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Ruskin ( Jr Dad) have not sold. They cannot sell. They are locked in. It is likely just an error on website. I would suggest everyone stops looking for any excuse to panic, you will feel a lot happier. If you are having sleepless nights, sell.
Well considering Mode does not use leverage when trading or lending, Mode is okay. If anything, it is a bonus for Mode as companies like Ziglu actually loan customers money to Celsius to gamble with and pay their customers part of the interest. Thank god Mode scrapped the BTC Jar or it could be in the same boat. The bonus for Mode is people will look to move their crypto to safe places, cold storage NC wallets, or companies like Mode.
I do not know when the SP will hit 20p. As I said above, the focus right now should really be on users. If Mode can prove to continue to grow its users, the revenue will follow. It is extremely tough for everyone and when money starts to enter the market again, people will be looking for undervalued companies in booming sectors. Until then, its a sit on your hands moment, or average down. Great entry for new investors, it is a tough position for LTH holders like myself.
So much rubbish being posted. I saw on Twitter one guy say he lost £1000s on Mode and cut his losses when he saw JR run the company. So he invested £10ks into a company he did not even bother to look at who is the chairman? Come on. So many wobbly investors which invest without a clue and then once they have bottled it - in a bear market - hang around to bash the company to death. Joe Bloggs springs to mind.
There is a lot of ££ to be made here. One day between now and in the next few months the narrative will change for crypto, BTC, tech and fintech. Will you be someone who bought 90-95% down from ATH (like Coinbase, MSTR, ARB and some major coins), or will you be someone who jumps back into it once it has already done many multiples, and repeat the mistakes you made before.
For a company in Modes position, the business plan has changed and had to adapt to market conditions. For now, the focus should really only be on users, not share price. If Mode can continue to increase its users at the rate it has, revenue will follow. I was told (from a very good source) towards the start of 2022 that downloads were in the 100,000s which is brilliant when you can see that we have a very low cost per user (£16) and a very high repeat user with large average trading wallets. Bringing in new coins in time for the next bull run cycle is so important, as it will attract new users, increase revenues and also for many, it will be the first time they have dipped into the crypto space. I can see the next bull run a lot of people wanting in, especially when they see others making a ton of money. If Mode can continue to be seen as a safe, easy and risk-free space to buy, hold and sell coins then there is a great opportunity to become the UK market leader. They just need to get a wiggle on and continue to appeal to the younger market who are going to drive this forward.
Mode have more money in the bank than its own Market cap. Which means that the market values the mode app as worth nothing. It values its licences (which are incredibly valuable) nothing. We will soon find out towards the end of this year exactly what working with the FCAs guidelines means to companies in the UK who want to work with crypto. For one, if they do not work with the FCA, they will not be able to advertise on social media, secondly, they might not even be allowed a license to sell crypto. Thirdly, it will mean that only 30 companies (all doing different things) will be allowed to run the UK crypto game for a number of years. Mode is likely to become a very big target for a US company wanting in on this market. Think Robinhood and Ziglu (bought for £150m cash). Ziglu has not once appeared in the top 200 download charts and is Modes main competitor. Ziglu spent close to £10m on advertising alone and has a very high cost per user. Mode might be moving slower than people want, but its actually working in a very cost effective away and still beating its competitors in metrics.
It is nothing to shout about, the revenue forecasted for the year was over there £5m mark. So £2m by month 6 is good, but its not forecast breaking. However, considering costs have dramatically decreased and users are still increasing month on month whilst having their best ever BTC trading month (the biggest source of revenue) last month. I would say that is a very good indication. Do not forget that for 2 whole months in 2021, they did not take in BTC trading fees which is the main source of revenue.
We will find out in unaudited results in October. I am very confident.
My support for that would be the app during 2021 had very low user volume until it ramped up advertising and marketing with the campaign in December for 0 fees. This mean sacrificed revenue but boosted user numbers to record level of downloads each day! Since then, each month has beaten the previous month with downloads and user retention which is all thanks to the growing list of affiliates and the regular advertisements on social media as a safe place to buy and sell BTC.
We can safely assume then that revenues are around the £2m by half time (which is lower than forecasted to be cautious).
Posted this last week.
Cash: 4,155
CLN: 2,000
Receivables as at DEC 31: 1,259
Burn: (£500k a month is generous, likely lower since dramatic reductions) -£3,000
Revenue likely £2,000 (lower than forecasted to be conservative)
Means cash in bank £5,155,000 excluding receivables of 1,259,000.
Mode is not folding in months, Mode has cash for the next 12 months.
Revenue likely to be higher than that given they have had the best months they have ever had since Jan 22. Users have increased = revenue increased.
Three directors got involved in the recent CLN.
New app is ready and on the sidelines whilst they look at adding new coins.
