TransitNet

CLOSING SOON: The world’s 1st crypto proof-of-ownership infrastructure

Last Funded December 2022

$880,689

raised from 2,828 investors
Pitch Video
Investor Panel
Hi Eric, I appreciate all of your answers here. My question really expands on what has already been hinted at below. Do you have any research or anecdotal evidence to support the idea that institutional support for crypto would expand based on this particular product? I strongly believe that institutional investors have, until recently, largely sat on the sidelines when it comes to crypto...but not because of "title" concerns as much as for lack of custody solutions. Those solutions are starting to emerge. If I'm an institutional investor or Registered Investment Advisor what purpose does transitnet serve if I can place my fund's or my clients' crypto into an account (likely insured) with someone like Fidelity Digital Assets? Proof of "title" is no different in that context than proving that my IRA at Fidelity is actually mine, no? Thank you.
Hi Mark. These are great questions, and I appreciate you asking. First, I'll note that we think custody is an important component of the ecosystem and it will certainly play a role in increasing acceptance. But similar to DeFi, we don't see this as an either/or situation. We think crypto will flourish with a combination of both custodial and self-hosted wallets, because both can be useful in different circumstances. Registered investment advisors may heavily prefer custodial situations (which seems logical), but there are also going to be business/commercial needs that are better met with non-custodial wallets. Further, we believe a title registry is complementary to both scenarios. A title registry can also help custodians, exchanges, and others who desire additional records for incoming or outgoing assets.
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M Jellad
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Let’s keep rolling guys. TransitNet truly is unique and had really potential to be worth conservatively $4B (assuming they succeed to execute not outstandingly but just professionally). At $16m valuation cap, and using 50% dilution , that is potentially an ROI multiple of about x125. and Cryptocurrency is here to stay and grow. We are in an economic malaise right now , and all asset classes, and within an asset class a few make it (such has holding shares in Gas & Oil companies). So be calm and stay patient and trust the long term ‼️ Here another opportunity to invest at a very attractive valuation cap , even a small amount like $250 is something that you should seriously consider : being a little bit bold during this huge inflation eating away with guarantee your wealth and future is worth to seek the very rare Pearl that has a real potential to give mind blowing returns. The advantage is that when investing small you got the best of everything : if the company fails , then your loss has no consequences. If it succeed , it will pay off all your other investments that turned soar and/or give you a nice lump sum (for example: a $250 generating a return of $32K base on the conservative assumption given above) that is worth often 10 to 15 years of saving for the majority of people in the Western World (if they are able to save at all). now personally , for TransitNet to become a decacorn is doable , but that will take some time (10 years I would say), and this assumes TransitNet perfectly executing the plan and increasing the sources of their revenue (not just from title registry , but also being involved in KYC/AML , taking commission for offering insurance by selecting a preferred partner(s) and third parties services that adds true value to TransitNet main core service , and more ). The potential is mammoth. p.s.: another rare Pearl not to miss is HyperSciences who is raising right now on the StartEngine a platform: worth a look. Especially if you have missed NowRx whose campaign is now closed in the Seedinvest platform. In this economic malaise (that appear to last for the next 2 years) , investors are deterred to invest (I can see this clearly on all crowd platforms in the US and U.K.). NowRx , HyperSciences and TransitNet are the only three (as far as I am aware) that the award to risk ratio is so solid in this inflationary and troubled world economy. this is purely my humble opinion and not an advise whatsoever. You will have to do your own DD and decide for yourself what to do. All the best !
Thank you for your support!
Difficult questions are not being answered by Eric.
Hi Venkatraman. Apologies if it seems like I've been slow to respond to question here. Recently I ran a little behind but I've able to provide some answers today. Hopefully they are helpful to people.
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Manuel Bleve
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Hi Eric, one of my readers told me about your deal, and I'm considering writing an analysis about it! Would you like to talk about your company in an episode of our podcast? If that's of interest to you, please reach out to me through the contact form on our website! Looking forward to hearing from you. Sincerely, Manuel angelnotes.co
Manual, thank you for your invitation and kind words about TransitNet. I look forward to speaking with you.
I am glad to have interest in the company and hoping this will lead to a long lasting journey. I can see why this type of safety and security is needed in this industry and market. Recently, I changed my mobile number listed on file with Coinbase, and I'm not able to log in. I must go through a process to gain access. Though my email address and name is on file, I cannot reset my password through a reset link by email. Though it is not a big issue in this situation, the need for a company such as this (with the technology to have and show ownership) will be very important in the near future, in such cases, where issues may be more complicated. Whew! I didn't have much funds in the account. :) As of 05/18/21, I have been able to log in.
Christopher, thank you for sharing your thoughts! I can appreciate your personal experience, and I'm glad you were able to recover your account. But you're absolutely right it does illustrate the need to establish title, which could be critical in many circumstances (e.g. theft, loss, insurance claim, audits, etc.). We're excited to have you join us as we build what we believe will be a valuable service!
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Gordon M
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Reposting Jeff Park's interesting question he posted 2x and was skipped over: "Hi - Interesting company. Did Founders Fund and Peter Thiel invest directly in TransitNet, or indirectly through Caplinked? How is the title on TransitNet to a certain wallet recognized by insurance companies, law enforcement or courts? What gives TransitNet the authority to provide the title? Is there a regulatory component to all this?"
