This section contains legal disclaimer and Term and Conditions Of Initial Token Sale
The following terms and conditions (these “Terms”) govern the initial token sale (the “Token Sale”) by Tokenomy Ltd. (the “Company”) for the sale by the Company to you, and the purchase by you from the Company, of certain cryptographic tokens which adhere to and support the ERC20 Token Standard (as defined below), namely the TEN tokens (the “Tokens”), during the Sale Period (as defined in Paragraph 3.1). Each of you and the Company shall hereinafter be referred to as a “Party”, and collectively, you and the Company shall hereinafter be referred to as the “Parties”.
PLEASE READ THE TERMS SET OUT HEREIN CAREFULLY. THE TOKENS ARE NOT INTENDED TO CONSTITUTE SECURITIES OF ANY FORM, UNITS IN A BUSINESS TRUST, UNITS IN A COLLECTIVE INVESTMENT SCHEME OR ANY OTHER FORM OF REGULATED INVESTMENT OR INVESTMENT PRODUCT IN ANY JURISDICTION. THIS DOCUMENT AND THESE TERMS DO NOT CONSTITUTE A PROSPECTUS OR OFFER DOCUMENT OF ANY SORT AND ARE NOT INTENDED TO CONSTITUTE AN OFFER OF SECURITIES OF ANY FORM, UNITS IN A BUSINESS TRUST, UNITS IN A COLLECTIVE INVESTMENT SCHEME OR ANY OTHER FORM OF REGULATED INVESTMENT OR INVESTMENT PRODUCT, OR A SOLICITATION FOR ANY FORM OF REGULATED INVESTMENT OR INVESTMENT PRODUCT IN ANY JURISDICTION. NO REGULATORY AUTHORITY HAS EXAMINED OR APPROVED OF THESE TERMS. NO SUCH ACTION HAS BEEN OR WILL BE TAKEN BY THE COMPANY TO OBTAIN SUCH APPROVAL UNDER THE LAWS, REGULATORY REQUIREMENTS OR RULES OF ANY JURISDICTION. THE PROVISION OF THESE TERMS TO YOU DOES NOT IMPLY THAT THE APPLICABLE LAWS, REGULATORY REQUIREMENTS OR RULES HAVE BEEN COMPLIED WITH.
THE TOKEN SALE IS INTENDED FOR, MADE TO OR DIRECTED AT, ONLY PERSONS OUTSIDE OF THE UNITED STATES OF AMERICA, THE REPUBLIC OF SINGAPORE, AND/OR THE PEOPLE’S REPUBLIC OF CHINA, AND MAY BE ACTED UPON ONLY BY PERSONS OUTSIDE OF THE UNITED STATES OF AMERICA, THE REPUBLIC OF SINGAPORE, AND/OR THE PEOPLE’S REPUBLIC OF CHINA. ACCORDINGLY, YOU ARE NOT ELIGIBLE AND YOU ARE NOT TO PURCHASE ANY TOKENS IN THE TOKEN SALE IF YOU ARE LOCATED IN THE UNITED STATES OF AMERICA, THE REPUBLIC OF SINGAPORE, OR THE PEOPLE’S REPUBLIC OF CHINA AT THE TIME OF YOUR INTENDED PURCHASE / PURCHASE OF THE TOKENS IN THE TOKEN SALE. YOU ARE ALSO NOT ELIGIBLE AND YOU ARE NOT TO PURCHASE ANY TOKENS IN THE TOKEN SALE IF YOU ARE A CITIZEN, RESIDENT, DOMICILED IN, OR GREEN CARD HOLDER (AS THE CASE MAY BE) OF THE UNITED STATES OF AMERICA, THE REPUBLIC OF SINGAPORE, OR THE PEOPLE’S REPUBLIC OF CHINA.
