WHITEPAPER. V September Smart contract powered social betting platform.

Transcription

1 WHITEPAPER V September 2018 Smart contract powered social betting platform

2 IMPORTANT NOTICE PLEASE READ THIS SECTION AND THE FOLLOWING SECTIONS ENTITLED DISCLAIMER OF LIABILITY, NO REPRESENTATIONS AND WARRANTIES, REPRESENTATIONS AND WARRANTIES BY YOU, CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS, MARKET AND INDUSTRY INFORMATION AND NO CONSENT OF OTHER PERSONS, NO ADVICE, NO FURTHER INFORMATION OR UPDATE, RESTRICTIONS ON DISTRIBUTION AND DISSEMINATION, NO OFFER OF SECURITIES OR REGISTRATION AND RISKS AND UNCERTAINTIES CAREFULLY. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX OR ANOTHER PROFESSIONAL ADVISOR(S). The Betform Coins are not intended to constitute securities in any jurisdiction. This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. This Whitepaper does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer by the distributor/vendor of the Betform Coins (the Distributor ) to purchase any Betform Coins nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision. The issuer of the Betform Coins being digital tokens on a blockchain procured and/or controlled by Workz Pte. Ltd. ( M@W ), a company incorporated and registered in Singapore with UEN K and registered office address at 1 Jalan Mata Ayer #02-03, Euphony Gardens, Singapore. The Distributor is M@W or affiliate or any other person designated by M@W from time to time and will deploy all proceeds of sale of the Betform Coins to fund Betform s cryptocurrency project, businesses and operations. No person is bound to enter into any contract or binding legal commitment in relation to the sale and purchase of the Betform Coins and no cryptocurrency or other form of payment is to be accepted on the basis of this Whitepaper. Any agreement as between the Distributor and you as a purchaser, and in relation to any sale and purchase, of Betform Coins (as referred to in this Whitepaper) is to be governed by only a separate document setting out the terms and conditions (the T&Cs ) of such agreement. In the event of any inconsistencies between the T&Cs and this Whitepaper, the former shall prevail. You are not eligible and you are not to purchase any Betform Coins in the Betform Initial Token Sale (as referred to in this Whitepaper) if you are a citizen, resident (tax or otherwise) or green card holder of the United States of America or a citizen or resident of the Republic of Singapore. No regulatory authority has examined or approved of any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with. There are risks and uncertainties associated with Betform and/or the Distributor and their respective businesses and operations, the Betform Coins, the Betform Initial Token Sale and the Betform Wallet (each as referred to in this Whitepaper). This Whitepaper, any part thereof and any copy thereof must not be taken or transmitted to any country where distribution or dissemination of this Whitepaper is prohibited or restricted.

3 No part of this Whitepaper is to be reproduced, distributed or disseminated without including this section and the following sections entitled Disclaimer of Liability, No Representations and Warranties, Representations and Warranties By You, Cautionary Note On Forward-Looking Statements, Market and Industry Information and No Consent of Other Persons, Terms Used, No Advice, No Further Information or Update, Restrictions On Distribution and Dissemination, No Offer of Securities Or Registration and Risks and Uncertainties. DISCLAIMER OF LIABILITY To the maximum extent permitted by the applicable laws, regulations and rules, Betform and/or the Distributor shall not be liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this Whitepaper or any part thereof by you. NO REPRESENTATIONS AND WARRANTIES Betform and/or the Distributor does not make or purport to make, and hereby disclaims, any representation, warranty or undertaking in any form whatsoever to any entity or person, including any representation, warranty or undertaking in relation to the truth, accuracy and completeness of any of the information set out in this Whitepaper. REPRESENTATIONS AND WARRANTIES BY YOU By accessing and/or accepting possession of any information in this Whitepaper or such part thereof (as the case may be), you represent and warrant to Betform and/or the Distributor as follows: (a) you agree and acknowledge that the Betform Coins do not constitute securities in any form in any jurisdiction; (b) you agree and acknowledge that this Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities in any jurisdiction or a solicitation for investment in securities and you are not bound to enter into any contract or binding legal commitment and no cryptocurrency or other form of payment is to be accepted on the basis of this Whitepaper; (c) you agree and acknowledge that no regulatory authority has examined or approved of the information set out in this Whitepaper, no action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction and the publication, distribution or dissemination of this Whitepaper to you does not imply that the applicable laws, regulatory requirements or rules have been complied with; (d) you agree and acknowledge that this Whitepaper, the undertaking and/or the completion of the Betform Initial Token Sale, or future trading of the Betform Coins on any cryptocurrency exchange, shall not be construed, interpreted or deemed by you as an indication of the merits of the Betform and/or the Distributor, the Betform Coins, the Betform Initial Token Sale and the Betform Wallet (each as referred to in this Whitepaper); (e) the distribution or dissemination of this Whitepaper, any part thereof or any copy thereof, or acceptance of the same by you, is not prohibited or restricted by the applicable laws, regulations or rules in your jurisdiction, and where any restrictions in relation to possession are applicable, you have observed and complied with all such restrictions at your own expense and without liability to Betform and/or the Distributor; (f) you agree and acknowledge that in the case where you wish to purchase any Betform Coins, the Betform Coins are not to be construed, interpreted, classified or treated as: (i) any kind of currency other than cryptocurrency; (ii) debentures, stocks or shares issued by any person or entity (whether Betform and/or the Distributor)

