Japan Content Token Whitepaper

Thursday, May 9, 2019
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A unique ticket distribution platform On which the fast growing Asian people can easily access the hidden but rich Japanese content. Scalable business model managed by the experienced management team will lead to the continuous growth of the Token value.

Table of Contents Project Outline P.2 1 Market Potential P.7 2 Key Business Factors P.8 3 Management Team P.11 4 Technological Focus P.15 5 Benefits of Blockchain Technology P.19 6 Purpose of Token Usage P.21 7 Establishment of Eco-system P.22 8 Expansion Strategy for Content Coverage P.23 9 Project Phase P.25 10 Token Allocation and Inhibition of Excessive Liquidity P.26 11 Information Disclosure and Business Risk P.30 12 Disclaimer P.31 1

Project Outline The first full-fledged utility token project in Japan 1 Japan Content Token Project, JCT Project, realizes a platform which allows visitors, especially from overseas, to search and to experience various Japan “contents” by using the blockchain technology. There exists virtually no project with this kind of objectives regardless of whether based on the blockchain technology or not. JCT will create a platform generating totally new values. This platform will, then, provide to its participants with clear benefits by leveraging three factors of the blockchain technology, to be described later. Besides, from the onset, the JCT project will involve experienced business entities as group companies to leverage the platform and also plans specific affiliations, which will be released soon. Moreover, this platform includes a mechanism to minimize the excessive liquidity of tokens in exchange markets by assuring the siphoning-off of tokens from the market in accordance with the platform usage. Furthermore, the initial token to be issued will be approximately 30 million, and the token volume will be gradually increased up to 2,500 million over a course of a decade, by monitoring the platform growth. This project is led by a management team of entrepreneurs with listing experience of multiple corporations, with depth of business-development experience, and leading art directors of Japan. This management team is supported by powerful partners, Cybex, one of the most influential advocates of the Blockchain industry born in China, and Monstar Lab, Inc., which holds multiple global R&D centers. This the JCT project is the first project in Japan, backed by actual businesses, a strong development system, and a management team with deep experiences. 2

Market Potential 2 Though Japan possesses the world’ s richest sightseeing resources and contents, there are relatively few visitors from overseas and it is yet hard to approach this potentially rich “contents” for them. Where on earth can we find truly good restaurants and experiences unique to Japan? There exist obvious gaps. The “contents” covered in the JCT project include hotels, restaurants, events, experiences, and making things. Not “things” but “doings” . In addition, this is a rich market, yet untapped, promised for growth by Japan of mature yet of large economy, targeting for the citizens of Asia of the most rapidly rising income levels. Moreover, there will be an Olympic held in Tokyo in 2020, which is one year and half after the start of actual service offerings by JCT. Key Business Factors 3 Key terms to make up the JCT projects are the followings: ・The visitors to Japan reserve “contents” →Issue of tickets, or reservation rights, and generating and managing their future credits ・Platform for ticket distributions: JaCKET ・Tokens serving as fees to perform the ticket distributions and cash assets: JCT token Management Team 4 The team started the JCT project holds deep knowledge and accesses to these Japan contents through the most prominent quality magazine about Japan contents, “DiscoverJapan.” And besides, the team includes ones who have done in-depth operations about experiencing through travelling, restaurants, and events, engineers who have led the industry about the blockchain technology, moreover, ones who have launched several platform businesses, and prominent venture capitalists who have accumulated success stories on investment. One of those managing the overall project has founded and listed several corporations of market capitalizations of over 100 billion yen. 3

