Cryptocurrency exchange

White paperAugust 2018

http://tokeneo.io/

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Table of Contents01. Market analysis02. Tokeneo platform03. TEO Token and ICO04. Team05. Strategy

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01. Market analysis

We came up with the very idea of launching the Tokeneo project at the beginning of 2018, when we were beginning to raise capital for the purposes of the open cryptocurrency fund Cryptoinvestia.In the course of working on the investment basket at one point we had no option but to select the appropriate assets with low risk and high potential of adoption and yield. Currently only a few projects can offer to their investors more than a sheer promise of the peaking exchange rate in the future.Aiming at protecting in the bestpossible manner the interests of the individuals wishing to entrust their capital to us, we have decided to allocate some part of the

accumulated funds for the construction of a trading platform whose shareholders would participate in the distribution of profits generated by it.It is common knowledge that irrespective of the current trends dominating in the cryptocurrency markets, their exchange markets keep taking pride in increasingly higher gains and the turnover in the token markets is constantly on the increase.Seeing the market gap, we adopted a decision to develop the Tokeneo platform – a cryptocurrency exchange that pays outs regular dividends to its investors, the holders of TEO tokens. A detailed description and the main objectives of this project are to be found in this document.

INTRODUCTION

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In the last decade a high level of uncertainty was to be seen in the traditional financial markets. Despite the fact that it has been already 10 years since the crisis in 2008, many indices still have not been able to make up for the losses incurred at that time.The yield on treasury bonds has been gradually declining year on year, frequently below the inflation ratio thus making them completely cost-ineffective. Committing yourself to such type of investment for 10 or more years has ceased to be financially viable whatsoever.On account of the fact that the public sector suffers from the spiraling indebtedness, governments are forced to decrease the value of their currencies with a view to reducing the costs of their debt-servicing in this manner. The investmentprospects are also not ameliorated by the directives aimed at decreasing the possibilities of leveraging the positions in the Forex markets.Some countries have decided to counteract actively the consequences of the crisis by way of state programs; nevertheless, on numerous occasions it was effected at the cost of the purchasing power of a given national currency.The example of the US is indicative of how the inflationary policy aimed at boosting the economy resulted in the stock exchange indices skyrocketing to new record highs thus deteriorating the financial standing of many American

citizens. This is not an isolated case. The increase in the prices of merchandise that is currently to be observed in many countries globally, also in Europe, brings about the deteriorating quality of life of millions of people. In such turbulent times, the necessity to save and invest capital wisely becomes self-evident.Many investors, discouraged by the bleak prospects of profits to be generated in the traditional markets, started searching for brand new investment opportunities. The alternative nature of digital currencies and the fact that they do not remain directly correlated with any other available assets have contributed to the fact that we are witnessing an unprecedented flow of capital to the markets in question. Many commentators tend to perceive cryptocurrencies as a safe haven that enables you to wait out the crisis that although significantly delayed, inevitably keeps looming on the horizon.Within the recent years the general perception has changed and today digital currencies are treated less suspiciously. They are more and more often regarded as an excellent opportunity for creating an alternative for the ailing financial system that keeps failing us on many fronts.

TRADITIONAL MARKETS

Last year, in 2017, we witnessed an unprecedented increase in the value of almost all assets quoted on the digital exchanges. The surges in the exchange rates of the majority of cryptocurrencies and tokens were counted in thousands of percent thus attracting the public attention and galvanizing the industry and as well as mainstream media.Similarly to the turn of 2013 and 2014, thanks to Bitcoin and the rapid growth in its quotations, again the concept of cryptocurrencies has been brought into the spotlight of investors. This all can be attributed to the bullish market that has been in place for over a year, during which the cumulative valuation of this new type of assets reached the

levels that proved to be staggering for commentators.It was January 2017 and Bitcoin was dangerously close to the valuation equaling 1 ounce of gold only to overshadow completely the profitability of brick-and-mortar investment instruments.Between January 2017 and January 2018 a relatively small and unknown market of cryptographic currencies skyrocketed. The value of tokens valued at the beginning of the year at approximately USD 18.77 billion within twelve months exploded to over 828 billion, which marked an increase by as much as 4400 percent.

CRYPTOCURRENCY ADOPTION

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Figure 1: Cryptocurrency market capitalization chart between January 2017 and January 2018

A significant part of the success can be attributed to Bitcoin – as the largest cryptocurrency in terms of the valuation. It increased in an equally spectacular manner from the level of around USD 1000 to close to USD 20 000 – the astonishing 2000 percent for a sizeable, as it seemed, market became a reality.It is worth underlining that at the same time the cumulative daily trading volume on all the exchanges offering cryptographic markets went up from USD 245 million to more than USD 45 billion, which constituted an even more dynamic growth by 18 400 percent. Both those mutually confirmative parameters indicate a growing interest in the cryptocurrency industry on the part of investors and they

support the view that the adoption trend for the entire market, despite significant achievements, continues to be upward.In the opinion of many commentators, there is a perfectly bright future ahead of the blockchain technology and it has already been dubbed as the revolution that can be easily be comparable to the one related to the Internet.Taking into account that there are constantly new applications to be found for it, we can expect that this industry will continue to thrive dynamically. The overriding objective of the Tokeneo exchange is to be its active participant.

Another prominent market trend that cannot be disregarded was the escalating tendency consisting in the weakening of the Bitcoin domination in relation to other cryptocurrencies. This phenomenon in 2017 was two-fold.First and foremost, what we were witnessing was a significantly growing interest in projects alternative to Bitcoin, aimed at exploring new paths in the blockchain technology application. This proved to be pivotal in introducing a breath of fresh air into the industry that became more open-minded towards the new ideas of developers.Many new investors were entering the market with a view to supporting new visions, and they allocated the first invested money in all kind of emerging projects and not Bitcoin. The reason for this boiled down to the promise of higher returns

as compared with the cryptocurrency behemoth but also the willingness to participate in the accelerating transformation of the entire market.This approach could undoubtedly be attributed to the resounding success of the Ethereum network offering a completely new application in the form of smart contracts. For many it became obvious then that cryptocurrencies are not merely the transfer of value and in fact that we are dealing with a multi-faceted phenomenon which potentially could make a difference in almost each and every market sector.In the charts below we can see how the Bitcoin domination was decreasing in relation to other digital assets and how those movements remained correlated with the increases in the interest in the selected large alternative currencies.

BITCOIN DOMINATION DECLINE

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Figure 2: Bitcoin domination in relation to other cryptocurrencies between January 2017 and January 2018

The second dimension of the weakening Bitcoin domination in relation to the remaining projects was of course their general valuation. From the previous paragraph we know how huge were the surges on the Bitcoin market – almost 2000 percent and how it translated into the total growth of the valuation all off the cryptocurrencies listed on the

exchanges during the year – 4400 percent. All this occurred with the spectacular increase in the trading volume in all available markets. The picture proves to be equally interesting if we analyze the cumulative data pertaining only to the altcoin markets.

At the beginning of 2017 the altcoin markets were in total valued at USD 2.35 billion, but only 12 months later their valuation skyrocketed to the staggering USD 547 billion generating for investors profits that stood at 23200 %.The previous year was therefore the year of alternative currencies. It generated ten times higher growth than Bitcoin in the same period of time and bigger than the entire cryptocurrency market together.As a result, a large part of the industry focused permanently on alternative projects as better investment opportunities and the sphere that prides itself on the most cutting-edge

innovation. The sames was true in the case of turnover on these markets. Alternative currencies yet again proved that they are on the radar of investors and they set new trends in the development of technology for the years to come. The cumulative trading volumes on the altcoin markets at the beginning of 2017 amounted to around USD 61 million, whereas in January 2018 their value came to USD 27,42 billion.You can count easily that the turnover rose by as much as 44900 percent, that is 2,5 times more than the turnover of the whole sector in its entirety.

