Artem: Welcome everyone! I’m very glad that we see each other again.
Recently we had two interesting events: one in Switzerland and other in Romania in the end of June and I’m glad that we managed to meet some of the community members there. We even posted some of the pictures with people who came especially from Bulgaria and Greece and with whom we managed to meet in Romania We were also glad to meet members of the German and Swiss community in Switzerland.
We’ll start from the recent developments and then we’ll move to other topics.
As you have noticed we had good news during the last months. News number one was related to our partnerships and the new contracts that we managed to reach mainly with the SSP partners.
The biggest of these SSPs is called Yandex which is the top player in Eastern Europe and Turkey which is basically a Google, Uber and Delivery club — all combined in one company and they’re definitely the biggest player on the SSP market controlling around 70% of all the apps placed in this area.
Right now we are very actively working on technical integration to make it live. As well we sign contracts with 11 other supply side players. We announced some of the names and we will announce other names quite soon.
Another part is related to the development of the platform itself.
I will go through the roadmap that we have published on the website.
The blocks that were scheduled for February, April and May related to launch of data mining, launch of ad network, launch of RTB exchanges — all of them were launched in respective times.
The trading desk and the programmatic 1.0 version was launched in June and you all can access it on the platform and use it. After that in July we have launched advertising campaign analytics server.
In July 2019 the mainnet smart contract was launched.
In August 2019 international billing and reporting was implemented, PayPal was integrated. Top up function was also activated.
Other payment methods are also being integrated. We have a list of them. Right now the technical integration is underway and we expect that by the end of the month you will see a number of the other top up options available.
Also the centralized key storage was added as well as an opportunity to top up balance with Ubex tokens, please check it. it’s working right now through Metamask. Very soon it will be working through Ledger as well.
What is working right now is a decentralized platform where you can put funds in Ubex on your own account and they would be deducted only at the moment when the ad is shown. So far no one has used that type of the system. This highly increases the security for advertisers.
Usually they have to send the funds first to advertisement agency or to the platform and then if something goes wrong it’s really hard for them to get the money back. In this system that we have already introduced they do not need to send the funds to us. They just need to give permission to deduct certain portions of the balance from the account portions directly related to the ads that are placed. This all is recorded in blockchain and controlled by the smart contract. It’s a much safer environment than the classical one. Again, you can already top up your balances and take the funds out. This function is working.
In September we were planning to start preparations to the launch of DMP platform. We have already started the process. Our developers have been already working on the DMP platform. We do already have two contracts with DMP platforms. I cannot announce which are these right now as we still need to fully check the technical compatibility of these platforms. After that we’ll make the announcement.
As well we already can create and show display ads, create the video narrative and other types of creatives display and other type of ads. It is fully tested so it’s working on all the types of devices and browsers.
Next question: In which week or month we expect to complete the integration testing with media partners? Has Yandex integration testing completed?
The integration is ongoing right now. It’s not a very easy process. We started it in the end of July. We expect to finish Yandex integration I believe that in around two weeks before the end of the month it should be there.
And right now we are working on automation of moderation of the slots before the end of the month.
Other SSPs will be much easier than to integrate because they are very similar to the first one. Definitely the first one takes much more time. The next ones are expected to be integrated in one, Max:imum two weeks each. Except one which is big and which would require much more time and effort.
Artem: What is the definition of full release according to the Ubex platform development team and when will it happen?
This is an important question. I need to tell you one thing. We have never used such terminology as ‘full release’. I have never pronounced it except now. This definition was invented by community members. We shall constantly introduce new functions to the system. The key moment for us is when we can scale up from the test mode to full commercial mode. The commercial tests are being done right now. We have the full-scale client who is showing the ads already and we are testing the payments and ads with this client now in completely automated regime. There were some things to improve, and we’ve done it. We have the plan to move to the next commercial stage from September. We even have already rented a new bigger office to allocate all the commercial team. This office is rented from September 1 so next time when we have the Q&A session it will be held from another place bigger than the current one.
By the way starting from September we will have a whole number of open positions for commercial roles. If you are interested in a commercial role in Ubex in your respective geography please apply and we will be forming
these teams in September, October and November. Right now we are open to work using the agents team. Later it might be more of a full-time involvement combined with an agent team.
Max: According to Ubex token economics 15% of tokens are reserved for team and advisors. Those tokens will be unlocked by the end of September. Will you lock those tokens for 1 more year or do you want to sell those tokens?
