We have invested in seeking out legal and compliance expertise to ensure that Exoreum meets the new regulatory rules of the Initial Coin Offering at the ICO-stage.
According to the professional opinion of our legal advisors, based on the Howey Test our Exoreum should not be deemed as securities and do not need to be registered as a security. This document is not an offer of securities or a collective investment scheme, nor does it require registration with or approval from any Monetary Authority. Contributors are advised to read this document carefully in full, and perform due diligence.
This Whitepaper has been developed in collaboration with our Currency and Financial advisors (Edgar Newgate, Charles Finley and Scott Russo) and has been reviewed by our Legal advisors.
As consumer appetite in various classes of offline assets have grown over the last half of the 20th century, methods to derisk a purchaser from speculative activity has evolved. An ideal example of the need for this derisking is the tulip mania that overtook modern day Netherlands in the 17th century. Similarly, purchasers of other commodities, are confronted with the question of how to ensure that pure speculation does not negatively affect the price of the asset that they are buying. Purchasers of cryptocurrencies face the same problem. Exoreum seeks to establish an infrastructure for decentralized creation and trade of ERC20 Tokens built on the Ethereum blockchain. The pilot application allows users to create combinations of ERC20 Tokens (known as a Basket of Tokens) and trade the Basket by way of a single transaction.
Some of the challenges that Exoreum aims to solve are:
Many of these challenges are currently being solved by some centralized cryptocurrency exchanges and crypto-asset management platforms. Though popular and easy to use, many centralized exchanges and asset management platforms face challenges with optimum data security of users. They provide a centralized platform for blockchain assets, which by definition are meant to be decentralized. Other challenges faced by centralized exchanges and platforms include low liquidity thresholds and longer waiting periods for users to withdraw their funds from these exchanges.
Exoreum aims to solve the above problem by providing a decentralized platform that enables the creation and trade of Baskets of ERC20 Tokens through smart contracts. Through this means, users can trade in Baskets of ERC20 Tokens and also acquire multiple ERC20 Tokens with a single transaction. The Exoreum platform does not hold private keys or any Tokens. Innovative solutions to sell an ERC20 Token or Basket that is borrowed are being developed on Exoreum. Exoreum provides tools to create tokens that can be backed by a digital asset such as loyalty points, and these tokens can be traded on our platform. We are experimenting with a larger number of trades happening off-chain, and only record the trades happening on-chain.
Some of the ERC20 Token instruments that can be created on Exoreum are as follows:
From a technology standpoint, Exoreum is built on the Ethereum blockchain because of its smart contracting capabilities, large network of miners and users, and a large number of tokens already having been issued on Ethereum. Our initial product will be based on creation of baskets of ERC20 tokens on Ethereum. We have six types of contracts - data storage (d-gen), functionality enabler (f-gen), trade enabler (t-gen), settlement enabler (s-gen), rating enabler (r-gen), and analytics enabler (a-gen). Together they create a holistic ecosystem to create, trade, view, and settle contracts. Issuers create the ERC20 Token instruments, market makers and buyers purchase these instruments, sellers close the loop and thus all the members together create the market for the instrument. Using the f-gen, the issuer creates the product, the d-gen stores the product, the t-gen and s-gen are responsible for decentralized trade of the product through smart contracts. The r-gen is optional, and can be used only by certain users to rate products.
Users of each of the gen modules are incentivized to contribute to the platform. Incentives of different backers on the Exoreum platform are slightly different depending on the value they bring to the platform. All the incentives are distributed using the Exoreum token which is based on Ether. The underlying value of this Dapp will be in its applications to create, trade and settle instruments based on ERC20 Tokens. The Token sale will distribute the Exoreum tokens among the public, after which bounty programs will be conducted to incentivize each player in the platform.
The point of creating this system of decentralized ERC20 Token contract settlement on Ethereum is to allow the system to develop trust amongst different players. However, adherence to the type of contracts on the platform can be further enforced using standardized accounts available on the platform.
Since this platform is developed on the Ethereum blockchain, the single source of truth of the creation, trade and settlement of the products is based on the blockchain. Integrations of uPort and other identity platforms will serve to increase trust in the system.