Technological Focus 5 The JCT platform, amongst Blockchain technology, is characterized by the three following features: “Records focused on the clarification of the right holders” , “Automated fulfillment of rights based on “Smart Contracts” , “Increased security level and decentralized management based on distributed exchange technology” . We believe these three features focus on the most essentials among blockchain and its related technologies. The JCT project is aiming to achieve innovative success on each feature. By also establishing a cooperation structure with Cybex, advanced in distributed exchange technologies, blockchain will be leveraged on higher level, as well as, by integrating effective data for the JCT platform into an Oracle, existent off-chains will be tapped in at the same time. In order to resolve the scalability issues of Ethereum, which will be adopted for JCT tokens, we plan to shift to a more advanced blockchain technology and assume specifications enabling a seamless transition. Benefits of Blockchain Technology 6 By combining the three key features of the blockchain technology described above, the JCT project will realize the secondary market of reservation tickets for “contents” . This implies the possibility of resale. By doing so, the “ticket purchaser” side would be able to make reservations with minimized considerations for the future uncertainty, and putting the secondary market in place would also allow the possibility of last-minute reservations. On the other hand, the “contents” provider side would relish the benefits of business advancements such as improved convenience of offerings, improved certainty of collections, and improved lessons for price setting. The JCT project also is aiming to create an economy beyond borders by leveraging its characteristics of crypto-currency, being able to maintain and to exchange the values beyond the borders of countries and legal currencies. Promotion of JCT Token utilization and generation of actual demands by turning into points 7 The tokens, which will be issued in the JCT project, into which financers will invest, and which are planned to be distributed at exchanges, will not only function as various fees, but also plan to be used as assets to purchase “contents” or as payable compensations for selling “contents” . Moreover, in order to encourage the actual demands for JCT tokens, some settlements coming from distributions on the platform of the JCT project will be made with JCT. JCT, necessary to establish this settlement, will be automatically bought from the market. This implies that JCT will be forced to siphon off from the market in accordance with the amount of contents in distribution, which props up the JCT token distributions. In order to encourage distributions with JCT, transaction fee margins between settlements by FIAT and JCT will also be established. This establishment of transaction fee margins would be based on the essential advantage of the blockchain-based mechanism vs. existent settlement systems such as credit card. 4

Establishment of Eco-system 8 In addition, this circulation of JCT tokens will be offered not only to visitors to Japan from overseas, but also to “contents” providers in Japan. We are also considering localizing the platform of the JCT project into Japanese language, so that Japanese residents are able to use the platform as end users as well in the future. Then, an eco-system through JCT tokens will expand more, and the actual demands for JCT tokens will be expected to grow continuously. At the same time, in the JCT project, various affiliations for increasing the business volume of contents on the JCT platform are planned to proceed in the future. Expansion Strategy for Content Coverage 9 At the initial stage, the JCT project will be centered on appealing event contents unique to “DiscoverJapan” . DiscoverJapan is a magazine focused on introducing Japan from various perspectives, and is a combined media of paper and digital with a decade of establishment as a position of high-class magazine. On top of this, we will promote partnerships with a number of restaurants and hotels in Japan, and is aiming to increase the total amount of distribution. Currently, we are under negotiation with possible external affiliations, which will be released in turns. Ultimately, we aim to create an environment where each individual would be easily able to release contents, and to further expand content postings. Project Phase 10 This the JCT project will be launched in four phases: 1. From July 2016 to November 2017 Project launch phase 1. ) In December 2016: Start of prototype operation, limiting to B-to-B function 2.From January 2018 to June 2018 Project Design Phase 1. ) In April 2018: Team expansion 2. ) In July 2018: Completion of the first version of whitepaper and the official HP 3. Form July 2018 to January 2019 Project Development Phase 1. ) In July 2018: Completion of the development of JCT Token 2. ) In August 2018: Issuance of JCT Token 3. ) In December 2018: Release of the Closedβ version, ticket creation features for originators 4.From February 2019 onwards Project Full-scale Phase 1. ) Release of the β version 2. ) Release of the secondary market 3. ) Provision of credit management, early credit, posting-support service, and more. 5

Token Allocation and Inhibition of Excessive Liquidity 11 The JCT project will not raise funds from general investors. All the funds will be raised by the funding members and their supporters. And tokes allocated to the funding members and the supporter will be set with step-wise lockups. In doing so, we plan to ensure a step-wise liquidity in accordance with the JCT platform growth. Thereby, the ultimate total issue will be 2,500 million; however, the maximum of initial tokens to be circulated will be approximately 300 million, and thereafter, there will be controlled step- wise expansions. Information Disclosure and Business Risk 12 Blockchain industry. Among JCT members, there exist some entrepreneurs who own experiences of leading closed corporations to publicly traded corporations, and moreover of raising them up to the level of a market capitalization of far over 100 billion yen. With these experiences, we aim at an appropriate information disclosure and at establishment of a favorable relationship with the community generated by this information disclosure. As essential to the project, it is necessary to lead the project launch by the operation side during the initial phase, but the operation side recognizes these risks, and plans to spread these risks to communities and markets as soon as possible. Upcoming Schedule 13 1 From June 21 to 28: Private placement 2 In September 2018: Listing of CYBEX 3 Plan to execute AirDrop 4 Trial service for concierges and tour guides in Japan, also as a system test 5 At the end of the year 2018: Plan the second execution of AirDropService in 6 From the end of 2018 to Go-live the beginning of 2019: 7 Around the spring in 2019: Plans the third execution of AirDrop 6