BY ACCEPTING THESE TERMS AND PURCHASING TOKENS, YOU AGREE TO BE LEGALLY BOUND BY THESE TERMS (INCLUDING THE ANNEX HERETO) AND YOU EXPRESSLY ACKNOWLEDGE AND REPRESENT THAT YOU HAVE CAREFULLY REVIEWED THESE TERMS IN THEIR ENTIRETY AND FULLY UNDERSTAND THE CONTENTS HEREIN, INCLUDING THE RISKS, COSTS, AND BENEFITS OF PURCHASING TOKENS. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S). IF YOU DO NOT AGREE TO THESE TERMS, PLEASE DO NOT ACCEPT THESE TERMS OR PROCEED FURTHER FOR THE PURCHASE OF ANY TOKENS.
The headings in these Terms are included for convenience only and shall not be taken into account in construing these Terms. Unless the context otherwise requires, words (including words defined herein) denoting the singular only shall include the plural and vice versa. References to “Paragraphs” and “Annex” are to be construed as references to the paragraphs of and the annex to these Terms.
You and the Company HEREBY AGREE as follows:
shall constitute part of these Terms, and no representations, warranties or undertakings are or are intended or purported to be given by the Company in respect of any information contained in or on, or any part of, the items as stated in Paragraphs 1.5(a) to (d) above.
and shall comprise the following tranches (“Tranches”, and each a “Tranche”):
|Name of Tranche||Start Time and Date||End Time and date|
|Tranche 1||3.00 pm (Singapore Standard Time, UTC+8:00), on 8 January 2018||3.00 pm (Singapore Standard Time, UTC+8:00), on 15 January 2018|
|Tranche 2||3.00 pm (Singapore Standard Time, UTC+8:00), on 15 January 2018||3.00 pm (Singapore Standard Time, UTC+8:00), on 5 February 2018|
|Tranche 3||3.00 pm (Singapore Standard Time, UTC+8:00), on 5 February 2018||3.00 pm (Singapore Standard Time, UTC+8:00), on 12 February 2018|
PLEASE NOTE THAT PARAGRAPH 3.5 WILL BE APPLICABLE TO ANY ATTEMPTED PURCHASE OF TOKENS AFTER THE SALE EXPIRY TIME. CLOSURE OF THE SALE PERIOD WILL BE ANNOUNCED BY THE COMPANY AS SOON AS PRACTICABLE THEREAFTER ON THE TOKENOMY WEBSITE OR SUCH OTHER CHANNELS OF COMMUNICATION AS MAY BE DETERMINED BY THE COMPANY.
Purchases only through the Tokenomy Website
Accepted cryptocurrencies for payment
No legal tender, fiat currencies, cryptocurrencies, blockchain assets or tokens other than ETH and BTC shall be accepted as payment for Tokens. Subject to Paragraph 3.5, your purchase of Tokens under these Terms shall be deemed to be a confirmed purchase only upon validation and verification on the relevant blockchain that your transfer of ETH and BTC (as the case may be) to the Designated Address, as payment for your intended purchase of Tokens, is successful and complete.
based on such BTC / ETH exchange rate (as the case may be) (the “Applicable Exchange Rate”) in respect of your purchase order for Tokens with reference to the prevailing exchange rates applicable on the Bitcoin Indonesia Exchange or such other cryptocurrency exchange as may be determined by the Company in its sole and absolute discretion. While an indicative BTC / ETH exchange rate (“Indicative Exchange Rate”) will be stated on the Tokenomy Website at the time of purchase, this is purely illustrative and for reference only, and the purchase shall be based on the Applicable Exchange Rate.
THE APPLICABLE EXCHANGE RATE IS ONLY APPLICABLE TO TRANSFERS OF ETH AS THE INTENDED PURCHASE PRICE FOR AN ATTEMPTED PURCHASE OF TOKENS.
THE INDICATIVE EXCHANGE RATE IS SOLELY FOR ILLUSTRATIVE PURPOSES ONLY, AND SHOULD NOT BE CONSTRUED AS A REPRESENTATION OR WARRANTY THAT THE ETH PURCHASE PRICE OF SUCH ATTEMPTED PURCHASE TRANSFERRED TO THE DESIGNATED ADDRESS HAVE BEEN, COULD BE, OR WILL BE CONVERTED AT THIS RATE.