4 (iii) rights, options or derivatives in respect of such debentures, stocks or shares; (iv) rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; (v) units in a collective investment scheme; (vi) units in a business trust; (vii) derivatives of units in a business trust; or (viii) any other security or class of securities. (g) you are fully aware of and understand that you are not eligible to purchase any Betform Coins if you are a citizen, resident (tax or otherwise) or green card holder of the United States of America or a citizen or resident of the Republic of Singapore; (h) you have a basic degree of understanding of the operation, functionality, usage, storage, transmission mechanisms and other material characteristics of cryptocurrencies, blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology; (i) you are fully aware and understand that in the case where you wish to purchase any Betform Coins, there are risks associated with Betform and the Distributor and their respective business and operations, the Betform Coins, the Betform Initial Token Sale and the Betform Wallet (each as referred to in the Whitepaper); (j) you agree and acknowledge that neither Betform nor the Distributor is liable for any indirect, special, incidental, consequential or other losses of any kind, in tort, contract or otherwise (including but not limited to loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this Whitepaper or any part thereof by you; and (k) all of the above representations and warranties are true, complete, accurate and non-misleading from the time of your access to and/or acceptance of possession this Whitepaper or such part thereof (as the case may be). CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS All statements contained in this Whitepaper, statements made in press releases or in any place accessible by the public and oral statements that may be made by Betform and/or the Distributor or their respective directors, executive officers or employees acting on behalf of Betform or the Distributor (as the case may be), that are not statements of historical fact, constitute forward-looking statements. Some of these statements can be identified by forward-looking terms such as aim, target, anticipate, believe, could, estimate, expect, if, intend, may, plan, possible, probable, project, should, would, will or other similar terms. However, these terms are not the exclusive means of identifying forward-looking statements. All statements regarding Betform s and/or the Distributor s financial position, business strategies, plans and prospects and the future prospects of the industry which Betform and/or the Distributor is in are forward-looking statements. These forward-looking statements, including but not limited to statements as to Betform s and/or the Distributor s revenue and profitability, prospects, future plans, other expected industry trends and other matters discussed in this Whitepaper regarding Betform and/or the Distributor are matters that are not historic facts, but only predictions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual future results, performance or achievements of Betform and/or the Distributor to be materially

5 different from any future results, performance or achievements expected, expressed or implied by such forward-looking statements. These factors include, amongst others: (a) changes in political, social, economic and stock or cryptocurrency market conditions, and the regulatory environment in the countries in which Betform and/or the Distributor conducts its respective businesses and operations; (b) the risk that Betform and/or the Distributor may be unable or execute or implement their respective business strategies and future plans; (c) changes in interest rates and exchange rates of fiat currencies and cryptocurrencies; (d) changes in the anticipated growth strategies and expected internal growth of Betform and/or the Distributor; (e) changes in the availability and fees payable to Betform and/or the Distributor in connection with their respective businesses and operations; (f) changes in the availability and salaries of employees who are required by Betform and/or the Distributor to operate their respective businesses and operations; (g) changes in preferences of customers of Betform and/or the Distributor; (h) changes in competitive conditions under which Betform and/or the Distributor operate, and the ability of Betform and/or the Distributor to compete under such conditions; (i) changes in the future capital needs of Betform and/or the Distributor and the availability of financing and capital to fund such needs; (j) war or acts of international or domestic terrorism; (k) occurrences of catastrophic events, natural disasters and acts of God that affect the businesses and/or operations of Betform and/or the Distributor; (l) other factors beyond the control of Betform and/or the Distributor; and (m) any risk and uncertainties associated with Betform and/or the Distributor and their businesses and operations, the Betform Coins, the Betform Initial Token Sale and the Betform Wallet (each as referred to in the Whitepaper). All forward-looking statements made by or attributable to Betform and/or the Distributor or persons acting on behalf of Betform and/or the Distributor are expressly qualified in their entirety by such factors. Given that risks and uncertainties that may cause the actual future results, performance or achievements of Betform and/or the Distributor to be materially different from that expected, expressed or implied by the forward-looking statements in this Whitepaper, undue reliance must not be placed on these statements. These forward-looking statements are applicable only as of the date of this Whitepaper. Neither Betform, the Distributor nor any other person represents, warrants and/or undertakes that the actual future results, performance or achievements of Betform and/or the Distributor will be as discussed in those forward-looking statements. The actual results, performance or achievements of Betform and/or the Distributor may differ materially from those anticipated in these forward-looking statements. Nothing contained in this Whitepaper is or may be relied upon as a promise, representation or undertaking as to the future performance or policies of Betform and/or the Distributor. Further, Betform and/or the Distributor disclaim any responsibility to update any of those forward-looking statements