ICO PHENOMENON

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Figure 3: Altcoin capitalization chart (cryptocurrencies excluding Bitcoin) between January 2017 and January 2018

It goes without saying that another phenomenon which came into being in the euphoria-driven cryptocurrency markets in 2017 was the spectacular boom of the so called ”initial coin offerings”, that is the crowdfunding of new blockchain projects. According to the data available in the website icodata.io, which keeps the statistics associated with ICO, it is possible to discern another upward trend related to

cryptocurrencies. ICO as the concept behind the financing of cryptocurrency-based projects is relatively young and its history goes back to 2014.The collections of funds in this manner was particularly enhanced in 2016 and 2017 thanks to the development of the Ethereum network and the possibilities related to smart contracts on this very platform.

The conclusions are more than obvious. We can expect that this trend will be maintained and that projects that remain alternative to Bitcoin will continue to grow in popularity.We believe that the Bitcoin domination will show an upward

trend and at the same time its valuation will peak, yet we cannot exclude the scenario under which it ceases to be the largest cryptocurrency market.

Ethereum made it possible for every individual to issue their own digital assets in a highly decentralized environment, which the IT programmers eagerly took advantage of.According to the statistics in 2015, 3 projects organized their own initial coin offerings and obtained the total of more than USD 6 million. This may seem like an insignificant amount; however, please note than the Ethereum network was released precisely at the end of 2015. It was only over subsequent years that it became used massively. In 2016 as

many as 29 ICO crowdsales were recorded, from which over USD 90 million was acquired. Within the year the ICO market grew more than ten times, but it was only the beginning.The year 2017 was dubbed as the year of the ICO for a reason. Within twelve months as many as 871 new projects were established, which collected from the market more than USD 6 billion, which is tantamount to unprecedented growth as compared with the previous years.

TURNING POINT

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Figure 4: Growth dynamics of the funds raised in ICO in 2017

The year 2018 in the context of the initial coin offering can prove to be a genuine breakthrough. The overheating of the fundraising market is noticeable. It is increasingly difficult for the new projects to win the attention of investors with a view to obtaining funds. More and more often fundraising is organized by specialized companies offering professional marketing campaigns. There are also specialized websites

dealing with the assessment of the potential of individual ICOs, verifying their objectives and even dedicated rating agencies.We can see the birth of a brand new sector, specializing in crowdfunding that meets the needs of both investors who are at a loss as well as of the projects that need to win recognition.

Crowdfunding is not a new concept; nevertheless, thanks to the state-of-the-art technologies which made it inexpensive and easily accessible, is it becoming increasingly popular. Due to the existence of the Internet, people are no longer forced to apply for bank financing, and the companies do not have to comply with regulatory requirements in order to obtain funds on national stock exchanges. Cryptocurrencies and ICO enabled everyone to accumulate capital for the

development and implementation of their ideas. The direction in which ICOs shall continue to develop was set by the creators of the Ethereum network almost 3 years ago and only some unreasonable governmental regulations are in a position to make us turn back.In the foreseeable future we will be able to see with our own eyes how powerful the influence of the model of free financing will be on the global economy.

The reason for this situation is a genuine flood of information that people who are interested in the blockchain technology are overwhelmed with, preventing us from absorbing the data that we are interested in. The models of market self-regulation are only fledgling, therefore it is very

easy to become a victim of fraud. According to the statistics, from the projects which in 2017 organized the sales of their tokens, as many as 85 failed to fulfill their vision completely or they disappeared with the raised capital, leaving the investors empty-handed.

CONCLUSIONS

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Figure 5: Decrease of funds raised in ICO in the first half of 2018

The data collected by our team of developers and researchers indicate that the adoption of cryptocurrencies is taking place at a dizzying pace. This is to be seen both in the data pertaining to the number of new projects as well as the number of people involved in the cryptocurrency-related projects.Until recently it remained the preserve of programmers and experimenters whereas nowadays not a single day goes by without some information about testing blockchain-based

solutions in major multinational companies, smaller enterprises and even at the governmental level.The regulators who up till now remained somewhat skeptical are starting the appreciate the potential of this technology and they are not afraid to talk about it. Cryptocurrencies are no longer a taboo and they are slowly turning into something that the public is becoming increasingly aware of.

This situation exerted a tangible influence on the entire blockchain community and it visibly translated itself into the ICO reality in 2018. Since the beginning of the year we have been noticing a faltering interest in fundraising with further growth of the collected funds at the same time.For the first 5 months of this year in the announced ICOs a total sum of more than USD 5 billion was raised successfully, that is almost the same as in the entire record-breaking year 2017. At the same time the raised amounts obtained by way

of the ICO of well-run projects are constantly on the increase.It should be concluded that capital becomes concentrated in a small number of projects offering increasingly daring and ground-breaking solutions. In order to attract investors, it is necessary to demonstrate that a given project has to offer something brand new or it solves a specific problem. We are entering the era of usability and the real adoption of the blockchain technology.

To a large extent, all this has been made possible thanks to the ever increasing demand for digital assets and unprecedented returns on investment. The cryptocurrency markets offer the lowest possible entry barrier and they offer a system based on property and owning and not debt as, for instance, the current banking system.In the previous years we could witness the traditional financial markets grappling with the problems that still have not been solved, which resulted in the collapse from 2008. Many of the indices and stock exchanges still have not been able to compensate for the losses incurred 10 years ago. This has encouraged investors to search for investment alternatives singlehandedly and to do away with the hegemony of licensed financial institutions.Cryptocurrencies proved to be a very interesting alternative promising quite hefty returns in a short period of time and enabling the participation in global projects aimed at making the world a better place. More and more people are willing to join this revolution.Licenses like open source and crowdfunding made it possible for everyone to become a part of the digital revolution comparable to the Internet. Thanks to ICO every single vision could win the support of numerous investors from all over the world.Within the last 18 months over 1600 projects announced and conducted their fundraising campaigns in which close to

USD 12 billion was collected, which only testified to the powerful liquidity of this market. This fact was brought to the attention of even the largest investment funds in the world.However, given such an enormous number of projects, we had to face the problem of selecting the right ones, potentially offering the most promising returns and associated with the lowest risk possible.For the purposes of meeting the needs of ICO participants, rating portals are being developed, accumulating the fundraising data, where after the research has been made, conclusions are published based on which it is easier to decide on the subject matter of your investment.These actions are indicative of the fact that investors constantly search for the best investment options and they strive to steer clear of the projects that could seem excessively risky.The most desirable ones are the ones based on real value stemming from the implementation of the plan included in the white paper. The sheer speculative potential is today not enough to decide to support a chosen start-up. More and more often what matters is whether the project success can translate itself in real terms into a financial advantage for investors, irrespective of the market valuation of its assets. If you are busy looking for a similar opportunity, then look no further because Tokeneo is for you!

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02. Tokeneo platform

The underlying idea behind Tokeneo is creating a cryptocurrency trading platform, where everyone could participate on an equal footing in its development, influence its shape and fully contribute to its success on a partner basis that so far have been typical for the reality of big business.We decided that the solutions applied on the market are excessively superficial and insufficient in order to achieve this objective, that is why we have developed our own model in accordance with which investors by way of their participation in the public offering would gain substantial power over the developed project and they would be attached to it for a longer period of time and not only for speculative purposes. Tokeneo aims at being the very first exchange which you can really own.The planned sales of Tokeneo tokens is supposed to serve as the means to achieving the state in which the project success will translate in a tangible manner into the results generated by our assets – Tokeneo tokens – and, therefore, a satisfactory return rate for our investors.With a view to translating the highest base value into our tokens, we decided to implement the dividend-based model, in which the token owner not only speculates as for its real valuation, but also has the right to participate in the distribution of real gains that are generated on an ongoing basis by the developing platform. In our estimation, such a

solution not only protects the interests of investors and safeguards them against any excessive risk, but also guarantees that together with the development of our product the demand for shares expressed in the form of Tokeneo tokens will constantly rise.There is a legitimate company behind the exchange project. Its registered office has been hand-picked by us meticulously, when monitoring the development of cryptocurrency markets and the regulatory actions of local governments in individual countries.What we noticed was the high adoption dynamics and openness to advanced technologies on the Asian markets and thanks to this, we focused our search efforts on that location. Once we analyzed the situation, we decided to register our company in Hong-Kong as Tokeneo Ltd.We keep monitoring the situation and we keep looking for the best places to conduct this type of business activity, since given such a dynamically changing environment decent information is critical to success. We remain fully aware of our responsibility in respect of our investors, therefore we keep following all the communications pertaining to cryptocurrency market regulations so that we keep a tight rein on all the changes that could potentially adversely affect our growth opportunities. Hong-Kong, which is renowned for being business-friendly is currently the best option.