YOUR ENTITLEMENT OF TOKENS WILL BE DETERMINED BY THE APPLICABLE EXCHANGE RATE AT THE POINT OF CONVERSION OF ETH TO BTC (I.E. AFTER THE POINT OF AN ATTEMPTED PURCHASE, AND FOLLOWING YOUR TRANSFER OF ETH AS THE PURCHASE PRICE OF SUCH ATTEMPTED PURCHASE BEING VALIDATED AND VERIFIED ON THE RELEVANT BLOCKCHAIN AS SUCCESSFUL AND COMPLETE), AND WITH REFERENCE TO THE PREVAILING EXCHANGE RATES APPLICABLE ON THE BITCOIN INDONESIA EXCHANGE OR SUCH OTHER CRYPTOCURRENCY EXCHANGE AS MAY BE DETERMINED BY THE COMPANY IN ITS SOLE AND ABSOLUTE DISCRETION.
(b) Any fractional number of Tokens which you are entitled to receive for a confirmed purchase of Tokens (to the extent not rejected by the Company in accordance with these Terms), determined based on the amount of payment for such confirmed purchase at the Purchase Price as received at the Designated Address in ETH and BTC (as the case may be), shall be rounded down to the nearest 0.001 Token.
(c) Notwithstanding the foregoing of this Paragraph 4.3, the Company reserves the right to adjust, in its sole and absolute discretion, the Purchase Price and/or the Applicable Exchange Rate at any time during the Sale Period, including but not limited to (in relation to the Purchase Price) offering such discounts to the Purchase Price on such purchases from time to time as it may deem fit in its sole and absolute discretion.
(d) No invoices will be provided or issued to you for any purchase of Tokens.
(e) For purposes of these Terms, “Bitcoin Indonesia Exchange” means the web and API platform as accessible at https://www.bitcoin.co.id/, which provides services to allow users of the platform to convert certain cryptocurrencies, cryptographic tokens and blockchain assets.
Minimum Purchase Amount
PLEASE NOTE THAT PARAGRAPH 4.5 WILL BE APPLICABLE TO YOUR PURCHASE OF TOKENS IF YOUR PURCHASE AMOUNT IS BELOW THE MINIMUM PURCHASE AMOUNT. IT IS YOUR SOLE RESPONSIBILITY TO ENSURE THAT YOUR PURCHASE AMOUNT IS EQUIVALENT TO OR ABOVE THE MINIMUM PURCHASE AMOUNT IF YOUR INTENTION IS NOT FOR PARAGRAPH 4.5 TO APPLY TO YOUR PURCHASE OF TOKENS.
the Company shall provide a refund in full without interest and net of all administrative and/or third party charges and/or other transaction fees (if any) that may be incurred in connection with such refund, in which case such administrative and/or third party charges and/or other transaction fees (if any) incurred in connection with such refund shall be borne by you;
IT SHALL BE YOUR SOLE RESPONSIBILITY TO ENSURE THAT THE AMOUNT OF TRANSACTION FEES PAID BY YOU TO MINERS IN CONNECTION WITH YOUR TRANSFER OF ETH AND BTC (AS THE CASE MAY BE), AS PAYMENT FOR YOUR PURCHASE OF TOKENS, IS SUFFICIENT FOR YOUR TRANSFER TO BE VALIDATED AND VERIFIED ON THE RELEVANT BLOCKCHAIN AS A SUCCESSFUL AND COMPLETE TRANSFER PRIOR TO THE SALE EXPIRY TIME. ANY AMOUNT(S) OF TRANSACTION FEES RECOMMENDED BY THE COMPANY THROUGH THE TOKENOMY WEBSITE OR ANY OTHER PUBLIC OR PRIVATE COMMUNICATION CHANNEL IS ONLY INDICATIVE, AND MAY NOT BE REPRESENTATIVE OR REFLECTIVE OF THE ACTUAL AMOUNT(S) OF TRANSACTION FEES REQUIRED FOR YOUR TRANSFER TO BE VALIDATED AND VERIFIED ON THE RELEVANT BLOCKCHAIN AS A SUCCESSFUL AND COMPLETE TRANSFER PRIOR TO THE SALE EXPIRY TIME. ACCORDINGLY, THERE IS NO ASSURANCE THAT ANY AMOUNT(S) OF TRANSACTION FEES RECOMMENDED BY THE COMPANY THROUGH THE TOKENOMY WEBSITE OR ANY OTHER PUBLIC OR PRIVATE COMMUNICATION CHANNEL WILL BE SUFFICIENT FOR YOUR TRANSFER TO BE VALIDATED AND VERIFIED ON THE RELEVANT BLOCKCHAIN AS A SUCCESSFUL AND COMPLETE TRANSFER PRIOR TO THE SALE EXPIRY TIME.
