V ..

In addition, the tradability of Cuffcoins is laid down in the contracts and the holders of Cuffcoins are entitled to certain protection clauses in agreements with Cuffcoin BV to maintain their value.

Unique Selling Points

What makes the CuffCoin unique is the fact that in principle any claim could be bought. This is in contrast to factoring companies, which can not or do not want to take over all claims, or pay a lower price for this. Even if a claim proves to be uncollectable, the creditor who obtains the Cuffcoins will still participate in the overall profit of Cuffcoin through these Cuffcoins, and not only on his individual claim.

Moreover, the Cuffcoin is launched via Juristu, one of the most rapidly growing collection agencies in the Netherlands. This is due to their tight and consistent ’10 days approach ‘. Through this approach whereby the debtor is approached via a tight communication protocol, the debtor pays in 85% of the collection cases within 10 days.

Revenue model

Cuffcoin B.V. Purchases receivables from debtors for a fee with a large discount through an exchange with Cuffcoins. Cuffcoin hands over her claim to Juristu debt collection services B.V., who will try to collect the claim. In this way, Cuffcoin expects to be able to collect 60% of the acquired receivables. As soon as the claim has been collected, this amount will fully accrue to CuffCoin, minus the costs incurred. The value of the Cuffcoin will increase as soon as more receivables are taken over in this way.

Six months after completion of a financial year, holders of Cuffcoins receive proportionally a percentage of the net profit of Cuffcoin B.V. In addition, when selling Cuffcoin, they are entitled to a part in proportion to the proceeds. Investors then receive pro rata part of the value based on the level of their investment.

So far achieved

Pure CuffCoin has been very successful through its own customer network. To date, Cuffcoin has issued 390,000 Cuffcoins in exchange for existing claims totaling € 390,000. Currently the procedures are being performed for the collection of these claims. As far as the parent company Juristu Holding is concerned, many receivables have already been collected and the clients are satisfied. In total, Juristu has a debt collection portfolio in 2017 and 2018 in the amount of € 100,000,000. Many claims that Cuffcoin takes over come via the Juristu network.

For the Barter

About Cuffcoin

The Cuffcoin is launched by Juristu as an STO (Security Token Offering). Like an ICO, this is also based on Blockchain, but the main difference is that this is not a user’s token or currency, like an ICO, but an effect. This means that an investor actually gets an economic interest in a company.

Issue of the tokens

100 million tokens will be available. These tokens are used to purchase receivables.

Ethereum network

Ethereum network provides a medium for interaction between companies and users. Parties communicate by sending transactions to the Cuffcoin contract. All transactions have been validated by contract business logic and included in the blockchain. Contract API is open to all internet users and everyone can become a user of Cuffcoin token.

Interaction at system level

The eToken protocol supports two primary account security models: user keys and a hosted portfolio. In this case, the private key that unlocks the account is known only to the end user.

Hosted wallet

In this case, a financial institute (a provider for the exchange of portfolios) is responsible for the most important security. Only 1-2 keys per institution are used and transactions are routed to specific user accounts using ICAP6.

Risks

General risk factors of exchanging with the Cuffcoin

Adverse change of laws and regulations due to political decisions;

Change in macroeconomic conditions;

The issuing institution depends on the performance of the board members;

Competition risk in markets where the issuer is active;

Risk of bankruptcy or suspension of payments of the issuer;

Tax risk due to legislative change, new regulations or political decision-making.

Company-specific risks

Procedural costs must be incurred, with not always successful result as a result;

Cuffcoin has done a pilot for purchasing a limited number of claims, it has not yet been proven in the market that this will work on a large scale;

Cuffcoin and Juristu are both young organizations with limited track record, which means the assumed assumptions are at risk.

Product-specific risk factors

Loss of deposits due to the activities of Cuffcoin B.V. do not generate sufficient income or value;

Illiquidity of investment in such securities;

Rarity of dividends when investing in young companies;

The holders of Cuffcoins will be diluted by issuing new Cuffcoins for the purchase of receivables. Juridic structure

The provider is different from the issuer of the Cuffcoin. The Cuffcoins will eventually be issued by the yet to be established entity Cuffcoin B.V. Juristu Holding will acquire 100% of the shares and the Cuffcoin holders will receive a pro rata profit sharing.