Artem: It’s also a good question. About the tokens that are reserved for the team and advisers only: not all of these tokens were used. All of them are locked but not all of them were distributed. Around 1/3 of the tokens are given to advisers and it’s up to them to lock them on not to lock. We cannot influence it in this case.
The rest of the tokens the other 10% are discussable. We have internal discussions in the team now. We don’t have the decision right now but we will tell it before the lockup period which is the 1st of October.
Max: Can you tell us how much money has this project spent on the total amount of funds collected from tokensale? Has it issued more than 50% of the total funds of tokensale?
Artem: With the current rate of spending we have funds for two more years to go even without any incomes. We are also planning to expand the team and hire commercial team members. This would mean costs would as a minimum would double starting from October this year.
Artem: I can see the next question about how the funds were used and allocated to different sectors.
It’s not a secret. There were two key blocks where we spent the money. Block number one was the token sale itself. You can imagine it’s not a cheap exercise to conduct a token sale with all the marketing etc. That is done and second block is a technical development Right now salaries of developers constitute around 60% of total cost of the company. 40% are different types of costs like for Amazon web servers, community team etc.
In September/October this percentage will change around to 50/50 when we hire a larger sales team.
Max: Some analysts are becoming sceptic towards the need for utility tokens and it seems that the ubex platform in theory could run well and generate revenue to the company without the need for an in-house token. Is this true? To what extent is the company’s financial success dependent on the token value? Please elaborate.
Artem: As I told to you when they pay with fiat they have some disadvantages compared to the payment with Ubex token. The first disadvantage is when they want to pay with fiat they need to deposit the full amount of money just like with any other types of ads like Facebook or Google. With Ubex they don’t need to do it because it’s a DEX it’s working exactly like Binance DEX and other types of DEX.
Also in our internal system as it is programmatic there are algorithms that calculate which ads to show and when there are two ads at the same time of price for example $1 there is a preference to the ads which are paid by Ubex token. It will be shown at a better place, faster etc.
Plus there will be some other benefits from usage of the token. Please
do not forget that we are not a utility token. I told you about the utility — we have utility function of the token but the main function is making payments. The main function of token is when an advertiser comes he is forced to exchange his currency to Ubex token and then when he is taking money out he’s forced to exchange back to whatever he wants to.
It is a payment token that is why we need we need it in the system.
Max: There is another question about our economic situation. I guess people are interested if we have converted our funds into fiat or they are still in Ethereum?
Artem: Both. Strong hedging techniques are used to avoid risks. We use only very conservative instruments. You can also check out smart contracts, everything is on blockchain. Funds which are in Ethereum are still there on the same account. We also have fiat money for six months of operations.
Max: When Ubex is targeting the USA Markets, especially LDM?
Artem: We have already hired one salesperson for the US market immediately after integration of the US focused SSP which is happening near to end of September.
By the way when I’m telling that SSP is integrated end of September that doesn’t mean that we cannot have sales before that. We can have sales before that as any agency is not sending funds immediately. It takes them around 1 month after the contract before they can send their funds.
Max: What is the plan for the price of token in further development? Will it play a more important role?
Artem: I believe we have covered it. It’s a payment token. Ads cannot be paid in crypto without Ubex token. Token is also used to top up advertiser balance and make payouts to miners and publishers. Certainly, it plays important role.
Max: Does Ubex token price change matters significantly for Ubex Team in terms of revenue generation? Do they plan any separate activity which can help in more adoption of Ubex token in global market (apart from 5% extra deposit and commission free feature)?
Artem: For Ubex system and its functioning price itself it’s not that important. It’s more important that it is stable with some gradual growth because that would create trust to hold it for advertisers and for publishers.
But for me personally it is very important, of course, I have my Ubex tokens still locked. I cannot touch them, I cannot sell them and they locked for the period from one year to three years time meaning that if it doesn’t grow I don’t earn anything.
Max: Are the tokens locked until the end of September?
Artem: All the team is definitely interested in at least gradual growth after one year. In the first year not that much to be honest because we have a lock-up.
Artem: When are you going to introduce new partners?
I need to tell that we have already signed several agreements including Yandex and Google. On the part of DSP or the demand-side platforms we already have an agreement with one Chinese company and with one international company. We are working right now on advertisement agencies.
We have formed a team which is now focused on advertisement agencies and as I said to you we are very open to hiring agents in various countries. For example, South Africa is now managed by a person who contacted us in our community. We would be happy to have this type of relationship with other regions as well.
Considering the volume of Total Ubex 4Billion to the recent daily traffic announced, how realistic is Ubex token availability after burn to users because the number of users will out weight available Ubex token, or is this one of the reason for having other payment option?
