Crypto.com Chain Whitepaper

Thursday, May 2, 2019
Download document
Save for later
Add to list

CHAIN WHITEPAPER 1.0 20 November 2018

Crypto.com 2 Contents 1. Disclaimers 3 2. Executive Summary 7 2.1 The Genesis 7 2.2 Problem Statement 8 2.3 Mission & Vision 9 2.4 Go-to-Market Strategy 11 2.5 Roles & Incentives 13 2.6 Fiat Institutions Support 16 3. Network & Technology 17 3.1 Customer Experience 17 3.2 Customer Acquirer 18 3.3 Merchant Experience 18 3.4 Merchant Acquirer 18 3.5 Network Potential 19 3.6 Network Inclusion 21 3.7 Network Decentralization 21 3.8 Technology 22 3.9 Roadmap 23 4. CRO Token 24 4.1 Token Creation 24 4.2 Token Utility 26 4.3 Use of Funds 27 4.4 Airdrop to MCO token holders 27 5. Crypto.com Team & Organization 29 5.1 Management Team 29 5.2 Advisors 31 5.3 Relationship between MCO and Crypto.com 31 6. Further Information 31 The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 3 1. Disclaimers Licences and approvals are not assured in all jurisdictions CRO Protocol Labs (“Crypto.com”) intends to operate in full compliance with applicable laws and regulations and obtain the necessary licences and approvals. Regulatory licences and/or approvals are likely to be required in a number of relevant jurisdictions in which relevant activities may take place. This means that the development and roll-out of all the initiatives described in this whitepaper are not guaranteed. It is not possible to guarantee, and no person makes any assurances, that any such licences or approvals will be obtained within a particular timeframe or at all. As such, the initiatives described in this whitepaper may not be available in certain markets, or at all. This could require restructuring of these initiatives and/or its unavailability in all or certain respects. In addition, the development of any initiatives is intended to be implemented in stages. During certain stages of development, the project may rely on relationships with certain licensed third party entities. If these entities are no longer properly licensed in the relevant jurisdiction, this will impact the ability of Crypto.com to rely on the services of that party. No advice This whitepaper does not constitute any investment advice or recommendation by Crypto.com, its officers, directors, managers, employees, agents, advisors or consultants on the merits of purchasing CRO tokens nor should it be relied upon in connection with any other contract or purchasing decision. Not a sale of security This whitepaper does not constitute a prospectus or financial service offering document and is not an offer to sell or solicitation of an offer to buy any security, investment products, regulated products or financial instruments in any jurisdiction. CRO tokens are not being structured or sold as securities in Crypto.com. Owners of CRO tokens are not entitled to any rights in Crypto.com or any of its affiliates, including any equity, shares, units, royalties to capital, profit, returns or income in Crypto.com or any other company or intellectual property associated with Crypto.com. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 4 No representations No representations or warranties have been made to the recipient of this whitepaper or its advisers as to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this whitepaper or any omission from this document or of any other written or oral information or opinions provided now or in the future to any interested party or their advisers. The CRO tokens, as envisaged in this whitepaper, are under development and are being constantly updated, including but not limited to key governance and technical features. If and when the CRO tokens are completed, they may differ significantly from the description set out in this whitepaper. No representation or warranty is given as to the achievement or reasonableness of any plans, future projections or prospects and nothing in this document is or should be relied upon as a promise or representation as to the future. To the fullest extent possible, all liability for any loss or damage of whatsoever kind (whether foreseeable or not) which may arise from any person acting on any information and opinions contained in this whitepaper or any information which is made available in connection with any further enquiries, notwithstanding any negligence, default or lack of care, is disclaimed. Third party data This whitepaper contains data and references obtained from third party sources. While the management believes that these data are accurate and reliable, they have not been subject to independent audit, verification, or analysis by any professional legal, accounting, engineering, or financial advisors. There is no assurance as to the accuracy, reliability or completeness of the data. Translations This whitepaper and related materials are issued in English. Any translation is for reference purposes only and is not certified by any person. No assurance can be made as to the accuracy and completeness of any translations. If there is any inconsistency between a translation and the English version of this whitepaper, the English version prevails. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 5 Restricted transmission This whitepaper must not be taken or transmitted to any jurisdiction where distribution or dissemination of this whitepaper is prohibited or restricted. Views of Crypto.com The views and opinions expressed in this whitepaper are those of Crypto.com and do not reflect the official policy or position of any government, quasi-government, authority or public body (including but not limited to any regulatory body of any jurisdiction) in any jurisdiction. This whitepaper has not been reviewed by any regulatory authority. Third party references References in this whitepaper to specific companies, networks and/ or potential use cases are for illustrative purposes only. The use of any company and/or platform names and trademarks does not imply any affiliation with, or endorsement by, any of those parties. All references to ‘dollars’, USD or ‘$’ are references to United States dollars unless otherwise stated. Graphics All graphics included in this whitepaper are for illustrative purpose only. In particular, graphics with price reference do not translate into actual pricing information. Risk statements Purchasing CRO tokens involves substantial risk and may lead to a loss of a substantial or entire amount of the money involved. Prior to purchasing CRO tokens, you should carefully assess and take into account the risks, including those listed in any other documentation. A purchaser should not purchase CRO tokens for speculative or investment purposes. Purchasers should only purchase CRO tokens if they fully understand the nature of the CRO tokens and accept the risks inherent to the CRO tokens. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 6 Cryptographic tokens may be subject to expropriation and/or theft; hackers or other malicious groups or organizations may attempt to interfere with our system/network in various ways, including malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing, and spoofing which may result in the loss of your cryptographic tokens or the loss of your ability to access or control your cryptographic tokens. In such event, there may be no remedy, and holders of cryptographic tokens are not guaranteed any remedy, refund, or compensation. The regulatory status of cryptographic tokens and digital assets is currently unsettled, varies among jurisdictions and subject to significant uncertainty. It is possible that in the future, certain laws, regulations, policies or rules relating to cryptographic tokens, digital assets, blockchain technology, or blockchain applications may be implemented which directly or indirectly affect or restrict cryptographic token holders’ right to acquire, own, hold, sell, convert, trade, or use cryptographic tokens. The uncertainty in tax legislation relating to cryptographic tokens and digital assets may expose cryptographic token holders to tax consequences associated with the use or trading of cryptographic token. Digital assets and related products and services carry significant risks. Potential purchasers should assess the nature of, and their own appetite for, relevant risks independently and consult their advisers before making any decisions. Professional advice You must consult a lawyer, accountant, tax professional and/or any other professional advisors as necessary prior to determining whether to purchase CRO tokens. Caution Regarding Forward-Looking Statements This whitepaper contains certain forward-looking statements that are based on the belief of Crypto.com as well as certain assumptions made by and information available to Crypto.com regarding the business we operate. Forward-looking statements, by their nature, are subject to significant risks and uncertainties. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 7 Forward-looking statements may involve estimates and assumptions and are subject to risks, uncertainties and other factors beyond our control and prediction. Accordingly, these factors could cause actual results or outcomes that differ materially from those expressed in the forward-looking statements. Any forward-looking statement speaks only as of the date of which such statement is made, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. 2. Executive Summary 2.1 The Genesis Blockchain technology and cryptocurrency is one of the major emerging mega technology trends of our century. By enabling trustless, immutable and decentralized transactions, blockchain technology is setting the foundation for a suite of new generation applications that will dramatically reshape the internet and enable stronger and more inclusive societies. The mission of Crypto.com is to accelerate the world’s transition to crypto. The Crypto.com team has a clear vision to put cryptocurrency in every wallet with a strong focus on real-life use cases. It took Crypto.com a little over 2 years to launch the key product in its consumer offering: a globally accepted payment card - the MCO Visa Card. The reason for this is simple: traditional payment networks do not natively accept crypto today. It makes for a slow, expensive go-to- market process, heavily limiting the number of people we can introduce to the crypto ecosystem. The Crypto.com Chain was created to address this problem. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 8 2.2 Problem Statement Traditional fiat payment systems are built on legacy infrastructure that makes it difficult to embrace new innovative payment forms like cryptocurrency. Traditional fiat payment systems have key characteristics: heavily centralized, controlled by strict rules costly for participants (in particular merchants); and limited flexibility (e.g., challenging to onboard new innovations/ currencies easily) In several countries, more modern fiat payment solutions have already emerged and nearly replaced the traditional fiat payment system (e.g., Alipay/WeChat Pay in China). Additionally, in our view existing decentralised cryptocurrency systems/ blockchains are not yet efficient or customized enough to provide a good alternative to traditional fiat networks. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 9 2.3 Mission & Vision Mission: Accelerate the World’s Transition to Cryptocurrency Vision: The best way to pay and be paid in crypto, anywhere, any crypto, for free. We strongly believe that decentralisation is an important part of building a better society for everyone and by accelerating the world’s transition to cryptocurrency we are helping the world move in this direction. We will achieve this by building on one side, a network of cryptocurrency projects, and on the other side, focus on developing merchants’ ability to accept crypto as a form of payment (please refer to the diagram below). We intend that Crypto.com Chain will be a high performing native blockchain solution, which will make the transaction flows between crypto users and merchants accepting crypto seamless, cost-efficient and secure. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Council Node Exec)te settlements and verify all Receive transactions Customer Payment Merchants eq)iv. in $ Community Settlement Community Acquirer Nodes Agents Nodes Node Settle on behalf of merchants or Pay for Good/Services Receive c)stomers in any cryptoc)rrency (e.g., BTC) Payment [x] CRO Check c)stomer Eq. [x] CRO Process Merchant balance and net it Transaction Req)est after processing of (A)thorization & Settlement transactions Confirmation) Agent Node Authorize Transaction Get Transaction Provide price stability & Receive Acquiring Council A)thorization & Receive and fiat payo)t for merchants Fees Nodes Acq)iring Fees [x]*[c]% CRO [x]*[p]% CRO [x]*[m]% CRO Crypto Customer Merchant Acquirers Acquirers Community Node C)stomers/ merchants Acquirer Acquirer who settle for themselves directly witho)t going Nodes Nodes thro)gh acq)irers Crypto.com Network will support the vast majority of existing cryptocurrencies.

Crypto.com 11 2.4 Go-to-Market Strategy The key differentiator for the Crypto.com Chain is its clear go-to-market strategy, which will result in rapid adoption. There are four disruptive forces that underpin our strategy: great offers for customers to financially incentivise usage of crypto no transaction fees for merchants seamless user experience decentralized protocol to process the transactions Three out of four were previously successfully deployed by China’s leading payment networks. The Crypto.com Chain is essentially a decentralized mobile cryptocurrency payment solution built on blockchain. Building a global payment network is a multi-year effort. The Crypto.com Chain rollout will happen in stages, substantially increasing the speed of adoption and lowering execution risk. In Phase One We will focus on a solution for online merchants to accept crypto. “Crypto.com Pay” button, integrated via our API with a few lines of code. Merchants will be incentivised to deploy it by not paying any fees and additionally being able to offer substantial discounts to their customers. Customers will pay using the Crypto.com app. Settlement will happen off-chain. In Phase Two Following launch of our testnet, we will onboard more cryptocurrency projects to allow customers to pay with multiple apps. More online merchants will be onboarded, both directly and via integrations with existing payment gateways and e-commerce providers. Settlement will still happen off-chain at this stage. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 12 In Phase Three Following launch of our mainnet, we will switch settlement to on- chain. Crypto.com will still play substantial role in the network. Offline merchant acquisition will begin. In Phase Four Gradual network decentralization will take place, with independent parties replacing Crypto.com, which will move from a key settlement agent role to the protocol code contributor & maintainer role. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 13 2.5 Roles & Incentives We have set out below the intended roles of different parties who will be able to use the Crypto.com Chain and the intended incentives for them to use it. A Customers Role: to use the network to make payments in cryptocurrency Incentives: discounts: pay with crypto and receive generous cashback funded by the network access (time): instant access to cryptocurrency access (distribution): ability to spend cryptocurrency directly from their customer crypto- exchange account/wallet at millions of merchants, both online or offline, without moving to fiat. B Crypto Customer Acquirers (including blockchain projects such as exchanges) Role: acquire and serve customers; and authorise transactions on the network (in response to a merchant point of sale (“POS”) payment request from one of their customers). Incentives: revenue: earn fees for activities performed; and business growth: acquire new customers by joining the network access: give customers instant access to their assets; utility: increase utility of crypto and reduce reliance on fiat off-ramps. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 14 C Merchants Role: accept crypto for products and services. Incentives: reduced costs: zero processing fees (for settlement in crypto); business growth: acquire high quality customers with substantial spending power; and marketing: offer customers network-funded discounts and demonstrate ability to move with a new trend. D Merchant Acquirers Role: acquire merchants on the network; and send transactions on the network for transaction authorisation (in response to one of their merchant POS payment requests). Incentives: revenue: earn fees for activities performed; and differentiation: differentiate vs. competition by accepting hundreds of cryptocurrencies. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 15 E Crypto.com Role: Crypto.com Chain manages fund flows from customers to merchants (from transaction authorisation to settlement), set blockchain specifications and standards; and distribute processing fees to eligible chain participants in return for their services Crypto.com Network: increase crypto acceptance among online and offline merchants increase number of Admin Nodes on the Crypto.com Chain set compliance standards; and manage dispute resolution process Incentives: vision: realise its vision to accelerate the world’s transition to cryptocurrency; and compensation: collect network processing fees. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 16 2.6 Fiat Institutions Support Our stated vision is to accelerate the world’s transition to cryptocurrencies, and as such, we are extending an open invitation to existing fiat institutions (e.g., card networks, payment gateways, banks), who would like to add cryptocurrency as an accepted form of payment in a secure, compliant and cost-effective manner. We intend that Crypto.com Chain will address key challenges faced by those fiat institutions in relation to cryptocurrency: safe custody of those digital assets on-chain and off-chain settlement in a timely and cost-effective manner volatility of those assets, especially in between settlements multi-cryptocurrency management and support Crypto.com will offer supporting technology solutions required to meet compliance and regulatory requirements for FIs. We intend that Crypto.com Chain will enable these institutions to: Easily integrate cryptocurrency within their existing toolkit with a few lines of code thanks to the ‘Crypto.com Simple SDK’ and our APIs in record time (less than 24h integration)1 Have the flexibility to set their own rules and parameters from a business model and compliance standpoint Get a direct access (24h/ 7day) to our best-in-class Customer Service team 1 software development kits (“SDK”), application programming interfaces (“API”) The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 17 3. Network & Technology 3.1 Customer Experience The customer journey for crypto payment using the Crypto.com Chain is intended to be frictionless and versatile. The steps required will involve: 1 customer opens their existing participating crypto wallet or exchange account; 2 customer shows QR code and scans it at the merchant location, or customer scans merchant QR code; and 3 customer confirms payment and payment is processed: customer account is debited; and merchant account is credited in CRO, BTC and/or fiat currencies as per its preferences If a purchase does not go as planned, customers will be covered by Crypto.com BlockShield Buyer Protection Program (B2P2) leveraging the Proof of Goods & Services Delivered (PoGSD) verification at participating merchants. After each purchase, customer will be asked to indicate on- chain whether the good or service they have received was significantly as described (as per defined Crypto.com Chain guidelines). In case of dispute, customer will be able to submit a request through the Crypto.com Chain dispute resolution platform and reach a direct settlement with the merchant. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 18 3.2 Customer Acquirer In order to become an acquirer node and offer clients access to the global Crypto.com Network, cryptocurrency projects will have to follow the below steps: 1 sign a standard agreement, covering processing, settlement and dispute resolution, etc.; 2 pass a compliance audit; 3 lockup minimum CRO quantity; 4 integrate SDK; and 5 pass user acceptance testing on Crypto.com Testnet. 