Address for directing payments and holding of accepted cryptocurrencies in escrow until delivery of Tokens
For purposes of these Terms, “Centralised Exchange” means any centralised web and API platform which provides services to allow users of the platform to convert certain cryptocurrencies, cryptographic tokens and blockchain assets.
Attempts to double spend and purchases in violation of laws
For purposes of these Terms, an attempt to “double spend” means an attempt to undertake two (2) different transactions on the Bitcoin blockchain, the Ethereum blockchain, or any other cryptocurrency network and spend the same account balance on each of the transactions.
IT IS YOUR SOLE RESPONSIBILITY TO ENSURE THAT THERE IS NO ATTEMPT TO DOUBLE SPEND AND THAT YOUR PURCHASE OF TOKENS IS NOT IN VIOLATION OF ANY APPLICABLE LAWS, REGULATIONS OR RULES IF YOUR INTENTION IS NOT FOR PARAGRAPH 4.11 TO APPLY TO YOUR PURCHASE OF TOKENS.
For the purposes of these Terms, the “ERC20 Token Standard” means the set of criteria, (including criteria in relation to functions and events) developed by the Ethereum community, which has to be met in a smart contract on a blockchain in order to enable inter-operability across multiple interfaces and distributed applications.
Tokens shall be deemed to be received by you upon validation and verification of receipt of Tokens in such Ethereum Wallet.
You should carefully consider and evaluate each of the following risk factors and all other information contained in the Terms before deciding to participate in the Token Sale. To the best of the Company’s knowledge and belief, all risk factors which are material to you in making an informed judgement to participate in the Token Sale have been set out below. If any of the following considerations, uncertainties or material risks develops into actual events, the business, financial position and/or results of operations of the Company and the development, maintenance and level of usage of the Tokenomy Platform could be materially and adversely affected. In such cases, the trading price of Tokens (in the case where they are listed on a cryptocurrency exchange) could decline due to any of these considerations, uncertainties or material risks, and you may lose all or part of your Tokens.
RISKS RELATING TO PARTICIPATION IN THE TOKEN SALE
There is no prior market for Tokens and the Token Sale may not result in an active or liquid market for the Tokens
Prior to the Token Sale, there has been no public market for the Tokens. In the event that the Tokens are traded on a cryptocurrency exchange, there is no assurance that an active or liquid trading market for the Tokens will develop or if developed, be sustained after the Tokens have been made available for trading on such cryptocurrency exchange. There is also no assurance that the market price of the Tokens will not decline below the Purchase Price. The Purchase Price may not be indicative of the market price of the Tokens after they have been made available for trading on a cryptocurrency exchange.
A Token is not a currency issued by any central bank or national, supra-national or quasi-national organisation, nor is it backed by any hard assets or other credit. The Company is not responsible for nor does it pursue the circulation and trading of Tokens on the market. Trading of Tokens merely depends on the consensus on its value between the relevant market participants, and no one is obliged to purchase any Token from any holder of the Token, including the purchasers, nor does anyone guarantee the liquidity or market price of Tokens to any extent at any time. Accordingly, the Company cannot ensure that there will be any demand or market for Tokens, or that the Purchase Price is indicative of the market price of Tokens after they have been made available for trading on a cryptocurrency exchange.