Juristu Holding continues to work with local entities for its services. In addition to the Netherlands, there are activities in France, Germany and the United States. These international activities are active via www.juristu.eu. The focus of Cuffcoin will also be international, taking service from the other Juristu Holding entities.

TEAM

Maurits Hennen

Owner and director Juristu Incassodiensten BV.

Entrepreneur, marketer with a broad view on all aspects of debt collection, debt barter and debt buying. Direct experience with direct contact with companies looking for solutions for collection. Easy contact in communication with business people. Sharp entrepreneurial focus. Fast, simple and hard working to expand the company. Working together with a fantastic team of enthusiastic people.

Mr. Denise Schouten

Advocate and supervisory director of CuffCoin, owner of AcrisLegal.nl

Mr. Schouten is a lawyer and founder of Acris Legal. Mr. Schouten, with her years of experience in the legal profession, quickly reaches the heart of the matter. Fast, adequate no-nonsense legal services. Commissioner at Cuffcoin and is regularly involved in complex legal issues.

Mr. Gamze Gökse

Head Legal Department Juristu Debt Collection Services

Gamze is responsible for all legal debt collection cases of Juristu. The summonses for collection cases are essential in the collection world. Who will receive the summons? Who is ultimately responsible? If they are indeed liable, they will receive the summons. Gamze knows what she is talking about and thinks in solutions. The goal is clear: to collect money for clients.

Jelte Klaver

Jurist

Jelte is multi-usable and thinks and does in solutions. For example, if there are debtors who want to arrange, Jelte will handle the case. In case of settlement, the debtor must also pay the costs. Jelte thinks practically and has a debt focus. Money must be collected quickly.

The product

The Cuffcoin was launched by Juristu and Cuffcoin as a STO (Security Token Offering). Like an ICO, this is also based on Blockchain, but the main difference is that this is not a user’s token or currency, like an ICO, but an effect. This means that an investor actually gets an economic interest in a company.

CuffCoin is a barter tool for buying up receivables. This can be the following:

Invoices;

Rental agreements;

Judgments;

Decisions;

Arrears.

Many outstanding receivables are offered through Juristu Debt Collection Services, which start the ten-day amicable collection. If the amicable collection does not work, a direct debit can be transferred. The costs for this, such as court fees, must be paid in advance by the client. If the client indicates that these costs can not be paid in advance, a CuffCoin barter is usually created. CuffCoin looks at the claim and looks at the recoverability and then offers the client a number of CuffCoins. In 71% of the lawsuits the defendant does not show up at the court, so CuffCoin immediately has a judgment. CuffCoin then instructs the bailiff to signify the judgment and to execute it with the debtor. The funds that come in will benefit the capital of CuffCoin.

The creditor who has received CuffCoins may also have submitted a claim that is not successfully completed. However, the creditor is not paid out on the basis of his individual claim but communicates the creditor in the overall value of the Cuffcoin.

With CuffCoin we put a product on the market with which creditors do not have to invest, but make a barter / exchange for their outstanding claim. Unique

The unique concept at the CuffCoin is that every claim can be bought. Even if a claim turns out to be uncollectable, the former creditor can announce the profit of the whole. Instead of selling claims for a low amount to a factoring company, companies can achieve more profit through Cuffcoin.

The Cuffcoin is launched via Juristu, one of the fastest growing debt collection agencies in the Netherlands. In 2017 and 2018 she managed a debt collection portfolio of approximately € 100,000,000. This is due to the tight and consistent 10-day approach. This approach is successful, with 85% of the debt collection cases being paid by the debtor within 10 days.

Revenue model

Cuffcoin B.V. Purchases receivables from debtors for a fee with a large discount through an exchange with Cuffcoins. Cuffcoin hands over her claim to Juristu debt collection services B.V., who will try to collect the claim. In this way, Cuffcoin expects to be able to collect 60% of the acquired receivables. As soon as the claim has been collected, this amount will fully accrue to CuffCoin, minus the costs incurred. The value of the Cuffcoin will increase as soon as more receivables are taken over in this way.

