Powering the Online Investment Platform BF TOKEN (BFT) W H I T E PA P E R 2017 - 2018 Bnk To The Future All Rights Reserved
Table of Content —TABLE OF CONTENT 5. The regulatory landscape.........29 WH IT EPA P ER 5.1. Phase 1 5.2. Phase 2 1. Executive summary.........3 5.3. Phase 3 1.1. Overview 5.4. Phase 4 1.2. Notable achievements to date 5.5. Phase 5 1.3. The next challenge ahead 5.6. Our regulatory roadmap 2. Industry overview & history.........7 6. Token function & supply.........33 2.1. It started in 2010 6.1. BnkToTheFuture.com member roles 2.2. Our history with Bitcoin 6.2. All token holders 2.3. The investment platform 6.3. Qualifying investor token holders 2.4. Tokens moved faster than regulators 6.4. Wider participation 2.5. We needed to be global 6.5. Community insights. 2.6. Then came Ethereum 6.6. Staking process and amounts 2.7. Then the VC’s started to play 6.7. Reward pools 2.8. The 2017 boom 6.8. Additional token issuance 2.9. Innovation & regulations 2.10. Regulatory clarity 7. Technical overview & roadmap.........41 2.11. We still remain true to our origins 7.1. Platform features 2.12. The BF Token might just be the answer 7.2. Technical roadmap 7.3. Token sale technology 3. BnkToTheFuture.com & the role of our token..17 3.1. What’s next for BnkToTheFuture.com? 8. The BF token sale.........45 3.2. What our investors want 8.1. Token sale structure 3.3. Regulatory challenge 8.2. Important dates 3.4. Technical challenge 8.3. Token distribution 3.5. Transparent market challenge 8.4. Our token sale goals & values 3.6. Problems we have solved so far - What makes us different? 3.7. The problems the BF Token aims to solve 4. The BF rewards & membership token (BFT).......23 4.1. Our membership and rewards token 4.2. Equity backed tokens 1.
Table of Content 9. Roadmap to implementation & competition.........51 WH IT EPA P ER 9.1. History 9.2. Future roadmap 9.3. Competitor (& partners) analysis 10. Teams & leadership.........57 10.1. Co-founders 10.2. Core team 10.3. Advisors 10.4. Key partnerships 11. Conclusion.........68 11.1. Mission & future plans 11.2. Real-time pricing 11.3. Uniﬁcation of top tier compliant crypto exchanges 11.4. Wider participation 11.5. More high-net worth crypto investors 11.6. Concluding thoughts APPENDIX A BFT functionality and user experience.........73 Disclaimer & risk warnings.........78 2.
WH I T EPA P ER —01. EXECUTIVE SUMMARY 3.
Executive Online Investment Summary Platform 1.1 OVERVIEW WH IT EPA P ER At Bnk To The Future, we started our mission in 2010 to build the largest and most reputable Online Investment Platform in order to co-invest with other professional investors in the future of ﬁnance and technology. Today we have the largest community of over 47, 500 global professional investors all investing online in FinTech, Bitcoin and Blockchain companies. 1.2 NOTABLE ACHIEVEMENTS TO DATE 01. Over US$250m interested in funding rounds listed on our Online Investment Platform. 02. Built a portfolio and provided our investors with access to some of the most valuable companies in the Bitcoin and Blockchain sector including BitFinex, Kraken, BitStamp, ShapeShift, BitPay and over 100 others. 4.
03. Co-invested in some of the very ﬁrst token sales including MaidSafe, Storj, Ethereum, Factom and many others. 04. Invested 7 years into building a suite of registrations, licenses, partners and acquisitions, including our registered securities business, BnkToTheFuture.com and our nominee company Bnk To The Future Capital SPC, a US broker dealer and the only alternative trading system we know of that is approved with FINRA and the SEC for the secondary trading of private equity. 05. Built our compliance-driven global platform with international ﬁnancial services and securities laws in mind integrated with over 20 traditional currencies and 35 crypto-currencies. 5.
Executive Online Investment Summary Platform 1.3 WH IT EPA P ER THE NEXT CHALLENGE AHEAD Our investors are demanding more and we have been working hard on the next phase of our company's growth. In 2018 we aim to launch our secondary market with a compliance-driven Blockchain-based trading platform for our primary market securities in FinTech, Bitcoin & Blockchain companies. We also aim to launch the This is why Bloomberg recently BF Token to help us overcome covered us as the NASDAQ for some key operational Bitcoin, Blockchain and FinTech challenges our industry is companies as can be viewed here: facing as we scale into 2018 https://bloom.bg/2zuDoyk and open up certain activities of our platform to a wider audience. 6.
—02. WH IT EPA P ER INDUSTRY OVERVIEW & HISTORY 7.
Industry Online Investment Overview Platform & History 2.1 WH IT EPA P ER IT STARTED IN 2010 In 2010, Bnk To The Future was one of the ﬁrst organizations to break through the barriers and challenges surrounding compliance-driven methods of investing in private equity online. Prior to starting this mission, almost all investing in private equity was done oﬄine by angel investors, friends, family, venture capitalists and later stage private equity houses. Several companies in the UK set about allowing investors to invest online in private equity the same year that Bitcoin was launched in 2009. Bnk To The Future was one of those companies. This was considered a very strange business by regulators at the time, so in order to help build this new sector, several companies participating in the space joined forces and formed the UK CrowdFunding Association (UKCFA). Our CEO, Simon Dixon, was both a founding member and Director of the UKCFA. After several years a few of the member companies managed to launch under the supervision of the first regulator to issue a license for this industry — the UK Financial Conduct Authority (FCA). These registrations occurred either through full authorisation or via an appointed representative, we were one of the first few added to the FCA register. 8.
Industry Online Investment Overview Platform & History 2.2 WH IT EPA P ER OUR HISTORY WITH BITCOIN In 2011, at the same time that He also wrote what may have Bitcoin was growing in popularity been the ﬁrst published book to and the ﬁrst Altcoins were being include the subject of Bitcoin, launched, our CEO, Simon Dixon, ‘Bank To The Future: Protect Your spoke at the world's very ﬁrst Future Before Governments Go Bitcoin conference in Europe. Bust’. Simon Dixon later became one of the ﬁrst founding members and Directors of the UK Digital Currency Association (UKDCA). 2.3 THE INVESTMENT PLATFORM The term ‘Equity CrowdFunding’ was ﬁrst popularised in the UK and UK regulators were the ﬁrst to permit investing in private equity online. The problem was that it was only open to UK companies and UK investors. 9.
Industry Online Investment Overview Platform & History WH IT EPA P ER At BnkToTheFuture.com we were one of the minority believers in Bitcoin during the early days of the cryptocurrency sector, and were accustomed to the way that Bitcoin was designed — global transactions unrestricted by government borders. We wanted to use our platform to drive investment into a sector that was receiving very little investment from traditional players. Because the market was still small and niche at the time, we had to think beyond the UK borders to get the liquidity needed to grow the cryptocurrency sector. 2.4 TOKENS MOVED FASTER THAN REGULATORS Equity CrowdFunding grew in the UK and later caught the attention of the United States as they set about lifting their previous restrictions in order to permit investing through the JOBS Act. This Act attempted to allow the general public to invest small sums of money into private equity and securities online rather than those options being permitted for qualifying investors only. The JOBS Act took several years to come into existence, whilst in the meantime the very ﬁrst token sales started to appear, whereby crypto project owners were raising funds by creating Altcoins and selling them to any person who wanted to purchase them using Bitcoin. 10.
Industry Online Investment Overview Platform & History 2.5 WH IT EPA P ER WE NEEDED TO BE GLOBAL As we witnessed and analyzed the impacts of the cryptocurrency market at the global scale, we decided that it was time to leave the UK, deregister with the FCA, and expand our corporate structure to foster a global company vision. At the time, investing in Bitcoin companies was risky since the underlying community was still very small. The mission could only be successful if we could engage the entire crypto community around the world rather than one jurisdiction. We decided that we wanted to support this niche sector exclusively, so we set about registering with the Cayman Island Monetary Authority (CIMA) and spared no cost or time setting up a multi-jurisdictional global online securities business. Later, the JOBS Act came into force and online investing continuously expanded as more countries adjusted to the new directive in order to allow for online investing to boom. 2.6 THEN CAME ETHEREUM As the online investing sector was booming and Bitcoin value and adoption was growing, Ethereum set about completing a token sale. We were one of the ﬁrst purchasers of the Ethereum token during the Initial Coin Offering (ICO). 11.