WHAT IS TOKENEO?

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From the very moment of launching the Tokeneo platform the users will have a chance to trade freely on the minimum of twenty five token markets, on which thanks to the raised funds we can ensure appropriate liquidity.The selection of these markets will correspond to the current sentiments in the industry, it will focus on the most interesting available technologies, the biggest potential for their growth and adoption, but also taking into account the expected turnover.We are determined to support the projects with longterm

strategy and development plan and having the most solid foundations, since this is convergent with our own investing philosophy. We will also prop up the projects that can to some degree complement our own offer and extend the range of services rendered by Tokeneo so that we could remain competitive to other platforms.At the beginning of our business operations, first and foremost we intend to rely on well-proven and promising projects listed below (a full list of available tokens to be published soon).

OUR OFFER

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BITCOIN (BTC) BITCOINCASH (BCC) ETHEREUM (ETH)

ETHEREUM CLASSIC (ETC) WAVES (WAVES) NEO (NEO)

LISK (LSK) DASH (DASH) MONERO (XMR)

LITECOIN (LTC) NEM (XEM) RIPPLE (XRP)

Bitcoin will, at an early stage, serve as the main settlement currency for the our entire ecosystem, hence the alternative currency markets will operate in pairs to Bitcoin.We cannot exclude that other cryptocurrency markets will also be opened, once it becomes justified in the trading volume and adoption of the individual tokens.At present many platforms beside the Bitcoin markets offer also the markets like, for example, Ethereum, perfect for the valuation of the projects developed in this network. We are ready for the implementation of such solution as a part of Tokeneo as soon as it is possible.This pertains also to other platforms used for the issuance of tokens, such as for instance Waves, Neo, Lisk or Stellar.Another highlight of our offer will be also the fiat markets that is the markets of national currencies. We will make every endeavor to have at least one of the cryptocurrencies with the open fiat market for the currency like EUR, USD or GBP already at the moment of the exchange launch. In the long-term the opening of successive fiat markets will only be a matter of time. We would like the trading in fiat pairs to be possible for as many tokens as possible, integrated under Tokeneo.Similarly at the initial stage we will accept deposits only in the form on one or two national currencies, but in the course of time we will integrate more of them so that we can enable

trading in the most direct possible manner. The options available to the users at the moment of the exchange launch will at the initial stage constitute the most important segment of our offer.As mentioned above, Tokeneo at the very beginning will offer approximately twenty five cryptocurrency markets in pairs to Bitcoin, some part of which has been mentioned in the chart above. Tokeneo will also offer deposits in a selected fiat currency such as EUR or USD, which means opening additional markets in cryptocurrency pairs to fiat. Probably it will not come as a surprise for anyone that at the beginning we would like to focus on the Bitcoin-fiat markets, but we can guarantee that more are to come as early as this year.In order to facilitate access to our platform for as many people as possible, for the individuals trading in national currencies other than EUR and USD, a fully integrated system will be in place, allowing for the exchange of the funds already deposited into the target fiat currencies, whose markets will be opened in pairs to, for example, Bitcoin.In the next chapters you can read about our further plans for the future, about ourlong-term strategy and the planned manner of its execution.

Just like any other company, the Tokeneo exchange will operate for profit. What makes us unique among hundreds of projects fighting for financing is the fact that unlike other ICOs the participation in our fundraising entitles to the participation in the distribution of profits generated by Tokeneo. Therefore, what seems to be of pivotal importance from the point of view of assessing our potential is the information what we are going to base our operations on and what, in the case of exchange, can be recognized as its income. In this chapter we are about to explain what sources we intend to derive it from and what are their probable sources. We can basically differentiate between two main sources of prospective income of the Tokeneo exchange - the planned direct income and possible indirect income. The first one specifies the planned income obtained directly under the Tokeneo exchange from the fees from the individual

services that the exchange has on offer to its users. For the purposes of ICO and this document we can enumerate several of them: transaction fees (or margins depending on the adopted model), fees for the payouts from the exchange, fees payable by the new project developers willing to open the market for their token in our exchange and, for example, fees for the conversion between fiat currencies.All these fees can be charged from the users of Tokeneo for the performance of the tasks commissioned by them.The second type is any possible indirect income, which can occur as a result of reinvesting by the exchange 50 percent of the profit gained directly or related indirectly to its business activity.The examples of such sources can be gains generated by trading bots in the open Tokeneo markets, gains from mining and nodes, investments in cryptocurrency funds or paid project promotion.

SOURCES OF INCOME

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Figure 6: Projected sources of profits of the Tokeneo exchange

The final shape of fees in the Tokeneo exchange will be announced prior to its launch and it will adjusted to the current market situation so that it remains sufficiently competitive.The generated income will be reported on a cyclical basis and it will be distributed among the owners of Tokeneo tokens with the use of our exchange engine. Only the retention of Tokeneo tokens at the exchange internal addresses will result in the participation in the distribution of profits.The sum of the above-mentioned components shall constitute the total income of the Tokeneo exchange. The

holders of our tokens, entitled in this way to participate in the distribution can count on 50 percent of the entire generated profits from direct sources, which we get after deducting operating costs.The income from indirect sources can also be subject to the distribution. The principles of the distribution will be announced at a later date.In the section regarding the ICO thresholds we have included the principles under which we withdraw from this distribution scheme, if the subsequent fundraising objectives, expressed in USD, are reached.

WHY DID WE CHOOSE ETHEREUM?

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Ethereum is a decentralized developer platform enabling the development of decentralized applications in the blockchain environment. The main objective of its creators was to create a distributed environment for concluding the so called smart contracts, resistant to censorship and unmodifiable. The network was supposed to guarantee that the processes that were once initiated in the network were to be executed in accordance with their initial objectives. The most popular example of a smart contract in this network are ICO and token issuances. Currently the overwhelming majority of the conducted issuances is organized under the ERC-20 standard, which only confirms the fact that Ethereum offers a well-proved and reliable model. Much as Ethereum came into being only 3 years ago, it is at present the second currency in terms of popularity and adoption in the world with very bright future prospects. That is why when elaborating upon our vision we decided to take advantage of the technology of the ICO market leader. Another undeniable asset of Ethereum, which was instrumental in making our decision is the adoption of this network reflected in the large ease of access. At this moment almost every self-respecting and prominent currency exchange has open Ethereum markets in pairs to Bitcoin or direct markets in pairs to national currencies such as EUR, USD or GBP. There exist many services enabling the purchase of Ethereum by means of a payment card thus making the entire process even easier. Thanks to this, each and every potential ICO participant can within several minutes set up their own personal wallet, purchase Ethereum and next invest it in our fundraising. Additionally, the exchanges which already have integrated Ethereum wallets are in a position to very quickly open the markets of new tokens based on the ERC-20 standard, which can prove instrumental for the adoption of our Tokeno tokens. The above-mentioned adoption of the parent platform produces another advantage, namely substantial liquidity of Ethereum and tokens based on the ERC-20 standard, which guarantees excellent possibilities of capital flow between the private wallets of the network users and our ICO. The platform in question is currently tantamount to the market worth billions and billions of dollars and enormous capital resources, therefore our fundraising will be addressed to the ones investing in this ecosystem.