Our biggest differentiator is that we are creating the entire infrastructure for decentralized creation and trade of any ERC20 Token instrument. Managers can create baskets of ERC20 Tokens or programmes to diversify such holdings, as well as define rules for trading these baskets.
Digital assets such as loyalty points can also be traded on the Exoreum platform. There are no automated market makers or price discovery mechanisms, it is an open market to the gamut of users who would participate and benefit from this decentralized platform.
1 Data from other blockchains and oracles
Using applications such as Oraclize, Streamr, and IPFS, we are in the process of creating the backend for d-gen and f-gen to connect and retrieve information from other blockchains as well as different web APIs. The users can use these third party applications to retrieve data which acts as an impartial oracle, required when blockchains have to interact with data on the web. These features (or suitable alternatives) would release on the Beta version.
In the not so distant future, we shall see machines interacting with each other through blockchains. We’re building towards this future. Transactions between IoT machines ought to be permissible within our architecture.
3 Other platforms
After the release of Exoreum, we intend to add an API which could possibly be used in platforms such as Gnosis. To verify the identity of different users, we plan to integrate with identity verification systems such as uPort. This could be used to verify users’ credentials, past transactions, trustworthiness and to minimise potential loss.
We are working on integrating analytics tools such as R. This could be used to generate statistical models on the ERC20 products.
The legal and regulatory environment around token generation events, cryptocurrencies and crypto-exchanges are in a state of flux. Our ability to operate legally in the jurisdictions that we operate in are subject to these legal and regulatory changes. As such, we anticipate initiating a continuous channel of discussion with regulators and to modify our roadmap and plans depending on these discussions.
Each phased plan of implementation will involve a continuous channel of communication with our lawyers, with regulators (including but not limited to the Monetary Authority of Johannesburg, the Securities & Exchange Commission of the United States and the Reserve Bank of India). Should either our lawyers or applicable regulators raise any issue in respect of the implementation of this roadmap, we will remodel this roadmap or obtain appropriate approvals.
YOU ARE ASSUMING THE RISK THAT A REGULATOR WILL IMPOSE REGULATORY RESTRICTIONS ON EXOREUM. THE EXOREUM PLATFORM WILL NOT BE LIABLE TO YOU FOR ANY DIRECT OR INDIRECT LOSSES ATTRIBUTABLE TO A LEGAL OR REGULATORY EVENT DESCRIBED ABOVE.
Our strategy is aimed towards onboarding a gamut of user types. We want our users to use our platform as a tool to understand and explore digital assets, as a method to create crypto-assets, and to reduce the risk of fluctuations in the value of crypto assets. We already have a large community of users from our I-Exchange Mining plaform, as such external promotions are only intended to back up our marketing strategy.
1. Online strategy
2. Offline strategy
Exoreum (EXR) is an ETH-based token that follows the ERC-20 standard. EXR is generated in two versions. The first, generally accepted option is the generation of pools for the needs of the company, such as payment for localization services, referral program, bounty awards, i-tasks bonuses, as well as pre-sales for pre-ICO and ICO.
Exoreum (EXR) received by members who financially supported the campaigns on the I-Exchange Mining platform will be accepted as payments in a variety of projects. The free tokens would be distributed to members' wallets after the ICO. In addition, we will use our marketing budgets to support precisely these campaigns because it is more profitable for us than to simply advertise the platform itself. The more successful projects we have, the better and more attractive the platform will be. This indirectly, yet positively affects the course of EXOREUM.
The formation of a large number of projects participating in our platform is the basis for the growth of the price of Exoreum: if more businesses will use EXOREUM, the more in-demand and the higher their liquidity will be. Our platform is building its business model specifically on the creation of such projects, increasing their number and connecting existing people to the Exoreum Platform. However, this won't only positively affect the cost of the EXOREUM. Cryptocurrencies are very sensitive to significant events, and we understand this.
We are launching the Exoreum token through a Token sale on 27th July. The Exoreum token will be used in the platform for transacting with any of the Exoreum APIs. The first Exoreum API will be the Olio basket trading application. This application allows users to create and trade in a basket of ERC20 tokens. The latest details of our token sale page will be updated on our site. Users must closely read the Terms and Conditions before contribution.
Governance: Governance over updates to the software which is separate from the Ethereum ecosystem.