Six months after completion of a financial year, holders of Cuffcoins receive a pro rata share of the net profit of Cuffcoin B.V. In addition, they are entitled to a part of the proceeds on a pro rata basis when selling Cuffcoin. Investors then receive pro rata part of the value based on the amount of their Cuffcions.

Scalability

Because tokens can be traded against claims in an online environment, the plan can be scaled up digitally in a very simple way. In addition, large numbers of direct debits can be taken over via Juristu, which also makes the activities scalable.

Current status

Purely via its own network, CuffCoin has already run a first pilot phase. To date, Cuffcoin has issued 390,000 Cuffcoins in exchange for existing claims totaling € 390,000. Currently the procedures are being performed for the collection of these claims.

As far as the parent company Juristu Holding is concerned, many receivables have already been collected and the clients are satisfied. In total, Juristu has a debt collection portfolio in 2017 and 2018 in management for an amount of € 100,000,000. Many claims that Cuffcoin takes over come via the Juristu network.

Further developments

The next step that will be taken is the roll-out of the network outside Juristu, through online marketing. The goal here is to buy a lot of business-to-business receivables. At the moment 99% of the Cuffcoin barters are established via the Juristu network. The main focus is on the Netherlands, but we certainly also look to France, Germany and America.

In 2019 it is therefore the intention to start in the United States of America, Juristu has also opened an office there. The expectation is that a lot of claims will be taken over, since it is not possible in America to pass on the collection costs to the debtor. The creditor who has an outstanding claim must itself bear the extra collection costs; this is in contrast to the collection law that applies in Europe. In 2018, the total market environment for bad debts in the US is estimated at around € 12.1 billion. Of the total number of receivables that can be taken over, 25% is expected to be processed by Cuffcoin.

In many cases these costs amount to 35% to 50% of the total amount of a claim and, in view of the high costs that a procedure entails for the creditor, many of them will opt for a barter with the CuffCoin. CuffCoin does not have these high costs because it can conduct the procedure itself. Target audience

We focus on entrepreneurs who have bad debts, whereby amicable debt collection is not possible. The creditor must invest in the claim, such as court fees and service costs. Entrepreneurs often do not have the time and / or resources to make extra costs. Through an exchange with Cuffcoins, the worthless claim becomes a possible future value without the creditor having to invest in it himself. Non-recurring B2B receivables are most common in the construction, durable consumer goods and services sectors.

The focus is therefore on business receivables, B2B. The target group consists of SME companies. Often customers have 1-100 employees and a turnover of € 50,000 to € 50 million.

Market size

The market for outstanding receivables is enormous. It is estimated that millions of euros of outstanding receivables remain open and not collected, this only applies to the SME sector. According to Atradius, the share of B2B receivables that, according to suppliers, is written off as irrecoverable in the Netherlands in 2017 was 0.9% of the total value of B2B receivables. Receivables are mainly reported as uncollectable because a client goes bankrupt (60.4%) or because of the high costs of collection from debtors (29.6%).

In 2015, for example, collection agency Hoist estimated the total value of the market for bought-up debts in the Benelux at € 150 million. Moreover, they expected that this market would grow by 8 percent every year between 2015 and 2020.

Competition

Competitors are in particular factoring companies, insurance companies and large collection agencies that buy receivables.

Current costumers

At the moment, approximately € 500,000 worth of claims have been exchanged for the Cuffcoin. These are all SMEs with 1-100 employees and a turnover of € 50,000 to € 50 million. In addition, there are already many candidates who have indicated that when the amicable process turns out not to be successful, they want to sell their claim for the CuffCoin.

Customer feedback

The customer who has transferred the invoice is no longer worried, has peace of mind and does not have to incur extra costs. They have confidence in CuffCoin, and Juristu, which ensures a correct approach to debtors and a neat handling of the files. Meanwhile, more than 10,000 customers have already been helped by Juristu. Customers described us as: “Fast, decisive company”, “Hard and decisive” and “No fuss but direct approach”.

New customers

The number of new claims is expected to amount to 25 to 100 claims per month. In 2019, we want to buy up at least € 2.5 million in new receivables.

Sales

Sales story

As a business or entrepreneur you are not waiting for uncollectible receivables, but sooner or later everyone will have to deal with customers who do not pay their payments. Receivables are time-consuming, costly and it is always uncertain whether the claim can be collected successfully. Cuffcoin is the first Security Token that makes it possible to buy every claim. For example, the Cuffcoin makes it possible to collect millions of debts through crowdsourcing that would otherwise remain irrecoverable.