We believe that the right selection of the tokens accepted in ICO will guarantee a satisfactory result to us. That is why during the sales apart from Ethereum we will also accept other forms of payment such as Bitcoin (BTC), Lisk (LSK), Stellar (XLM), Waves (WAVES) and NEO (NEO).The established position of the platform also guarantees very high security as compared against the background of cryptocurrency markets and blockchain technology, stable business environment and relatively low risk. Tokeneo is not a project to last for several months. Our development plans remain future-oriented and the development strategy is elaborated upon for the next years to come, which given such a fast-growing industry only confirms our involvement in our own project. That is why our plans are based upon wellproven, stable technologies, hence ensuring the implementation of long-term objectives. Nevertheless, we do realize that the dynamic development of distributed technologies occurs at a dizzying pace and we cannot possibly imagine what they will have to offer in the foreseeable future. Therefore we cannot exclude the

possible migration of our tokens onto other platforms, if we decide that they are in a position to meet our needs in a better way and they are more correlated with our plans or an

issuance in several chains at the same time, if it is justified. Still at present the predominance of Ethereum is indisputable and it is this platform that will provide us with the largest opportunities to create the functionalities of the Tokeneo token. As mentioned, the ERC-20 model is best suited to satisfy our current needs. The system on which our solution will be based is at present one of the most decentralized ones, which excludes any permanent threat of poor players and guarantees stability. The Ethereum growth plans also paint a rosy picture for the future. The develop team of this project has been demonstrating for years now that have a well-thought-out strategy of developing their platform and all the skills that are indispensable for its implementation. All the above-mentioned features were critical in our choice and we are convinced that the Tokeneo token will meet all our objectives.

...at present the predominanceof Ethereum is indisputable...“

The Tokeneo TEO token sold during our ICO will be based on the ERC-20 protocol, that is it will be compliant with the principles and guidelines for the digital asset generation in the Ethereum network. The tokens will be generated under the contract operating in the base network. The total supply of TEO token is 100’000’000 items (one hundred million) and this number will not change with

time. The TEO tokens sold during the fundraising will be the only ones ever to be purchased. After the completion of the ICO, the backers of our project will be able to repurchase the tokens only from the persons who had purchased them originally during the initial offer. This will be possible in the free exchange market such as, among others, the Tokeneo exchange.

TOKENEO TOKEN

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Figure 7: The model of allotment and distribution of profits of the Tokeneo exchange

DIRECTINTERNAL REVENUE

- OPERATION COSTS

50 % 50 %

PERIODICALAIRDROPS

INDIRECTEXTERNAL REVENUE

The holders of Tokeneo token will participate in the distribution of profits generated by our trading platform in accordance with the principles specified in this document. In the previous paragraphs we described the projected and possible income sources of the Tokeneo exchange. The person purchasing tokens in the ICO can count on the shares proportionate to their own involvement in the project expressed by the number of the Tokeneo tokens they hold. The income will be distributed on a cyclical basis and paid out directly into the internal wallets of the exchange participants in order to avoid generating any additional costs in the form of transaction fees in the parent networks of the collected tokens. The principles of collecting the commission have been preliminarily described by us in the previous chapters. Given the fact that Tokeneo will collect the transaction fees in the form of tokens of individual currency pairs (for example,

Bitcoin in pair to Litecoin) in every market we can expect income in the form of two tokens (in this case Bitcoin and Litecoin). The fees collected in this way will be divided proportionally to the number of the held Tokeneo tokens and sent to the exchange wallets of the participant taking part in their distribution. The Tokeneo exchange does not guarantee disbursements in the form of any specific token. The current market situation and the sentiment of the trading persons will influence what tokens are subject to distribution and how many of them we can collect. Thanks to such solution, we can guarantee that only the tokens from the markets with the highest liquidity and the ones attracting the biggest interest of traders will end up in the wallets of our shareholders. The decision pertaining to the manner of allocation of the income obtained in this way will permanently remain in the hands of the users.

TOKENEO TOKEN MECHANICS

The total of the collected fees in the form of various tokens form various sources in a given settlement period will serve as the basis for the calculation of the dividend to be paid out to shareholders or, in other words, the holders of the Tokeneo token. The term dividend should be understood as the difference between the cumulated fees and operating costs in a given period, decreased by half. Let’s assume that in the Bitcoin-Litecoin market 10 Bitcoins and 1000 Litecoins will be collected in the form of fees. The dividend will be calculated separately for every token, that is from 10 Bitcoins of the profit we will deduct the operating cost in a given time period – to make the calculations easier it will be 1 BTC (the projected operating costs are to be found in the following chapters). The amount subject to distribution will be in this case 9 Bitcoins, and the dividend will come to half of this amount, that is 4.5 Bitcoin. This amount will be allocated proportionally to the number of the held Tokeneo tokens in the wallets of our platform. Similarly, in the case of Litecoin, from 1000 Litecoins we deduct operating costs, for example 100 Litecoins and we receive the amount of 900 Litecoins, from which next we deduct 50 percent. The received 450 Litecoins will be sent out to the holders of Tokeneo tokens. This is the general principle of the distribution of funds. We expect that the exchange profits will be generated from

many sources and they will be derived in the form of different tokens, therefore prior to performing the calculations we will be summing up the individual tokens coming from the transaction fees, fees for adding the markets, bot gains, etc. The process of public sales provides for some derogations from this principle to the benefit of the individuals taking part in the fundraising given the assumption that the detailed terms and conditions are complied with and the ICO financial objectives are met. The details of such derogations are to be found in the following chapters. As the exchange operator we have also the possibility to influence the situation of our own token and we intend to take advantage of it. The ICO participants can rest assured that at the moment of our platform being launched the Tokeneo token markets will be integrated and open. We would like to make sure that each and every token holder is in a position to trade in them freely, that is why we will do our utmost to ensure appropriate level of liquidity in all open markets. We are sure about our vision and we have a long-term perspective, that is why we cannot also rule out the repurchase of the Tokeneo tokens directly from the market so that we could increase our shares in the total supply and in the gains which the exchange will generate in the foreseeable future.

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The main objective of our team is to create the most open trading platform. Our aim is to attract the largest involvement on the part of investors and to encourage their active participation in the process of creating but also managing the exchange. The Tokeneo token is to ensure this in two ways. First and foremost, it is supposed to connect the investor with the product, namely, the exchange. We perceive the individuals participating in the ICO as business partners and not capital donors. We attach great importance to direct communication with investors and we would like them to share our vision. Therefore we have decided to sell the vast majority of tokens and distribute the future gains from the platform 50% / 50%. Apart from the participation in the gains, the Tokeneo token will also entitle to express opinions and decisions as regards

the direction the of exchange development in the voting process. Every token holder will be able to vote in favour of the selected exchange functions, which are to be implemented in the first place, reject the solutions that they consider to be mistaken or decide about what market will be opened next. The cryptocurrency market is familiar with many attempts to introduce such solutions, unfortunately their results were always distorted by specially written bots or multiple voters. In our opinion, the perfect solution to this situation is the Tokeneo token, which will enable to vote of proportionate significance only to the Tokeneo token holders involved in the future of the platform. Tokeneo aims at being the very first global exchange which essentially enables being its shareholder.

OTHER POSSIBLE TOKEN APPLICATIONS

03. TEO Token and ICO

sales stage number of tokens in words % of

supply

pre-ICO 8000000 eight million tokens 8%

ICO 80000000 eighty million tokens 80%

reserved tokens 12000000 twelve million tokens 12%

total 100000000 one hundred million tokens 100%

The total supply of the dividend token of the tokeneo.com exchange will be steady and it has been stipulated at 100’000’000 tokens (one hundred million tokens). All the tokens will be allocated among the investors after the completion of a two-stage fundraising. During the first private round of investor acquisition, that is the so called pre-ICO 5’000’000 Tokeneo tokens were sold (five million tokens), that is 5 percent of the total supply (the total number of tokens from the partner pool amounts to 8’000’000 tokens, that is 8 percent of the supply). In the second public round open for all the interested individual

and institutional investors we will offer a pool standing at 80’000’000 Tokeneo tokens (eighty million tokens), that is 80 percent of the total supply. In aggregate this amounts to 88’000’000 Tokeneo tokens (ninety million tokens), which will be allocated to the investors during the fundraising stage. The remaining 12’000’000 Tokeneo tokens (twelve million tokens) will be distributed among the members of the developer team (10’000’000 tokens) and the persons most actively promoting our platform through special reward programs (2’000’000 tokens).