3.3 Merchant Experience Merchant implementation requirements are minimal and provide flexibility in accepting fiat and crypto: 1 merchants use their existing payment terminal (“POS”), or integrate Crypto.com online payment gateway (single line of code from our SDK) or simply add our “Crypto.com Pay” payment button; 2 customers pay using their wallet or exchange account; and 3 merchants receive all their payments instantly in CRO or stable coins, T+2 in fiat 3.4 Merchant Acquirer Crypto.com will run a global business development team to drive acceptance, using our relationships with the payments industry and balance sheet strength to incentivise players to join the Crypto.com Network. We view this as a process that will never stop, but is likely to reach critical mass if we hit the 20 million merchant POS milestone. The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 19 We are aiming for different strategies and distribution channels to be targeted, including: direct-to-merchant deals, both online and offline; online merchants - self-service payment gateway with one-line- of-code integration; and offline merchants - deals with acquirers currently accepting credit cards, debit cards, Alipay and Wechat Pay For all types of acquirers, we have a powerful value proposition: growing market: access to 40 million consumers globally who currently hold crypto - with this number expected to grow to hundreds of millions in the course over the next 24 months; lower fees: zero merchant processing fees compared to fiat, resulting in higher margins for the merchants; minimal integration effort; and co-marketing, including financial incentives 3.5 Network Potential Bitcoin and Ethereum wallet creation have experienced explosive growth (>10x) respectively from 2013 to 2015 and 2016 to 2018. We expect wallet creation growth to continue in the future but with a significantly more moderate CAGR down to 30-40% in the later years. Historical growth of Bitcoin and Ethereum Wallet Bitcoin Wallet Address Growth 30,000,000 20,000,000 10,000,000 0 1/1/2012 1/1/2014 1/1/2016 1/1/2018 # of addressess on the Bitcoin network The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 20 Ethereum Wallet Address Growth 40,000,000 30,000,000 20,000,000 10,000,000 0 1/1/2016 7/1/2016 1/1/2017 7/1/2017 1/1/2018 # of addressess on the Ethereum network Leveraging the Bitcoin/Ethereum wallet creation growth forecast, and discounting users with multiple wallets as well as overlap between each blockchain wallets, we expect crypto users to grow to 250 to 400 millions by 20222. Total Transaction Value in the "Digital Payments" Segment3 6,000,000 5,411,354 4,920,468 4,381,401 in million USD 4,000,000 3,818,909 3,265,209 2,753,714 2,311,407 2,000,000 0 2016 2017 2018 2019 2020 2021 2022 Source: Statista Digital Commerce Mobile POS Payments Total Digital Payments segment expected to be $5+ trillion USD by 2022, amongst which crypto payments could represent 2-3%4 of total payment volume ($100-150 billion USD). 2 Based on historical growth of Bitcoin and Ethereum wallets (2:1 ratio in contribution) and decreasing expected future growth down to 35% in the last year 3 The Digital Payments market segment is led by consumer transactions and includes payments for products and services which are made over the Internet as well as mobile payments at point-of-sale (POS) via smartphone applications. 4 Similar to the payment market penetration of the first mobile payment player entrant in a large market after 4-5 years The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 21 3.6 Network Inclusion Crypto.com will open up its protocol for customers and merchants who would like to transact directly on this next generation crypto payment chain without going through an acquirer. We intend that: Direct participants will be able to leverage the power of the Crypto.com Chain to create community closed-loop payment channels to settle cryptocurrency payments for free. Customers and merchants will act as their own acquirers and hence will need to stake CRO to the network to be able to participate in and process peer-to-peer transactions. Crypto.com will provide participants with an easy-to-use wallet application (“App”) with deposit/withdraw features and stake and pay features to support this decentralized process. 3.7 Network Decentralization Crypto.com Chain will be built with complete decentralization in mind. In the long-term, Crypto.com Chain will be able to run without Crypto.com entities as we develop the key pieces of architecture and technology to enable it: Trust-less mechanisms to increase access to transaction validation nodes Built-in and proven security protocols to keep bad actors at bay Balanced incentives for valued added contributors and disincentives for free-riders Upgradability and flexibility of the chain through community code contributions The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 22 Crypto.com Fiat Cost Free 2 - 3% Settlement Instant T + 2 -> 7 Network Decentralized Network Centralized Network No single authority server All the nodes are controls the nodes, they all connected under a have individual entity single authority 3.8 Technology The Crypto.com Chain Whitepaper includes information about the Crypto.com Chain, in particular: architecture consensus governance security privacy; and other key technical design topics Our initial