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About CoinDesk
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Garrick Hileman
Danqing Ying
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Contents
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Summary and
Adoption Dashboard
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Q1 2015 Summary
Q1 was bitcoins largest VC
investment quarter yet with $226m
raised; all-time bitcoin VC investment
now totals $676m
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Commerce
Wallets
Merchants
Merchants annual revenue ($bn)
ATMs
Unique bitcoin addresses
Industry
All-time VC investment ($m)
Number of VC-backed startups
Media
Mainstream media mentions
Technology
Network hash rate (billion/second)
Github no. of updated repositories
Valuation
Bitcoin market capitalization ($bn)
Quarterly
Dec-14
Mar-15
Q/Q
Last 12 Months
Mar-14
8,457,207
88,000
180
374
203,189
7,396,772
82,000
180
342
157,377
14%
7%
0%
9%
29%
4,448,142
52,704
2
47
137,342
2x
2x
78x
8x
1x
$676
103
$447
89
51%
16%
$164
47
4x
2x
458
580
-10%
2,594
-82%
346,028,956
27,857
313,142,289
23,249
11%
20%
41,813,922
9,915
8x
3x
$3.4
$4.3
-21%
$5.3
-36%
Data sources and notes: CoinDesk, Blockchain.info, BitcoinPulse, Github, Coin ATM Radar. Figures are cumulative from start of records, except unique
bitcoin addresses and media mentions, which are figures for the quarter ending that month.
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$319.70
$243.39
Q1/Q4 Close
-23.9%
$3.4bn
$314.59
$177.28
YTD High-Low
-43.6%
Average
$250.68
Median
$246.85
Source: CoinDesk Bitcoin Price Index, daily data collected at 00:00 UTC
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10
5th Jan
10th Mar
Bitstamp
suffers $5m
hot wallet
hack
Bitcoin startup 21
Inc announces
$116m raised,
all-star investor
roster
$290
$270
25th Jan
4th Feb
Coinbase
launches US
bitcoin
exchange
Ross Ulbricht
found guilty in NY
court of operating
Silk Road; Ben
Lawsky releases
revised NY
BitLicense
$250
18th Mar
UK Chancellor
Osborne announces
favorable regulatory
environment and
research investment
$230
$210
$190
14th Jan
Bitcoins price
plunges,
breaks $200
mark
20th Jan
Mainstream financial
institutions join
Coinbase's record
$75m funding round
$170
$150
1-Jan
8-Jan
9th Feb
15-Jan
22-Jan
29-Jan
5-Feb
Hong Kong's
MyCoin
disappears with
up to $387m,
reports claim
12-Feb
19-Feb
26-Feb
5-Mar
12-Mar
19-Mar
26-Mar
Source: CoinDesk Bitcoin Price Index, daily data collected at 00:00 UTC
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11
25
6
20
BTC Millions
$ Billions
5
15
10
2
5
1
0
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
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Mining
Exchanges
Aquifer LLC
A number of well-known exchanges and mining operators have recently
gone bankrupt or shuttered operations for various reasons
Source: CoinDesk
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5.0
30
4.5
25
4.0
3.5
20
$ Thousands
$ Millions
3.0
15
2.5
2.0
10
1.5
1.0
0.5
0.0
01/01/2014
0
01/04/2014
30/06/2014
Miners Revenue
28/09/2014
27/12/2014
Transaction Fee
While mining is the only bitcoin sector to date to generate significant revenues,
at current (or lower) price levels, further sector consolidation is anticipated
Data source: Blockchain. Note: Miners revenue = (number of bitcoins mined per day + transaction fees) * market price.
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Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
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15
Peak Altcoin? For the First Time, Quarter-overQuarter Altcoin Growth Was Flat
700
25%
23%
594
590
600
20%
483
500
15%
400
347
300
9%
216
7%
200
10%
9%
8%
7%
5%
100
64
0%
Dec-13
Mar-14
Jun-14
Total Number of Altcoins
Sep-14
Dec-14
Mar-15
*Note: Altcoin market cap share is calculated by dividing the sum of all non-bitcoin cryptocurrency market caps by all cryptocurrency market caps (including
bitcoin). For example, a market value share of 7% for altcoins indicates that bitcoin by itself represents 93% of the market cap of all cryptocurrencies combined.