6 or publicly announce any revisions to those forward-looking statements to reflect future developments, events or circumstances, even if new information becomes available or other events occur in the future. MARKET AND INDUSTRY INFORMATION AND NO CONSENT OF OTHER PERSONS This Whitepaper includes market and industry information and forecasts that have been obtained from internal surveys, reports and studies, where appropriate, as well as market research, publicly available information and industry publications. Such surveys, reports, studies, market research, publicly available information and publications generally state that the information that they contain has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information. Save for Betform, the Distributor and their respective directors, executive officers and employees, no person has provided his or her consent to the inclusion of his or her name and/or other information attributed or perceived to be attributed to such person in connection therewith in this Whitepaper and no representation, warranty or undertaking is or purported to be provided as to the accuracy or completeness of such information by such person and such persons shall not be obliged to provide any updates on the same. While Betform and/or the Distributor have taken reasonable actions to ensure that the information is extracted accurately and in its proper context, Betform and/or the Distributor have not conducted any independent review of the information extracted from third party sources, verified the accuracy or completeness of such information or ascertained the underlying economic assumptions relied upon therein. Consequently, neither Betform, the Distributor, nor their respective directors, executive officers and employees acting on their behalf makes any representation or warranty as to the accuracy or completeness of such information and shall not be obliged to provide any updates on the same. TERMS USED To facilitate a better understanding of the Betform Coins being offered for purchase by the Distributor, and the businesses and operations of Betform and/or the Distributor, certain technical terms and abbreviations, as well as, in certain instances, their descriptions, have been used in this Whitepaper. These descriptions and assigned meanings should not be treated as being definitive of their meanings and may not correspond to standard industry meanings or usage. Words importing the singular shall, where applicable, include the plural and vice versa and words importing the masculine gender shall, where applicable, include the feminine and neuter genders and vice versa. References to persons shall include corporations. NO ADVICE No information in this Whitepaper should be considered to be business, legal, financial or tax advice regarding Betform, the Distributor, the Betform Coins, the Betform Initial Token Sale and the Betform Wallet (each as referred to in the Whitepaper). You should consult your own legal, financial, tax or other professional adviser regarding Betform and/or the Distributor and their respective businesses and operations, the Betform Coins, the Betform Initial Token Sale and the Betform Wallet (each as referred to in the Whitepaper). You should be aware that you may be required to bear the financial risk of any purchase of Betform Coins for an indefinite period of time. NO FURTHER INFORMATION OR UPDATE No person has been or is authorised to give any information or representation not contained in this Whitepaper in connection with Betform and/or the Distributor and their respective businesses and operations, the Betform Coins, the Betform Initial Token Sale and the Betform Wallet (each as referred to in the Whitepaper) and, if given, such information or representation must not be relied upon as having been authorised by or on behalf of Betform and/or the Distributor. The Betform Initial Token Sale (as referred to in the Whitepaper) shall not, under

7 any circumstances, constitute a continuing representation or create any suggestion or implication that there has been no change, or development reasonably likely to involve a material change in the affairs, conditions and prospects of Betform and/or the Distributor or in any statement of fact or information contained in this Whitepaper since the date hereof. RESTRICTIONS ON DISTRIBUTION AND DISSEMINATION The distribution or dissemination of this Whitepaper or any part thereof may be prohibited or restricted by the laws, regulatory requirements and rules of any jurisdiction. In the case where any restriction applies, you are to inform yourself about, and to observe, any restrictions which are applicable to your possession of this Whitepaper or such part thereof (as the case may be) at your own expense and without liability to Betform and/or the Distributor. Persons to whom a copy of this Whitepaper has been distributed or disseminated, provided access to or who otherwise have the Whitepaper in their possession shall not circulate it to any other persons, reproduce or otherwise distribute this Whitepaper or any information contained herein for any purpose whatsoever nor permit or cause the same to occur. NO OFFER OF SECURITIES OR REGISTRATION This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction. No person is bound to enter into any contract or binding legal commitment and no cryptocurrency or other form of payment is to be accepted on the basis of this Whitepaper. Any agreement in relation to any sale and purchase of Betform Coins (as referred to in this Whitepaper) is to be governed by only the T&Cs of such agreement and no other document. In the event of any inconsistencies between the T&Cs and this Whitepaper, the former shall prevail. You are not eligible to purchase any Betform Coins in the Betform Initial Token Sale (as referred to in this Whitepaper) if you are a citizen, resident (tax or otherwise) or green card holder of the United States of America or a citizen or resident of the Republic of Singapore. No regulatory authority has examined or approved of any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with. RISKS AND UNCERTAINTIES Prospective purchasers of Betform Coins (as referred to in this Whitepaper) should carefully consider and evaluate all risks and uncertainties associated with Betform, the Distributor and their respective businesses and operations, the Betform Coins, the Betform Initial Token Sale and the Betform Wallet (each as referred to in the Whitepaper), all information set out in this Whitepaper and the T&Cs prior to any purchase of Betform Coins. If any of such risks and uncertainties develops into actual events, the business, financial condition, results of operations and prospects of Betform and/or the Distributor could be materially and adversely affected. In such cases, you may lose all or part of the value of the Betform Coins.

