KABN Systems North America Inc.

Liquid Avatar
11 min readMay 12, 2020


An immense opportunity at just the right time.

In this issue, I will do two things:

•Demonstrate how online education is an example of a market relevant to KABN

  • Interview the Co-Founder, David Lucatch


This Presentation Has Been Prepared By KABN Systems North America Inc., a licensee of KABN (Gibraltar) Limited, effectively “KABN” or the “Companies” and is confidential and proprietary. It Does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Companies or related program(s). You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters.

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We seek Safe Harbor.

Online Learning and Online Meetings are experiencing significant growth.

Microsoft CEO, Satya Nadella, provides a few points:

“We’ve seen a new daily record of 2.7bn meeting minutes in one day, up 200 per cent from 900m on March 16, when falling securities markets shook the world.”

“Telemedicine is skyrocketing.”

“The University of Bologna recently moved 90 per cent of courses for 80,000 students online within three days. Not bad for a 900-year-old institution. A Japanese elementary school hosted its graduation on Minecraft, building a virtual assembly hall and seating to maintain the sense of community and belonging so important in times like this.”

(All quotes from FT.com, April 30, 2020)

I plan to address a simple example that demonstrates how KABN will revolutionize online identity.

Privacy and online digital identification is only going to be more important

Online courses are:

1)more affordable

2)offer more flexibility

3)accessible anywhere

Figure 1: A way of examining privacy needs

Source: Journal of Public Policy & Marketing. Vol. 34, №2 (FALL 2015)

Online privacy and disintegration of identity is in its nascency.

E-learning has just gone gangbusters. The reality is that this comes with challenges, as the above graphic attempts to address. Is privacy necessary? And to what extent. Massive Online Open Courses, or MOOCs, are becoming the auditorium for large student gatherings, especially in a time of physical isolation. But also going forward, we have seen how quickly the world adapted to continue learning, and the privacy concerns will always lag behind adoption.

The worldwide e-learning market was projected at $325BB in 2025. This projection is now out of date, in my opinion. The data is behind adoption given recent developments.

KABN addresses the reality of a private sector solution for a public problem. The expectation of privacy has become obscured within the context of simplicity in favour of commercial gain rather than protection. And now we are involving not just the majority of the educational population, but also children who should not be expected to address their lock and keys, and identity.

The Education Example

The educational market is relevant to KABN. It helps illustrate a market opportunity that has the ability to experience rapid growth.

According to Statistics Canada (Statcan):

•94% of Canadians 15 and older use the internet

•89% of Canadians over 65 use the internet

Here is where is gets odd, and we argue this data shows two points. First, this is stale-dated and does not take into account the current pandemic. Second, it demonstrates an enormous growth potential given the above data points. For example, ~3% of over 65 year-olds have participated in online education, yet almost nine tenths use the internet. There is an opportunity.

Figure 2: Growth in online / e-learning

Source: Statistics Canada, www150.statcan.gc.ca; Table 22–10–0084–01.

We are in unchartered waters, and KABN is positioned to help.

Introducing David Lucatch, President and Co-Founder

Tom Kennedy asks,

“David, please give me a brief background on how you got involved in KABN.“

David Lucatch responds:

“I was running a consulting agency that specialized in supporting new and innovative technologies, and our team was looking internally at digital currency payment solutions, and compliance. This led to the development of our VISA-based products and cash back programs which became part of a partnership to develop KABN.

Our consulting firm continued to provide support to KABN and independently developed the IP for our identity solutions, which ultimately became KABN ID. Liquid Avatar was a project I have been working on for over a year, separately and apart from co-founding duties at KABN, and has become the lead consumer facing program for the Company. It has been a very interesting and exciting journey and one which I will continue for many years to come. I’m in this for the long run.”


“Where do you see the opportunities, especially given the current market conditions? Schools and Colleges have gone online instantly, everyone is stuck at home, people don’t want to use cash or touch anything at all right now, frankly, and we worry about online fraud constantly.”


“At KABN, we believe that ownership of online identity is a basic human right and those that own that identity should be the primary beneficiary of its value. This is our core philosophy and our technology and business focus at KABN is to empower users to own, manage, and control their Digital Identity.

