Token Generation Event for Crowdfunding Platform: DD

Summary of Token Generation Event (TGE) for Digital Disintermediation:

• Event constitutes a sale of DDTokens based on ethereum blockchain
• Pre-TGE on Feb. 23 to raise $3.3M; TGE on March 30 to generate $6.7M
• Fixed supply of 35 million DDTokens during Pre-TGE and TGE phase
• Exchange rates fixed at 1 DDToken=0.000196 ETH pre-TGE;
  strengthening to 1 DDToken=0.0005 ETH for the TGE
• Listing of DDTokens on a major exchange seen later in 2018
• Event to finance building a radically new platform for crowdfunding
• Full details in White Paper

The Seller

Digital Disintermediation (DD) Ltd. is a Special Purpose Acquisition Vehicle (SPAC) domiciled in Gibraltar, with a Singapore business address. DD is a FinTech affiliate of energy financing specialist, Lincoln Liquidity (LL) Pte Ptd.

DD was created to launch and operate an independent, digital crowdfunding platform that helps both nascent and mature, mid-size businesses raise financing in digital currency.

The platform, known as the DDEcosystem, will combine the transparency, resilience and distributive element of blockchain with professional risk management tools to help investors approach new opportunities in an informed manner.

Among these tools will be an assessment of projects and companies seeking funding via our platform by certified Chartered Financial Analysts (CFA), who will offer their opinions on an independent basis. Moreover, both DD and CFA holders will be incentivized to put only the best business cases in front of investors. (See an explanation for that below.)

DDEcosystem will support three kinds of fundraising campaigns: a Token Generation Event (TGE), crowd investing, and crowdfunding. No other platform has access to the same network of investment professionals while offering a wide variety of options on a nimble platform.

Incidentally, Singapore, where DD is headquartered, has the highest number of CFA holders per capita of any financial center in the world.

The Vision

Crowdfunding is a great way to democratize the world of private equity. But, there are several risks around most crowdfunding platforms :

• Traceability and investor protection is often missing or inefficient, thus occasionally leading to fraud
• Large proportion of money raised is spent on fees to intermediaries and payment processing
• Project founders often take a chunk of the financing as own payment, further limiting the resources left to invest in the business itself
• Typically, crowdfunding campaigns are in English

We are addressing the issues above in our DDEcosystem platform. The use of blockchain, and the creation of DDTokens tied to the platform, will allow for transparency and traceability of financing, while cutting the cost of payment processing and lowering intermediary fees.

What’s more, from the start our platform will have a Mandarin language version to connect the rich startup opportunities in China with investors all over the world.

Our inclusion of the CFA community will provide a significant screening of projects submitted to the DDEcosystem, which in time should generate a cumulative effect of making the platform a trusted source for both investors and companies.

Here is a flavor of some of the projects we expect to see on the platform:

The goal is to have DDEcosystem unite the creators and backers of TGE and crowdfunding campaigns to form an engaged and well-informed community. The platform will be the premier go-to place for automated and independent TGEs and crowdfunding campaigns built on Ethereum and funded by cryptocurrencies.

Success will engender success. The currency of the platform will be the DDToken, which will be generated automatically through smart contracts when people support campaigns on the platform. Therefore, DDTokens will never be “minted without collateralization,” unlike fiat currencies, and will always be backed by other currencies, as well as by campaigns successfully completed on the platform.

The Event

The event will be based on the DDToken, a ETH-based token on the ERC-20 standard. It is a cryptocurrency earned by backers who support pre-TGE, TGE, or crowdfunding campaigns on the DD platform.

As an exercise of realizing our vision for the DDEcosystem we plan to conduct a pre-TGE of DDTokens and a TGE as follows:

• pre-TGE: on Feb. 23, 2018 to a token equivalent of USD 3.3M (exchange rate 1 DDToken=0.000196 ETH)*
• TGE: on March 30, 2018 to a token equivalent of USD 6.7M (exchange rate 1 DDToken=0.0005 ETH)

*For the pre-TGE, buyers will be subject to a 6-month lock-up period.

Campaign goal is to raise funds for the development of the project: phase I, phase II, marketing and team. The initial issue of DDTokens is limited to 35 million units during our pre-TGE and TGE campaign for the token equivalent of circa USD 10 million.

The DDToken = Ether starting rate for expansion after the release of the platform will be fixed at the level of 1 DDToken=0.0004 ETH, which is the weighted average exchange rate of the combined pre-TGE and TGE actions. This exchange rate forms the value of the token in the view of the backers participating in the campaign.

When DDTokens reach a certain market value, DD will cease their expansion and start accepting them for payment for campaigns. Backers who have DDTokens on their accounts will be able to exchange them for products and/or services of campaigns listed on the platform, while also financially supporting those projects. This will be an inflection point in the development of the DDEcosystem, because it will increase the liquidity and value of the DDTokens, as well as demand for them.

When we reach a critical mass of campaigns on the DDEcosystem, an economic exchange will open on the platform for active and completed projects.

Future DD Earnings

All investment is done in the belief that you will make a return from a well-run business. This is how DD plans to generate its earnings.

As well as being selective in the investment opportunities that it lists, the DDEcosystem will utilize its access to CFA holders to build a virtuous circle of good investment returns along the principles of Metcalfe’s Law. This will not only generate goodwill and trust from investors and companies wishing to use the platform, but generate income for the platform as follows:

• The platform will take a 3% commission from crowdfunding campaigns from all received ETH. The commission is transferred to the DD account after a successful completion of the fundraising. In exchange for the fees, DD will provide the raising entity with DDTokens.
• If it is a pre-TGE, TGE or a crowd-investing campaign, in addition to a 3% commission, DD will also take another 3% of the company’s tokens.

As a result, DD will become a holder of a basket with possibly hundreds to thousands of different cryptocurrencies. By taking in tokens of new issuers, DD will become a minority holder and vested in each of the companies using its platform, and upon a successful raising of funds it will receive “crypto-income” from such companies.

The portfolio of the platform will be managed by investment professionals. Only reliable and prospective tokens with a high potential for value accretion will succeed in their financing and thus be added to the DDEcosystem, all of which will increase the capitalization of DDTokens.

To make sure that there is an alignment of the interests of all parties — including those of analysts utilized by the platform and those of the investors— CFA charter holders shall be compensated in DDTokens for their role in the vetting and portfolio management process. This will be capped at an equivalent of USD 10,000 per month. However, CFAs will retain an upside exposure via up to a 1% commission interest (with a 3-year lock up) in the opportunities they vet, in addition to DDTokens.

Example of a Project DDEcosystem May List

Among projects being screened for listing on the platform are renewable energy assets in Southeast Asia.

The process of listing would utilize the flexibility of DD’s corporate structure, namely that of a Special Purpose Acquisition Company (SPAC), version 2.0. In practice, this allows the platform to offer listings to, say, a large hydropower plant in manageable stages. Each quarter could see the token equivalent of at least 5.0 MWs or USD 7.5 m in hydropower plant assets added to the platform to raise a substantial USD 90M over 3 years.

We believe this significantly decreases the risk profile for listing large assets and does not tie up investor cash in one project for long periods of time.

We already have a number of companies that will be launched right after the platform release during 2018. This includes companies that are already operating and generating cashflow.