TOKENS AVAILABLE AT THE ICO STAGE

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We have divided one million Tokeneo tokens generated in the pre-ICO and ICO into several pools on account of their purpose. The founder pool amounting to 10’000’000 Tokeneo tokens (ten million tokens) will be allocated to the persons directly involved in the creating of the tokeneo.com exchange, that is the developer team. We have also reserved a pool of 8’000’000 Tokeneo tokens for our future and present strategic partners and investors. These tokens in future will be allocated by the developer team to the entities based on the assessment of their

contribution to the development of the Tokeneo exchange and support for the growth of the emerging platform. For those providing most active support for our efforts we are preparing special reward programs, whose details will be gradually announced as the development of our exchange progresses. For these purposes as many as 2’000’000 Tokeneo tokens (two million) have been reserved. The remaining tokens amounting to 80’000’000 will be in their entirety sold during the open and public ICO fundraising.

ALLOCATION AND DISTRIBUTION OF TOKENS

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Figure 8: Distribution of Tokeneo tokens (TEO)*

Final price per token depends on the amount raised during the ICO

* Final supply of TEO tokens (100 000 000) is fixed and won’t be changed overtime.

CrowdsaleTeamStrategic partners and investorsBounty and rewards

80 000 000 (80%)

10 000 000 (10%)

8 000 000 (8%)

2 000 000 (2%)

The sales of Tokeneo tokens has been planned as two-stage fundraising. The first stage consisted in the so called pre-ICO, which took place between 1st April 2018 and 1st May 2018. That part was closed and it was addressed only and exclusively to the strategic investors wishing to support us in

our efforts at the early stage of the platform development. During that stage we were successful in acquiring the investor in the form of the cryptocurrency fund Cryptoinvestia which purchased 5’000’000 Tokeneo tokens (five million).

TWO-STAGE FUNDRAISING

The second fundraising stage will be public and it is during this stage that the vast majority of Tokeneo tokens will be sold, namely as many as 80’000’000 (eighty million). The public fundraising will take place between September 24th

2018 and December 16th 2018 and it will last 12 weeks. Access to the ICO will not be restricted or limited in any manner. Each and every investor will be treated on an equal footing, irrespective of the amount of the invested funds.

Figure 9: Two-stage fundraising of the Tokeneo exchange

STAGE 1 PRE-ICO

STAGE 2 ICO

INDIVIDUALINVESTORS

$ € zł

TOKENEOCAPITAL

5’000’000

80’000’000

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With a view to making the process of investing funds as easy as possible, the persons taking part in the ICO will have a chance to use several forms of payment. We do realize that many of them have a diversified portfolio and in order not to put the investors at risk of incurring additional costs in the form of spreads when exchanging cryptocurrencies we will accept the funds transferred in the forms of many tokens. This will also enable us to acquire some part of the required liquidity in the markets whose opening we are planning at the moment of the platform launch.

Thanks to accepting several types of tokens, we are also able to protect the funds raised during the collection against the excessive currency rate risk and currency rate fluctuations which can occur just after the ICO. Accepting several forms of investments will also allow us to control and safeguard in an enhanced manner the capital accumulated in the ICO. Below please find the list of cryptocurrencies which we will accept as a form of investment in the Tokeneo exchange. These are Bitcoin (BTC), Lisk (LSK), Stellar (XLM), Waves (WAVES), Ethereum (ETH) and NEO (NEO).

ACCEPTED FORMS OF PAYMENT IN ICO

Figure 10: Generation mechanism of Tokeneo tokens (TEO) during the ICO

The above-mentioned tokens raised during the ICO will be calculated into Bitcoins (BTC). The average converters will be used from the website coinmarketcap.com, valid at the

moment of the funds being credited to the Tokeneo investment wallets with a view to facilitating the calculation of investor’s shares and token distribution.

INIT

IAL

CA

PITA

LFU

ND

ING

OF

TOK

ENEOTEO

TEO

TEO

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The duration of ICO has been planned for 12 weeks between September 24th 2018 and December 16th 2018. Within first six weeks the investors will be able to take advantage of additional bonuses for early purchase of the Tokeneo tokens. The values of bonuses will amount to respectively 25 percent in the first week of the ICO, for another 2 weeks the

bonus will account for 15 percent, and for the next three weeks of the fundraising – 10 percent. The persons accepting the bonus offer will be rewarded with additional tokens for early support of our project and quick decision to participate in the organized fund collection. The detailed bonus structure is to be found in the chart below.

BONUS STRUCTURE

Figure 11: Bonus structureof the Tokeneo ICO

The total sum of the invested tokens will be calculated into Bitcoins (BTC) for the purposes of facilitating the calculation and distribution of the pool of the Tokeneo tokens sold in the ICO. The average converters will be used from the website coinmarketcap.com valid at the moment of the funds being credited to the Tokeneo investment wallets. The final sum of the allocated tokens depends on several issues and it will change together with the fund collection progress. The main

factor influencing their number is the investment base value expressed in BTC and next increased by the bonus value, valid at the moment of making it. Based on this the investment weighted value is calculated, from which our percentage participation in the total token distribution results. In the chart below you will find the examples of calculations and their final value in relation to the raised funds.

September 24 - 30BONUS

October 1 - 14BONUS

October 15 -November 4

BONUS

25%

15%

10%

December 16thICO End Date:

September 24thICO Start Date:

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As mentioned before, the public part of the ICO fundraising pertains to the sales of 80’000’000 Tokeneo tokens (eighty million). The funds obtained at this stage will be in their entirety earmarked for the platform development. After performing the analysis of future expenses and costs of conducting business activity we have set several fundraising thresholds. In the course of acquiring funds and reaching successive thresholds the token holders will be in a position to count on additional bonuses. We hope that such scheme will encourage investors to promote our ICO since the more funds we can raise the better the final terms and conditions of the ICO participation. Below we will describe the individual fundraising thresholds and we will explain what the results are of reaching them. The first threshold is the ”minimum” threshold (the so called softcap) and it will be reached at the moment of raising the funds amounting to the equivalent of USD 3’000’000

(three million dollars) at minimum. As indicated above in the section describing the functions and principles of the Tokeneo tokens operation, the persons holding it in the exchange wallet will receive a 50 percent share in the profits generated by our exchange. Once the first threshold has been exceeded, the investing parties additionally can be assured that the exchange for the first year will not decrease the generated profit by the costs of its operations. In other words, 50 percent of the total generated profits from the sources specified in the previous chapters will be distributed among token holders proportionally to the number of the tokens held by them. Another very important advantage of exceeding the first threshold is the fact that the tokens held by the developer team for the first year will not participate in the distribution of profit, thanks to which the token holders will receive more than 50 percent of the generated gains.

ICO OBJECTIVES AND THRESHOLDS

The final value expressed in “the weighted percent of the total investment” should be related to the total number of the tokens sold in the ICO, amounting to 80’000’000 (eighty million tokens). Pursuant to the chart above, we can easily calculate how many tokens each of the investors will receive. Investor 1 participating in the first two days of the ICO when the bonus accounting for 25 percent was in place and investing the equivalent of 1000 BTC will get 27,77 percent from 80’000’000 tokens, that is approximately

22’222’222 Tokeneo tokens, investor 2 investing the same amount with the bonus of 15 percent will receive approximately 20’444’444 tokens, investor 3 receiving the bonus of 10 percent can count on around 19’555’555 tokens, and investor 4 investing without any bonus in the second week will get around 17’777’777 Tokeneo tokens. For the purposes of detailed calculations please enclosed find a link to the spread sheet that has been specially prepared to this end. You can download it here.

base investment expressed in BTC

bonus value

investment weight taking bonus into account

weighted % of the total investment

investor 1 1000 25% 1250 27,77%

investor 2 1000 15% 1150 25,55%

investor 3 1000 10% 1100 24,44%

investor 4 1000 0% 1000 22,22%

total 4000 4500

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Similarly to the first threshold, once the second threshold is reached, defined as the collection of the equivalent of USD 5’000’000 (five million dollars). In this situation the period in which the operating costs will not be deducted from the total gains amounts to two years. Similarly for 2 years the tokens reserved for the developer team will not participate in the distribution of profits.

The third threshold of the fundraising will be reached when the value of raised funds exceeds USD 7’000’000 (seven million dollars). The period of not settling the costs will be extended up to 3 years and the developer pool also for 3 years will not be subject to the distribution of the generated profits.