Incentives: Incentive programs for various users, bounties for bug identification, and promoting the use of all the modules of our platform.
Future development: If we decide to integrate the tokens created on other blockchains as well (such as Tezos and NEO), we would need to be able to introduce protocols such as the COMIT protocol for interaction between the blockchains. It would be more secure and more efficient to do this if we have our own token.
Contracts for baskets of crypto assets: Collateral and margin can be posted in terms of a common Token whose movement is not directly dependent on Ether. Token sale contribution: The uniqueness of a Token sale is that it allows you to gather potential users of your platform.
A total of 75,000,000 tokens will be created by the Exoreum team. For the Token sale, 55,000,000 will be distributed, with the founding and advising team retaining the rest of the tokens.
There will be a minimum gas limit of 300,000. Users can participate using Metamask, MyEtherWallet, Parity, or Mist wallets. For participating in the Token sale, we will integrate Civic and uPort as identity management.
We aim to raise 12500ETH (ether) over a period of 4 weeks. We will end the token sale either when the 12500ETH is raised or when the 4 weeks is up, whichever comes first. Users can send ether to our contract address which will be displayed 2 hours before the start of the Token sale. Ether must be sent through MyEtherWallet, Mist, Parity or Metamask. Do not send Ether through exchanges such as Jaxx, Kraken, or others as your Ether may be stolen.
The funds raised during the Token sale will be used for hiring, operation costs, and for technology development.
Start date - July 27th 2pm GMT
End date - August 21st 7:30pm GMT.
Tokens accepted - ETH.
Gauge market sentiment?
We would like to gauge market sentiment for a decentralized basket of crypto assets trading application such as ours.
In the six weeks till the end of our Token sale, we want to step up our PR and marketing campaign for our platform.
5.2% of the total supply of Exoreum will be available for the Pre-Token sale.
Pre-Token sale + Token sale = 12500ETH.
Pre-Token sale = 530ETH.
Total Supply = 75 million EXR.
Supply offered for the pre-Token sale + Token sale = 55 million EXR.
Supply offered for the Token sale = 51500000.
Supply offered for the pre-Token sale = 3500000.
Tokens accepted for the pre-Token sale = ETH.
Minimum Ether required to participate in the Pre-Token sale = 1ETH.
Remaining Supply after pre-Token sale + Token sale = 20 million EXR.
This remaining 20 million EXR supply will be reserved for builderss, founders, and offered as a Seasonal Token Offering to I-Exchange Mining members during the release of the beta version.
Send your Ether only through MyEtherWallet, Mist Wallet, Parity Wallet, Metamask to the address mentioned on the Token sale page at 4pm GMT on July 8th for pre-sale and 4pm GMT on July 27th for Token sale. Do not send Ether through exchanges such as Poloniex or through wallets such as the Jaxx wallet, since your ether could be misplaced.
Please read the terms and conditions before participating in our pre-Token sale and our Token sale.
Users are incentivized to create and trade in ERC20 Token baskets, hence every time a creation or trade occurs, users get a small amount of EXR tokens added to their address The Ethereum blockchain protocol token (which is Ether) allows users to use Ether in the Ethereum world computer; the filecoin/storj/sia protocol token allows users to use tokens for file storage; pending regulatory approval, the Exoreum protocol smart contract protocol would ensure clearing of ERC20 Token baskets based contracts. These contracts could be a number of Token products or baskets or variations on these products or baskets that are used to cater to users with different reward/risk appetites. Our protocols would ensure for maximum security. The Exoreum token is a means to an end - create decentralized markets for any ERC20 Token instrument/product.
Data storage: Data on all trades conducted will be stored on the IPFS/Swarm. However, our pilot will be designed to store data in our servers. This pilot is to verify contract creation, trade and settlement. The next pilot will verify data storage, retrieval and pushing data back to the IPFS/Swarm.
Methods: Variations of baskets of ERC20 Tokens will be available as well as the ability to record current crypto-assets on the Ethereum blockchain. Users can create, trade, and settle these products using the front-end, which connects to our smart contract architecture.
Permissions: Users can set permissions on the contracts that they create. Permissions help build an additional layer of trust in the system.