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Name
Market Cap
Bitcoin
$ 3,428,547,561
Ripple
$ 245,984,620
Litecoin
$ 62,695,671
Dash
$ 20,785,772
BitShares
$ 16,084,946
Dogecoin
$ 12,518,429
Stellar
$ 12,222,510
Nxt
$ 9,887,171
MaidSafeCoin
$ 8,090,823
10
Paycoin
$ 7,683,946
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Media
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18
Q1 Negative News
Bitstamp claims at least $5m lost in hot
wallet hack
Source: CoinDesk
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Q1 Positive News
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20
Date
7th Jan
IBM Reveals Proof of Concept for Blockchain-Powered Internet of Things 17th Jan
5th Jan
14th Jan
7th Jan
16th Jan
9th Feb
13th Jan
8th Jan
10
11th Mar
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21
FT
41
73
76
NYT
127
WSJ
156
180
Sina
235
0
50
100
Q1 2015
150
200
250
Q4 2014
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22
Past 90
Days
Past 12
Months
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23
VC Investment
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24
$116m $75m
(Series A) March 2015*
*Note: The precise timing of when the $116m was raised, or whether it was raised in various individual stages, has not been revealed.
Source: CoinDesk
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25
Millions
$116
$100
$80
$75
$60
$40
$31
$30
$25
- Bernard Lunn,
Bank Innovation
$20
$0
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26
Matthew Pauker
CEO, 21 Inc
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27
$200
$150
$133
$100
$84
$66
$66
$50
$0
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Note: The precise timing of when 21 Inc raised the $116m it announced in Q1 is unclear; 21 Incs full $116m is included in the Q1 2015 total.
Data sources: CoinDesk, CrunchBase
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Total VC investment in
cryptocurrency startups to date:
$229m $676m
Q4 2014 bitcoin VC investment:
$133m +51%
Data sources: CoinDesk, CrunchBase
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29
$916
900
800
700
$638
600
500
400
$349
$250
300
200
100
0
2014 Bitcoin
1995 Internet
Note: Internet figures include only first sequence venture deals. All figures unadjusted for inflation, changes in the cost of launching a startup over last
two decades, etc. Further methodology discussion.
Data sources: CoinDesk, PricewaterhouseCoopers
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30
Africa 0%
Europe
18%
Asia 6%
Middle
East 2%
Latin
America
1%
US &
Canada
73%
$ Invested as of Q4 2014
Regions
Q1
($m)
Q4
($m)
Q/Q
($m)
Q/Q
US &
Canada
492.3
289.7
202.6
70%
Europe
119.1
99.2
19.9
20%
Asia
42.1
41.0
1.1
3%
Middle
East
14.0
11.1
2.9
26%
Latin
America
7.5
6.0
1.5
25%
Africa
1.1
0.0
1.1
N.A.
Total
676.1
447.0
229.1
51%
Europe
22%
Africa 0%
Asia 9%
US &
Canada
65%
Middle
East 3%
Latin
America
1%
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31
Barbados
France
Kenya
Switzerland
Data source: CoinDesk (www.coindesk.com/bitcoin-venture-capital/)
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32
Millions
$400
$300
$200
$100
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United States
United Kingdom
The Netherlands
Sweden
China
Israel
South Korea
Canada
Argentina
France
Singapore
Japan
Barbados
Mexico
Kenya
Panama
Switzerland
Australia
Denmark
Germany
India
Luxembourg
$0
33
No. of Companies
Location
Rest of
World
41%
Silicon
Valley
59%
Value ($m)
No. of
companies
Silicon Valley
$400.0
30
Rest of World
$276.1
73
Total
$676.1
103
Silicon Valley
29%
Rest of World
71%
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34