A huge chunk of shares are already off the market. Very few people seem to hold. The entire fintech market has had the crap beaten out of it and are 80-90% down from highs. Mode is not on its own and expect to see a huge revival of this sector. I understand why people would be sceptical about buying shares this low after it has continually dropped. That being said, there's a reason only a few people make mega £££ when shares hockey stick rise. Only the brave buy when there is blood in the streets.
December was the greatest increase to users for Mode in 2021. The entire month they sacrificed trading fees (main source of revenue) to entice downloads. Which is why revenues were low, but still better than forecasted. Getting 0-X amount of users is extremely difficult to begin with. Once you have a certain level of users, it becomes cheaper and easier to continue to grow users as word of mouth begins to have a snowball effect.
If you listen to the most recent Science and Technology parliamentary meeting a few days ago about blockchain (which the NED of Mode David Shier was a speaker) you would see that the no.1 answer to parliament's question 'what you would like to see the UK do to help with the future of blockchain' was Clear regulatory compliance to help and protect the consumer. Which he also went onto explain that Mode is one of few companies to follow.
Regulatory compliance in this space is about to get VERY tough on all companies not in line. A very big bank springs to mind who offer crypto services and are struggling to make the list. A lot of customers are about to shift and look for who is safest to use. There has already been a crackdown on who can and cannot advertise on social media - Mode can.
Say what you want, but Mode are sensible with spending now and have made changes to their business plan to adapt to the current market. Time will tell.
TH Gambler, how can that valuation be right? That would mean that the cash level - which is the same as the MC is fair value. What about the App that they have spent millions on? What about the users who they have which are the no.1 Metric? What about the licenses they have and FCA work?
Come on.
Maybe, but if you look at any other company in the crypto / fintech area they are all 80-90% down. There is very little volume / liquidity in the markets. It is tough for almost everyone. That will change, it is just a question of when.
The most important metric as stated in the video link above is users. Users are what will make Mode survive this. Users have grown every month and they have THE lowest cost per user sign up which is great. Everyone is screwing at the advertising spend (and yes it could have been more efficiently used on UK and not US influencers), but the spend of its closest competitor (Ziglu) was £500k a month! Ziglu has not appeared in the top 200 downloads once and they spent £6m on advertising.
More users = more revenue and sticky money within the Mode system. 70% of users are using the app for purchases and trading repeatedly. Average wallet sizes and volume trading are increasing which is crucial as trading is where the main source of Modes revenue will come from. By adding more coins (very soon), Mode will attract new customers to buy new coins and rewarded in other coins through its reward system.
202 companies on the affiliate now and this will eventually grow into the 1000s. So much choice.
I am hoping that a change of sentiment in the crypto space happens soon after Mode add the new coins and it will mean that everyone who once sat on the sidelines will want to get involved in a safe, easy-to-use and risk free way.
Cash: 4,155
CLN: 2,000
Receivables as at DEC 31: 1,259
Burn: (£500k a month is generous, likely lower since dramatic reductions) -£3,000
Revenue likely £2,000 (lower than forecasted to be conservative)
Means cash in bank £5,155,000 excluding receivables of 1,259,000.
Mode is not folding in months, Mode has cash for the next 12 months.
Revenue likely to be higher than that given they have had the best months they have ever had since Jan 22. Users have increased = revenue increased.
Three directors got involved in the recent CLN.
New app is ready and on the sidelines whilst they look at adding new coins.
A huge chunk of shares are already off the market. Very few people seem to hold. The entire fintech market has had the crap beaten out of it and are 80-90% down from highs. Mode is not on its own and expect to see a huge revival of this sector. I understand why people would be sceptical about buying shares this low after it has continually dropped. That being said, there's a reason only a few people make mega £££ when shares hockey stick rise. Only the brave buy when there is blood in the streets.
The affiliate scheme when first RNS certainly had negative feedback. Is that fair?
Affiliate schemes are nothing to laugh at. Cashback through links has always been popular. I remember always seeing cash back offered to me after buying a Papa Johns and thinking what is this scam popup that keeps coming up? If I asked my friends about cash back they also think its just a scam.
Cashback sites however are extremely popular and rake in many many millions in revenue. Cashback.com for example in 2020 had over £100 million in revenue. Just through people pressing a link and being directed to the website.
The opportunity for Mode here is HUGE. Not only for increased downloads, users and revenue, but also taking the UK by storm as a super app which connects the everyday Joe or Jane to bitcoin. With all the revenue streams available, £5m is still a conservative revenue target for 2022. It is my opinion that this will be the main driver for revenue until the later stages of year when I personally think we have a completely new app built. That is when true share holder value increases.
I have had some people ask me on other social media platforms if I have any sources for this information.
I would just like to clarify, I do not. This is purely my own opinion and thoughts written here for serious discussion. I bought firstly at 60p and have been wrong almost ever since! So please do not use this as financial advice.