Artem: You don’t need to worry about that. We have the system or burn exactly like Binance. We just copied that part from the whitepaper exactly like Binance (its original version) which means that we will be burning until we burn 50% of all the tokens. 50% of all the tokens is still 2 billion which would be enough for system functioning.
The burn will happen in the beginning of the next quarter after the full revenues start coming to us. As I said to you we plan to start commercial operations from September. You can guess yourself how much time might it take for the first real revenues to come and that would be the timing for the first burn. The date will be public.
Then the buyback will be happening on public exchanges, it’s not done secretly, it’s not even done like Binance does because Binance takes it from commissions as far as I know while we will be getting it from public exchanges meaning that it will definitely influence the supply and demand on the exchanges.
Max: Yandex uses internal crypto for auctioning on its advertisement network. Is there a relation between Yandex currency and Ubex tokens?
Artem: I have specially checked it and found out this is not ‘crypto’, it’s ‘Crypta’, a completely different thing. This is an internal part of machine learning system of Yandex. It has nothing to do with Ubex tokens, it’s just a similar name.
Max: Ubex clients can place ads through the Yandex channels. Why should a client use Ubex and not use Yandex.direct?
Artem: Yandex.direct means just certain parts of the market; it’s not all the market. They have around 70 percent penetration right now in Russia, small amount in Eastern Europe, small amount in Turkey and zero in Australia, for example. With the contracts that we have we already cover around 90 percent of the entire advertisement inventory globally.
That’s number one and number two Ubex is a programmatic. Yandex is not a programmatic meaning that our ads are programmable. You can have much more precise targeting plus we have RTB protocol which optimizes the placements both in terms of the amount to pay for the ads and when to show it and how to show it. This leads to higher efficiency of one particular slot.
Yandex is not interested in efficiency of a slot as they’re interested in the volume of the slots. We are interested in efficiency as I was talking from the very beginning we are on the side of advertiser. We are protecting advertiser, taking care about efficiency of budget of advertiser while, for example, companies like Yandex care about the size of the budget. They want bigger budgets but not more efficient budgets because the bigger the budget is the higher their commission is. We have a slightly different concept here. Width of the ad network is our definite advantage as well as usage of programmatic.
Max: Will Data mining still be available after September 1st? I’d like to continue it.
Artem: We continue massive changes there. You are able to continue it, please do; the next payment for the data mining is planned in the end of August.
Max: There is a question about our real competitors like Google.
Artem: Our real competitors are other programmatic networks that have SSP, DSP and RTB integrated. Examples of these networks are Criteo, Sociomantic, GetIntent plus some regional players.
When you are looking for info about the competitors please have a look if they really have programmatic or not. What we managed to find out is that most of people who tell they have programmatic they don’t really have it. They have the manual programming just like in Google or in Yandex which
is not an automated system.
Max: Is marketing team realizing the value of adding a new exchange just before/just after the working platform live? If not, then what are the upcoming plans of marketing Team of Ubex? Can we know about the next two months activities specifically from marketing team which can significantly bring new investors to the Ubex community?
Artem: There are two questions, the first one is about exchanges and the second one is about marketing activities. some people in the community believe that entering Binance, for example, is very cheap. It’s not like that. About the cost of being listed: I have met with CEO of Huobi Global when I was in Romania in June. The latest information directly from the CEO of Huobi global is the following: the total cost of entering Huobi is 1 million two hundred fifty thousand US dollars. They don’t take this money from us. The cost for a project is on that level because they’re forcing you to use some kind of other services, give some funds to their community, play with pricing etc. In result in some sense that’s the real price.
Speaking of Binance, I cannot tell Binance total cost but it is similar. For me right now it doesn’t make any sense to pay 1 million two hundred fifty thousand dollars before the big volumes are coming to the system.
The big volumes are coming to the system only when advertisers and publishers start to be forced to exchange their funds to Ubex and back. When those volumes come we immediately switch in an exchange that has to be our partner exchange. We’re not interested in short-term ups and downs.
About marketing activity: I know that some of you upset with that answer from me but guys we are not focused on short-term pumps and dumps. It’s very easy to make short up and dump. Believe me, the people who are traders know it. You can easily calculate out how much it costs, you don’t even need to go to big exchange. Just check projects which up and down often, check where they were one year ago and where they are today. They are play with ups and downs and then they just disappear.
80% of these projects disappeared, maybe even 90% as only projects that have the real utility the real payment function or other things that are useful.