Contract creators: These are functionalities provided to the users to create their products. These directly link to smart contracts at the backend, hence any product that the user creates is in essence a smart contract on the Ethereum blockchain.
Connecting to other platforms: We will eventually provide APIs to retrieve data from our platform for use in markets such as Gnosis. We would also integrate crypto-assets recorded on other blockchains through protocols such as the COMIT protocol, but this would only happen after the release of Exoreum 2.0 since we are experimenting with the stability of such protocols for mainstream use.
Off-chain capabilities: We are working on technology to create most transactions off-chain in order to prevent clogging of the Ethereum network. In the real world trades happen in microseconds, which we can enable either through pegged blockchains, lightning networks, or state channels through integration of socket.io and Whisper.
Our Beta product enables users to trade in a basket of ERC20 tokens on Ethereum. There are three main features of Olio - Create basket, buy a basket, sell a basket. The basic principles in designing Olio is to keep all transactions on-chain while all other computations and non-token transfer transactions off-chain. In order to realize the creation of the Exoreum protocol for decentralized ERC20 Token instruments, starting with the Olio basket trading application, the protocol is creating APIs for all future Dapps on Exoreum. Each API will contain all functionality available on the Dapp, and the API will act as a bridge between the front-end Dapp and the Ethereum smart contracts. In addition to the protocol, the API would add a security layer for the platform as well as an additional business model for external API calls.
Users can quote bid prices for basket that they want to own. For the first two weeks, users can quote prices in Ether, and then they can quote prices in only EXR tokens. All bids have an expiry date and time; when sellers accept a bid, the basket along with the underlying coins is transferred to the buyer and the seller receives Ether.
Users who own a basket can quote an ask price when they want to sell it. For the first two weeks they may quote in Ether, following which period they would quote in Exoreum. When a buyer accepts the ask price, the basket is transferred and Ether/Exoreum is transferred to the seller. If the seller wants to liquidate the basket and get the underlying coins, he activates the liquidate contract through the Dapp and the Exoreum-Olio API, after which they receive the underlying coins in their address.
All transactions that happen on-chain are through the Exoreum-Olio API. The API integrates the Dapp with the smart contracts, hence improving security of the platform and providing an additional business model for future use of the APIs.
Creating baskets: Creation of baskets by users is done through the Exoreum-Olio API.
Buy/sell baskets: Accepting Bid and Ask prices calls functions from the API which execute the smart contract code.
Liquidate baskets: Liquidation is the process of getting the underlying coins into your address. This event again calls the smart contract through the Olio API..
Recording changes in the order book: Any change in ownership of a basket is also recorded on the Smart order book contract.
Use of Exoreum Token sale revenue: The revenue gained from the Exoreum Token sale will be used as mentioned on our token sale page. Addresses are assigned for operational costs, hiring, and basket creation. Users can see how the revenue is used by seeing the consumption of tokens in each of these addresses.
Order book listing: Listing the basket available to buy/sell will be done off-chain. Keeping the list on-chain would be very expensive because of gas costs due to change in contract state.
Bid/Ask quotes: Listing of bid/ask quotes is done off-chain, with only the accepted quote being moved to the blockchain through the API and smart contract.
Token sale: The ETH address to which you will have to send your ETH during the token sale will be on the date of the Token sale.
Due to legal issues and the complexity of the implementation process, the platform does not currently accept "real" money (USD or EUR). However, we will investigate this challenge, search for options, and study the possibility of integration with already existing services to ensure the reception of "real" money. This feature will certainly be implemented in the future. Many users, who are completely unfamiliar with cryptocurrencies and do not know where they can be purchased, will have an opportunity to participate as backers.
Exoreum coins are created according to the ERC20 specifications of the Ethereum blockchain. Exact information about our smart contracts will be added soon - we are working on it right now.
Platform employees do not have access to user wallets. Funds raised by campaigns and stored in their unique wallets are controlled by the smart contracts automatically. After fundraising is completed, all funds are automatically transferred to the wallet that is specified by those that participated in the campaign, and 2.5 or 4% of the amount will be transferred to the wallets of the Exoreum platform. Platform employees do not have access to unique campaign wallets and cannot perform transfers from them. Exoreum coins are generated and issued automatically as well, and only after the receipt of contributions to a user's smart-contract, be it ETH or BTC, is confirmed. This protects the issued Exoreum coins from fraud and backs it with a real monetary value.