The final threshold is the threshold of USD 10’000’000 (ten million dollars) also known as the ”hardcap”. Reaching it will result in the discontinuance of any further fund collection. From that moment the sales of Tokeneo tokens will be suspended and any further participation in the ICO will not be possible. We believe that the amount of USD 10’000’000 will be more than sufficient to cover all the costs

of implementing our shortterm and mid-term plans, therefore extending the fundraising after this amount has been reached is not well-founded. The application of the “hardcap” will additionally safeguard the costs of investment incurred by all the investors and it will enhance the price growth potential of the Tokeneo tokens sold under the ICO.

Threshold Threshold value Additional benefits from reaching the threshold

Minimum (softcap) 3000000 USD

operating costs from the exchange profits)

for 1 year the exchange does not deduct operating costs from the total gains prior to the distribution (after a year the distribution shall be effected after deducting the annual

for 1 year the tokens of developer team do not take part in thedistribution of the generated profits

Threshold 2 5000000 USD for 2 years the exchange does not deduct operating costs from the sum of profits before the distribution (after 2 years the distribution will be effected after the deduction of annual operating costs from the exchange profits)

for 2 years the tokens of developer team do not take part in the distribution of the generated profits

Threshold 3 7000000 USD for 3 years the exchange does not deduct operating costs from the sum of profits before the distribution (after 3 years the distribution will be effected after the deduction of annual operating costs from the exchange profits)

for 3 years the tokens of developer are not eligible for the distribution of the generated profits

Maximum (hardcap) end of fundraising

10000000 USD for 5 years the exchange does not deduct operating costs from the sum of profits before the distribution(after 5 years the distribution will be effected after the deduction of annual operating costs from the exchange profits)

for 5 years the tokens of developer team are not eligible for the distribution of generated profits

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Knowing the general fundraising principles and the set objectives, which we aim to achieve by way of this fund collection, we can expect its several possible scenarios. As the ICO organizers and the developer team we are ready for every possibility and we will adjust our internal implementation plan in line with the fund collection progress. At the beginning we would like to point out that irrespective of the quantity of the collected funds we will do our utmost to pursue our objective. We do not plan to return the invested funds, if we fail to reach the set minimum threshold. We are ready for such possibility and determined to launch the Tokeneo platform no matter what the result of the ICO will be. After analyzing all the data meticulously we are convinced that the fundraising can be performed in three ways. We will describe all the variants below, so that the investors are in a position to predict what to expect in every possible situation. It goes without saying that the basic variant consists in reaching the set minimum and obtaining the equivalent of USD 3’000’000 for the implementation of our objectives. We do realize that it may be the case that we fail to reach the minimum threshold. Nevertheless, we consider this scenario to be highly unlikely, but in the event when the fund collection does not achieve the amount required under this threshold, as mentioned

previously our vision will also come true. In connection with the fact that in this case the financial comfort will be smaller the structure of the distribution of profits will be adjusted accordingly to the situation. In order to create a financial buffer and secure the funds for the objectives that remain of key importance at the early stage, we will have no option but to decrease profits by operating costs as early as from the beginning of our operations (the details of the distribution system are to be found in the chart above). The purposes for which we will earmark them will be reported on a cyclical basis so that it is absolutely clear that they are spent in the right way. Next scenarios envisaged by us include the amounts obtained between the minimum “softcap” threshold and threshold 3, that is the equivalent of from USD 3’000’000 to USD 9’999’999. The benefits of reaching each of them have also been described in the above table. The last projected scenario is the collection of the equivalent of full target amount of USD 10’000’000 (ten million dollars). In such case the fundraising will be completed immediately after this sum has been exceeded and we will embark on the distribution of tokens. The raised amount will enable us to implement our plans quickly and reliably without the necessity to compromise financially.

POSSIBLE ICO SCENARIOS

As indicated in the previous paragraphs, we also intend to launch special reward programs, the so called bounty. They will be addressed predominantly to the persons willing to support the promotion of the Tokeneo ICO by way of actions focused on the social media such as Facebook, Twitter, Bitcointalk, etc. The underlying idea behind the bounty programs is the involvement of the persons who cannot take part in the fund collection. Their actions will be rewarded with Tokeneo tokens in accordance with the principles to be published in a separate document at the moment of launching the beta version of our currency exchange. Our plan provides for the running of 3 independent bounty campaigns and to this end we have reserved 2’000’000

Tokeneo tokens. Each of the campaigns addresses different needs of our platform, but together they will help us to meet the majority of objectives. The campaigns will touch upon three areas, which we will Focus on at the early stage of Tokeneo business operations. The first area is acquiring new customers and users, and in turn creating the database of the persons interested in our product in the beta phase. The second area of the bounty campaign is obtaining cryptocurrency deposits after version 1.0 is launched. The third area consists in promotion and marketing in the social media and industry cryptocurrency portals. Participation in campaigns will be rewarded with Tokeneo dividend-bearing tokens.

BOUNTY PROGRAMS

04. Team04

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Proven international tech-savvy executive and online creator with multi-industrial and multi-cultural experience. The active trader and investor, teaching hundreds of people through workshops, conferences and e-learning facilities.Based on a unique combination of experience from e-commerce, trading and personal relationships with investors, Tomasz leads the team of Tokeno - the very first cryptocurrency exchange which you can really own.

Tomasz Rozmus

CEO (Chief Executive Officer)

Eight years of digital experience in various online industries gave me the chance to be involved in the new blockchain.Tokeneo aims at being the very first exchange which you can really own.

Cyryl Dudek

CSO (Chief Strategy Officer & Product Manager)

Adam Tatarynowicz is an Associate Professor of Strategic Management at SMU, Lee Kong Chian School of Business. He is also an Extramural Fellow of the CentER for Economic Research at Tilburg University. Adam's primary research interests are in organization theory and focus on the structure and dynamics of interorganizational networks, computer industry, biotechnology and pharmaceuticals.

Adam Tatarynowicz

CCO/CLO (Chief Compliance/Legal Officer)

Advisor of Blckchain ICO's marketing, Manager of international IT projects & teams, IT expert responsible for managing SSC IT, Initiator & leader of strategic IT initiatives.Areas of expertise include management and delivery of demanding international IT projects, IT acquisitions, infrastructure and corporate systems integrations, Blockchain technology.

Lukasz Janowski

CMO (Chief Marketing Officer)

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Strong technical background with more than 14 years of programming and managing software development.Programming languages: Python, Bash, Tools and libraries: Jenkins, Kernel compilation, Grub/Lilo, Raid, LVM, Rsync, Apache, Nginx, Loadbalancer, Hproxy, Databases: Oracal (basics), MySQL, MsSQL. Virtualization: OpenVz, KVM, XEN, Open Stack (learning), Xenserver, Virtualbox, VmWare, Qemu, Docker,Web: HTML, CSS, JavaScript, XML

Daniel Nowak

CTO (Chief Technology Officer)

A seasoned marketer with 6+ years of advertising & community building experience. As Director of Marketing at Morpheus Network, raised $9.88m+ in April 2018. Associated with IBC Group and other successful Token Sales including Pareto, Blockgrain, Lamden, Globitex and Paragon that have raised $100m+.Consulted to India’s biggest telecom Airtel, CarzOnRent and world's biggest carpooling company BlaBlaCar.

Nikhil Sethi

Marketing Director

Proficient Social Media specialist, and experienced tech engineer. Jacub’s responsible for planning, developing and implementing PR strategies;communicating with media, researching, writing and distributing press releases to targeted media.

Jakub Staroń

PRO (Public Relations Officer)

Administrator of the company’s social media marketing and advertising campaigns.Planning and development of SMM and AD, brand awareness and online reputation, Content management, SEO.