Apr 2015
Reverse Mergers
Jan 2015
Feb 2015
Source: CoinDesk
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35
FinTech
216
Bitcoin
FinTech
100
Deals
Deals
Biggest Deal
Biggest Deal
$150m
$31m*
$0.3bn
invested in
2014
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36
Wallets
Exchanges
Universal
Payment
Processing
Source: CoinDesk
Financial
Services
Mining
Sponsored by
Gem
37
Sponsored by
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38
$191.0
$160
$120
$80
$40
$20.0
$1.1
$2.0
Wallet
Exchange
$3.8
$5.0
$6.1
$0
Payment Processor
Financial Services
Infrastructure
Mining
Universal
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39
Millions
$250
$200
$150
$100
$50
$0
Q3 2013
Payment Processor
Q4 2013
Exchange
Q1 2014
Universal
Q2 2014
Mining
Q3 2014
Financial Services
Q4 2014
Wallet
Q1 2015
Infrastructure
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40
$ Invested as of Q4 2014
Sector
Q1
($m)
Q4
($m)
Q/Q
($m)
Q/Q
Payment
Processor
55.4
54.3
1.1
2%
Infrastructure
55.7
49.6
6.1
12%
Exchange
Financial
Services
Mining
Universal
Wallet
Total
65.8
62.0
3.8
6%
48.5
43.5
5.0
12%
96.5
262.6
91.6
676.1
76.5
71.6
89.6
447.3
20.0
191.0
2.0
229.0
26%
267%
2%
51%
Wallet
20%
Payment
Processor
12%
Infrastructure
11%
Universal
16%
Exchange
14%
Mining
17%
Financial
Services
10%
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41
Company
Size ($m)
Round
Select Investors
Headquartered
Mar-15
PeerNova
5.00
First
OverStock
San Jose
Mar-15
Bitt
1.50
Seed
Avatar Capital
Christ Church
Mar-15
TabTrader
0.07
Seed
Rockstart
Amsterdam
Mar-15
Coinigy
0.10
Seed
Undisclosed
Milwaukee
Mar-15
21 Inc
116.00
First
San Francisco
Mar-15
ShapeShift
0.53
Seed
Zug
Feb-15
Ledger
1.50
Seed
Paris
Feb-15
BitPesa
1.10
Second
Nairobi
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42
Company
Size ($m)
Round
Select Investors
Headquartered
Feb-15
HashRabbit
0.50
Seed
Draper Associates,
VegasTechFund
San Francisco
Feb-15
KnCMiner
15.00
Second
Stockholm
Feb-15
NeuCoin
1.25
Seed
Paris
Feb-15
Ziftr
0.85
Seed
Milford
Feb-15
Bonafide
(Bonifide.io)
0.85
Seed
New York
Jan-15
BitFlyer
1.10
Seed
Tokyo
Jan-15
Colu
2.50
Seed
Tel Aviv
Jan-15
Anycoin Direct
0.56
Seed
Undisclosed
Veghel
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43
Company
Size ($m)
Round
Select Investors
Headquartered
Jan-15
Coinbase
75.00
Third
Jan-15
TrustAtom
0.10
Seed
Vancouver
Jan-15
Ciphrex
0.50
First
Undisclosed
San Diego
Jan-15
BlockCypher
3.10
Seed
San Mateo
Jan-15
Airbitz
0.03
Seed
San Diego
Jan-15
LibertyX
0.40
Seed
Project 11
Boston
Jan-15
GetGems
0.40
Seed
Magma VC
Unknown
Jan-15
CoinOutlet
0.10
Seed
BitcoinShop
New York
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Commerce
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45
1. Sheets
6. Cables and
tools
2. Donations
to non-profits
3. Headphones
4. Cases and
holders
7. Mattresses
8. Coffee tables
9. A/V cables
5. Area rugs
10. Fashion
sunglasses
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Q2 2014
Q3 2014
Q4 2014
Q1 2015
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47
50K
38K
Data sources: Coinbase, BitPay
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48
120,000
100,000
80,000
60,000
40,000
20,000
0
Nov-13
Feb-14
May-14
Aug-14
Total merchants
Nov-14
Feb-15
May-15
Aug-15
Nov-15
Forecasted merchants
Data sources and notes: Total current merchants based on data from Coinbase and BitPay. Historical Coinbase data provided by
BitcoinPulse. BitPay historical data between new merchant press release announcements of 10,000 (16th Sep 2013), 20,000 (13th Jan
2014) and 30,000 (28th May 2014), respectively, calculated using linear interpolation.