Future sales of the Tokens could materially and adversely affect the market price of Tokens
Any future sale of the Tokens (which were not available for sale in the Token Sale) would increase the supply of Tokens in the market and this may result in a downward price pressure on the Token. The sale or distribution of a significant number of Tokens outside of the Token Sale, or the perception that such further sales or issuance may occur, could adversely affect the trading price of the Tokens.
Negative publicity may materially and adversely affect the price of the Tokens
Negative publicity involving the Company, the Tokenomy Platform, the Tokens or any of the key personnel of the Company may materially and adversely affect the market perception or market price of the Tokens, whether or not such negative publicity is justified.
There is no assurance of any success of the Tokenomy Platform
The value of, and demand for, the Tokens hinges heavily on the performance of the Tokenomy Platform. There is no assurance that the Tokenomy Platform will gain traction after its launch and achieve any commercial success.
The Tokenomy Platform has not been fully developed, finalised and integrated and is subject to further changes, updates and adjustments prior to its launch. Such changes may result in unexpected and unforeseen effects on its projected appeal to users, and hence impact its success.
While the Company has made every effort to provide a realistic estimate, there is also no assurance that the cryptocurrencies raised in the Token Sale will be sufficient for the development and integration of the Tokenomy Platform. For the foregoing or any other reason, the development and integration of the Tokenomy Platform may not be completed and there is no assurance that it will be launched at all. As such, distributed Tokens may hold little worth or value, and this would impact its trading price.
The trading price of the Tokens may fluctuate following the Token Sale
The prices of cryptographic tokens in general tend to be relatively volatile, and can fluctuate significantly over short periods of time. The demand for, and correspondingly the market price of, the Tokens may fluctuate significantly and rapidly in response to, among others, the following factors, some of which are beyond the control of the Company:
The funds raised in the Token Sale are exposed to risks of theft
The Company will make every effort to ensure that the funds received from the Token Sale will be securely held at the Designated Address or such other address as directed by the Company (“Receiving Address”). Further, upon receipt of the funds, the Company will make every effort to ensure that the funds received will be securely held through the implementation of security measures. Notwithstanding such security measures, there is no assurance that there will be no theft of the cryptocurrencies as a result of hacks, mining attacks (including but not limited to double-spend attacks, majority mining power attacks and “selfish-mining” attacks), sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on the Receiving Address, the Bitcoin blockchain, Ethereum blockchain, or any other blockchain, or otherwise. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. In such event, even if the Token Sale is completed, the Company may not be able to receive the cryptocurrencies raised and the Company may not be able to utilise such funds for the development of the Tokenomy Platform, and the launch of the Tokenomy Platform might be temporarily or permanently curtailed. As such, the issued Tokens may hold little worth or value, and this would impact its trading price. The Tokens are uninsured, unless you specifically obtain private insurance to insure them. In the event of any loss or loss of value, you may have no recourse.
RISKS RELATING TO THE RECEIVING ADDRESS AND WALLETS
The Receiving Address may be compromised and the cryptocurrencies may not be able to be disbursed
The Receiving Address is designed to be secure. However, in the event that the Receiving Address is, for any reason compromised (including but not limited to scenarios of the loss of keys to such Receiving Address), the funds held by the Receiving Address may not be able to be retrieved and disbursed, and may be permanently unrecoverable. In such event, even if the Token Sale is successful, the Company will not be able to receive the funds raised and the Company will not be able to utilise such funds for the development of the Tokenomy Platform, and the implementation of the Tokenomy Platform might be temporarily or permanently curtailed. As such, distributed Tokens may hold little worth or value, and this would impact its trading price.
The loss or compromise of information relating to your Ethereum Wallet may affect your access and possession of the Tokens
Your access to the Tokens in the Ethereum Wallet depends on, among other things, the safeguards to the information to such Ethereum Wallet, including but not limited to the user account information, address, private key, and password. In the event that any of the foregoing is lost or compromised, your access to the Ethereum Wallet may be curtailed and thereby adversely affecting your access and possession to the Tokens, including such Tokens being unrecoverable and permanently lost.