8 CONTENTS DETAILS OF OUR ITS Indicative timetable 1.2 Token usage 1.3 Particulars of our ITS 1.4 Special bonus schedule 1.5 Funds escrow 1.6 Initial token sale procedure 1.7 Objectives of our ITS 1.8 Use of Proceeds BUSINESS ANALYSIS Market overview 2.2 Business overview 2.3 Shortcoming of current online crypto currency gambling market 2.4 Our products and services 2.5 How Betform can be sustainable? 2.6 Marketing plan INFORMATION ON OUR TEAM ROAD MAP MOVING FORWARD 14

9 Smart contract powered social betting platform What is Betform When we as the co-founders of Betform got together to start this company, it was our vision to have assets on the blockchain gaming be not only available to professional players, but rather something that can be used by any individual players in the social way and for fun. At Betform, we strive to offer the user access to as large as possible a range of blockchain games at a maximum degree of convenience, while adhering to the highest security standards in the ecosystem. We are able to do this by connecting blockchains, leveraging on the smart contracts, and Payment Channels, which works in a completely secure, instantaneous and low-cost manner. For further information, please refer to the whitepaper in respect thereof, accessible at Betform Initial Token Sale What is an Initial Token Sale? An Initial Token Sale (ITS) is an event in which a new cryptocurrency project sells part of its cryptocurrency tokens to early adopters and enthusiasts in exchange for funding. For the party offering the tokens for sale, this has become a well-documented and well-respected way to raise funds to upscale an existing product or service. The sale by the Distributor of Betform Coins in connection with an Initial Token Sale (the Betform Initial Token Sale ) to you as a purchaser thereof, will be subject to and governed by the T&Cs - which is a separate document setting out the terms and conditions of the agreement as between the Distributor and you in relation to the Betform Initial Token Sale. This Whitepaper is not incorporated into and does not form part of the T&Cs. In the event of any inconsistencies between the T&Cs and this Whitepaper, the former shall prevail. The Distributor is M@W or affiliate or any other person designated by M@W from time to time and will deploy all proceeds of sale of the Betform Coins to fund Betform s cryptocurrency project, businesses and operations. 01

10 Unless the context requires otherwise, references to we or us in connection with the Betform Initial Token Sale shall be construed as references to the Distributor. The Betform Initial Token Sale is hereby announced on: January 8th PM Singapore Time (UTC+8)/ 3PM Munich Time/ 9AM New York Time/ 2PM London Time Why an Initial Token Sale? The purpose of the ITS is to bringing developers, marketing personnel, a legal team, designers and many other talented people on board will require additional funds. Offering an Initial Token Sale instead of a traditional venture capital rounds enables the community to participate in Betform s success story, rather than limiting it to a small, selected number of traditional venture capital funds. General Token Sale Overview On January 8th 2019 starting at 9PM Singapore Time (see the applicable commencement times in more time zones above), we will offer 40% of all Betform Coins to be created for purchase by the public in the Betform Initial Token Sale under the ticker symbol GEM. A further 43.9% of all Betform Coins to be created will be distributed to identified investors. The remaining 13.5% of Betform Coins to be created will be distributed to Betform s founders, employees and early investors as an incentive to ensure long term alignment of interests and commitment to the tokens and their future value and also for future business development and development. Further details of the distribution of tokens are set out below. Each Betform Coin will be sold for 1/4000 ETH, meaning 1 ETH will give you 4000 Betform Coins. There is a minimum purchase amount of 500 Betform Coins per purchase. We will accept a maximum (fixed limit) of 24,000 ETH, for purchase of Betform Coins in the Betform Initial Token Sale. The Betform Coins created for such maximum amount contributed will in turn represent 40% of all Betform Coins. Should this amount be reached before the end of the sale on 4 January 2019, 8.59pm Singapore Time (UTC+8), which is 4 weeks after the token sale commencement date, we will cut off the sale. Please note that we will not create any new Betform Coins after the Betform Initial Token Sale. 02