1 Japan is the country possessing the world’ s richest sightseeing resources and contents. The number of tourists from overseas to Japan is increasing every year and is expected to increase further in the future. The Japanese government also predicts 40 million tourists by the year 2020. In fact, there are relatively few visitors from overseas compared to the Market Potential rest of the world and it is yet hard to approach these potentially rich “Japan contents” for them. There exist obvious gaps. The JCT project targets on a markets growing precisely because of these existent gaps. Moreover, we focus on “Japan contents” of “doing = experiencing” including accommodations – hotels and minsyuku, traditional Japanese inns, cuisines– restaurants, and experiencing – events and making things, selected in the result of the increased visit frequencies to Japan and the increased ratios of repeated customers. Figure: Normal GNI in $ - horizontal axis & Number of foreign tourists – vertical axis Comparing Japan with France and Thailand, possessing the world’ s richest sightseeing resources, and history and culture. For the normal GNI, the number of tourists to Japan is considered to be at a singular position. Reference: “The World Bank 2016” Currently, the number of visitors with repeated visits, not the first visit, to Japan are increasing. As a result, there is a shift from the consumptions of things to the consumption of doings. Although the opportunities to experience “Japan” itself are increasing, it is also the fact that Japan is not yet readily available to these expectations. Japan is the country possessing the world’ s richest sightseeing resources and contents, and at the same time, is the rich market, yet untapped, promised for growth by Japan of mature yet of large economy targeting for the citizens of Asia of the most rapidly rising income levels. 7

2 Key terms to make up the JCT projects are the followings: A)Visitors to Japan reserve “contents” →Issue of tickets, or reservation rights, and generating and managing their future credits Key Business B)Platform for this ticket distributions: JaCKET Factors C)Tokens serving as fees to perform the ticket distributions and cash assets: “JCT” token The right to experience “contents” visitors to Japan, which are key business materials for the JCT project, will be converted into electronic tickets and offered to users as reservation rights. By connecting the reservation rights converted into electronic tickets to purchasers’ unique wallets or accounts, the ownership of ticket will be clarified, avoiding foul uses and property losses. This ticket ownership could also relatively easily be sold and transferred to the third parties by the user choice. With these factors in mind, we aim to resolve the ownership issues existent in ticket sales, as well as to expand the market with enhanced convenience by electronic ticket conversion B)Platform for the ticket distributions: JaCKET JaCKET is a ticket market for experiencing “Japanese culture” , leveraging the blockchain technologies. JaCKET will provide a place where originators, content providers, will create rights to experience, to be converted into electronic tickets, and will sell to foreign visitors and Japanese, wishing to experience attractive Japanese cultures. Moreover, JaCKET will also provide a platform function as “the secondary market” where purchased tickets for experience could be transferred and sold with any price within a predetermined range to acquaintances or to third parties. JaCKET will eliminate the risk of identification control arisen from foul ticket acquisitions, and will incorporate the distribution of margins gained at the secondary market to originators, content providers. In these respects, JaCKET is a revolutionary platform also resolving the issues of resale markets. 8

JaCKET signifies “Ja-panese, ti-CKET” . This is not a mere ticket, but is a logo and a name of the platform, representing both respect to content originators generating tickets, and approach to end users accessing to these tickets. C)Tokens serving as fees to perform the ticket distributions and cash assets: “JCT” token “JCT” token is a “utility token” revolutionarily changes the established concepts, and provides marketplace users with in some ways the ownership of values. The tokens will be provided with motivations for user actions in the benefits of users. And it will be used as a base unit for the whole distribution and fees. 9

Ms. Galia Benartzihe, the Co-Founder of Bancor Network, stated “The online-economy uses its own utility tokens. Therefore, the economical growth means the appreciation of tokens owned by the business involving online-economy with the network growth, which leads to the possible business expansion, and furthermore, increased profits.” By being equipped with value transfer as a key function, JCT token is rooted in demand and supply, the essential to economy. The JCT logo design represents “red circle” = “rising sun” , calling up an image of the national flag of Japan, and its “Yen – circle” circulating as a currency. 10