Industry Online Investment Overview Platform & History Several years later the ERC20 standard made it easy for anybody to WH IT EPA P ER create a token and the number one application for Ethereum smart contracts became token sales and ICO’s. Banks, governments and corporations all over the world started promoting Blockchain technology and despite every institution best efforts, Bitcoin became the highest performing digital currency for seven consecutive years out of the last eight with only one low performing year. 2.7 THEN THE VC’S STARTED TO PLAY We were investing in the equity We saw four booms over the of many companies that at the years taking us into both a time were too strange even for proﬁtable growth company and venture capitalists. In 2013, an asset holding company, with venture capital activity in our beneﬁcial interests in most of sector started to take off and the companies that listed on we were able to co-invest in our online investment platform. many of the largest Bitcoin companies with venture capital Those four investment booms grade due diligence and open were Bitcoin, Equity in them up for co-investment on Blockchain companies, Altcoins BnkToThefuture.com. and Tokens (ICO’s). 12.
Industry Online Investment Overview Platform & History 2.8 WH IT EPA P ER THE 2017 BOOM Forward to 2017, within our niche sector of Bitcoin and Blockchain, investing in token sales started to overtake venture capital investing and regulators all around the world started to define their stance on the fast growing industry. As token sales started to become more and more liquid, we started to see a major appetite from our investors to make their investments more liquid. As a result, we began exploring ways in which we might facilitate our investors to sell their private equity investments to one another with compliance in mind. As we evaluated automating this process we realised that the regulatory challenges were huge. We also witnessed the ability for people to tokenize assets like venture capital and private equity, with many ignoring regulations all together as was the case with the infamous DAO tokens. 2.9 INNOVATION & REGULATIONS We have been continuously innovating and adapting our platform to match the challenges and updates of regulatory requirements, market needs and technological advancements in each jurisdiction as they unfold. 13.
Industry Online Investment Overview Platform & History WH IT EPA P ER We started the process of acquiring stakes in companies that had relevant securities licenses, including a FINRA registered broker dealer and the only Alternative Trading System (ATS) we knew about that was registered with the SEC, and had permission to provide a secondary market for private equity so we could partner with them in our growth. We also set about partnering with the only clearing ﬁrm we knew of that was authorised to clear Blockchain securities and crypto exchanges (that we were investors in) to help with liquidity. 2.10 REGULATORY CLARITY Our original vision of an alternative ﬁnancial system that operates independent of banks has become a reality and now we feel the regulatory environment is ready for us to launch our own token. We also feel the time is right to launch a compliance-driven secondary market for other securities tokens. We decided to launch the BF Token before we launch our secondary market in 2018 to help us solve some of the major challenges we are facing as our industry scales and grows beyond anything our team can handle. We are now at the stage where the number of applications for investment on our platform is scaling way too fast for us to keep up with and we need the support of the community to scale BnkToTheFuture.com to reach its full potential in line with the industries growth. 14.
Industry Online Investment Overview Platform & History WH IT EPA P ER Today the difference between utility tokens and securities is becoming clearer each day and the legal frameworks for investing online in products we support on our platform (including SAFT’s (Simple Agreement on Future Tokens), SAFE’s (Simple Agreement on Future Equity), Convertible Notes, Tokens, Funds and Equity) is validated the more regulators we engage with all over the world. 2.11 WE STILL REMAIN TRUE TO OUR ORIGINS We still remember what it was like when nobody cared about WE LOOK BACK AT THE Bitcoin, when no venture INDUSTRY TODAY AND capitalist would look at a Bitcoin ARE PROUD AT HOW company, when the ﬁrst venture capitalists started investing in MUCH IT HAS GROWN. WE Blockchain companies, when no HAVE A FULL TIME TEAM regulator would look at such a DEDICATED TO business as ours, when the ﬁrst UNDERSTANDING THIS Altcoins were launched, when the SECTOR AND STILL crypto markets started THINGS PASS US BY. generating volume, when banks and corporations started trying to popularise Blockchain over Bitcoin, when ICO’s ﬁrst started. 15.
Industry Online Investment Overview Platform & History 2.12 WH IT EPA P ER THE BF TOKEN MIGHT JUST BE THE ANSWER We see our role as it has always been — supporting the growth of companies and technologies involved in the future of ﬁnance. In achieving this, we must stay on top of compliance and innovation while maintaining as much of what being a Bitcoiner meant all those years back. The crypto sector has treated us very well and we aim to continue supporting the space as we believe it may grow to a trillion dollar market and beyond. We feel the market is now ready for the BF Token to solve some of the scaling bottlenecks we are facing and can allow us to open up to a wider audience. We aim to do this through a membership and rewards token outlined in detail in this whitepaper. We know that traditional banks and ﬁnancial institutions now want to take over our sector as it grows large enough for them to take notice, but we aim to support companies that make them less relevant, not more relevant. To do this, we are proud to introduce to you the BF Token. 16.
— 03. WH IT EPA P ER BNKTOTHEFUTURE.COM & THE ROLE OF OUR MEMBERSHIP TOKEN 17.
the role of our membership token BnkToTheFuture.com Online Investment Platform & 3.1 WH IT EPA P ER WHAT’S NEXT FOR BNKTOTHEFUTURE.COM? Having watched the growth of We know ﬁrsthand how ICO’s and Token Sales, our important it is to get the investors are demanding similar regulations, technicals and liquidity, secondary market market conditions correct, trading and live pricing for equity all while preventing as investments, but with the same much market manipulation reputable deals and investor as possible. protections that they have been used to when investing through We believe that we are now BnkToTheFuture.com. They also ready to combine the power want more frequent updates on of Blockchain technology the companies they have with the years of best invested in. practices in the equity markets to launch We have been working on this equity-backed tokens goal for half a decade now but utilizing smart contracts to the regulatory, technical and trade on a secondary market hurdles have been market in a regulated extremely challenging. environment. 18.
the role of our membership token BnkToTheFuture.com Online Investment Platform & 3.2 WH IT EPA P ER WHAT OUR INVESTORS WANT Our investors on the BnkToTheFuture.com platform want us to offer them a solution that is very simple to understand and utilize, but this presents us with three major challenges that need to be solved: 01. Real time pricing of their equity investments. 02. Liquidity to exit their private equity investments when they want. 03. Transparency for trading their private equity and access to updated information. Sounds like a reasonable request, right? But to achieve this it requires breaking new ground simultaneously in three areas — regulatory, technical and market. 3.3 REGULATORY CHALLENGE We have been working through regulatory challenges for over 7 years now and have built what we believe to be the most convenient and compliance-driven on-boarding process for qualifying investors, with an aggressive roadmap of improvements to make this even better. _09. 19.
Online the role of our membership token BnkToTheFuture.com Investment Platform & 3.4 WH IT EPA P ER TECHNICAL CHALLENGE Blockchain enables new Often the technical developments technical possibilities for us fail to comply with existing laws with regards to transparency and they always proceed of information, fast regulatory changes meaning new settlement, and new technology often has to be liquidity, but in the shoehorned into outdated investment sector it needs to securities laws. We believe we operate within existing have struck the right balance securities law to remain legal between technical innovation and and compliant. compliance. 3.5 TRANSPARENT MARKET CHALLENGE We believe we have overcome the regulatory and technical hurdles, but our next challenge is the hardest one - how to create the most transparent market possible. To achieve this goal we feel that the introduction of a new membership and rewards token can be used to create market incentives that should lead to a more transparent market for our industry. _10. 20.
Online the role of our membership token BnkToTheFuture.com Investment Platform & 3.6 WH IT EPA P ER PROBLEMS WE HAVE SOLVED SO FAR On the regulatory side, we are a compliance-driven company and we are proud of our multi-jurisdictional structure that allows for the buying and selling of private equity for qualifying investors around the globe. Our legal structure allows private companies to deal with only one institutional investor while beneﬁting from the liquidity of many investors in over 25 traditional currencies and 35 cryptocurrencies while we reduce the regulatory and compliance burden for the company and give investors additional protections through our unique syndicate structure. On the technical side, we have built a proven model that has facilitated investments through over 47, 500 qualifying investors with over 100 of the top FinTech, Bitcoin and Blockchain companies in the primary markets. Through our platform we have co-invested in funding rounds with top tier Venture Capital ﬁrms. We believe we now have the technology, partners and regulatory structure to launch our secondary market for tokenizing and trading private equity using the Blockchain, in a compliance-driven way. 21.
the role of our membership token BnkToTheFuture.com Online Investment Platform & 3.7 WH IT EPA P ER THE PROBLEMS THE BF TOKEN AIMS TO SOLVE On the transparent market side we have identified three major challenges to overcome: 01. Sourcing & researching good FinTech, Bitcoin & Blockchain deals is currently a hugely centralised and ineﬃcient process. 02. Performing due diligence on FinTech, Bitcoin & Blockchain companies before listing them is heavily dependent on a few skilled people. 03. Investor relations is expensive and very time consuming for our listed companies and yet not frequent enough to satisfy our investors appetite for information. In the public market these problems have traditionally been tackled through tighter rules, regulations and internal standards that create a more transparent market but lead to slow, expensive and time consuming legal and audit processes that still result in billions of dollars in market abuse and ﬁnes. Public companies hire dedicated personnel to deal with their investor relations, a luxury that startups don’t have. We believe we can chip away at these problems one step at a time by introducing BFT, the BF Token that powers the next phase of growth for BnkToTheFuture.com. Through incentivising certain behaviour through a membership and rewards token we feel we can break some new grounds that make for a more transparent marketplace. To be clear the BnkToTheFuture.com platform is aiming to allow for the trading of equity-backed tokens but BFT itself is not an equity-backed token. BFT is our membership and rewards token that will be used by members as described in this whitepaper. 22.