11 1. DETAILS OF OUR ITS 1.1 INDICATIVE TIMETABLE Application for our ITS token under the Public Issue will open at 10:00 a.m. on 10 December 2018 and will remain open until 5:00 p.m. on 4 January 2019, 8.59pm Singapore Time (UTC+8). Save for the opening date of the application for the ITS Token, the dates above are tentative and are subject to changes which may be necessary to facilitate implementation procedures. 1.2 Token usage The native token of Betform is Betform Coin. All gaming activities on the Betform will utilize Betform Coin. The Betform Coin will be implemented as ERC20-compatible token over the public Ethereum blockchain, which has now become the common practice for projects issuing their custom digital assets. It will work as any other Ethereum token within the Ethereum ecosystem. Players can acquire the Betform Coin during the token sale and afterwards on various crypto exchanges or directly via the Betform Wallet. The token will primarily serve as means as utility token with the following functions: (i) In-App token - All platform transactions will be carried out using the Betform Coin. (ii) Value holders - The Betform Coin value is likely to rise as we acquire more players and partners, and reduce the total token supply as we will continue burning part of the circulating tokens. (iii) Global betting tokens - Our ultimate goal is to establish the Betform Coin as the market standard for betting. In order to achieve this, we will pursue a number of strategic initiatives aimed at developing a broad ecosystem and drive widespread Betform Coin adoption. (iv) Game and app developers - Betform will integrate selected games and apps by third-party developers. Players will enjoy more content, while developers benefit from reaching a global audience and earning commissions through our platform. (v) White-label customers - Companies and gaming operators will be able to add their multiplayers games to our platform. Our modular technology architecture allows us to offer near-turnkey solutions and complementary services at a low customisation cost. 1.3 PARTICULARS OF OUR ITS Public Issue (i) Public 96,000,000 ITS Token, representing approximately 40.0% of the token of our Company, will be made available for application by the public. (ii) Private sale to Identified Investors 105,250,000 Tokens, representing approximately 43.9% of the overall token of the Company, are reserved by way of private sale to identified investors. 03

12 1.3.2 Token distribution Upon the completion of our ITS, our token distribution would be as follows: Open sale Bounty and AirDrops Pre-sale Founders Team Total No. of Token 96,000,000 6,350, ,250,000 26,400,000 6,000, ,000,000 % 40.0% 2.6% 43.9% 11.0% 2.5% 100.0% The Distributor will offer 40% of all Betform Coins to be created for purchase by the public in the Initial Token Sale while a further 43.9% of the tokens to be created will be distributed to identified investors. The Distributor considers it is a strong signal of trust in Betform if the community and private sale investors owns more half of the Betform Coins from the very beginning. At the same time, we feels that it is essential that the interests of Betform be aligned with those of the ecosystem in the long-term. In order to be able to support long term growth in a sustainable way, founders, early backers and the development team of Betform will be holding 13.5% of tokens in exchange for their efforts and resources contributed to the development of Betform. 1.4 SPECIAL BONUS SCHEDULE There will be extra tokens offered as a bonus for users who commit earlier (early-bird bonus). See the time table below for the exact bonus schedule. Time First 24 hours Day 2 and day 3 Day 4 to day 7 Day 8 to day 14 Available token bonus +20% +10% + 5% + 2.5% 1.5 FUNDS ESCROW All payments received for Betform Coins with the Initial Token Sale will be held in escrow in a multi-signature address, with a multi key structure. Keys of this multisignature account will stay with the management team and founders. 1.6 INITIAL TOKEN SALE PROCEDURE Each Betform Coin will be sold for 1/4000 ETH, meaning 1 ETH will give you 4000 Betform Coins. We only accept ETH for the token sale. We will send out Betform coins to the ERC20 wallet where the buyers send their ETH. There is a minimum purchase amount of 500 Betform Coins per purchase. 1.7 OBJECTIVES OF OUR ITS The objectives of our ITS are as follows: (i) enabling us to explore the opportunity to implement our business strategies and expand our operations; (ii) to enhance the stature and heighten the public profile of our Group as well as increasing market awareness of our products and services; 04