3 The team launching the JCT project consists largely of four groups: Project Management, System Development, Contents Development, and Legal Support. Project Management Management Team The Project management controls the overall project, and enforces the liquidity of “JCT” tokens, information disclosure to the market, and communications. As the JCT project holds a strong aspect of content development, it puts emphasis on business development and creative supervision. Hirofumi Mizuyama Project Owner, Chairman Has over 20 years of experience in structured finance and private equity. Founded his own company, listed corporations, and moreover, successfully managed a market capitalization of over 100 billion yen. Has listed four corporations on the Tokyo Stock Exchange as a member or as an owner of management teams. Formerly worked for BCG. Kenichi Saito Chief Executive Officer Has over 15 years of experience in wide range of business developments, such as magazines, free papers, Webs, shops, and settlements. Holds profound knowledge especially in the areas of events and cuisines. Founding member of Coiney, Inc., established to build a mobile settlement infrastructure in Japan, in charge of business promotion. In charge of digital business of DiscoverJapan. Formerly worked for Recruit Co., Ltd. Hirochika Horiuchi Chief Creative Officer A prominent art director of Japan. Has successfully completed a number of large promotion projects. Strong in overall productions starting from business definitions to making organic connections among a series of promotions and art works. The most famous for "Pon de Lion", the original character of Mister Donut. Formerly worked for Dentsu Inc. 11

System development System Development holds not only knowledge on blockchain, but also profound understanding on off-chains and business processes, and operates the team planned to grow into a massive scale. Noriyuki Izawa Blockchain Expert A Blockchain expert and a very active communicator in crypto-currency community. Has over 15 years of experience in business design and requirement definition within IT business development and has led several businesses. Formerly worked for K-Opticom Corporation. Currently belongs to Monstar Lab, Inc. Daisuke Hirata Chief Technology Officer Has over 15 years of experience in leading IT projects. Holds profound knowledge especially in the area of developing mobile and web services. Led also various types of projects as a leader from start-ups to large projects at IBM. Acts also as CTO at Monstar Lab, Inc. Tomoyuki Uno Head of project management Has over 15 years of experience in leading IT projects. Holds profound knowledge especially in the area of developing mobiles and web. Acts also as a manager of development division and a board of subsidiary in the Philippines of Monstar Lab, Inc. This subsidiary in the Philippines takes in charge of enterprise system developments for markets in Singapore, in the USA, and in the Philippines. Takumi Fujioka Head of budget control Led various IT projects over 13 years. Holds profound knowledge especially in the area of server construction. Has executed successfully several extremely large-scale projects. 12

Content development It is extremely important how much contents are put on JaCKET platform and how much content distributions are going. Therefore, we believe it is important to have a dignified lineup. Shunsuke Azuma Director, content management The captain of the Japan National Team of handball, led the club team of Osaki Electric Co., Ltd. to nine-time champions for the Japan League and the All-Japan Championship, and got in many international games. After participating actively as a Marketing Director at Japan Handball Association, now involved with design and promotion of second career of various retired athletes.With a responsible position for the contents operation, now committing most of his time into the JCT project. Kazuki Obata Director, content creation Although his young age of 23, already renowned as a business entrepreneur, famed for successfully hosting “Japan Policy Council” inviting over 300 entrepreneurs and local government officials. Developing consulting activities for regional revitalization evolving around Japanese arts, craftworks, cultural heritages, and tourism, using crowd-funding. A member of Global Shapers at World Economic Forum, as well as a local revitalization evangelist of the Cabinet Office. In charge mainly of contents mining. Kullen Ozaki Director, content quality control A founding member and acted as a chief concierge of Aman Tokyo. Also acted as a chief concierge of The Peninsula Tokyo, and as a concierge for several hotels in NY, holding profound knowledge on the needs of affluent visitors from overseas to Japan. In charge of content quality control. 13

Marketing Ayako Ishikawa Marketing Director Has more than 15years experience in launching new services and new businesses at global IT consulting firm and Japanese & global advertising agencies. The field covers from IT technology to consumer goods & services, and from global brands to Japanese brands. Yukihiro Shirakawa Marketing Director Has invested into Blockchain from its dawn, and has been playing an active role in great numbers of communities. He has also invested into more than twenty projects in their early stages. He is also the founder of Eurasia Group, which checks marketing activities, foul activities, and the membership facts of Blockchain projects. 14