Online Investment Platform —04. WH IT EPA P ER THE BF REWARDS & MEMBERSHIP TOKEN (BFT) 23.
Membership Token (BFT) IThe Online BFRewards Investment & Platform 4.1 WH IT EPA P ER OUR MEMBERSHIP AND REWARDS TOKEN The goal of the BF Token is to use a community of incentivized token holders to help us create a fairer, more transparent and eﬃcient marketplace for Fintech, Bitcoin and Blockchain companies on BnkToTheFuture.com, who are rewarded by the value of their participation whilst achieving the goal of creating a more transparent market. The BF token acts as a membership and rewards token that unlocks certain parts of our platform and gives VIP access to token holders but without access to the investment part of our platform and having to meet the requirements of a qualifying professional investor. WE AIM TO CHIP AWAY AT OUR THREE IDENTIFIED PROBLEMS ONE-BY-ONE BY ALLOWING OUR INCENTIVISED TOKEN HOLDER COMMUNITY TO STAKE AND BID ON BOUNTY PROGRAMS THAT DECENTRALIZE PARTS OF THE THREE PRIMARY PROBLEMS WE IDENTIFIED ABOVE. THE END RESULT IS TO USE THE BF TOKEN TO CREATE A TRANSPARENT TRADING MARKET FOR FINTECH, BITCOIN & BLOCKCHAIN EQUITY TOKENS. 24.
Membership Token (BFT) IThe Online BFRewards Investment & Platform LET’S EXPLORE SOME SOLUTIONS W H I T E PA P E R TO THE THREE PROBLEMS STEP-BY-STEP A L E SS C E N T RA L I S E D P R O C E SS F O R L I ST I N G R E Q U I R E M E N TS . Our current policy for listing on BnkToTheFuture.com involves a highly centralized approach performed by our team analyzing hundreds of online applications and rejecting roughly 95% of them based upon our ﬁltration process. We believe that a more decentralized approach can be achieved by involving the whole community and incentivizing them to identify, select and conduct research on the best deals in the industry. The BF Token can be used to stake on deals that our community would like to see listed on our platform while rewarding those that ﬁnd and perform research on new deals. 25.
Membership Token (BFT) IThe Online BFRewards Investment & Platform WH IT EPA P ER A CO M M U N I T Y E N H A N C E D D U E D I L I G E N C E P R O C E SS . Before listing on our online investment platform our BF team performs a due diligence process with the companies which involves the creation and veriﬁcation of documentation, materials and videos that are fair, clear and not misleading to investors. While our BF team and regulated partners conduct additional checks on pitch information, we are unable to verify real time content on pitch forums etc. without signiﬁcantly slowing down the process which does not work in a live secondary market environment. We aim to introduce a hybrid model where our securities businesses and registered broker/dealer partners undertake the compliant part of verifying material data, certiﬁcation and other processes such as research, analysis of deals and fact checking, while the community is rewarded for performing additional research, analysis and due diligence. In order to participate in the marketplace companies and token holders will be required to use the BF Token. 26.
Membership Token (BFT) IThe Online BFRewards Investment & Platform WH IT EPA P ER I N C E N T I V I S E D, FAST A N D R E A L T I M E I N V E STO R R E L AT I O N S W I T H M O R E T RA N S PA R E N CY O F I N F O R M AT I O N As listed private companies progress, the need for investor relations can become a big burden to an already stretched private company, yet investors want regular updates on company progress to make more informed decisions. By using the BF Token our listed companies can be rewarded for providing more frequent investor updates while our community of token holders are rewarded for sharing, commenting, posting press releases and discussions around publicly available information on our investor forums. Fake news or data can be punished, whilst good research and reliable sources of data can be rewarded. We believe this will keep more investors up-to-date with the latest information while freeing up companies to focus on their already existing public relations process and incentivising token holders when they take time out for investor updates. Community token members with a good reputation can be rewarded for hosting live video interviews with companies, whilst the company is rewarded for taking the time out for giving such interviews with the aim of improving the ﬂow of updates and information from the companies to our qualifying investors. 27.
role of our membership token BnkToTheFuture.com Online Investment Platform 4.2 EQUITY BACKED TOKENS & the WH IT EPA P ER At Bnk To The Future we hold equity in some of the most valuable companies in the Bitcoin and Blockchain sector. Each investment is held within its own investment vehicle through our sister company. By taking each of these special investment companies and making each share exchangeable for a token backed by shares, our investors are able to hold their own investments on a whitelisted smart contract that can be exchanged with other whitelisted qualifying investors allowing them to trade with each other with securities laws in mind. To be clear these equity backed tokens are not connected to the BF Token. While the BF Token was designed to bring transparency to our markets and be available for all to participate, qualifying investors will be able to beneﬁt from tokenizing their equity into equity-backed tokens that give them the ability to hold their securities within their control and trade them with other whitelisted members in a compliance-driven way. We feel that using Blockchain technology and smart contracts in this way allows us to solve the most common requests from our investors whilst simultaneously allowing for a wider audience to participate in the utility of our BF Token. 28.
—05. WH IT EPA P ER THE REGULATORY LANDSCAPE The buying, selling and trading of securities is a highly regulated ﬁeld. From day one we have been working with legal counsel in multiple jurisdictions to ensure as best we can that we are in compliance with major international securities laws and that we secure the required registrations with regulators. While every effort has been taken to ensure compliance with international securities law, there is still regulatory risk that our planned roadmap may not go as planned, experience signiﬁcant setbacks and delays for regulatory reasons or even be prohibited altogether due to regulatory hurdles and changes in international securities laws. We have followed a regulatory compliance roadmap to make every effort to ensure we are in compliance with some of the major international securities laws. T H I S R OA D M A P C A N B E B R O K E N D OW N I N TO S E V E RA L P H AS E S 29.
The Online Regulatory Investment landscape Platform 5.1 WH IT EPA P ER PHASE 1 We started our journey by engaging legal counsel to comply with UK Securities law and allow UK high net worth and sophisticated investors to purchase private equity in UK companies. This involved allowing sophisticated investors that are suﬃciently qualiﬁed to understand the risks of investing in private equity to use our online investment platform. We also introduced our suitability quiz that tests investors qualifying status on their understanding of investing in private equity to ensure they understand that investing in startups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of diversiﬁed portfolio. BnkToTheFuture.com exclusively targets investors who are suﬃciently sophisticated to understand these risks and make their own investment decisions. 5.2 PHASE 2 We then set out to build our platform in a compliance-driven way that may meet the required compliance status with more international securities laws, excluding investors residing in the United States. This involved obtaining additional registrations with the Cayman Island Monetary Authority, bringing in additional legal counsel to develop our compliance processes further and developing unique user on-boarding processes and procedures for multiple jurisdictions. 30.
The Online Regulatory Investment landscape Platform 5.3 WH IT EPA P ER PHASE 3 We engaged some of the top US legal counsel to help us develop a unique process in compliance with SEC / FINRA rules and regulations. This also involved several acquisitions and partnerships whilst developing a unique structure to separate US clients from non-US clients. 5.4 PHASE 4 We engaged further legal counsel to develop a process for the compliant purchase of tokens through our online platform through a Simple Agreement for Future Tokens (SAFT) so we can host other clients completing token sales through utility or security tokens. 5.5 PHASE 5 In order to facilitate the compliance-driven trading of privately held securities we partnered with, invested in and sought approval for an Alternative Trading System (ATS) registered with the SEC. 31.
The Online Regulatory Investment landscape Platform 5.6 WH IT EPA P ER OUR REGULATORY ROADMAP We believe that our carefully We have overcome some planned strategy and major regulatory challenges, investment in legal counsel but our complete plan and and compliance with multiple execution may still be subject jurisdictions, as well as our suit to regulatory approval and of companies registered with therefore involves regulatory different regulatory bodies risks. While the BF Token is a gives us what we need in membership and rewards order to facilitate the buying, token, its utility is dependent selling and trading of privately upon the successful execution held securities and tokens. We of our planned roadmap that also have relationships with involves regulatory risks that the most valuable companies may slow down or prohibit in the sector in many cases the execution of our plans. being one of their ﬁrst investors. 32.
—06. WH IT EPA P ER TOKEN FUNCTION & SUPPLY The BnkToTheFuture.com platform will include multiple tiered membership access which shall be available to different member/user types. Staking the BF token will ‘unlock’ new functions for these different member/user types, enabling the tokens to serve as a stake and perform special actions on the platform, where they could lose their stake if they break established rules. First and foremost, members will stake their tokens to constitute membership. There are a variety of roles that members play on the platform: each requires a certain staking balance. This balance can be lost over time if the member undertakes certain actions on the platform. Members can play multiple simultaneous roles, but they would need to stake enough tokens to satisfy requirements for all of them. In almost all cases, violating rules can result in some stake being burned. 33.