13 1.8 USE OF PROCEEDS We expect to use the gross proceeds from the Betform token sale in the following manner: Description Development and operations Marketing Legal Advisors Reserve and working capital Total gross proceeds Percentage of total gross proceeds (%) 55% 10% 15% 10% 10% 100% Estimated Timeframe for utilisation upon ITS Within 36 months Within 36 months Immediate Immediate Within 36 months Development and operations As part of our Group s business expansion plan, we intend to use 55% raised from the fund raised to develop other multiplayers casino games, investment in security and servers, and development of Betform wallet. The breakdown is summarised in the table below. Details of estimated total costs Development of Multiplayer Casino Games Investment in security and servers Development of Betform wallet Total Note (i) (ii) (iii) % (i) Please refer to moving forward section for the development details. This also include R&D of new games & technology, recruitment, team building, etc. (ii) The investment is aim to improve user experience for our platform and also ensure security of the users fund. (iii) We will release an open-source Wallet app for ios, Android, PC and Mac. In addition to strong fund protection and other exclusive features, the Wallet will allow players to easily obtain the Betform Coins, as the app will also be interlinked with third-party exchanges via their APIs Marketing We have earmarked 10% on fund raised from the ITS to implement mass-scale marketing strategies to attract players and ensure effective customer retention. Since the main premise of Betform is the increase in the value of Betform Coin with demand, user acquisition and retention are a vital part of our business model, therefore requires sufficient funds for sustainability Legal Gambling is a highly - regulated segment which requires legal compliance in different countries. As a result, part of ITS proceeds will be used to cover costs of legal services and licenses Reserve and working capital The ITS proceed earmarked for reserve and working capital would be stored in a separate wallet. The wallet would be utilised for our day to day operation. 05

14 2. BUSINESS ANALYSIS 2.1 MARKET OVERVIEW The revenues of game market exceeding the $100 billion mark to total $109 billion in Five years ago, global revenues on game market was amounted to approximately $70 billion. A growth of 56% in five years illustrates how game companies have not only pioneered new ways of engaging and entertaining consumers, but have also led the way in innovating business models to suit the digital age. The future outlook for games has never been better but requires a new way of looking at the market. Most games now provide consumers with entertainment on three different levels: playing, viewing, and creating. Game companies are quickly evolving into all-round entertainment companies, pushing engagement time up dramatically and securing gaming s position as the world s favourite pastime. Traditional boundaries between games, media, telecom, and sports industries are disappearing and sparking new partnerships and M&A activity across the globe. 1. WITH MORE TIME SPENT ON GAMES, MONEY FOLLOWS. 2. A COMMUNITY-CENTRIC APPROACH IS KEY TO SUSTAINABLE SUCCESS. 3. GAMES ARE RAPIDLY BECOMING THE WORLD S FAVORITE PASTIME. Consumers are spending more time than ever on games, and this is especially true for the millennial generation. The reason for this is that games now cater to a much wider variety of interests. This includes lean-forward (gaming intensely or casually), lean-back (viewing content created by peers or provided by the professional gaming scene), creating unique content and sharing (on-demand and live streaming). Viewing professional or amateur game video content is bringing back millions of lapsed gamers who no longer have the time to play but whose passion is reignited by viewing other players and worldwide championships. The term gamers is becoming increasingly obsolete, as it fails to capture the variety of ways that games entertain consumers. Game enthusiasts would be a more encapsulating term. The global games The Asia-Pacific region accounted for $51.2 billion this year, or 47% of total global game revenues. This growth represents a 9.2% year on-year increase. Overall, the share of total revenues claimed by each region has remained almost unchanged since North America is the second-largest region, taking a 25% share of the market. Total revenues in North America will increase year on year by 4.0% to reach $27.0 billion. Most of this growth will come from smartphone gaming, a mature market but certainly not saturated. The fastest-growing region in the coming years will be Rest of Asia (without China, Japan, and Korea), with game revenues growing to $10.5 billion in 2020, up from $4.5 billion in The Latin American market will also continue its healthy growth and reach $6.3 billion by Global gaming market by segment Mobile gaming (smartphone and tablet) is the largest segment in 2017, accounting for 42% of the total global market. The segment also has the most gamers with 2.1 billion, the majority of whom are gaming on smartphones. Console is the second-largest segment with revenues of $33.5 billion PC browser game revenues will decrease by 9.3% to $4.5 billion as gamers continue their transition to mobile. Revenues for boxed/downloaded PC games will also drop by 1.3% to $24.6 billion. PC revenues of public companies decreased in both Western and Asian markets last year, while emerging markets had single-digit growth rates. Mobile will remain the largest segment, growing with a CAGR ( ) of 13.9% to claim 50% of the market by