4 JaCKET, the platform of JCT, focuses on the following three features: ① Leverage the characteristics of records and public ledger focused on the clarification of right owners Technological Focus Blockchain Technology By utilizing JaCKET platform, ticket outline and information on rights will be recorded on blockchains. Then, whenever tickets are distributed, whereabouts of the ticket ownership will be recorded with the transfer of rights, which enables the proof of the right ownership. JaCKET platform provides ticket authentication mechanism at the content originator side, and user who are purchasing tickets, or whom these rights are transferred will be able to check in smoothly at the site of ticket in use. In addition, capitals collected as ticket fees will be pooled under specific conditions by Smart Contracts, and allocations of revenue will automatically be executed as the event comes into effect. As claim owners of revenue would be recorded on blockchains, third parties would be enabled to purchase the future claims which should be rightfully received by originators as content providers before the claims are settled. Therefore, the third parties who have become anew right owner of the future claims could collect as considerations for the claims. JaCKET platform emphasizes the recording of this future claim right. Based on this mechanism, development of services such as early settlement for the future claims are planned in the future. In addition, several measures to enhance the possibility of holding contents, subject to tickets are also planned and will be released in turns. As a result, content originators would be able to collect some capitals before the holding of events, promoting content development and simplifying content offer, and eventually speeding-up the JCT economy expansion. 15

② Automated fulfillment of rights based on Smart Contracts On JaCKET platform, fulfillment of rights by Smart Contracts will be automatically applied, based on transaction rules set for each registered “event” and “content” . This enables surely and quickly the reception of ticket sales amount, fee settlement, collection of cancellation fee, and so forth, which so far used to be of large burdens or risks. Especially, this would improve drastically the situation in which collections are not necessarily executed based on a cancellation policy, and would resolves the issues of the content originators such as hotels and restaurants. Users who have purchased tickets sold on JaCKET could resell these ticket rights to acquaintances or to third parties with a newly set distribution price. At this moment, resale with a higher than the regular price could come into effect, depending on the contents. At present, even if resale with a higher price comes into effect, there is no contribution back to content originators. However, on JaCKET platform, if resale with a higher price comes into effect, additional fees, gradually increasing in accordance with incremental revenue occurred, will be applied and a certain ratio of them will be allocated to content originators. This series of charging of fees and sharing with content originators will be allocated by Smart Contracts based on predetermined, transparent rules. Besides, the dead stock of tickets is an extremely serious problem for the content originators. In addition, on JaCKET, once the period, predetermined as a ticket information, reaches, the service leveraging Smart Contracts of automatically selling the ticket rights to the JCT operation will be offered. This will enable to always collect some amounts if end users made cancellations, which minimizes the sales risk for originators. 16

③ Increased security level and decentralized management based on distributed exchange technologies JaCKET market place will, by leveraging the blockchain technologies unique to DEX, “Cybex” , already proved in distributed exchange operations, enable highly real-time transfers and verifications of ticket ownerships irrespective of such scalability issues in Ethereum. Also, in order for JaCKET to take a more decentralized role, JaCKET marketplace is aiming to achieve trustless interactions between ticket owners and third parties willing to purchase tickets in the secondary market. In order to achieve these three objectives, the JCT project will cooperate with Cybex and Monstar-lab. The JCT project has researched on various cases of distributed exchanges, driven by the thoughts that distributed exchange is what the trading platform really should be like. Then, we selected “Cybex” as our partner, already started distributed exchange operations, from the standpoints of its technological reliabilities and its advanced concepts about security, amongst each research subject; we have deepened our discussions, have signed a tie-up in January, 2018, and have been investigating together into the innovative product leveraging blockchain. Moreover, the development of the JCT project is expected to be on a massive scale, thorough knowledge on business process from ticket purchase to holding events, and also progressive knowledge on development of off-chain parts are required. Therefore, the JCT project has selected Monstar Lab, Inc. as a possible partner corporation for such development; we started our discussions from the beginning of the year 2018, and we have established a formal structure in April, 2018. Cybex, of progressive knowledge on blockchain, and Monstar Lab, Inc., of rich experience in business processes, these two partners will support as the two wheels of the JCT project. 17

CYBEX is a decentralized exchange that Under the philosophy of "Creating a seeks to improve liquidity of mechanism for utilizing diversity" and crypto-assets that’ s more transparent "changing the world with technology," and secure than the centralized We are operating in 21 locations in 12 counterparts currently in the market countries. The digital partner division today. CYBEX is an ecosystem that’ is offers the best teams from their own built and operated by a network of like bases and worldwide partner engineer minded partners across the globe in a networks to support the planning, decentralized network. development and operation of customers ' app and Web services. We are also working on a case that utilizes block chain. 18