The Ethereum Wallet or Ethereum Wallet service provider may not be technically compatible with the Tokens
The Ethereum Wallet or Ethereum Wallet service provider may not be technically compatible with the Tokens which may result in the delivery of Tokens being unsuccessful or affect your access to such Tokens.
RISKS RELATING TO THE COMPANY
The Tokenomy Platform is operated and maintained by the Company. Any events or circumstances which adversely affect the Company may have a corresponding adverse effect on the Tokenomy Platform if such events or circumstances affect the Company’s ability to maintain the Tokenomy Platform. This would correspondingly have an impact on the trading price of the Tokens.
The Company may be materially and adversely affected if it fails to effectively manage its operations as its business develops and evolves, which would have a direct impact on its ability to maintain the Tokenomy Platform and consequently the trading price of the Tokens.
The financial technology and cryptocurrency industries and the markets in which the Company competes have grown rapidly and continue to grow rapidly and evolve in response to new technological advances, changing business models and other factors. As a result of this constantly changing environment, the Company may face operational difficulties in adjusting to the changes, and the sustainability of the Company will depend on its ability to manage its operations, adapt to technological advances and market trends and ensure that it hires qualified and competent employees, and provide proper training for its personnel. As its business evolves, the Company must also expand and adapt its operational infrastructure. The Company’s business relies on its blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology, and to manage technical support infrastructure for the Tokenomy Platform effectively, the Company will need to continue to upgrade and improve its data systems and other operational systems, procedures and controls. These upgrades and improvements will require a dedication of resources, are likely to be complex and increasingly rely on hosted computer services from third parties that the Company does not control. If the Company is unable to adapt its systems and organisation in a timely, efficient and cost-effective manner to accommodate changing circumstances, its business, financial condition and results of operations may be adversely affected. If the third parties whom the Company relies on are subject to a security breach or otherwise suffer disruptions that impact the services the Company utilises, the integrity and availability of its internal information could be compromised, which may consequently cause the loss of confidential or proprietary information, and economic loss. The loss of financial, labour or other resources, and any other adverse effect on the Company’s business, financial condition and operations, would have a direct adverse effect on the Company’s ability to maintain the Tokenomy Platform. As the Tokenomy Platform is the main product to which the Tokens relate, this may adversely impact the trading price of the Tokens.
The Company may experience system failures, unplanned interruptions in its network or services, hardware or software defects, security breaches or other causes that could adversely affect the Company’s infrastructure network, and/or the Tokenomy Platform
The Company is unable to anticipate when there would be occurrences of hacks, cyber-attacks, mining attacks (including but not limited to double-spend attacks, majority mining power attacks and “selfish-mining” attacks), distributed denials of service or errors, vulnerabilities or defects in the Tokenomy Platform, the Tokens, the Receiving Address, the Ethereum Wallet or any technology (including but not limited to smart contract technology) on which the Company, the Tokenomy Platform, the Tokens, the Receiving Address, and the Ethereum Wallet relies or on the Bitcoin blockchain, Ethereum blockchain or any other blockchain. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. The Company may not be able to detect such hacks, mining attacks (including but not limited to double-spend attacks, majority mining power attacks and “selfish-mining” attacks), cyber-attacks, distributed denials of service errors vulnerabilities or defects in a timely manner, and may not have sufficient resources to efficiently cope with multiple service incidents happening simultaneously or in rapid succession.