What makes the Cuffcoin unique is the fact that every claim can be bought. This is in contrast to factoring companies, which can not or do not want to take over all claims. Even if a claim turns out to be uncollectable, the former creditor can announce the profit of the total receivables. Businesses and entrepreneurs also profit from this: instead of selling claims for a low amount to a factoring company, they can achieve more profit through Cuffcoin.

In addition, the Cuffcoin is launched via Juristu, one of the most successful debt collection agencies in the Netherlands. This is due to their tight and consistent 10-day approach. This approach is successful, with 85% of the debt collection cases being paid by the debtor within 10 days.

Blockchain makes it possible that every transaction is visible, by means of the contract number. In addition, own value can be created by exchanging Cuffcoins.

Done so far

To date, Cuffcoin successfully exchanged around € 500,000 in Cuffcoins in the pilot phase for claims from companies and private individuals with debt instruments such as invoices, loans, debts and claims. In addition, investments were made in marketing, legal activities and the blockchain.

Marketing & sales channels

We will mainly use online marketing channels. There will be advertised via social media to attract new users as well as increase the awareness of the Cuffcoin. Google Adwords will be used for Search Engine Advertising, something that has always worked well for Juristu.

Marketing goal

The marketing channels are deployed as soon as the placement of the Cuffcoin is fulfilled. The goal of marketing is to attract new customers and to buy new receivables. Cuffcoin will be marketed as the efficient, reliable online alternative for placing bad debts, which also gives users the chance to profit from the profit that will be achieved.

Partnerships

A partnership with Juristu Debt Collection Services has been entered into, both in the Netherlands and abroad. After Cuffcoin purchases the receivables, she spends them on Juristu. Juristu has been in this industry for a long time and knows to collect no less than 85% of the claims within 10 days. There is a constant flow of new acquisitions of receivables, which is made possible by Juristu. Moreover, we look at possible partnerships with other companies.

Finance

Turnover so far

Expected revenue

In the next year (2019) approximately € 1,050,000 is expected to be converted. We expect revenues of around € 3.75 million in the second year (2020) and in the third year (2021) we want to increase the € 10.50 million turnover.

Assumptions

We expect to buy an average of 50 claims on a monthly basis. The receivables that Cuffcoin takes over vary in amounts between € 10,000 and € 250,000. These are mostly costly procedures for creditors, the costs of Cuffcoin and Juristu are relatively low and the acquisition through the exchange of Cuffcoin also ensures a high profit percentage for Cuffcoin. The probability of success is 60%, of which 50% will be paid in the year itself and 50% in the following year.

So far invested

In Cuffcoin, approximately € 150,000 is currently invested by Juristu, based on sweat-equity and cash flow from Juristu.

Efficiency

In total, a maximum of 100,000,000 Cuffcoins can be issued, which 50% of the profits of the underlying shares in Cuffcoin B.V. represent. As of October 17, 2018, approximately 390,000 Cuffcoins have already been issued in exchange for which € 390,000 in receivables have been obtained.

Cuffcoins as digital shares

Which underlying economic righteousness does a Cuffcoin offer?

The holders of Cuffcoins are entitled to the profit of Cuffcoin B.V;

The holders of Cuffcoins are entitled to a distribution of the value upon sale of Cuffcoin B.V ..

In addition, the tradability of Cuffcoins is laid down in the contracts and the holders of Cuffcoins are entitled to certain protection clauses in agreements with Cuffcoin BV to maintain their value.

Payout policy

Six months after the end of the financial year, pro rata will be distributed pro rata to the Cuffcoin holders in proportion to the net profit. The profit will be paid to the exchange through the personal Cuffcoin portfolio in Ethereum. In total, the profit will be spent as follows:

Development of the appreciation of the Cuffcoin

1 Cuffcoin is currently issued to creditors for each € 1 of a claim that has been exchanged. The expectation is that the value at which the creditors want to sell the receivables will increase to € 5 in exchange for each issued Cuffcoin because a proven procedure can be followed and there will be value in the Cuffcoin. However, the value of the Cuffcoin will increase more slowly because dilution of the existing Cuffcoin containers will occur with each issue.