5 By combining three key characteristics of the blockchain technology described above, JaCKET will realize various benefits for both the user side and the content originator side. Benefits of Blockchain Technology Benefits for the content originators 1 ) Lower the hurdle to introduce contents of Japan to visitors from overseas In the past, for content originators, the hurdle used to be extremely high to realize a series of flow from selling their original contents to people outside Japan, ensuring the delivery of its right as a ticket, and providing experience in Japan. JaCKET will provide a platform where it is easily perform a series of procedures of digitizing tickets by registering content information, of publishing content information to outside Japan, and of collecting ticket fees, which would enable content originators more easily to introduce contents toward outside Japan. 3 ) Flexible Design of tickets to adopt to market needs There are various needs in the content market such as hotels, restaurants, and events, and the ways of providing contents in the industry used to vary, including old methods such as paper procedures. And it was not always possible to introduce in responding to business categories or to substance and advantages of each content. JaCKET will provide content originators with an attractive mechanism of proofing content ownership, setting a cancellation fee period, setting ticket, assuming the secondary market, buying up tickets by JCT operation, and so forth, by designing tickets responding to these various markets, and flexible and easy for element set-up. 19

5 ) Distribution of ticket revenues in the secondary market In the past, the opportunity to receive sales revenue of contents was restricted to only once for originators. On JaCKET platform will provide content originators with an extremely appealing mechanism as a contract where if users who purchased tickets resell to third parties with a higher price, a portion of the revenue will be contributed back to originators. Benefits for end users 2 ) Easy access to the valuable and hidden contents in Japan JaCKET will provide motivations to deliver attractive, valuable contents existent in Japan to people more proactively seeking contents. By appealing the platform to content originators, the possibility to encounter contents formerly invisible will increase on JaCKET, and along with easier settlement, JaCKET will provide simpler access to contents in Japan. 4 ) Flexible schedule setting and planning for a trip In the past, visitors from outside Japan needed to set in advance schedules and plans in detail. JaCKET will allow flexible trip planning by far with a platform responding to various forms of usage such as ticket purchase in advance or at the last minute by flexible ticket designs, and cancellation or resale to third parties of tickets purchased in advance. 6 ) Automated settlement with extremely high transparency Events planned during precious trips to Japan are of upmost importance for travelers. JaCKET will realize high transparency for settlement by the proof of ticket purchase recorded on blockchains. Therefore, ticket purchasers on JaCKET would not need to worry about additional settlement or non-settlement. 20

6 JCT will establish two types of eco-system using Blockchain. <Eco-system with JCT token> Purpose of ERC20 compliant tokens using Smart Contracts on Ethereum network will be issued, and “JCT token – hereafter simply as JCT” will be available throughout Token Usage JCT eco-system, centering on JaCKET marketplace. “JCT” will be mainly used for the following purposes a.As a settlement method at the purchase of electronic tickets - reservation rights b.As an alternative to fee settlement at event holdings and content sales c.As a settlement of sales to event organizers and content sellers d.As a distribution of award for purchasing tickets e.As a reward for effective information in the community or for marketing collaboration “JCT” will become the core of eco-system by expanding the range of use in the future. For this reason, we will consider a shift to a new Blockchain technology in the future for real time property by increased speed of transfer, for reduction of transferring fees, and for up-take of the blockchain technologies ever developing in the future. <Eco-system with Cybex ticket contract> In order to clarify ticket rights, an eco-system leveraging JaCKET market place, hereafter simply as “JaCKET” , employing the Blockchain proprietary to Cybex of experience in DEX, distribution exchange system. “JaCKET will mainly provide the following functions a.Registering events and posted contents b.Issuing electronic tickets stating rights of content usages c.Selling tickets and collecting fees of ticket usages d.Implementing automatically rights such as revenue allocations by Smart Contracts e.Providing an inexpensive settlement system by JCT and FIAT “JaCKET” will provide a ticket distribution system as a core of JCT economy, and generate the world market price of contents on JaCKET. In order to do so, we will proactively proceed with cooperation with existent businesses and other crypto-currencies, as well as with integration of market data collected and stored in JaCKET into an Oracle. 21