Supply Token Online Function Investment & Platform 6.1 WH IT EPA P ER BNKTOTHEFUTURE.COM MEMBER ROLES Some token functionality will be available for all members (i.e. anyone holding BFT), while other functions will be limited to qualifying investors on the platform as usual. The roles that token holders can play are explained below. These roles will be referred to by the titles in parenthesis. All roles are eligible to earn BF tokens, which are distributed via a set of reward pools, discussed in more detail below. 6.2 ALL TOKEN HOLDERS 6.2.1 Ability to source deals (Community Sourcing): BF Token holders can post information about prospective companies (“projects”) that they believe would be a good match for the BF platform. These projects then compete for votes from the wider BF community. Projects receiving the most votes during a predetermined voting period will be automatically selected for further due diligence by the BF community. If a project is chosen, the member who posted the project, and the members who voted for it, will receive rewards. At this point, projects may either go through the Community Assessment review (described below) or directly to the BF due diligence team at BF’s discretion. In addition, qualifying investors can signal interest by staking tokens that could give him/her priority in participating in the sale if the project gets listed. _09. 34.
Supply Token Online Function Investment & Platform 6.2.2 Ability to help evaluate potential BF candidates WH IT EPA P ER (Community Assessment): community members will be able to assist BF in identifying and evaluating potential companies to list on the platform by providing answers to a set of predeﬁned questions. Members who provide high-quality and valuable insights can earn rewards from a rewards pool if BF team approves such updates at BF discretion. 6.2.3 Ability to provide third-party research and service for BF Platform listings (Community Research): community members can bid to serve as third-party reviewers who write investor reports on offerings listed on the BF platform. Members could also be eligible to produce content for companies or provide due diligence, available exclusively on the BF Platform. 6.2.4 Ability to provide company updates (Community Information): members can also post company updates on BF platform listings in the form of investor communications, interviews and news article links, video reviews, company marketing materials, etc. Companies themselves can post these updates too, earning token rewards if BF team approves such updates at BF discretion. For more detailed information about how these would work on the platform, including measures against spam mitigation and additional considerations, please see Appendix A, which proposed a set of parameters to deal with challenges such schemes might introduce. _10. 35.
Supply Token Online Function Investment & Platform 6.3 WH IT EPA P ER QUALIFYING INVESTOR TOKEN HOLDERS The BF Token may have uses for existing members on the BF Platform and BF could choose to introduce these functions at some point in the future. Some possibilities of certain functionality may include: 01. A membership that allows people to trade with little to no fees, so as to encourage liquidity; 02. A membership that allows priority access to oversubscribed deals; 03. Access to bonuses for early participation in deals. These are not yet approved or finalized and will not be operational when the BF token is issued, but BF is actively exploring options and models. 36.
Supply Token Online Function Investment & Platform 6.4 WH IT EPA P ER WIDER PARTICIPATION The overall goal for the BF In this sense the BF Token is Token is to build a community rewarded for those that engage of incentivized token holders to in high quality work performed help us create a fairer, more on the platform which shall be transparent and eﬃcient subject to the approval and marketplace for Fintech, Bitcoin acceptance by the BF team at and Blockchain companies on BF discretion. Larger token BnkToTheFuture.com where holders can also use their BF token holders are rewarded by Token as a ‘stake’ to prove that the value of their participation they meet the net worth in achieving the goal of creating criteria of being a qualifying a more transparent market for member of the BF Platform and the sector. access full token rights offered to qualiﬁed investors only. Anybody can earn BFT by unlocking membership access Token holders may aim to on the BnkToTheFuture.com accumulate tokens through platform and participating in the their work on the platform with research, investor relations and the goal of building tokens that due diligence reviews. Although allow them to qualify as a not all token holders will have qualiﬁed investor should the access to investing and trading value of BF tokens reach a on our online investment certain threshold acting as a platform, they do gain exposure proof of resources for our to the ownership beneﬁts of the qualifying investor veriﬁcation. BF tokens. 37.
Supply Token Online Function Investment & Platform 6.5 WH IT EPA P ER COMMUNITY INSIGHTS Token holders can also have access to the insights generated on the platform. Even people who aren’t qualifying investors can stake tokens to read the results of the community assessment, this will help them seek out alternative ways to purchase tokens outside of the BF platform, or make their own determination even if the sale is not listed on the BF platform. At minimum, the community review process is likely to sort the market into broad categories of project quality. 6.6 STAKING PROCESS AND AMOUNTS When users opt to stake their tokens, they are locked for a period of time and only functional on the platform. Staking amounts will be denominated by Bnk To The Future, though Bnk To The Future will be periodically adjusting them based on market prices to ensure membership is not out of reach for new members. 38.
Supply Token Online Function Investment & Platform 6.7 WH IT EPA P ER REWARD POOLS When users perform actions on the platform, they can be rewarded with tokens from several reward pools, which are dedicated speciﬁcally to different members, which shall be subject to the approval and acceptance by the BF team at BF discretion. The distribution will most likely be done by Bnk To The Future, though the method of distribution and the method of calculation will be transparent and auditable on the Blockchain. Each pool has its own method of distribution, all based on the quality of contribution performed by the member. These are discussed in greater detail in the Appendix A. The pools will be seeded by releasing tokens held in a reward reserve pool and can be ‘topped up’ by Bnk To The Future itself, using either its own token reserve or purchased tokens. Since the community is helping offset costs, Bnk To The Future can divert some BF tokens toward the reward pools to further incentivize contribution. It could also add to the reward pools if BF felt that the reward pools balance was insuﬃcient. At no time can Bnk To The Future take tokens from the reward pool for itself. Please see the Appendix A for a discussion on the rewards pool. 39.
Supply Token Online Function Investment & Platform 6.8 WH IT EPA P ER ADDITIONAL TOKEN ISSUANCE At contract creation, Bnk To The Future will mint all BFT that will ever exist. However, a portion of those tokens will be withheld for issuance approximately over ten years, though the timeline may vary based on several conditions. Issued tokens will seed the reward pools that ultimately reward community members for their contributions. BF’S INTENTION IS TO RELEASE THESE TOKENS PERIODICALLY TO COINCIDE WITH PLATFORM GROWTH. THE INITIAL PLAN IS TO RELEASE A NUMBER OF TOKENS EQUAL TO A PERCENTAGE OF THE VALUE TRANSACTED ON THE PLATFORM. FOR EXAMPLE, BNK TO THE FUTURE MAY SAY IT WILL RELEASE 2% OF THE USD VALUE OF INVESTMENTS CONDUCTED OVER THE PREVIOUS MONTH. IF, FOR EXAMPLE,US$20 MILLION WAS ISSUED AND SOLD, US $100,000 WORTH OF BF TOKENS WOULD BE RELEASED INTO THE REWARD POOLS. 40.
—07. WH IT EPA P ER TECHNICAL OVERVIEW & ROADMAP Our journey and the birth of Bnk To The Future began in 2010, we started developing the BnkToTheFuture.com platform and have been in an ongoing development cycle ever since. 41.
& roadmap Technical Online Investment overviewPlatform 7.1 WH IT EPA P ER PLATFORM FEATURES The existing platform includes the following components: 1. Investor onboarding Users can register to see if they qualify to invest and qualifying investors can enjoy an optimized, online and compliance-driven onboarding process tailored to multiple jurisdiction. 2. Investor Profiles Investor proﬁles have customisable privacy settings where investors can choose to share their portfolio with other qualifying members that wish to follow them or keep their investments private from other members. 3. Deal Listings Investors can browse our deal listings for both existing and previous investment pitches and ﬁlter by investment preference as well as the ability to explore markets that will be trading in the future on our platform. 4. Application manager Companies seeking funding can apply through our simple online application manager when applying to list a pitch on our platform. 5. Due Diligence Centre Companies can complete all due diligence requirements online, they can upload all documentation, company information and disclosures for legal review, which is integrated with our legal and broker-dealer partners for a better user experience. 6. Share Certificates & Documentation Investors can login at any time to download copies of their share certiﬁcates, term sheets and other documentation. _09. 42.
& roadmap Technical Online Investment overviewPlatform 7. Private Investor Relations Portal WH IT EPA P ER Each deal comes with a private forum where all investors can publish investor updates and receive feedback and Q&A from their investors. Once they post an update it notiﬁes all investors simultaneously and investors have the ability to comment and interact directly with the company they invested with. 8. Company Pages Companies have their own dedicated pages that outline all important information for investors. In the upcoming future releases investors will be able to trade equity backed tokens from these pages and make investments on behalf of a company should they qualify to invest. 9. Primary Offerings Companies selling new shares or tokens via our platform gain access to a simple and easy to use pitch creation wizard to make the process of listing on our platform ﬂuent and intuitive. This comes together to create a pitch listing. 10. Fiat & Crypto Payments Each pitch can choose to accept payments from 25 ﬁat currencies and 35 cryptocurrencies. We also support card payments and bank transfers through our compliant escrow agent. Payments made in cryptocurrencies other than Bitcoin or Ether, such as Altcoins are automatically converted to Bitcoin to prevent excessive currency risks from multiple tokens. Once we have completed our token sale we plan to execute the following technical road map. _09. 43.