perspectives are available on the Crypto.com Chain website at: www.crypto.com/chain_technical_whitepaper The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 23 3.9 Roadmap The proposed roadmap is depicted below: LIVE CRO token creation 1 estimated timeframe: distribution across the next 5 years 2 Initial integration of online merchants with the “Crypto.com Pay” payment button LIVE estimated timeframe: at 6 months Acquirer nodes SDK launch (for 3 integration with existing wallets / exchanges) estimated timeframe: at 9 months 4 Onboarding of first acquirer nodes estimated timeframe: first 12 months from token creation Onboarding of additional 5 acquirers and merchants ongoing effort throughout 5 years 6 Testnet launch estimated timeframe: at 12 months Mainnet launch 7 estimated timeframe: at 24 months The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 24 4. CRO Token 4.1 Token Creation Entity issuing tokens CRO Protocol Labs Token name Crypto.com Chain Token Token ticker CRO Token total supply 100,000,000,000 CRO Secondary distribution only. Token distribution mechanisms No pre-sale, no public sale, and no ICO Token distribution split Airdrop to MCO token Holders and Community Development Token: 10,000,000,000 Ecosystem grants Token: 20,000,000,000 Secondary distribution and launch incentives 10% Token: 30,000,000,000 share 30% 20% share share 20% 20% share share Capital reserve Network long-term Token: 20,000,000,000 incentives Token: 20,000,000,000 The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 25 We will create 5 multi-signature wallets to securely store the above token allocations. Wallet addresses below: Allocation Addresses Secondary distribution 0x20a0bee429d6907e556205ef9 d48ab6fe6a55531 Network long-term incentives 0x71507ee19cbc0c87ff2b5e05d161 efe2aac4ee07 Capital reserve 0x22e4f709fd5e7fe246fbf7e714ae 89bdab7e2a5d Ecosystem grants 0xdda508f9f3c1b4ca39c8794df3a 080298ebe9c55 Airdrop & Community Development 0x67703f7d089f3ac7c8c13a18b23 81cbd7ee3eded Secondary distribution The secondary distribution wallet will receive a daily token supply through a smart contract following the below schedule: Duration 5 years - 1825 days Date Daily from November 14, 2018 onwards, each day from 00:00:00 UTC to 22:59:59 UTC Supply Yearly supply: Period % of Total Supply CRO, Billions Overall 30% 30 Year 1 10% 10 Year 2 8% 8 Year 3 6% 6 Year 4 4% 4 Year 5 2% 2 The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 26 Supply Daily supply: Period % of Total Supply CRO, Millions Year 1 0.027% 27 Year 2 0.022% 22 Year 3 0.016% 16 Year 4 0.011% 11 Year 5 0.005% 5 Tokens will be used as network fee incentives and Token progressively distributed on exchanges at prevailing price market price Token ERC20 contract and daily distribution smart contract were successfully audited by Quantstamp and Certik. 4.2 Token Utility CRO tokens are able to be used and/or earned in connection with this product by eligible persons in the following key ways: Cross-asset Node Incentive Intermediary All participating nodes in the Crypto.com Chain will be CRO Token will be the native rewarded in CRO Token for Crypto.com Chain token that processing and validating enables cross-asset intermediary transactions on the network; each currency settlement node will need to stake a fixed Utility of minimum amount of CRO Token (varies by node types) in order to CRO Tokens contribute to the network Block Transaction For more details Fee Settlement visit crypto.com Cost-saver All network participants writing Customers choosing to pay with transactions on the Crypto. com CRO directly will transact with Chain will have to use CRO Token minimal fees to settle block transaction fees The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 27 4.3 Use of Funds Use of funds will be at CRO Protocol Labs sole discretion. 4.4 Airdrop to MCO token holders CRO monthly airdrop rules for the MCO community Eligibility criteria Crypto.com Wallet App approved users except Secondary citizens and residents of Hong Kong SAR, the People’s Republic of China, the Republic of Singapore, Switzerland or the United States of America (together the “Restricted Areas”) Start date ex 2018 December 7th, Duration 5 years Airdrop frequency Monthly change sale Airdrop snapshot At 08:00:00 UTC on the first day of each month, a snapshot of MCO balances within the Crypto.com Wallet App will be taken. MCO balance includes MCO tokens staked in the Crypto.com Wallet App. Airdrop allocation Every month, 166,666,666 CRO will be awarded to Crypto.com Wallet App MCO token holders based on their MCO token ownership relative to the MCO token Total Supply. Detailed Formula for monthly airdrop allocation at Month(x) per user: 1.66% x total CRO supply allocated for MCO token Holders x Individual MCO token ownership on the Crypto.com Wallet App at Airdrop snapshot date Month(x) / total MCO supply The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 28 Airdrop allocation For instance, for every 1000 MCO tokens held on the Crypto.com Wallet App at Airdrop snapshot date, you will be awarded 5276 CRO tokens. Airdrop distribution Your monthly airdrop allocation will be distributed & transferability