7 Through the expansion of distributions on JaCKET, by providing attractive Japan contents, leveraging the strong content networks possessed by the JCT project members, we will encourage the expansion of actual demands of JCT, and will establish a trustless network satisfying the supply from the provider side of events and contents, and Establishment of the demand from the ticket purchaser side. Eco-system Moreover, JCT will also be distributed as an award through the content distribution process. This distributed JCT will be automatically bought up any time by the market. As a result, a mechanism to increase the scarcity of JCT in the market, as well as, to always generate actual demands for tokens along with content distributions, is internalized. This allows that JCT will always be siphoned off from the market based on rules whenever content distributions occur. By improving convenience for providers of events and contents, using JaCKET, these strategies will have positive impacts on the quality and the volumes of contents posted, as we as, will promote the increases of the utility value and of the market price of JCT in use. Besides, by a series of flow of the utility value of JCT being expected to increase relative to the increase of attractive contents, and JaCKET usage being promoted through JCT purchase from the market also for ticket purchasers as well, the eco-system through JCT will expand more and a virtuous circle of ever-growing actual demands for JCT will be generated. At the same time, the JCT project plans various affiliations for increasing the business volume on the JCT platform in the future. 22

8 In the JCT project, we will expand handling content in 3 steps. (1) Tieing-up with DiscoverJapan Arranged by DiscoverJapan, the JCT project will be centered on appealing, Expansion unique events. We plan to prepare a number of contents to experience Japan. Strategy for (2) Partnering with restaurants, accommodations, experience service businesses Content Coverage We will promote partnerships with a number of restaurants and hotels, and business entities possessing networks with these facilities in Japan, and is aiming to increase the total amount of distribution. Currently, we are under negotiation with possible external affiliations and will plan to release in turns. (3) Posting individual talents Ultimately, we aim to create an environment where individuals with talents in Japan would be easily able to post and sell contents. Specifically, chefs, athletes, craftspeople, artists, personalities, and so forth. What is DiscoverJapan? In Japan, where there are very few media covering the information on the Japanese culture, “DiscoverJapan” is the “long-established” magazine with the concept of “textbook of Japan” , first published in 2008 upon requests from people overseas. DiscoverJapan has been communicating charms of rich cultures which Japanese people should be proud of, such as traditional crafts, traditional performing arts, cuisines, and spiritual features as entertainments suitable for people of today, and has grown as media of both paper and digital with more than one hundred thousand readers every month. DiscoverJapan is a powerful media, entrusted projects by the Japanese government and local governments, uniquely positioned itself, and highly focused on mining contents of Japan, DiscoverJapan covers a wide range of Japanese culture, and has already established various experiences and events with their sources of interviews and distributions, and with their networks.By leveraging these networks of DiscoverJapan, initial events being planned are followings: 23

Cuisine: Restaurants We ensure the seats to fully entertain the best of all Japanese cuisines, “Wasyoku” . We also plan to assist in communications, manners, and etiquets with craftspeople and chefs. Experience: Events There exit many events to experience the Japanese culture. We will prepare events to taste the best of visits to Japan, such as viewing Sumo wrestling, tasting “Chankonabe” , a traditional Japanese hot pod for wrestlers, tea ceremonies, flower arrangement, Judo, and more… Accommodations and cultural facilities We will prepare opportunities to feel historical architectures continued since ancient times. These opportunities will satisfy not only general travelers, but also inquisitiveness of people aspired after expertise. 24

9 The JCT project will be launched in four phases Project Phase 25

The total number of JCT issue will be 2500 million. However, as 540 million, equivalent 10 to 30% of them, will not be issued until the year 2020, the virtual number of the issue would be 1,250 million for the time being, and as lockups will be set with some rules for all the tokens except for AirDrops, so the maximum amount of tokens that may be Token Allocation distributed will be less than 300 million. and Inhibition of Excessive Liquidity As a certain liquidity to JCT is necessary for the success of the JCT project, we anticipate some distributions will occur after the start of distribution at the JCT token exchange. However, in order to avoid excessive liquidity, each token is locked up. This lock-up is planned to offer as a system function. Although very few, AirDrops, free offerings of JCT, are planned to be divided into three occasions. The first AirDrop will be in September after the anticipated start of distribution at the exchange, the second will be at the end of 2018, before the start of distribution at an additional exchange, and the third will be in the spring of 2019, before the start of distribution at another additional exchange. Still, as these AirDrops are aiming to improve the visibility of the JCT project and to secure supporters in the community, we will accept exceptionally domestic applications. 26