Bartłomiej Kamionka

Social Media & Support

05. StrategyIMPLEMENTATION SRATEGY

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We do realize the scope of the undertaking and very ambitious plans of the development of Tokeneo platform, therefore their implementation will take place in stages. Each and every of these stages will be possibly subject to personal verification by investors, since it will end in supplying the product meeting the objectives for a given stage. What is equally important is the fact that it will be sufficiently functional to enable the persons involved in the ICO to test it. Furthermore, this will facilitate the monitoring of our progress and execution of the timely implementation of the ongoing work on the exchange. The first stage was purely conceptual and it included design works on the platform performed in the first stage of 2018 (Q1 2018). It was then that we succeeded in specifying our objectives and conducting the research, necessary in order to obtain the key information from the marketplace. Thanks to this, we were able to create the general outline of the platform and its derivatives to be discussed further. As indicated in the introduction to this document, the very concept of creating the Tokeneo exchange was born at the beginning of 2018 while building the investment basket of the parent cryptocurrency fund Cryptoinvestia based on the Ethereum blockchain. We noticed that the majority of available tokens do not represent much more than speculative value boiling down to the promise of the currency rate growth. We also realized that the vast majority of the existing projects lack a key aspect that is instrumental in achieving success, that is adoption. We did not want to rely on somewhat whimsical market valuations of our basket, therefore we decided to produce a Tokeneo trading engine for some part of the raised capital, aimed at securing the proceeds to the fund budget even when faced with the market corrections. We decided to finance it in two rounds: a closed pre-ICO for strategic investors and partners as well as an open and public ICO for the interested individual investors. The TEO tokens sold in the ICO, which we describe in this document will be the dividend-bearing tokens and they will entitle their holders to participate in the distribution of profits generated in the Tokeneo platform.

The details of this mechanism are to be found in the section describing our token. Once the conceptual works on the exchange engine were completed, we embarked on building it and increasing our developer team, while developing the strategy behind the public fundraising at the same time. The core of the exchange was being created within the period from April 2018 to May 2018 on the basis of the well-proven and already operating code. Our programmers were then busy adjusting it to our very particular needs. In accordance with our objectives, the beta exchange engine is to offer around 20 cryptocurrency markets, enable the registration and verification of new users, deposits and token disbursements, placing and completing orders and include the model of recommendation program (bounty) described in the previous chapter. The exchange in the beta version will not charge from its users any fees for any actions except transfer fees applicable in the case of each of the available platforms. It will also not have any liquidity other than the one provided by the users. It is aimed at enabling massive platform tests following the

stage of internal tests performed by our team. Currently the works on the engine beta version have been completed and in June 2018 we will fully dedicate ourselves to

internal testing. The next stage will be the above-mentioned public beta testing available for everyone interested in our offer. It has been scheduled for August 2018 and it will be concurrent with the wide-ranging promotional actions of our platform prior to the ICO. Within this period Tokeneo intends to build a basic base of users, therefore we have developed the bounty program aimed at encouraging the investors to register at our platform. Every person opening an account a tour exchange at that time will receive a pool of TEO tokens, which we called a welcome bonus. To every account a referral link will be assigned, which can be made public freely and sent out in the network. For every person who creates an account in the Tokeneo with the use of such link, the user will receive 1 point.

...Tokeneo exchange was born at the beginning of 2018...“

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A very important point of this document, apart from the implementation strategy and development plans, is the financial strategy and projected structure of our budget. We feel responsible for the funds accumulated during our ICO and that is why our ambition is for our financial actions to be transparent and available to investors. We plan to draw up periodical reports from our expenditure

so that everyone can assess the progress of our works and how we manage the funds in question. For this very reason, prior to the commencement of the fundraising, we would like to clarify for what purposes the collected funds will be earmarked. The structure of Tokeneo budget will be discussed in this chapter.

EXPENDITURE STRUCTURE

Four people with the highest number of points will be additionally rewarded with additional packages of TEO tokens. While conducting public testing we will collect from the users any information about errors and suggestions as regards further platform development. The beta phase will be completed together with the completion of our four-week ICO which is scheduled for September 2018. Conducting the marketing campaign was entrusted by us to an external company which specializes in promoting blockchain-based projects and organizing ICO. It will be launched on all fronts and in all media communicating on cryptocurrencies. The main focus will be the most popular social networks and the most prominent Internet resources. For those displaying the largest involvement in the campaign we have also prepared bonuses. It will be a separate pool promoting the actions designed to increase the campaign range in the entire Internet. The campaign has been divided into two main stages: a four-week period prior to the fundraising, scheduled for August 2018 and the period of highly intense promotion during the four-week ICO. Once the fund collection has been completed, we will start distributing the TEO tokens, implementing the improvements suggested by the users and correcting the detected errors. In this time our exchange will also gain new, enhanced graphic design and new functionalities as compared with the beta version. After the completion of these works, we will start launching the target version of our platform, which will offer at minimum 25 cryptocurrency markets. By then we will develop an attractive and competitive model of fees charged under Tokeneo, so that it could be launched together with the platform start. The system of allocating the profits generated in the markets and distributing them will be up

and running from the first day of our operations. The prerequisite for taking part will be depositing TEO tokens in your exchange wallet. We plan to complete the above-mentioned tasks as soon as possible in order not to delay the exchange launch scheduled for the beginning of the fourth quarter of 2018 (Q4 2018). Once Tokeneo has been successfully launched, we will focus on providing the best possible trading terms and conditions to our users. From the very first day of its operation, the exchange will offer a competitive level of liquidity in the open markets. In addition, our priority will be the acquisition of new users and deposits into our internal wallets. In order to encourage the individuals searching for alternative trading platforms and also Tokeneo investors, we will launch a month-long bounty program rewarding every deposit made in this time at our exchange with a deposit bonus. Similarly to the welcome bonus, the referral links, generated previously will be applied. The user will receive a deposit point for every deposit of the persons who opened Tokeneo accounts using the user’s private link. Four persons having their largest number at the moment of the program being completed will receive additional rewards in the form of the TEO tokens pool. This signifies that each and every user can take part in two referral competitions, in addition they can receive bonuses themselves as the registering party and as the party depositing funds and also by way of supporting our actionsin the social networks. We are deeply convinced that such a comprehensive bounty program will make it possible for every person supporting our project to demonstrate what is that they are capable of and use their potential. We are counting on you partner!

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Another two major items in our budget are the costs that we will incur on account of redevelopment of our platform. We do not wish to lag behind and emulate passively the solutions of other platforms. We developed Tokeneo as the pillar of our ecosystem of services and our ambitions go way beyond a trading platform. The funds earmarked for the development will allow us to ensure to our users a new range of services complementary to the Tokeneo offer and to increase our market share and adoption. These plans will necessitate the acquisition of new people and redevelopment of our developer team. The recruitment process of new talent pool consisting of the individuals who share our vision and having skills necessary for its implementation will prove essential for our market

success. The last but equally important item in our budget are the expenses pertaining to security. It is a significant and multi-dimensional issue related to the same extent to both users as well as processes that are in place under the Tokeneo. We will make every endeavor to ensure that the sensitive data of people using our services as well as information regarding their financial operations remain secure and unavailable for any unauthorized persons. We will ensure the security of cryptocurrency and token exchange at every stage. The security of exchange processes will be monitored 24/7 by an external company. The company will be also in charge of the audit of the solutions developed by us even prior to the commencement of beta testing.

The lion’s share of the raised capital will be allocated for ensuring appropriate liquidity in our markets. Embarking upon the creation of our platform, we do realize the pivotal importance of the users’ first impression, therefore such things as the exchange proper interface and liquidity are absolutely the priority on our agenda. We can differentiate between two pools earmarked for ensuring key liquidity. First of them pertains to the period just after the opening of our exchange and trading in 25 markets that will be available then. The second reserve pool is to serve as collateral and it is to guarantee maintaining liquidity in the newly opened markets. This will be a steady item in our budget and should the need arise, we will secure the funds for annual actions

aimed at maintaining the liquidity. Another significant aspect for the newly emerging exchange is also acquiring new customers and retaining the ones that have already become familiar with our platform. At the early stage of our business operations we will also focus on large-scale marketing activities and positioning of our brand. We are convinced that our business model will prove to be highly competitive in relation to other offers available on the market. We plan to promote our product in the social media and through bounty campaigns. We also take into account airdrops rewarding the most active traders trading in Tokeneo and recommendation programs.