& roadmap Technical Online Investment overviewPlatform 7.2 WH IT EPA P ER TECHNICAL ROADMAP Q1 2018 — Deliver tokens post token sale and initial integration with BF Token completed. — Ability to submit deal ﬂow to our team for review in exchange for BF Tokens. — Ability to contribute to investor relations in exchange for BF Tokens. Q2 2018 — Launch portal for voting on new deals to be considered for listing on BnkToTheFuture.com. — Beta test wallet that allows whitelisted users to hold tokenized securities compliantly on their wallets and trade peer to peer as well as BF Token wallet. — Develop order book for tokenized securities that clears through our clearinghouse partner for additional liquidity. Q3 2018 — Launch full tokenized securities marketplace with our ﬁrst two companies on our secondary market. Q4 2018 — Target to launch 10 tokenized securities markets. — R&D for BnkToTheFuture.com index for Bitcoin and Blockchain companies listed on our platform. 7.3 TOKEN SALE TECHNOLOGY Our token sale will be delivered via an Ethereum based ERC-20 smart contract. 44.
—08. WH IT EPA P ER THE BF TOKEN SALE 45.
Online Investment Platform The BF Token Sale 8.1 WH IT EPA P ER TOKEN SALE STRUCTURE Bnk To The Future BFT SP is a Segregated Portfolio of Bnk To The Future Capital SPC and has been appointed to issue the tokens from the Cayman Islands. Our token sale is broken into two phases: Phase 1 is for investors that wish to invest in our investment contract that gives them an entitlement to BFT in the future Phase 2 is for the community members that wish to purchase and use the token’s utility and become members of the BFT community Qualifying investors on BnkToTheFuture.com are the only ones who are able to invest in the BFT Investment Contract during the pre-sale phase and must meet the criteria to be eligible to invest through BnkToTheFuture.com. We have engaged a US-broker dealer - Keystone Capital Corporation who is registered with FINRA/SEC to act as our placement agent for US investors and have appointed Bnk To The Future to facilitate the investment for non-US investors. The public sale is where any non-US user that wishes to use the token can purchase between US$1,000 and US$10,000 worth of the token at a set ETH exchange rate that will be set just prior to the public token sale going live. They will need to have a BnkToTheFuture.com account and get their ETH Address whitelisted. The public sale will be for a minimum of 300 to a maximum of 3,000 purchasers only who wish to purchase approximately US$1,000 to US$10,000 worth of BF Tokens. We are limiting the purchase as we want to do what we reasonably can to attract purchasers that are not purchasing the tokens with the misconception of thinking it’s an investment, or that they are not using the token as an ‘investment’ and instead they intend to use the token to contribute to our BFT community. All investors and purchasers pay the same price. There is no tiered pricing and no discounts or bonuses that favour any single investor or purchaser. 46.
Online The BFInvestment Token Sale Platform 8.2 WH IT EPA P ER IMPORTANT DATES Pre sale started 01. Tuesday, 5th of December 2017. Pre sale end – 02. Thursday, 1st of February 2018 latest. Public sale 03. whitelisting starts – Tuesday, 6th of February 2018, 10:00pm UTC Public sale whitelisting 04. ends – Tuesday, 13th of February 2018, 10:00pm UTC Public purchase 05. date for whitelisted purchasers only — Friday, 16th of February 2018, 10:00pm UTC Tokens issued after 06. completing KYC, becoming whitelisted and sending ETH successfully. 47.
The Online BFInvestment Token Sale Platform 8.3 WH IT EPA P ER TOKEN DISTRIBUTION 1,000,000,000 BFT Capped Token Supply 1 BFT = US$0.10 Token Sake price with an implied valuation of US$100,000,000 for all tokens using the token sale launch price. 7% 10% Token Sale (33%) 33% 2 Year lock-in Company Tokens (30%) Rewards Pool (20%) 20% 1 Year lock-in Shareholders, Advisors, Founders (10%) Token Sale costs/expenses (7%) 30% 48.
The BF Token Sale 33% (330,000,000 BFT) (US$33m) sold in token sale. WH IT EPA P ER — 300,000,000 BFT (US$30m) pre-sale cap. No bonus or discount. No lock-in period. — 30,000,000 BFT (US$3m) public sale cap. Minimum purchase US$1,000 and maximum purchase US$10,000. No lock-in. No bonus or discount. 30% (300,000,000) Bnk To The Future Capital SPC Company Tokens with a 2 year lock-in. 20% (200,000,000) Rewards Pool. Timed ﬁxed release. 10% (100,000,000) Shareholders, Advisors, Founders. 1 year lock-in for founders, shareholders and advisors. 7% (70,000,000) Token Sale costs / expenses. No lock-in. 49.
The Online BFInvestment Token Sale Platform 8.4 WH IT EPA P ER OUR TOKEN SALE GOALS & VALUES - WHAT MAKES US DIFFERENT? 01. We believe we have enough demand to make a fair offering on the token sale price for both the pre sale and public sale with no back door deals, bonuses or discounts that could dilute value. Everybody gets the same price. 02. We are already oversubscribed through whitelisted commitments within our network, our goal is to achieve large leftover demand for our token. 03. We have thought greatly about aligning the interests of our clients, investors, token holders & company. 04. We are already well capitalised and will be focusing on the value of our tokens with a 2 year lock in agreement for our company tokens. We are not doing this as a substitute for raising ﬁnance. 05. We have learned a lot about what makes a good token sale and market, we have aimed to setup a compliance-driven legal structure (structured as a Reg. D pre sale offering). 06. We have been here since 2010, launched the platform to go live oﬃcially in 2015 and we are committed to one clear mission with no plans to jump ship to the next money grab opportunity. _09. 50.
—09. WH IT EPA P ER ROADMAP TO IMPLEMENTATION & COMPETITION We have broken our technical roadmap into three phases that may change as our priorities change and as we learn more. The goal is to implement our plan as follows: Phase I - Primary Markets (Live) Phase II - BF Token Integration (Beta live and full functionality In development) Phase III - Secondary Markets (Pending regulatory approval & testing) 51.
& competition Roadmap Online Investment to implementation Platform 9.1 WH IT EPA P ER HISTORY 2010 - Bnk To The Future originally incorporated in UK under various names until we registered the oﬃcial chosen name - Bnk To The Future (and platform name BnkToTheFuture.com) in January 2012, as one of the ﬁrst Online Investment Platforms for private equity in the world. 2011 - Simon Dixon, Co-Founder & CEO of Bnk To The Future, speaks at the ﬁrst BitCoin conference in the world in Europe. 2012 - Simon Dixon's book - 'Bank To The Future' launched, which may have been the ﬁrst published book to include the topic of Bitcoin. 2013 - BF started investing in some of the ﬁrst Token Sales in the world including Mastercoin, Storj, MaidSafe and Ethereum. Banking, Escrow & Card processing relationships secured. 2014 - UK platform beta launched as an Appointed Representative on the Financial Conduct Authority (FCA) Register (FCA Number 608257). 2015 - Bnk To The Future leaves the UK and goes global. Registered with the Cayman Island Monetary Authority (CIMA) (License No. 1189274). Platform integrated with 25 ﬁat currencies and 35 cryptocurrencies. 2016 - Bnk To The Future Capital syndicates investments in many of the top Bitcoin and Blockchain companies, eventually reaching over US$250m invested in funding rounds listed on our Online Investment Platform with over 47, 500 qualifying FinTech investors. 2017 - Acquired stakes in SEC/FINRA registered Broker Dealer and Alternative Trading System (ATS) to allow for the compliant trading of secondary market private securities. Clearinghouse partner secured. Secondary market technology in development. BFT token sale white listing launched. 52.
& competition Roadmap Online Investment to implementation Platform 9.2 WH IT EPA P ER FUTURE ROADMAP Mid 2018 - Launch of our beta secondary market for securities tokens and support for crypto exchanges with compliant token sales and crypto securities trading process. 2019 - Continue strategic acquisitions and investments to support the adoption and growth of Bitcoin, Blockchain and FinTech globally. 2020 - Continue to support the step-by-step transition to a more decentralised ﬁnancial system as regulations continue to play ‘catch up’ with ﬁnancial innovation and decentralised ﬁnance that we believe will fully disrupt traditional ﬁnance. 53.