15 2.2 BUSINESS OVERVIEW Online gambling market size The global online gambling market is expected to grow at a CAGR of more than 9% by Gambling is the primary source of revenue for governments of several countries. However, most countries have outlawed online gambling or imposed stringent laws on them. Recently, there has been a major shift in online gambling regulations, which allows gamers from all over the world to participate in such games. Due to the ease in the rules on online gambling, the governments receive a significant amount of revenue in the form of taxes, which is used for the welfare of the society. This form of gambling also creates employment opportunities across the globe. In terms of geography, Europe, Middle East and Africa are dominating approximately 60% of the online gambling market. However, the market in Asia Pacific is anticipated to expand at a CAGR of around 14% during the forecast period. Relaxation of laws, growth in the number of Internet users, and availability of gambling & betting sites with attractive offers are key drivers of the online gambling & betting market in Asia Pacific. Additionally, increase in penetration rate of internet-based devices and trust on online gambling & betting sites are propelling the market. Revenue from Online poker and casino gambling increase from $3.4 billion in 2016 to $4.4 billion in 2017, according to a Research report. The gambling industry is expected to reach up to $91 billion and it has no intention of slowing down. Especially since the online gambling market boom on smartphones has gained worldwide traction. Online gambling has become a very lucrative industry indeed. There are dozens of online poker sites with different games and bonuses to punters worldwide. All a punter needs are an internet connection. At that point, they can play various casino games, place bets on sporting events, play online poker, and check out sports betting. The online poker market grew very quickly. Online gambling sites offer competitive offering large bonuses for new punters and a loyalty club for their most loyal punters. In 2016, 57 million monthly active users played social poker, and many of them played via Facebook. Cryptocurrency trends in global online gambling Cryptocurrencies and online gaming seem like a match made in digital heaven. The burgeoning popularity of online gaming and e-sports has led to the creation of in-game digital currencies which could be a valuable addition to the virtual economies of popular online games such as World of Warcraft. According to a study by digital asset exchange, which surveyed 1,000 gamers in the US, 75 percent of gamers wish that they could exchange their virtual goods for a digital currency that can be bought and sold on other platforms. Furthermore, while five percent of millennials have an interest in cryptocurrencies, 55 percent of online gamers have already used them in the past. This suggests that there is a large crossover between the cryptocurrency community and the online gaming community. Interestingly, out of the surveyed gamers, around 50 percent of all age groups also own cryptocurrency. However, 87 percent of them have not used digital currencies in gaming before but 80 percent stated that they would be interested in using cryptocurrencies to make in-game transactions. The study also found that from the potential benefits that cryptocurrency use in online games could bring, 75 percent of the surveyed gamers cited their ease of use, 66 percent stated heightened security, 49 percent said lower transaction fees. The results of the study could not be clearer: gamers want to be able to use cryptocurrency to make low-cost gaming-related transactions. 07

16 Competitor analysis Betform s competitive advantages over competitors are illustrated as follow: Description Download from ios and Google Play download Continuous token burning Multiplayers games Gambling license Top winners rewards Betform Yes Competitor 1 Casino F No. Only support mobile browser Yes No Under application No Competitor 2 Casino E No. Only support mobile browser No No Yes Reward by way of lottery Competitor 3 Casino B Yes Yes Yes Will apply after ITS Yes, by way of quarterly bonus Yes No. Only sports betting No No. The platform only award players for completing achievements Yes White label solutions Yes Yes No 2.3 SHORTCOMINGS OF CURRENT ONLINE CRYPTOCURRENCY GAMBLING MARKET 1. High Commission charges Online casinos charge high transaction fees from 1% to 15% for enabling the gameplay. The high fee charged is to cover the cost of payment processors and managing the cost of the casino. This has been curbed to some extent due to the advent of Bitcoin based casinos. Bitcoin being a cryptocurrency which is not regulated by governments enables a much lower transaction fee. However, the surge in Bitcoin s price has seen its transaction fees increase significantly. In the near future, bitcoin transaction fees will become too costly for some gamblers and there will be a need for an alternative payment method. 2. Online casinos create a random number using a combination of casino and client numbers. The casino assigns their own number automatically and the visitor can do it manually or let the casino decide for them. The two numbers are blended to provide a random outcome. The idea behind it is that the casino can rig their own number, but they would not be able to rig the client s number and therefore the outcome will be random. Therefore a casino would not able to cheat. However, there are still some loops in Fairness Check (i) The casino can easily influence the client s seed by assigning it themselves (that s the case in most casinos, because an average player is not going to type and give a random number before every gamble round - even if they have this option). (ii) The client entered the seed once and is not changing it. The casino can identify it and use that information to adjust their own seed. (iv) The casino can delay creating their own seed and provide it to the blender once the visitor has sent theirs. Then the casino can adjust their own seed to the client s. 3. The revenue from PC browser game has been in decreasing trend from year to year. Players have found new forms of entertainment that offer instant gratification and can be accessed via their smartphone devices without compromising on quality. In this regard, online poker has been very much behind the curve. 2.4 OUR PRODUCTS AND SERVICES In Betform, players will not use Fiat money (such as EUR or USD) to enter bets. They will use the Betform Coins instead. As Smart Contracts do not support Fiat currencies, creating our own token is necessary to ensure a truly secure and transparent social betting platform. 08