The detail of the token allocation to each purpose will be as followings: Token Allocation for establishing the project framework: 17% We will possess 310 million JCT for using JaCKET and for promoting JCT usage as follows: ・ Business alliances for gathering contents and ensuring sales capacity of contents 220 million ・ Entry incentives for promoting entry of content originators 80 million ・ Expansion of the visibility of JCT and number of owners through AirDrop 10 million Token Allocation for ensuring necessary funds and initial liquidation for the JCT project: 43% We will possess 780 million JCT for alliance strategies in order to realize the expansion of eco-system, which is the long-run objective of the project, and for ensuring the token liquidation. Token Allocation to Funding members and JCT operation team: 10% The funding members and team members engaged in the JCT project operation will possess 170 million JCT, equivalent to 10% of the total number. Token Allocation to secure and adjust liquidity to the market: 30% We will possess 540 million JCT for securing and adjusting liquidity to the market, as well as, for the system expansion and improvement along with the expansion of JCT token economy. These tokens will not be issued until January, 2020. From January, 2020 onward, the maximum numbers of 25 million every four months will be issuable. In other words, they will be issued gradually through ten year time from January, 2020 till the end of 2029. These tokens aim to buffer possible lack of liquidity as a consequence of forced buy-up of JCT from the market along with the expansion of JCT token economy as the most important. However, depending on distributional situation in each JCT exchange, only a portion of them, or none at all might be issued. The JCT project team assumes that the expansion of JCT economy would exceed 3% annually. Therefore, we perceive that additional currency supply of 25 million tokens every four months, equivalent to 1% of the total number, which amounts to approximately 3% annually would not suppress unilateral increase of the currency value, and in other words, there is a high chance that the token price will continue to increase. Of course, this would be influenced by amount of content distributions and external environments greatly, and no one can say anything definite, or there are more things unpredictable. Nevertheless, as issuing additional tokens lawlessly would lead to actions of missing the token value, as a rule, additional token issue will only be possible with maximum of 25 million every four months. 27

11 Team members of the JCT project think that current information disclosures on crypto-currency in general are not sufficient. On top of obviously information disclosure on the progress of system development, wouldn’ t it be necessary to disclose information required to assess business progress of this project, and to be exposed to judgments on Information whether it should be discussed how the token value would be assumed? Disclosure After the service launch, important points in assessing the value of JCT are how much and Business Risk contents are using JaCKET platform, and how much contents are distributing. Particularly, as JCT will be forced to siphon off from the market for settlements of points and fees whenever contents distribute, it is important to share the amount of content distribution with the community. Therefore, the JCT project team will consistently disclose information on the amounts of content postings and of content distributions. There also exist some risks as the JCT project is not specialized in developing protocols on Blockchain, and we will describe these risks as following: Geographical Concentration This project places emphasis on providing values from Japan. Therefore, if tourism and transportations in Japan are thrown into confusion in case of wars or natural disasters, the execution of this project could be affected. Operational risk of Launch Period · Risk involved in content development Although the value of JaCKET platform is expected to increase in accordance with the expansion of content coverage, as this is a new project, the amount of content coverage might not be very large at the start of the project. In order to accelerate the launch, the operational side plans to provide contents. As a result, until the platform will be launched, a substantial portion of content offerings would be relied on the operational side. · Safety risk of deposits On JaCKET platform, money paid by end users as a compensation for reservation will be managed by the operational side until paid to content originators. The operational side considers money trust or deposit into a SPC account in order to manage these money safely, but there could be a situation where full bankruptcy remote from the operation would not be possible. Legal Risk In Japan, the legislative system on crypto-currencies are still on work order, and its full picture is not yet determined. Therefore, depending on the progress and the detail of the legislative system establishment, the JCT project could possibly be affected. 30

12 This whitepaper, hereafter this document, is aiming solely to provide relevant information about our company, providing JaCKET, the content distribution platform based on the blockchain technologies and JCT token. Disclaimer This document does not provide any professional advice on investment. The JCT team makes no warranties of any kind on legal liabilities occurred from or related to the accuracy, reliability, or completeness with respect to the detail of this document. The details described in this document outline to JaCKET users and potential JCT owners the vision of the platform JCT is aiming to achieve. So, in order to achieve this vision, some changes in specifications described in this document could arise to overcome a number of uncertain factors. The platform and its tokens cannot, in any jurisdiction, become securities. This document is not, in any form, a prospectus nor a public announcement, and do not provide securities nor invite investment for securities in any jurisdiction. JCT is a Smart Contract for establishing an eco-system in JaCKET, and is not a speculative investment. There is no promise for the future performance, on the future value, and on the continuous settlement, and JCT is not guaranteed to maintain a certain value. 31

The design used on the front page is called “Seigaiha, blue ocean wave”. The design wishing for eternity like grace of the vast ocean, wave pattern extending infinitely. Company Profile Trade Name: Japan Content Token pte.ltd. Address: Thebridge, 2 Science Park Drive, 118222 Singapore Established: March, 2018 URL: jct.world 32