Maintaining of desired liquidity level on Tokeneo marketsRecruitment of new Team membersResearch, development, complementary servicesMarketing, advertising, customer acquisition

26%

21%

18%

17%

Reserve pool for liquidity3% Code auditing, security, platform monitoring15%

Figure 12: Structure of budget expenditure of the Tokeneo exchange

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DEVELOPEMENT PLANS

Once the ICO has been successfully completed and all the initial objectives, arising from the platform launch, have been met, we will embark upon the implementation of our mid-term and long-term development plans. We assume that our fundraising will prove to be a resounding success, therefore our plans are forward looking. When discussing our implementation strategy we have indicated that at the first stage of our business operations we would focus on Bitcoin markets offering the markets of at minimum 25 tokens in pairs to this cryptocurrency. Tokeneo will integrate on its platform the markets of all the tokens collected as deposits during the initial coin offering, that is Ethereum, Lisk, Neo, Waves and Stellar. Another two markets that will definitely be included in our platform will be the market of native token of our TEO exchange and the market of the token of the cryptocurrency fund Cyptoinvestia, from which we obtained some part of the capital for the development of the trading engine. As you can see, the Tokeneo investors can be sure that the liquid market of the TEO token will be launched, which they will purchase during the ICO. This is quite extraordinary since the majority of projects organizing fund collections are frequently forced to grapple with the lack of liquidity for month on end, which adversely affects both the investors and the adoption prospects of many tokens. In the case of Tokeneo such risk is non-existent, since the developer team takes responsibility for securing liquidity. Next we will focus on the integration of the best possible cryptocurrency markets taking advantage of the knowledge gained in the course of creating the basket of Cryptoinwestia fund. Our philosophy assumes the support for the projects with the highest adoption potential, the best available offer, open code, decentralization and orientation on mainstream solutions.We can differentiate between several blockchain technology spheres whose development is considered by us to be critical for achieving universal common usability. The platforms enabling the creation of smart contracts, systems of tokenizing brick and mortar investment products, inter blockchain protocols, decentralized payment systems, real code-managed companies – this is all on the radar of Tokeneo researchers and experts.

We are also not going to turn a deaf ear to the voices coming from other markets. After conducting in-depth studies on most popular projects we intend to integrate the ones that take pride in the highest turnover and the ones that are converted most eagerly globally. With a view to protecting our investors we will also do our utmost to avoid opening cryptocurrency markets with unverifiable code and created under unclear circumstances. Our priority is the security of trading for our users. Together with the development of tokenization platforms integrated with our trading platform we do not rule out offering a wider range of offered types of markets. More and more often it is possible to encounter at your competition the token markets in pairs to native tokens of given platforms, for instance OMG/ETH or REP/ETH. We remain openminded towards such solutions, if only it can prove to be economically viable. So as to avoid the sheer emulation of the solutions of others, we also intend to experiment with the markets of such currencies as WAVES or NEO on account of their dynamic adoption and development. We believe that they can

potentially take over some part of the capital that remains consolidated around Ethereum, that is why we will monitor closely the projects emerging in these platforms.

As regards the markets of national currencies, we will strive to integrate them just after the exchange launch. Frankly speaking, the regulatory procedures for the financial institutions operating with the use of fiat currencies frequently tend to be rather lengthy, that is why we plan to start complying with the requirements immediately after the Tokeneo start. We have not decided yet which of the currencies will be integrated first, but according to our plans, at least one of them will be available before the end of the year. At a later stage next ones will appear, with the focus on the Bitcoin/fiat markets. In order to accelerate the integration of other currencies we plan to make it possible for the users to keep their deposits in their native currencies and to convert them into the currency whose markets will be already active then. In the first place we will focus on EUR, USD and PLN markets.

Our priority is the security of trading for our users.“

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The exchange operators more and more often have to grapple with all kind of regulatory guidelines pertaining to their business activity. Since recently the majority of entities has been forced to apply the customer verification so far known only in the banking sector. The procedures like KYC (know your customer) and AML (anti money-laundering) prevent the persons who for different reasons are unable to go through the verification process form trading in the largest exchanges. In connection with this, Tokeneo plans to introduce onto the market before the end of 2018 a product

addressed to exactly these type of people. The product in question is TokeneoCash. TokeneoCash will be a cryptocurrency exchange office available online and built on the basis of Tokeneo exchange. This will make it possible for who are unable to go through the verification process to purchase cryptocurrencies anonymously up to a certain limit of their value. The liquidity of TokeneoCash will be secured by Tokeneo exchange. The currency exchange office launch is scheduled for the third quarter of 2018 (Q3 2018).

At the moment of launching the Tokeneo exchange the users will have at their disposal three types of orders: market buy order and market sell order, limit buy order and limit sell order and popular stop-loss and take-profit order. This package should be satisfactory for the majority of people interested in trading using our platform.

Nevertheless, we do not wish to rest on our laurels, since we are convinced that the more differentiated the range of trading offers, the better the user experience. We will also try to implement orders like trailing stop and editable contingent orders.

Figure 13: Dependencies between the components of the Tokeneo exchange ecosystem

TEO

$€ zł LIQUIDITY

ORDERS

CRYPTOINVESTIA TOKENEO TOKENEO.CASH

CAPITAL

ASSETS

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The Holy Grail of trading in cryptocurrencies is decentralization, therefore it had to be touched upon in this section. We perfectly do realize that centralized trading systems will become obsolete in the foreseeable future. The current technology is sufficiently mature to ensure the required transactional capacity to the exchanges with the highest daily trading volumes. The solution that we are

testing in the short term is temporary, whereas our thoughts go out to the decentralized system under the banner of Tokeneo, that is why we keep watching closely the available possibilities and the development of DEX platforms. We hope that before 2020 we will be able to consult with our investors with draft version of a decentralized trading engine.

Figure 13: Model of anonymous cryptocurrency sales in the Tokeneo Cash exchange office

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KYC/

AM

LFU

LL V

ERIF

ICAT

ION

LSK / BTC

ETH / BTC

NEO / BTC

BTC / EURO

TOKE

NEO

EXCH

ANGE

x

In the graph below we have presented the information regarding the planned actions and projected dates of their implementation. Given the nature of our business activity, we are not in a position to predict the dates precisely. A large part of our project has already been significantly put into action, therefore we are convinced that we will be in a position to fulfill our obligations and supply individual products in accordance with the schedule below. This is a minimum plan and we will do our utmost for the works to take place smoothly and to be completed in a timely manner or even prior to the deadline, if possible. Some part of stages are already behind us. We managed to conduct the private part of selling TEO tokens and negotiate with the Cryptoinvestia fund the best possible financing terms and conditions in the first round. Currently we are at

the stage of internal testing of our trading engine in the beta version, which was completed at the turn of May and June 2018. The same is true in the case of the planned cryptocurrency exchange office Tokeneo Cash, whose beta version is also currently subject to testing by our programmers. We are on the right path to launching this service prior to the projected date. With the active participation of our marketing partner we are also busy developing the website engine for the purposes of our ICO and the strategy which will be instrumental in reaching all the interested investors. The campaign is scheduled to start in August 2018 together with the launch of public beta version. The fund collection is due to take place a month later, that is in September 2018 and it is to last four weeks.

ROADMAP

05

31

We will commence sending out the TEO tokens sold during our ICO at the private Ethereum wallets registered at the fundraising portal just after its completion. The last ones are scheduled to be sent out not later than by the end of October 2018. At the same time we will work on the final version of the Tokeneo exchange engine and the exchange office Tokeneo Cash. We expect that at least one of these products will be fully completed by the end of third quarter of 2018, but to be on the safe side, we have assumed that

they will be launched at the beginning of fourth quarter of 2018. The tasks envisaged for the following year have been included in the graph presenting our road map. In the first half of 2019 we plan to refresh the exchange engine and adjust it to the future needs of our users. In the long-term perspective we intend to develop a mobile application rendering access to Tokeneo markets, enable margin trading and address the decentralization of our services.

DECENTRALIZATION

PRE-ICO

public ICO TOKENEO version beta

TOKENEO.CASH

TOKENEO version 1.02019

mid 2018

mid 2019

2020

fiat integration

TOKENEO version 2.0

min. 50 crypto markets

TOKENEO PAYpayment system

margin tradingTOKENEO mobile

http://tokeneo.io/