in the first week after an airdrop snapshot; and will be locked for a period of 12 months. After 12 months, your airdrop allocation will be released into your Crypto.com Wallet App based on the following rules: MCO minimum Airdrop allocation amount balance over 12 months (as a % of snapshot balance) 100% or more Receive full (100%) allocation of CRO 50% - 100% Receive a proportionally-reduced quantity of CRO allocation based on the lowest level held during the 12 month period. For example , if you sell 20% of your MCO holdings during the 12 months, you will receive an 80% allocation of CRO. Less than 50% Result in total loss of your CRO airdrop allocation. For example , if you sell 60% of your MCO holdings during the 12 months, you will not receive any CRO allocation. UPDATE: Following feedback from the community, we are announcing that MCO tokens held by Crypto.com will not be eligible for the CRO airdrop. All unallocated CRO airdrop tokens will be used for Community development activities. UPDATE: Following input from the community, we are relaxing the airdrop allocation rules so that you will no longer lose your entire allocation of CRO by selling MCO during the 12 months holding period (see above updated airdrop distribution & transferability section). The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

5. Crypto.com Team & Organization 5.1 Management Team Kris Marszalek | Co-Founder & CEO Sean Rach | CMO Serial Entrepreneur in Southeast Asia Internet Former CMO at Prudential Corporation Asia. Led the industry. Three-times founder in tech space regional American Express account and served as (e-commerce, Mobile LBS App, Consumer electronics) Managing Director of OgilvyOne Hong Kong. Rafael Melo, CPA | Co-Founder & CFO Erald Ghoos | COO 15 years’ experience in finance, deep understanding COO at Payreto. COO at Funding Circle. Global VP of risk, compliance and Mobile Payments ecosystem Operations at Paysafe. Senior operations at BNP in Asia. CFO at Mobile Payment Solution, a Paribas. MasterCard incubated technology company. Eric Anziani | CSO Gary Or | Co-Founder & CTO Director of Strategy at Global Fashion Group. Hacker, Product Designer, Entrepreneur, 10 years Previously at PayPal, McKinsey and Goldman Sachs in of full stack engineering experience (RoR, Elixir, London, Paris, Singapore and Tokyo. Golang). Keen interest in Machine Learning and AI. Bobby Bao | Co-Founder & Head of Jason Lau | CISO Corporate Development Former regional Cyber Security Advisor at Microsoft. Extensive experience in Technology investment banking; Certifications such as CISSP, CIPP/E, CIPM, CGEIT, named on 2018 Forbes’ 30 under 30 List He was China CRISC, CISA, CISM, CEH, CDNA, CSM, ITIL as well as Renaissance’s first employee on the M&A team, working contributing to on ISACA’s General Data Protection on some of the most high profile transactions, including Regulation (GDPR) Global Working Group, and an IAPP the merger between Didi & Kuaidi. Fellow of Information Privacy (FIP) The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Brent Diehl | SVP, International Expansion Cerulean Hu | Lead Blockchain Engineer Former Head, Prepaid Partner Solutions at Visa. Lead Engineer at Equichain, Team Lead - Finance and Senior Director at Western Union International Trading Systems at ANX, implemented blockchain Payments. Responsible for card portfolios outside of solutions at FINCOVA, and was responsible for the United States at Home Depot. developing trading algorithms at HSBC. Ivan Stefanov | SVP, Risk Management Maggie Ng | SVP, Head of Marketing Senior risk management roles with Paysafe, Groupon, Head of Direct Marketing and Direct to Consumer Skrill and NETELLER, managing large teams across for FWD Insurance and Director of Digital Media for multiple markets and enhancing the existing fraud Prudential Corporation Asia. prevention and payments setup. Weiyi Zhang, Ph.D. | Platform Architect Matthew Chan | SVP, Head of Technology & Security Senior VP, Quantitative Trading at AP Capital Management. VP of Electronic Market Making at JP Award-winning CTO/COO at Argent, a global Morgan, Quant Strategist of Equity Derivative Trading enterprise leader in monitoring, cybersecurity & at Deutsche Bank. compliance products. CTO at Striker Capital, multi-strategy asset management. Kasim Zorlu | SVP, Head of Growth VP of Performance Marketing at Rovio Entertainment (maker of Angry Birds and Bad Piggies). The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 31 5.2 Advisors Crypto.com recently announced the formation of a new Advisory Board to support the company on our path forward: www.medium.com/@Crypto.com/crypto-com-announces- advisory-board-93be711cfe85 5.3 Relationship between MCO and Crypto.com Monaco (Token ticker MCO) announced its rebranding as Crypto. com in July 2018. For more information on MCO token and its utility, please visit www.crypto.com/token 6. Further Information Crypto.com Information & Discussion www.crypto.com www.crypto.com/chain www.twitter.com/cryptocom www.t.me/CryptoComOfficial The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Crypto.com

Crypto.com 32 © Copyright 2018. For information, please visit crypto.com