I want to be amongst these projects and we focus on the real things, not just ups and downs. Definitely ups and downs happen as well, you cannot avoid it.
As I said to you we already have a part of the commercial team, already have a management of the commercial team but starting from next month we are starting to hire more sales persons and we will start more activities in commercial marketing, mainly exhibitions. We will be taking part in advertisement expo in Cologne in Germany and then there will be other events as well later on. All these activities will be focused on our clients who are advertisers and publishers while also including crypto community.
Max: How do we see ourselves and Ubex in about five years and also in one year?
Artem: In one year all the programmatic will be fully launched. Neural network will enhance our algorithm meaning that we’re planning to become the leading player in programmatic niche. I am telling ‘niche’ because we are focused on very high quality algorithms and our programmatic will use
do-it-yourself approach. You can already create an advertising campaign yourself without help of an assistant or advertising agency.
In one year it will be fully working with neural network and with all the DSPs and SSPs integrated. There will be partnerships signed with advertisement agencies at the key regions such as US, Germany, Switzerland, Korea and probably China. However there’s a legal question about China, we’ll see if it’s possible. I hope that we manage to find right local law partnership in China to solve the legal issues.
In five years — you know, I have recently read a book called Homo Deus by Mr. Harari. He wrote that the future will be owned by the ones who own algorithms. We are the ones who will own the algorithms of the ads and targeting. That’s why we will have our place in the world of the future which will be a world of artificial intelligence.
I have no doubt that most of the functions of humanity will be taken over by AI but not all of them, of course, and probably after we own the algorithm for ads we will move to other spheres as well where that algorithm can be implemented, where the analysis of the human desires can be valid.
I am very interested in the way how human brain is thinking, how desires appear there and why do we take that or these are decisions. That’s exactly what we will be placing in the principles of a neural network analysis.
Probably Ubex will be a part of a larger organization in five years. I cannot guarantee that it would be completely independent. Probably we will merge with someone but these are only plans. Nothing specific for now.
Max: How is the private information protected? How can Ubex protect this sensitive data?
Artem: We are fully compliant with Google data protection principles. If you want to answer that question you can check these principles.
Artem: Are you contacting AdFox and AdRiver regarding partnership?
AdFox is actually owned by Yandex. We already have a contract with them. We have no real plans for AdRiver at this stage.
Max: There is a question from the community if we’re going to make an app.
Artem: It works everywhere including mobile, of course, because mobile platforms have 60% of the usage now. Definitely we’ll make it work both on PC and mobile devices in parallel.
Max: I can see a question about CoinTelegraph and publications in mass media.
Artem: I saw a request from the community to make more publications in crypto media. I’m not sure about CoinTelegraph just because how they work. They only publish the topics they are interested in. Otherwise that would cost you five times the price. But I understood that we need more public relations activity.
Artem: Why do you postpone the launch of Ubex platform?
We are not postponing the launch. We’re releasing the components step by step. We’ve released mining in February and that allowed us to collect the data that we need for the analysis.
We’ve released other blocks in April and June and we are releasing another big block end of this month.
Now we have refocused with the team on the SSP integration which is important because that’s how the advertisement system works.
The main block that is released will make it possible to access the various SSPs. It was not in the road map, that’s the new activity.
After September we will continue to add another blocks. It’s a never ending story.
Artem: Will there be a record of this Q&A with subtitles?
There will be a transcript. We need it because it’s also required for the Korean community. We promised Korean community to have a separate one and will be translated to Korean.
Artem: How is Ubex generating revenue from advertisers and publishers? What percentage is distributed to publishers and how much percentage share
will be kept by Ubex as revenue?
The original plan was about 5 percent. Right now we see that the system is much more complex so it depends on a few factors: when we are talking about the direct advertising that’s about 40 percent. When we are talking about us as an advertising exchange, for example, when there are SSPs and DSPs at the same time switched into the system then that’s around three to ten percent. It depends on specific ads but that’s automated.
Artem: Am I paid in Ubex when I work in sales?
You are paid in the same currency that sales are generated in. When they are generated in Ubex you are paid in Ubex, when they are generated in dollars you are paid in dollars.
Thank you very much for being with us. We will be back with the next Q&A session. When you feel you want it to be happening please tell us. Maybe it won’t be arranged immediately because we need to collect the questions. Also I shouldn’t be traveling at that moment of time because I do this more than two-thirds of my time.
By the way we have a YouTube channel with more than 25,000 followers which we are not using. If you have any ideas about some specific topics for the videos or if you have the videos you want to be placed there we will be happy to place them if they are in line with what we have.