& competition Roadmap Online Investment to implementation Platform 9.3 WH IT EPA P ER COMPETITOR (& PARTNERS) ANALYSIS The following competitor analysis was conducted by us (in-house) and relates to a handful of comparative companies. This research was conducted in November 2017 and may change by the time this is published and read. It does not include all competitors for all aspects of the BnkToTheFuture.com offering. BnkToThe tZero Coin Funders Angels Future. List Club List com Equity Online Investment Platform (Primary Markets) Convertible Note Online Investment Platform (Primary Markets) SAFT Online Investment Platform (Primary Markets) SAFE Online Investment Platform (Primary Markets) Fund Online Investment Platform (Primary Markets) Registered with Non-US Regulator 54.
WH IT EPA P ER BnkToThe tZero Coin Funders Angels Future. List Club List com Compliance process for US Investors Compliance process for Non-US Investors Clearing House Partner Multi Currency Banking Escrow Partners SEC Alternative Trading System (ATS) For Private Placements Secondary Market SEC Alternative Trading System (ATS) For Public Companies Secondary Market FINRA Broker Dealer registered in 52 states FINRA Investment Advisor Blockchain Secondary Market Technology Fiat Payments Card Payments 55.
WH IT EPA P ER BnkToThe tZero Coin Funders Angels Future. List Club List com Multi Currency Interface Bitcoin Payments Ether Payments Altcoin Payments Online Due Diligence Portal Company Pages Investor Proﬁles Portfolio Overview Compliance-driven onboarding process tailored and unique to multiple jurisdiction Bitcoin / Blockchain Community Member Platform Token Integration Active Community & Investor Forums 56.
—10. WH IT EPA P ER TEAMS & LEADERSHIP 57.
Teams Online & Investment Leadership 10.1 Platform CO-FOUNDERS WH IT EPA P ER Simon Dixon, CEO & Co-founder Simon Dixon is the CEO & Co-founder of Bnk To The Future. An ex-investment banker turned Bitcoiner & author of the book 'Bank to the Future'. An active FinTech, Blockchain & Bitcoin angel investor with investments in Bitﬁnex, BitPay, Unocoin, Kraken, BitPesa, BitStamp and over 100 others. You will ﬁnd Simon regularly quoted & appearing in much of the major press & media including BBC, FT, CNBC, Reuters, Bloomberg, Wall Street Journal to mention a few. Bliss Dixon, COO & Co-founder Bliss Dixon is the COO and Co-founder of Bnk To The Future. Her last corporate job was working in the retail banking division. After years of experience in management and HR in a previous role prior to her last corporate job, Bliss became the company secretary for a startup operating an online investment banking training company. After gaining experience in a startup company and building virtual teams, Bliss co-founded Bnk To The Future focusing on the operations, HR, legal and risk side of the business, having spent the early part of her education studying law. Also an active investor alongside Simon in FinTech, Blockchain & Bitcoin angel investor with investments in Bitﬁnex, BitPay, Unocoin, Kraken, BitPesa, BitStamp and over 100 others. 58.
Teams & Leadership 10.2 CORE TEAM WH IT EPA P ER FA H M I DA B E G H A N AGA SAGAN OWS K A PAW E L S L OW I K Investor Relations Project Manager Lead Developer R A F A L K O S TA N S K I D A W I D R AT K A ANTONI PSTRAS Senior Developer Senior Developer Developer M AT E U S Z W I L C Z Y N S K I I R V I N H TAY M Y I N T Developer Pitch Coordinator 59.
Teams & Leadership CORE TEAM WH IT EPA P ER Location Function Size of Team Investor Relations & London 2 Admin Poland Core Development Team 8 Philippines Customer Service 2 Blockchain Development Vietnam 5 Team Hong Kong Finance Team 3 Broker Dealer & United States Alternative 5 Trading Sistem We have not listed all company teams here out of respect for the individuals who have opted for privacy and for platform security reasons. 60.
Teams & Leadership 10.3 ADVISORS WH IT EPA P ER 1. Vinny Lingham, Co-founder & CEO Civic, Identity/KYC Advisor Vinny Lingham was one of the investors, or "dragons", on South Africa's Dragons' Den reality TV series as a serial entrepreneur who previously founded the digital gift card platform, Gyft, which was acquired by First Data Corporation in 2014 and one of the first platforms to gain traction accepting Bitcoin as payment. He co-founded Civic when he realized that no-one had a universal solution to tackle identity fraud for consumers. Civic is a Blockchain identity verification solution used by BnkToTheFuture.com and many others. 2. Bill Barhyd, CEO Abra Bill founded Abra, which aims to be the WhatsApp of Money. A single app in 200 countries that enables a consumer to send money or Bitcoin from any phone number to any other phone number, anywhere, in the world. In Feb 2012 Bill gave the first ever TED talk on Bitcoin. Bitcoin was trading at about US$2 and 90% of the TED audience didn't know what it was. In 2000 Bill received the Technology Pioneer Award from the World Economic Forum for his work in online collaboration at WebSentric. 61.
Teams & Leadership WH IT EPA P ER 3. Diego Gutierrez Zaldivar, CEO & Co-founder RSK Sunny is the Co-founder and President at Unocoin, India's leading bitcoin company. Former international business development director at Buttercoin, the first bitcoin company to receive investment from a large Wall Street institution. Sunny runs one of the most active and well attended Bitcoin Meetups in the world in Toronto. 4. Michael Terpin, CEO Transform Group, CoinAgenda, BitAngels Founder of Transform Group and advisor to 50+ ICOs including the first ones ever launched as well as investment event CoinAgenda, the first Bitcoin angels network BitAngels and Market Wire, the first Internet-based company newswire which raised US$18 million from Sequoia Capital and other top-tier VC's. Market Wire sold to CCN/Matthews in April 2006, which in turn was sold to OMERS Capital Partners and then finally to NASDAQ in 2016 for US$200 million. 62.
Teams & Leadership WH IT EPA P ER 5. Sunny Ray, President Unocoin Sunny is the Co-founder and President at Unocoin, India's leading bitcoin company. Former international business development director at Buttercoin, the first bitcoin company to receive investment from a large Wall Street institution. Sunny runs one of the most active and well attended Bitcoin Meetups in the world in Toronto. 6. David Johnston, Chairman Factom Co-founder BitAngels David serves as Chairman Factom, Inc. the first blockchain technology company to solve the scalability, cost and speed problems with securing large enterprise data in a tamper proof and secure way. A skilled fund manager in the cryptocurrency space having invested in Bitcoin in 2012, David co-founded the BitAngels investment group in 2013 & played an early role in advocating for Ethereum, and other important decentralized infrastructure projects such as the Safe Network and Factom. 63.
Teams & Leadership WH IT EPA P ER 7. Li Huo, Director Huobi.pro Li Huo is the senior director for Huobi.pro, one of the largest Crypto-currency exchanges in Hong Kong. He is responsible for global partnership and management. Before joining Huobi.pro, Mr. Huo worked at one of the top tier investment banks. He is also a serial entrepreneur, who co-founded two Fintech companie. Mr. Huo has deep understanding in blockchain technology having been involved in one of Chinas leading Bitcoin exchange before the China change in regulatory policy. 8. Adam Vaziri, Blockchain Lawyer & Director, Diacle Blockchain lawyer and founder of Diacle which assists blockchain & fintech projects with compliance based in London and Hong Kong. He is a tireless blockchain entrepreneur and labelled a ‘bitcoin pioneer’ by Bitcoin Magazine. Director of UK Digital Currency Association, which lobbied and achieved the most favourable regulatory environment for cryptocurrency in the world. Adam ran first suite of blockchain hackathons across the world. 64.
Teams & Leadership WH IT EPA P ER 9. Jonathan Smith, Co-founder & CTO Civic, Identity/KYC Advisor Jonathan has more than 15 years of experience in banking and technology advisory. After a successful career in some of the most complex and security sensitive environments, Jonathan brings his talent for technology leadership, innovation and delivery to the world of digital identity. He co-founded Civic, a Blockchain identity verification solution used by BnkToTheFuture.com and many others. 10. Brian Lio, CEO at Smith + Crown Brian Lio is the founder and CEO of Smith + Crown. He is the Chief Research Advisor to the Digital Chamber of Commerce's Token Alliance and a Fellow at the Singapore Institute of Management. Previously, he founded the Bright Iron Group, a design strategy and user experience consultancy based in NYC and has held positions at Microsoft and DDB. Brian was co-lead advisor and researcher for the BF Token designs, functions and economics. 65.
Teams & Leadership WH IT EPA P ER 11. Matt Chwierut, Researcher Smith & Crown Matt Chwierut is the Research Director at Smith + Crown. He guides a research team in evaluating new blockchain protocols, tracking trends and new developments in the industry, and reviewing countless white papers. He is a Fellow at the Singapore Institute of Management, and he holds degrees from University of California Berkeley and Stanford University. Also a research affiliate for the Institute for the future and lead advisor and researcher for the BF Token designs, functions and economics. 12. Tony Simonovsky, CEO InsightCryp.to Tony is a serial entrepreneur with more than 14 years of experience in digital marketing. He started his first business at the age of 19, sold it 6 years later and started to live a life of a digital nomad. In 2017 Tony started specialising in token launches by developing marketing strategy and executing on it. His efforts helped these companies sell more than US$24,000,000 of tokens. 66.