The Company’s network or services, which would include the Tokenomy Platform, could be disrupted by numerous events, including natural disasters, equipment breakdown, network connectivity downtime, power losses, or even intentional disruptions of its services, such as disruptions caused by software viruses or attacks by unauthorised users, some of which are beyond the Company’s control. Although the Company has taken steps against malicious attacks on its appliances or its infrastructure, which are critical for the maintenance of the Tokenomy Platform and its other services, there can be no assurance that cyber-attacks, such as distributed denials of service, will not be attempted in the future, and that any of the Company’s enhanced security measures will be effective. The Company may be prone to attacks on its infrastructure intended to steal information about its technology, financial data or user information or take other actions that would be damaging to the Company and users of the Tokenomy Platform. Any significant breach of the Company’s security measures or other disruptions resulting in a compromise of the usability, stability and security of the Company’s network or services (including the Tokenomy Platform) may adversely affect the trading price of the Tokens.
We are dependent in part on the location and data centre facilities of third parties
The Company’s infrastructure network is in part established through servers that which it owns and houses at the location facilities of third parties, and servers that it rents at data centre facilities of third parties. If the Company is unable to renew its data facility lease on commercially reasonable terms or at all, the Company may be required to transfer its servers to a new data centre facility, and may incur significant costs and possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication failures. Additionally, the third party providers of such facilities may suffer a breach of security as a result of third party action, employee error, malfeasance or otherwise, and a third party may obtain unauthorised access to the data in such servers. As techniques used to obtain unauthorised access to, or to sabotage systems change frequently and generally are not recognised until launched against a target, the Company and the providers of such facilities may be unable to anticipate these techniques or to implement adequate preventive measures. Any such security breaches or damages which occur which impact upon the Company’s infrastructure network and/or the Tokenomy Platform may adversely impact the price of the Tokens.
General global market and economic conditions may have an adverse impact on the Company’s operating performance, results of operations and cash flows
The Company has been and could continue to be affected by general global economic and market conditions. Challenging economic conditions worldwide have from time to time, contributed, and may continue to contribute, to slowdowns in the information technology industry at large. Weakness in the economy could have a negative effect on the Company’s business, operations and financial condition, including decreases in revenue and operating cash flows. Additionally, in a down-cycle economic environment, the Company may experience the negative effects of increased competitive pricing pressure and a slowdown in commerce and usage of the Tokenomy Platform. Suppliers on which the Company relies for servers, bandwidth, location and other services could also be negatively impacted by economic conditions that, in turn, could have a negative impact on the Company’s operations or expenses. There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant adverse impact on the Company’s business, financial condition and results of operations and hence the Tokenomy Platform, which would correspondingly impact the trading price of the Tokens.
The Company or the Tokens may be affected by newly implemented regulations
Cryptocurrency trading is generally unregulated worldwide, but numerous regulatory authorities across jurisdictions have been outspoken about considering the implementation of regulatory regimes which govern cryptocurrency or cryptocurrency markets. The Company or the Tokens may be affected by newly implemented regulations relating to cryptocurrencies or cryptocurrency markets, including having to take measures to comply with such regulations, or having to deal with queries, notices, requests or enforcement actions by regulatory authorities, which may come at a substantial cost and may also require substantial modifications to the Tokenomy Platform. This may impact the appeal of the Tokenomy Platform for users and result in decreased usage of the Tokenomy Platform. Further, should the costs (financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the Tokenomy Platform may no longer be commercially viable and the Company may opt to discontinue the Tokenomy Platform and/or the Tokens. Further, it is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the Tokenomy Platform and the Tokens. The Company may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the trading price of Tokens will be adversely affected or Tokens may cease to be traded.
Certain parts of our work and processes may risk being disrupted by new technologies that may emerge
New technologies may emerge and have a disruptive effect on certain parts of our work and processes. In particular, blockchain technology is rapidly developing and evolving, and technological advancements may render certain or all parts of the Company’s work and processes obsolete and ineffective. If we are unable to effectively cope and keep abreast with such technological advancements and/or reallocate the Company’s resources to other work and processes, this could have an adverse effect on the Company’s business, financial condition, results of operations, and prospects.
There may be unanticipated risks arising from the Tokens
Cryptographic tokens such as the Tokens are a relatively new and dynamic technology. In addition to the risks included in this Annex, there are other risks associated with your purchase, holding and use of the Tokens, including those that the Company cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the risks discussed in this Annex.