17 This is why we developing Betform - a decentralised social betting platform that be built on the Ethereum blockchain. All of the key operations will be regulated by smart contracts, giving users a fully transparent experience Smart devices based gambling experience, and In-App Betform Coin. Betform will be providing app-based gambling experience for Android and Apple users. As illustrated in the market overview, the mobile gaming is the largest segment contributor for gaming industry and majority of the gamers are gaming on smartphones and tablets. New players are important, but also making current players stay at the casino and deposit more money is crucial. Players that return are players that enjoy the games and will definitely help expand the popularity of the casino. Everybody likes to be rewarded for being loyal. In Betform, we offer daily rewards to loyal players on daily and weekly basis. The daily rewards can be used for customisation in the App such as background customisation, background music etc Transparency and Security Betform employs the state of the art technology to provide its users highly secure and efficient environment to play their favourite games. Our Betform Coin will be sold via Ethereum-based smart contracts during the initial token sale. This means that all investors will be 100% sure that they will get ETH equivalent of Betform Coin during our open sale. In the same trustworthy way that our operation will be operated, if a user bets on a particular game, they can be 100% sure that their result will be truly random and that they will get their win transferred directly into their wallet. We will not be able to suspend the transaction or redirect it to another wallet. Provably Fair Games Betform uses a transparent way of generating the outcomes of its games. Provably Fair gaming is a technology that prevents both a player and bankers to cheat. The system works based on cryptographic hash functions. Data is converted into a hash string, which can be verified with an algorithm. If there was any interference in the game or any error in the pay-out, the hash will not be verified. Unusual game outcomes can be checked using a cryptographic hash function, proving the results are indeed calculated properly and fairly. As a player, one can check the result of any bet by themselves and have complete transparency and confidence in our games. Our PRNG is tested and certified by a reputable test lab, which is also the longest established and most experienced private independent gaming testing laboratory in the world. Players can access and verify all the history of card games they participated through their user dashboard Regulation and compliance Our platform operation is regulated by licensing jurisdiction. We will apply for gambling license after the token sale. As part of the licensing requirement, player registration is hosted in the highly advanced data centres which greatly experienced in hosting e-gaming companies. 09

18 Safer Play and Responsible gambling We also have self-exclusion policy in place where if an individual player who is aware that they suffer from a gambling problem can voluntarily request that their account be added to the self-exclusion list. Once this option is chosen, we will proceed to close the account for the player and return all the funds in the account back to the player ERC 20 token compliant wallet app These are the following games which Betform will offer. All these games are powered by smart contracts and our token holders can choose different game modes. For example, users can compete with friends through leader boards, or send invitation to friends and create a room to play together, and we have quarterly bonus for top leaders in our leadership board. Texas hold 'em (also known as Texas holdem, hold 'em, and holdem) is a variation of the card game of poker. Two cards, known as the hole cards, are dealt face down to each player, and then five community cards are dealt face up in three stages. The stages consist of a series of three cards ("the flop"), later an additional single card ("the turn" or "fourth street"), and a final card ("the river" or "fifth street"). Each player seeks the best five card poker hand from any combination of the seven cards of the five community cards and their own two hole cards. If a player's best five-card poker hand consists only of the five community cards and none of the player's hole cards, it is called "playing the board". If you play the board on the river, then you can do no better than tie the other player(s) in the game if no player can make a better hand than the board represents, using either or both hole cards. Players have betting options to check, call, raise, or fold. Rounds of betting take place before the flop is dealt and after each subsequent deal. Big two (also known as deuces and various other names), is a card game of Chinese origin. It is similar to the games of president, crazy eights, cheat, winner, and other shedding games. The game is very popular in East Asia and South East Asia, especially throughout China, Indonesia, Macau, Hong Kong, Malaysia, Taiwan and Singapore. It is played both casually and as a gambling game. It is usually played with two to four players, the entire deck being dealt out in either case (or sometimes with only 13 cards per player, if there are less than four players). The objective of the game is to be the first to play of all of his cards. In Between. Everybody antes into the pot. Each player takes a turn, starting with the left of the dealer until there is no money left in the pot. A turn consists of two cards being dealt face up and the player betting an amount of money whether or not the third card will fall in between the first two (thus, the name "In-Between"). Mah-jong is a tile-based game which was developed in China since the Qing dynasty and has further developed throughout the world since the early 20th century. It is commonly played by four players (with some three-player variations found in South Korea, Japan and Southeast Asia). The game and its regional variants are widely played throughout Asia (especially in the Eastern and South Eastern Asia) and have materialized into an Asian culture in relation to its high degree of influence, in addition, they have also been increasingly regarded as a popular pastime and entertainment among Western countries and other parts of the world. Due to its influence and popularity, the game has been adapted into a widespread online entertainment. Similar to the Western card game rummy, Mah-jong is a game of skill, strategy, and calculation and involves a degree of chance. This multiplayer Mah-jong game will be developed after ITS UNLIMITED WINNINGS AND WINNERS WELCOME POLICY Successful bettors are often limited or banned by traditional casinos. Our business model is built on volumes rather than margins, which means we will always welcome winners! 10