In 2022, 30 million Cuffcoins are expected to be in circulation, representing a value of Cuffcoin B.V. of € 27 million. This is based on a turnover of € 22.5 million times an industry standard sales multiple of 1.2.

Risks

Cuffcoin invests in the swapped acquired receivable. You as a recipient of the Cuffcoin can communicate in the success of other receivables that are successfully collected. Your claim may fail, Cuffcoin then loses. Your advantage is not to invest in courtly expensive procedures, but to take advantage of the proceeds of the other claims of Cuffcojn.

Statements issuers

Corporate Governance Code

Since the Dutch corporate governance code only applies to companies having their registered office in the Netherlands whose shares or depositary receipts for shares are admitted to the official listing of a regulated market approved by the government (stock exchange), Cuffcoin does not apply this code.

Procedures

There are no government interventions, lawsuits or arbitrations, including such proceedings that are, or may be, pending to the best of the Cuffcoin’s knowledge, for a period of at least the preceding 12 months that may have a significant influence or in a recent past on the financial position or profitability of Cuffcoin or the group to which Cuffcoin belongs.

Numbers

The financial figures in this White Paper prepared by Juristu and Cuffcoin and not checked, unless expressly stated otherwise.

 

We are Cuffcoin

AT A GLANCE

Today, Cuffcoin offers users a fully operational debt barter and buying platform. It uses blockchain technology, collaboration with debt collection agencies and lawyers to collect the receivables. The Cuffcoin enables crowdsourcing to help creditors to collect millions of debt that are trapped as worthless securities.

 

OUR MISSION

We are convinced that irrecoverable debtpapers is the next industry to be disrupted by technologies, and our entire team believes that blockchain and smart contracts are the inherent part of the upcoming innovation. Here at Cuffcoin, our goal is to make both debtowners and Cuffcoin enjoy an experience that includes open and transparent application process, crowdsourced security debtcollection network, instant barter deals with Cuffcoin, which will also increase the value of cuffcoin.

 

WHAT DOES CUFFCOIN PROVIDE?

DEBT BARTER

Currently, there is over 4bn in irrecoverable debtpapers, because it costs a lot to invest in lawyers and court. Cuffcoin has arrangements with debtcollectors to go to court to collect the debt. Cuffcoin aims to leverage this trend.

 

PROVEN TRACK RECORD.

Today, Cuffcoin offers users a fully operational debt barter en buying platform. It uses blockchain technology, collaboration with debt collection agencies and lawyers to collect the receivables. The Cuffcoin enables crowdsourcing to help creditors to collect millions of debt that are trapped as worthless securities.

 

SOLUTIONS

Cuffcoin plans to streamline the debtpaper and collecting process using blockchain and smart contract technology and eliminate the need for a middleman, making it possible for debtowners to complete all debtpaper barter and collecting tasks in one place.

 

INVESTMENT OPPORTUNITIES

More than $35trln in the bank accounts around the world generating only on average 0.1%. People have limited access to investment alternatives that often have min thresholds and requirements.

 

FROZEN IN DEBTPAPERS

Debtowners freeze millions of dollars in debtpapers. To get more value, there must be taken action and must be invested in lawyers to collect the debt. Cuffcoin will invest in the debt and collect the money. The cost and profit to collect the debt is for Cuffcoin. The value of Cuffcoin will go up when Cuffcoin will succeed in collecting the debt.

 

ABOUT CUFFCOIN

TECHNOLOGY

Here at Cuffcoin, we’re convinced that blockchain technology with smart contracts is the core engine for the debtpaper bartering and collecting industry. Smart contracts will be written in Ethereum Solidity to drive accounting / ERC-20 token movement.

 

DEBTPAPERS

Members of the Cuffcoin community have bartered their debtpaper in Cuffcoins. At the end we at Cuffcoin are building a company in bartering debtpapers for Cuffcoin.

 

APPLICATION

Cuffcoin creates a healthy debtpaper barter environment in which all prospective debtowners can customize and negotiate their debtpapers offers based on the Cuffcoin value on this moment and as a result in the future value off the Cuffcoin true market price.

 

info@cuffcoin.com

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