“Having said that, we believe the opportunities in Digital Identity are relevant to 100% of the online market as all users will have to, at some point, prove who they are, whether it’s a government, financial, educational, healthcare, prizing or some other type of transaction as more and more of our lives are spent online. When it comes to finance and fraud, the ability to instantly prove who you are potentially provides benefits to all parties in the ecosystem and something we generally take for granted in the online world. We’re working at KABN, especially with the introduction of Liquid Avatar, to make it easy to prove who you are and what you want, when you want and with who you want easily and safely.”


“Tell me what a year from now could look like. Both in the market and industry but also

how your business will play a role in this evolution. I love the e-gaming opportunities you have but more broadly, what is structurally changing?“


“We are already planning for the future at KABN. Our Liquid Avatar solution, we believe, has a very bright and effective future in the online world as more and more people look to protect themselves online and will need to prove identity as easily as they do in the real world. We believe that this is a digital evolutionary change accelerated by recent macroenvironment effects of more people online, gaming, transacting, educating and working online. This, in our opinion, is not going to change for the foreseeable future as it is more efficient.

We are developing new and innovative add-ons to Liquid Avatar and the rest of the KABN ecosystem and we are pushing the boundaries of the network effects by partnering with online gaming, social networks, eSports, entertainment and other online sectors to extend the reach of their users beyond their core business. This will, starting in the next quarter, allow partners and users to benefit from a single sign on method that is biometrically controlled, so typed in passwords may become obsolete. Multi-factor authentication will be completely personal and your private and public data will be yours to control. We believe this will reduce identity theft which is a $9 Billion-plus loss in North America. We are creating symbiotic and valuable relationships that we believe will reward all our stakeholders.”


“To a personal note — who’s your favorite athlete or entertainer? I’m a big Josh

Donaldson fan but wish he was still in view at 127L on third base at SkyDome. I know you‘ve done a lot of business in sports and entertainment, so what’s your best memory…”


“Wow, this is really hard as I’ve spent a good portion of my career engaged in the Sports and Entertainment industries, but one of my favorite memories is around my work with Marvel and the Avengers movie.

The quick story is that I was asked to go out to the studio when I was in the UK. To my surprise, and as a thank you, I was given a private tour of the set of Tony Stark’s apartment. That was super cool, but not the best part, as the private tour was generously done by Chris Hemsworth — Thor. I could not get over what a wonderful person he was to me and how accommodating he was to stay on set after shooting had ended for the day.

I have been very fortunate in my career to not only do these types of things, but also be able to support a number of charities and services with these types of events, giving value to others and seeing their smiles.


“Thanks David for your time!”

About the author:

Tom Kennedy is a consultant with a background in investment banking research, strategic management, and investment management. He is not considered independent.

KABN Systems NA is making a rapid entrance into a cutting-edge space in the North American privacy market, being online identity disintegration. This could not be more timely as every industry is trying to mitigate their online exposure and adapt to a new version of online prominence.

This company is led by a diverse team of experts, who are proven leaders in creating value through addressing market needs and identifying channels to reinforce their utility in a B2B market. In addition, we believe that there is significant value in the B2C launch of Liquid Avatar, a uniquely positioned product to address security for online interactions in a rapidly expanding size and range of markets. This includes online gaming, financial services with AML and KYC requirements, social media interfaces, and actively pursuing more industries. Especially now, in May 2020, KABN’s products are highlighted by the challenges facing supply chain management.

KABN is the next potential unicorn, and here’s why:

1.) This business requires no material capex outside of human capital.

2.) Once public, this business will be under normal intense regulatory scrutiny.

3.) This business requires no material debt to achieve its initial goals.

4.) Their ‘Liquid Avatar’ product is applicable to an infinite realm of online presence requirements: for the safety and protection of students, employees, managers, voters, and all financial services interactions. And all social media interfaces.

5.) Controlled data gathered will be worth more than the revenue they will produce.

6.) Now is KABN’s moment to emerge as a powerhouse.


Yagil, Adi. Medium.org. https://medium.com/@adiyagil/udemy-vs-coursera-vs-lynda-the-ultimate-comparison-70586665dca5)

Education Data reference. (https://techjury.net/stats-about/elearning/#gref)

© 2020 Thomas Kennedy. All rights reserved. See Disclosure Statement at the beginning of this document.



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