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49
Steve Beauregard,
CEO of GoCoin
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50
People
who are
familiar
with
bitcoin
are more
likely to
think it is
useful
64.3%
of the general American population
are not familiar at all with bitcoin
6.2%
of the general American population
say they have used bitcoin
Distrust in
bitcoin
decreases
from 50%
to 37% as
familiarity
with
bitcoin
increases
53.1%
of those who are very familiar with
But the distrust in bitcoin is
bitcoin have never used it
similar (47%) among those
who frequently use bitcoin
and those who never use
Source: CoinCenter
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51
Thousands
500
481
451
454
Dec-2014
Mar-2015
400
343
300
200
120
100
0
Sep-2013
Dec-2013
Mar-2014
Jun-2014
Sep-2014
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52
Millions
12
10
0
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Total Wallets
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Forecasted Wallets
Data Sources and notes: total wallets based on data from Blockchain.info, MultiBit, Coinbase, Andreas Schildbach (Android Bitcoin
Wallet developer). Historical Coinbase data provided by BitcoinPulse.
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53
3. People who want to connect to the global economy for the first time
4. People who believe bitcoin is an attractive investment
5. People who value financial privacy
Sources: CoinDesk, Coinbase Blog
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54
100,000
80,000
60,000
40,000
Apr-14
Jul-14
Total no. of daily transactions
Oct-14
Jan-15
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Gem
55
112
104
100
79
80
60
43
40
32
20
0
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
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56
100
200
12,000
Cost Metrics
Bitcoin ATM acquisition cost ($)
5,000
200
0.2
300
6,480
5,520
Notes: Annual profits vary significantly depending on transaction volume. BitAccess machines are doing about $30,000 in transactions
per month (Montreal installed machine). Skyhook Bitcoin ATM in Philippines has on average 40-50 transactions per month. However,
the average bitcoin purchase size is not revealed.
Sources: CoinDesk, BitAccess, Reddit, CoinATMRadar
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57
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58
Europe
32%
Asia
11%
Oceania Latin
America
6%
1%
North
America
50%
Africa
0%
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59
Technology
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60
1. Property title
2. Smart contracts
3. Voting
4. Notary services
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Lima, Peru
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62
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In a traditional voting system, you have no idea about whether your vote is
counted. However, blockchain voting allows you to have the ability to audit
whether your vote is counted by viewing your vote using a public ledger.
At the same time, anonymity is also protected.
Source: CoinDesk
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64
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65
Paul Brody,
Technology Strategy
Consulting, IBM
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66
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67
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68
Billions
Hashes
250%
236%
18
17.8
16
200%
14
11.8
12
150%
10
106%
100%
6.1
6.0
6
4
50%
17%
15%
0%
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Notes: Difficulty represents the number of necessary hash calculations to mine a new block.
Data source: CoinDesk
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69
AntPool
Unknown
Unknown with
1BwZeHJ
Address
BitMinter
P2Pool
MegaBigPower
Bitcoin
Affiliate EclipseMC
Network
Eligius
F2Pool
BTC Guild
Ghash.io
Ghash.io
continues to
shrink, down
to less than
10% share
from 50% in
July 2014
BW.com
Slush
BTCChina
Pool
KnCMiner
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70
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71
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72
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73
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74
0-25%
26-50%
51-75%
76-100%
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75
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76
Duncan
Niederauer, NYSE.
Now advisor at
TeraExchange
Jason Weinstein,
US Department of
Justice. Now advisor at
BitFury
Blythe Masters,
JP Morgan Chase.
Now at Digital Assets
Holdings LLC
Timo Schlaefer,
Goldman Sachs.
Now at Crypto
Facilities
Gene Sperling,
National Economic
Council. Now advisor at
Ripple Labs
Paul Camp,
JP Morgan Chase.
Now at Circle
Arthur Levitt,
SEC. Now advisor at
BitPay and Vaurum
Arthur Hayes,
Citi. Now at BitMEX
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77
Securing banking partnerships has hindered the operations of bitcoin companies, often
forcing them to halt part of their offerings
However, partnership between banks and bitcoin companies could improve security
and efficiency
Source: CoinDesk
State of Bitcoin Q1 2015
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78
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79
Source: CoinDesk
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80
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81
Fred Wilson,
Union Square Ventures
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82
Positive Reactions
A light touch approach (Marc
Warne, Bittylicious)
Help score banking
relationships (Hugh HalfordThompson, QuickBitcoin)
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83
George Osborne
Chancellor of the Exchequer,
Second Lord of the Treasury
Source: CoinDesk
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84
About CoinDesk
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85
Disclaimer
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86