Only account owners have access to their wallets. Passwords to accounts are not stored on the site, with hashing used for fast login (what type and how?). Users can either store passwords to their wallets on the platform or delete them for security reasons. In this case, a user will have to enter the password to their wallet, which is not saved on the Exoreum platform, for each transfer and pledge. Links in user profiles to social networks, emails, and other contact information are visible only to account owners, and hidden from other users.Only platform moderators and top-tier developers have access to links to user's linked social networks, as well as access to their contact information. Moderators do not have access to user wallets, their full IDs, or passwords.
Only account owners have access to their wallets. Passwords to accounts are not stored on the site, with hashing used for fast login (what type and how?). Users can either store passwords to their wallets on the platform or delete them for security reasons. In this case, a user will have to enter the password to their wallet, which is not saved on the Exoreum platform, for each transfer and pledge. Links in user profiles to social networks, emails, and other contact information are visible only to account owners, and hidden from other users. Only platform moderators and top-tier developers have access to links to user's linked social networks, as well as access to their contact information. Moderators do not have access to user wallets, their full IDs, or passwords.
This document is for information purposes only, and is not an offer or a call to sell stocks or securities on the Exoreum platform, or that of any other related or associated company.
User acknowledges, understands, and agrees that Exoreum are not securities and are not registered with any government entity as a security, and shall not be considered as such. User acknowledges, understands, and agrees that ownership of Exoreum does not grant the user the right to receive profits, income, or other payments or returns arising from the acquisition, holding, management or disposal of, the exercise of, the redemption of, or the expiry of, any right, interest, title or benefit in the ICO or Exoreum Platform or any other I-Exchange Mining property, whole or in part.
There is no guarantee that Exoreum tokens will grow in value. There are no guarantees that the price of Exoreum will not decrease, including significantly, due to some unforeseen events, or events over which the developers have no control, or because of force majeure circumstances.
Exoreum tokens will be issued on the Ethereum blockchain. Therefore, any failure or malfunctioning of the Ethereum protocol may lead to the trading network of Exoreum tokens not working as expected.
Blockchain technologies are subject to supervision and control by various regulatory bodies around the world. Exoreum tokens may fall under one or more requests or actions on their part, including but not limited to restrictions imposed on the use or possession of digital tokens such as Exoreum, which may slow or limit the functionality or repurchase of Exoreum tokens in the future.
Exoreum tokens are not official or legally binding investments of any kind. In case of unforeseen circumstances, the objectives stated in this document may be changed. Despite the fact that we intend to reach all goals described in this document, all persons and parties involved in the purchase of Exoreum tokens do so at their own risk.
Technical innovations, like the development of quantum computers, may pose a danger to cryptocurrencies, including Exoreum tokens.
Funds collected in fundraising are in no way insured. If they are lost or lose their value, there is no private or public insurance representative that buyers can reach out to.
If a campaign does not end successfully, or is canceled by its creator, or by moderators, the funds are returned to the wallets of those users who transferred funds to the wallet of the campaign. If the user made their payment in a fiat currency (USD, EUR, RUR, or any other), the funds are returned to their ETH wallet inside the Exoreum Platform system. The user can withdraw this ETH or use them to participate in any other campaign launched by theI-Exchange Mining platform.
Exoreum tokens are a new and relatively untested technology. In addition to the risks mentioned in this document, there are certain additional risks that the team of the Exoreum ICO platform may not foresee. These risks may manifest themselves in other forms of risk than those specified herein.
All information contained within this Whitepaper is provided for general information purposes only, and is intended to present a guide to the decentralized services which may be provided by Exoreum platform in future. Nothing published in this document is intended to be (i) legal, financial, professional, tax or other advice; (ii) a recommendation to undertake (or to cease undertaking) any action whatsoever; (iii) an advertisement, solicitation or legal offer; (iv) an offer or a call to buy or sell stocks or securities on the Exoreum platform, or that of any other related or associated company.
The Exoreum Platform and the Exoreum tokens are products of the I-Exchange Mining Company.
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