Teams & Leadership WH IT EPA P ER 13. David Drake, Chairman LDJ Capital David Drake, through his family office LDJ Capital, has acted as GP & LP investor with his partners in fund-of-funds, realty funds, venture capital funds & hedge funds. Mr. Drake's investments currently have 50+ global directors that maintain relations with institutions & family offices with US$1.5 trillion in assets. 10.4 KEY PARTNERSHIPS 01. Smith + Crown (Token design & Economics) 02. Keystone Capital Corporation (Broker — Dealer) 67.
—11. WH IT EPA P ER CONCLUSION 68.
Conclusion Online Investment Platform 11.1 WH IT EPA P ER MISSION & FUTURE PLANS We believe that by launching the BF Token we are able to signiﬁcantly improve aspects of the BnkToTheFuture.com platform that enables us to launch a transparent trading market in a regulated environment for both the primary and secondary listing of the biggest and most valuable FinTech, Bitcoin and Blockchain companies, that we could not have launched without the token and the resulting community. 11.2 REAL-TIME PRICING By achieving this goal it may be possible for our sector to have accurate and real-time index and pricing data on FinTech, Bitcoin and Blockchain companies for the ﬁrst time. This data may be used by third party researchers and data providers as well as for new investment products. Real time pricing and information may also be used to perform advanced research and analysis of our sector and give the private FinTech, Bitcoin and Blockchain equity market the liquidity it needs while creating more trading opportunities for our qualifying investors using Blockchain as the backbone. 69.
Conclusion Online Investment Platform 11.3 WH IT EPA P ER UNIFICATION OF TOP TIER COMPLIANT CRYPTO EXCHANGES We believe we can unite the top tier crypto exchanges that we have invested in, both centralized and decentralized, to allow for the compliant trading of private FinTech, Bitcoin and Blockchain companies, built by the community for the community as we grow our platform into a compliant API layer for crypto exchanges in the future. 11.4 WIDER PARTICIPATION International regulations mean that our platform can only be used by qualifying investors, but due to the rise in crypto wealth this number of high net worth investors has exploded. Should we reach our goals, the BF Token can be used by all to participate in our ecosystem through our membership utility token without having to be a high net worth / qualifying investor. 70.
Conclusion Online Investment Platform 11.5 WH IT EPA P ER MORE HIGH-NET WORTH CRYPTO INVESTORS As our eco-system grows this may contribute to growing the number of high-net worth investors that qualify to invest through our online investment platform. The more that qualify to invest, the more invest via our platform supporting the growth of the industry. The more investment, the more liquidity in the secondary market. The more liquidity in the secondary markets, the more investment in the primary markets. The more investing and trading, the higher our FinTech, Bitcoin and Blockchain industry market capitalisation can grow. 11.6 CONCLUDING THOUGHTS The BF Token exists to incentive higher quality and transparent information ﬂows between companies and investors. If we achieve our goals, this should lead to better deals being listed on our online investment platform. With every deal listed, we believe the value of the BF token eco-system can grow. We believe that the more investment ﬂows into new ﬁnancial innovation (that is independent of traditional ﬁnancial players like investment and retail banks), the larger the market capitalisation of our token and equity market grows. 71.
Conclusion By powering the BnkToTheFuture.com platform with the BF Token, we WH IT EPA P ER aim to create a feedback loop and eco-system that plays its role in driving the crypto and equity market cap for the FinTech, Bitcoin and Blockchain sector to US$1 trillion and beyond. With ICO’s gaining the attention of regulators all around the world, the industry will have to adapt to more regulations. Either our industry will give all the business to the very banks and ﬁnancial institutions we set out to disrupt, or we can use platforms like BnkToTheFuture.com that were founded by a team that believed in Bitcoin before it was cool to believe in Bitcoin and Blockchain. We have been working with regulations from Day 1, have been a part of the growth of the industry and investing in the sector since 2011. We are supporters of the decentralised unregulated markets too, but we believe there will be two markets in the future — both regulated and unregulated, and the two can support each other. This philosophy made us the only choice for many of the largest and most reputable Bitcoin, Blockchain & FinTech companies to ﬁnd investment without too much of a huge regulatory burden and this is something we aim to continue. Thank you for taking this journey with us and being part of the most exciting time to be alive in ﬁnancial history. We thank all who have contributed to the growth of the crypto community and for working on something that we believe will change the future of ﬁnance forever. . 72.
Online Investment Platform APPENDIX A WH IT EPA P ER BFT Functionality and User Experience Ability to Source Deals (Community Sourcing) Anyone with a stake in BFT can provide info on a company (this helps to reduce spam) and submit their info of the company for community review. Once a company information is submitted for review, it goes into a batch alongside other companies in order to compete for votes for an average of two weeks period (time may be adjusted based on participation). To vote, users can stake BFT to serve as a vote on behalf of individual companies. Voting per company per user will be capped in BFT (explained in further details below). At the end of the voting period, the company with the most overall votes will move on to the next round of review, which could involve entering the queue of projects reviewed by the community, or could involve BF directly contacting the company. In addition, Bnk To The Future will have discretion to nominate any other projects for follow-up review/interview. People who vote and those who submitted high quality information for vote and in affect the companies get selected for follow-up interview with BF team will be rewarded BFT tokens from the rewards pool in proportion to their staked BFT. All voting stakes for companies that do not pass this round of interview with BF team (companies that do not receive enough votes) will be returned to voters, minus a fee to keep voting from being risk-free. 73.
Voting caps WH IT EPA P ER There will be a dynamic cap on voting, such that the cap on each successive vote is lower than that on the vote before. This will help ensure early voters are rewarded and that people can’t easily log in at the last minute and ‘bet on the winning horse,’ diluting the rewards for previous voters. An example of how the caps will work is as follows: the ﬁrst vote will be capped at 10 staked BFT, the second at 95% of this cap (9.5), the third at 95% of that (9.052), and so forth, until votes reach a minimum ﬂoor. Separately but related, during the voting period, qualifying investors with access to the trading and investment platform (registration required) can also stake BFT to a prospective company’s listing. This stake does NOT count as a vote, though the same investors can also vote for companies in the same manner as everyone else. If the company is selected, members who staked during these early stages will get priority access to a small portion of issued shares proportional to the USD value of BFT they stake, up to a maximum of US$50,000. Staking from qualiﬁed investors might be a stronger signal of a potential successful sale. BF will extract a small fee (TBD, tentatively set at 1%) from these staked tokens to ensure investors only stake on projects they are passionate about or interested in. BF initially proposes this membership cost US$10 worth of tokens, valued on the ﬁrst day of operation and updated quarterly. Voting maximum caps will also be US$10. 74.
Ability to Help Filter Deal-flow (Community Assessment) WH IT EPA P ER Projects that successfully gain enough votes to pass the initial sourcing review (as well as any additional companies BF decides to include) will be subject to a second phase of community review aimed at further narrowing the ﬁeld of prospect companies. This assessment review runs as follows: 01. If a member would like to assess deals, s/he stakes BFT and indicates their availability. Applications are randomly allocated to those who stake and express interest. 02. These members must answer a set of questions about a project, including a recommendation on whether it ﬁts BF’s platform. 03. These answers are then reviewed by another set of reviewers, called 'Super-reviewers'. Serving as a Super-reviewer requires a higher BFT stake. This review process will involve highlighting the best response and ﬂagging particularly poor ones. 04. Rewards will be drawn from the reward pool and are split between the reviewers, with the best review getting slightly more and the poor ones losing a portion of their staked BFT. BF initially proposes that reviewers must stake between US$50 - US$100 in BFT to participate (the more the stake, the higher the probability of being selected by the system and the higher the potential rewards from the reward pool), with 10% lost if their report is deemed inaccurate or unusable by the Super-reviewers and/or BF due diligence team. Bidding to be a Super-reviewer will require US$1,000 in BFT. 75.
Online Investment Platform Review bounty WH IT EPA P ER BF may implement a policy whereby projects can stake BF tokens as review bounties to elevate the importance of their application. This can entitle it to “expedited processing” by the community. Such a bounty would have a low cap, to ensure projects couldn’t bid their way to the front of the line. But it offers projects a way to get noticed, while knowing that all proceeds go to the community, not BF. BF will set the bounty amounts and adjust periodically. Ability to provide third-party research and updates on BF platform listings (Community Research) 01. Members with suﬃcient BFT can bid to provide research reports on investments on the platform by staking BFT and indicating their availability. 02. Up to three members are selected to provide insights. 03. During the investment phase, actual investors rank which reports were the most helpful, with the option of ﬂagging any as close to worthless. 04. High quality reports will receive BFT as a reward, drawn from the rewards pool and distributed according to investor feedback. Reports that are deemed unhelpful will lose a portion of their staked BFT. 76.