Hi Gordon. Apologies that I ran behind answering questions. I'll repost my answer to Jeff Park here: The institutional investors you mentioned hold stakes in TransitNet through their ownership of CapLinked, which incubated TransitNet and recently spun it off as a new company. There are no institutional investors in the current Reg CF round. We opted to do a Reg CF fundraise for the new company's seed round to establish a broad base of stakeholders in the crypto community. Assuming we decide to raise a traditional venture round in the future, we would most likely approach institutional investors at that time. In terms of the question of your questions centering around the concept of authority, I would start by saying TransitNet is obviously a private company and not a government entity. Similar to a title company in a real estate transaction, we aren't conferring title per se, but we are providing an off-chain registry of records that can help verify title. Our software provides third-party documentation of title data for crypto wallets that can be used by third parties for certain business and financial activities. For example, the advisory firms using our beta product are able to obtain important additional information that they did not previously have. Here's a testimonial from one of our beta users about the value-add they receive from this: “TransitNet provides a critical service for the audit, tax and service provider community,” said Corey McLaughlin, co-president of the Investment Industry Services Division at Cohen & Company. “By providing a secure and private way to identify if multiple managers have claimed a wallet address, TransitNet enhances our ability to verify the title for digital assets. Using TransitNet is just another way that we are committed to offering leading technology and best practices to our clients.” My reason sharing the quote above is simply to show that we're positioning TransitNet as an indispensable tool in a critical business process that requires title verification. It doesn't have to have legal authority to confer value to its users. Regarding your question about a possible regulatory component, I think it could likely turn out that there is. It's not hard to imagine a third-party record of title helping exchanges and other private firms with compliance given the regulatory landscape (e.g. the proposed FinCEN wallet rule, future applications of the Travel Rule, etc.). These are great topics and frankly they deserve more time and attention. We will be announcing a live webinar event within the next 2-3 weeks. I've added these questions to the topic list so we can discuss them in further detail.
How will this affect you? “Newrl will now enable compliance for businesses and regulators by removing the anonymity on blockchains. This opens the doors for typical businesses to start embracing blockchain to improve their processes and expand their markets.” wap.business-standar…122070700722_1.html
Thanks for sharing this--it's a good discussion topic. My understanding is that they are building in a KYC solution for this specific blockchain. This sounds like a promising idea that could make this blockchain useful for specific business and consumer uses. To contrast that, TransitNet is building an offchain tool for proving ownership (title) for digital wallets that is blockchain agnostic and securely shareable. So my understanding is that we have fairly different areas of focus for our respective solutions.
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M Jellad
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To Eric Jackson again. This is a follow up to my question I posted 3 min ago regarding NEWRL. A while ago I have posted the following as well : ————-/————- EU Votes Against Anonymous Wallets 😍 —> Hi Eric I just saw that EU Voted Against Anonymous Wallets and will require exchanges and other third parties to ascertain who is the owner of non-custodian individual wallets. Here a YouTube link from 99Bbicoins youtu.be/CuL3WLhJUnI ——-/—— As you can see this issue that the EU is concerned is pertaining to KYC/AML ‼️ I cannot fathom TransitNet just concern with “title registry” without doing (or at least offering) KYC services. Because how can you say that a particular non custodial wallet belongs to Mr Joe Smith , without checking that Joe Smith actually exist and some legal paper works were shown to TransitNet. NEWRL technology allows the name and the tax number to be hidden on the blockchain, on a hashtag is shown. It is up to the customer to show directly his identity (read-only as the article said wap.business-standar…122070700722_1.html) to the Exchange for example, who already did a KYC against that particular client, but now they can ascertain that the cryptos coming from an non custodial wallet belongs to Joe Smith and Joe Smith can show directly to the Exchange that he is Joe Smith. How to do this ⁉️ well by incorporating digital fingerprints of KYC documents (called "hashes" that mention that the KYC process was signed by TransitNet) for each wallet on it, along with information about the jurisdiction of the owner. The wallet owner is required to either use a centralised authentication service (TRANSITNET) or use a non-custodial wallet application to ensure authenticity of the KYC documents . Actual documents, and information like name and tax-id, however, are not public. In this way, TransitNet manages to maintain privacy while still ensuring adherence to KYC/AML norms. I cannot comprehend why TransitNet is letting this critical KYC need passing by under her nose.
Thanks for your question and sincere interest in noting ways in which TransitNet's technology can be utilized. I can assure you that use cases involving KYC and wallet ownership documentation are very much on our radar. We'll be communicating more on this subject over the months to come, but for the moment suffice it to say that we see potential for TransitNet to play a role in these situations.
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M Jellad
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Hi Eric! QUESTION 1 : is NewrL a threat to TransitNet ⁉️ Today a friend of mine send me the following link : linkedin.com/posts/s…&utm_medium=ios_app He is asking whether this Indian company called Newrl could be a threat to TransitNet ⁉️ wap.business-standar…122070700722_1.html I responded briefly to him “No, TransitNet is concerned with ownership while Newrl is concerned with Identity”, that is to say NEWRL is satisfying the importance of KYC, which is a key part in itself but also a necessary adjunct to complete properly AML. What say you ? Question 2 : Also , why TransitNet doesn’t even think of offering such an important service , namely KYC/AML , which as an incredible additional upgrade services that many third parties would desire such as exchanges (such as Binance, Kraken , Bitstamp etc ) which will make them feel even more safer against local governments when receiving crypto directly from clients non custodial wallets ⁉️ Your responses would be critical Thanks
I know we communicated on this topic via email, but I'll share my thoughts here in case anyone else is curious. Your response to your friend is good. We are bringing in ownership into the equation to offer something much more rich and robust than just KYC alone. That being said, you're right that we have KYC capabilities and they might be of interest to exchanges, custodians, and other players in the space. That's definitely something we're looking into.
Hi I was just wondering when you think you guys might do another update on the progress of the company? Thanks!
Hi Brent. In case you haven't seen them, you can access our company updates on the company's update page (wefunder.com/transitnet/updates). Please note that you'll need to be logged in to access our confidential, investor-only messages.
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