Online Investment Platform Members will bid US$50 - US$500 in BFT for the chance to provide WH IT EPA P ER research reports and updates (the more BFT a member bids, the better their chance of being chosen). Ability to provide third-party research and updates on BF platform listings (Community Information) 01. Members with suﬃcient BFT can also post company updates on BF platform listings in the form of investor communications, interviews and news article links, video reviews, company marketing materials, etc. 02. Bnk To The Future will be responsible for verifying the quality of materials presented to identify spam or misinformation. Posting spam or misinformation will incur a penalty in tokens. 03. Reports and updates deemed helpful by investors entitle their authors to rewards. Note: This is the only reward pool that will be speciﬁc to a company. Each company has its own reward pool that incentivizes participation. The distribution schedule will be set for ﬁve years, distributed on a bi-weekly basis. Members will only need to bid US$50 in BFT for the chance to provide updates or information on the forums. Multiple members could all provide meaningful updates, although duplicate updates and postings will not be rewarded. 77.
Online Investment Platform DISCLAIMER WH IT EPA P ER & RISK WARNINGS Bnk To The Future (“The Company”) is incorporated and registered in Cayman Islands (Company Number CO-296093) under the Companies Law 2013. Bnk To The Future (BF) is registered with the Cayman Islands Monetary Authority (CIMA License No. 1189274) and owns an ownership interests in a regulated and licensed broker dealer. BnkToTheFuture.com platform is owned and operated by BNK TO THE FUTURE. Investments in early stage companies involves high risk. Purchases of Tokens/ICO’s are even higher risk. We strongly recommend that purchasers familiarise themselves with all the risks associated with Tokens/ICO’s on the BnkToTheFuture.com online investment platform before considering a Token/ICO purchase alongside any risk disclosures outlined in our 'Simple Agreement of Future Tokens' (SAFT) available upon request. Bnk To The Future exclusively targets investors who are suﬃciently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via BnkToTheFuture.com once you are registered as suﬃciently sophisticated. This is not an offer to the public and investments can only be made by members of BnkToTheFuture.com that qualify to invest. Bnk To The Future takes no responsibility for this information or for any recommendations or opinions made by the companies. 78.
Conflicts of interest disclosures WH IT EPA P ER Bnk To The Future has engaged Keystone Capital Corporation as its broker dealer for this private placement. The Bnk To The Future subsidiary owns an equity interest in Keystone Capital Corporation’s parent company. The SAFT offering for the pre-sale of BF Tokens was conducted on the BnkToTheFuture.com online platform exclusively for accredited, qualifying and professional investors. This platform is owned and operated by Bnk To The Future Complete loss of capital Participating in token purchases, digital assets and other cryptocurrencies carries a very high degree of risk. Only purchasers familiar with the risks associated with acquiring tokens, digital assets, or cryptocurrencies should consider these purchases. No purchaser should purchase tokens, digital assets and other cryptocurrencies unless the purchaser can understand, accept, tolerate and afford total loss of all capital. 79.
Online Investment Platform Valuation WH IT EPA P ER There is limited public information about the BF token. The price at which the buyer is agreeing to purchase the token may not represent current fair market valuation. Buyers should assume that the company generally possesses material information about the company not known to the buyer or the public. Buyers of tokens should perform their own due diligence prior to purchasing. Transferability Tokens may be, or will be subject to transfer restrictions. Tokens subject to the transfer restriction will not be transferable, distributable or usable by holders of such tokens. If the token fails to be listed on a token exchange they will be illiquid and hard to, or impossible to sell. Regulatory & Tax Uncertainty Regulatory changes or actions may alter the nature of, or restrict the use of the tokens in a manner that adversely affects token holders. Purchases of digital assets may subject the buyer to tax, regulatory risks and responsibilities. This issuance of the investment contract constitute the issuance of a 'security' and is being treated that way for the purpose of the securities laws, which may have an adverse impact on your purchase. 80.
Online Investment Platform Inability to launch WH IT EPA P ER Token issuers may be unable to successfully consummate the launch of its token, miss key milestones, attract developers and new applications to drive users to the network and grow its user base through widespread use and adoption of the tokens. Token software may not be widely adopted and may have limited users. Cyber-Security Attacks & Fraud Digital tokens may be the target of malicious cyberattacks, sales and purchases of fraudulent tokens through either a phishing site, fraudulent systems or by other means, or may contain exploitable ﬂaws in its underlying code, which may result in security breaches and the loss or theft of tokens. Blockchain Risk Any blockchain network on which a token operates utilizes code that is subject to change at any time. These changes may have unintended consequences for token issuers and holders. 81.
Online Investment Platform Competition WH IT EPA P ER Token networks may be “forked” and cloned that in turn don’t represent the companies or purchasers on what could emerge from the forks and clones. If one of these forks wins in the marketplace, the value of the token may go to zero. Inaccurate forecasts Results may vary materially from those expressed or implied in forward-looking statements (e.g., 'expect'). Important factors that could cause actual results to differ materially from those in its forward-looking statements include, but not limited to, government regulation, economic, strategic, political and social conditions. No rights Token holders DO NOT have rights in the company Bnk To The Future or any of its aﬃliated companies such as rights offered to shareholders and/or stockholders. Tokens are not equity and token holders have no rights attributed to securities such as debt, equity or other securities. 82.
Online Investment Platform Disclaimers WH IT EPA P ER Nothing herein constitutes an offer to sell, or the solicitation of an offer to buy any tokens, nor shall there be any offer, solicitation or sale of BFT in any jurisdiction in which such offer, solicitation or sale would be unlawful. You should carefully read and fully understand this White paper and any updates. Every potential token purchaser will be required to undergo an onboarding process that includes identity veriﬁcation and certain other documentation, which you should read carefully and understand fully because you will be legally bound. Please make sure to consult with appropriate advisors and others. This White paper describes our current vision for the platform. While we intend to attempt to realize this vision, please recognize that it is dependent on quite a number of factors and subject to quite a number of risks, for the reasons addressed, the planned roadmap and all details discussed in this White paper will be subject to changes and updates. It is entirely possible that the platform will never be implemented or adopted, or that only a portion of our vision will be realized or not at all. We do not guarantee, represent or warrant any of the statements in this White paper, because they are based on our current beliefs, expectations and assumptions, about which there can be no assurance due to various anticipated and unanticipated events that may occur. Please note that although we plan to work hard in seeking to achieve the vision laid out in this White paper, you are strongly advised not to rely on any of it coming true. Blockchain, cryptocurrencies and other aspects of our technology and these markets are in their infancy and will be subject to many challenges, competition and changing environment. We will try to update our community as things grow and change, but undertake no obligation to do so. 83.
INFORMATION HEREIN IS NOT COMPLETE, IS SUBJECT TO CHANGE WH IT EPA P ER AND MAY NOT BE RELIED UPON. Bnk To The Future BFT SP has engaged a FINRA licensed broker dealer to represent it in various potential transactions, the principal terms and conditions of which are summarized within, and has authorized the issue of this brief transaction summary (this “Summary”). Bnk To The Future BFT SP has supplied all of the information contained herein and the broker dealer has received conﬁrmation from Bnk To The Future BFT SP that this Summary does not contain any misstatement of material fact, though it is too brief to cover all material facts and risk factors. Neither the FINRA licensed broker dealer nor any of its associates or aﬃliates have independently veriﬁed the information set out in this Summary nor made any representation or warranty, express or implied, as to the accuracy or completeness of such information or that it has remained unchanged after the date of issue of this Summary. All information herein is subject to change without notice, revision or update. Any estimates and projections contained herein have been prepared by Bnk To The Future BFT SP are not guarantees of future performance and involve signiﬁcant elements of subjective judgment and analysis that are inherently subject to uncertainties and changes in circumstances. Certain Risk Disclosures. This investment is Highly Speculative, with normal start up risks plus many known and unknown risks, and no investor should invest unless they can suffer the full loss of their investment. There can be no assurance that Bnk To The Future BFT SP will in fact acquire the project options it is pursuing, or that it will obtain the ﬁnancing necessary to proceed. 84.
Online Investment Platform THE ABOVE SUMMARY IS NOT A COMPLETE LIST OF THE RISKS WH IT EPA P ER AND OTHER IMPORTANT DISCLOSURES INVOLVED IN INVESTING. Not an Offer. The information in this document does not constitute an offer to sell or the solicitation of an offer to purchase any securities from any entities described herein. Any such offer will be made solely to qualiﬁed investors. Such offer would not be registered under the U.S. Securities Act of 1933 (the “Act”), and any securities from such offer may not be offered or sold in the United States without registration under the Act or exemption thereunder. Proprietary & Conﬁdential. This Summary and its contents are Conﬁdential; no disclosure of its contents can be made without the consent of Bnk To The Future; and the information herein can only be used for the prospective investment purpose herein, and may not be used to compete with or circumvent Bnk To The Future in the pursuit of its target projects herein. This Summary may not be reproduced in whole or in part by any recipient, or sent by it to anyone else or used for any other purpose without the consent. 85.