Ideanomics Overview Mission Approach

Overview. Ideanomics (NASDAQ: SSC) aims to become a leading global fintech and asset digitization services company focused on digital asset production and distribution. Through strategic partnerships with and ownership stakes in leading Artificial Intelligence (AI) and blockchain companies, SSC is bringing transparency, efficiency, cost savings and new ownership paradigms to various markets including finance, commodities/energy, TradeTech industry/supply chain and consumer. With headquarters in New York, NY and its planned “Fintech Village” center for Technology and Innovation in West Hartford, CT, SSC is pioneering the new blockchain and AI-empowered economy. For 12 months commencing, Aug 2018 through 2019, SSC is employing its 4+2+1 strategy whereby the Company will drive growth across its core products which are — 1) Fixed Income-based Financial Digital Assets, 2) Consumer Digital Assets, 3) Commodity and Energy Digital Assets, and 4) TradeTech Digital Assets. From mid-to-long-term, the Company will deploy its 4+4+4+4 Strategy which will be explained further below.

SSC is transforming traditional assets and their associated industries into the asset digitization era. Our initial primary focus areas are financial assets and related markets, supply chain management and manufacturing, consumer services, media and entertainment, amongst other verticals. SSC is positioning itself as a world-leading digital asset manager and service provider across a portfolio of assets and an ecosystem for super intelligent enhanced risk management supported fractionalization, securitization and tokenization as well as trading systems integration.

We are growing our global management team of world-class technology and business professionals and a high-performance global partnership network, which includes best in class technology infrastructure and service providers in AI, blockchain, and other big data technologies. SSC secures strategic partners by acquisition, investment, joint venture, licensing, and partnership agreements.

SSC is on track to be among the first in the world of going to market and being a leading fintech and digital asset service provider, whereby we have customized industry solutions (engines) that support different business use cases. We will be one of the first companies in the world to go to market with a suite of business use cases across the asset digitization landscape.

Our Strategy. SSC is determined to become one of the most prominent global digital asset companies. Relying on its core base of fintech and digital asset production and services-based ecosystem enablement, SSC is committed to delivering the best digital assets via the best underlying technology. This approach will drive capital formation and sales across our digital asset ecosystems.

SSC customizes technology platform for various business use cases, operates the Platform-as-a-Service (PaaS) and partners with businesses that deliver core digital asset product creation. We are focused on delivering a global multi-layer technology infrastructure ecosystem that manages risk with enhanced super intelligence, issues, trades, and settles digital asset transactions. We will leverage direct sales channels and automated sales systems via digital asset exchange platforms which is inclusive of digital exchanges to realize digital asset distribution, social media, traditional regulated broker dealer network as well as institutions as direct clients.

2018–2019 Execution Plan, 4+2+1 Strategy. SSC’s 4+2+1 Strategy is in direct alignment with our approach to fintech and digital asset production and services-based ecosystem enablement. SSC has identified and integrated core technologies to operationalize Fixed-Income-based Financial Digital Assets, Consumer Digital Assets, Commodity/Energy Digital Assets, and TradeTech Digital Assets via Velocity Ledger Network (VLN), Social Media Influencer Company, BBD, and DGK + Active Ledger technologies respectively. We are committed to increasing topline revenue and our bottom-line performance while simultaneously increasing assets on the Company’s balance sheet.

Ecosystem Perspective and Approach. SSC characterizes digital assets as any type of text, media, or strong cryptographic representation of value. They are represented in binary source code and include the right to access and use them. By combining digital assets with high performance AI-enhanced accuracy and trusted blockchain technology, it is possible to create valuable digital assets and strong, immutable, and irrefutable proof of ownership and secure transactions on behalf of those assets. Trust-based transactions with undeniable authenticity is critically important across industry, and we seek to leverage this to create immense market value.

SSC Mid-to-Long-Term Strategy and Tactics: Global Fintech and Asset Digitization Service Matrix (4+4+4+4 Model). Our long term strategy and approach to asset digitization is best represented via our 4+4+4+4 Model which includes:

· 4 Strategic Technology Platforms

· 4 Digital Asset Product Sectors

· 4 Digital Asset Monetization Platforms

· 4 Digital Asset Product Trading Platforms

4 Digital Asset Product Sectors — (previously mentioned above)

4 Digital Asset Monetization Platforms
1) Redrock Global Capital Operation (in support of Velocity Ledger Network)
2) GenXPlus Operation (see additional info in Partner section below)
3) Social Media Influencer Platform (in support of Consumer Digital Assets and company equity)
4) Redrock Global Capital Operation (in support of TradeTech Digital assets)

4 Digital Asset Product Trading Platforms (various locations US, Asia, Europe)

1) Self-regulated IEO Direct Sales Groups
2) Regulated ATS Exchange Group
3) Unregulated Centralized Crypto Exchange Group (20–30)
4) Unregulated Decentralized Crypto Exchange Group (Over 100)

SSC’s 4+4+4+4 is due to be operational by 2019. SSC’s definition “operational” on product launches and capabilities includes the following 4 Ready States where by 1) the technology is ready 2) the management team is ready 3) the partnership is ready and 4) the clients are ready. Across all of our business dealings we seek to establish and maintain operational states to the utmost.

First Four Digital Products | Engine Launch Categories (as part of SSC’s fintech & asset digitization services)

SSC is aggregating the best underlying technologies worldwide and leveraging their capabilities their core use cases. While the following four engines are scheduled for deployment in 2018, there are more in development with plans to launch in 2019 and onward.

1) Fixed Income-based Financial Digital Assets. (via Velocity Ledger Network (VLN)) are blockchain-based smart contracts that serve as real-world financial assets. They are essentially, secure digital representations of all financial instruments such as equity, debt, derivatives, and other structured financial instruments as well as hard assets such as real estate. SSC offers the full value chain — from a) AI-enhanced risk and rating to b) fractionalization, securitization, and tokenization to c) sales and trading platforms through both regulated and unregulated networks.

a. Credit cards and high-yield consumer financing asset-backed products

b. Financial leasing type of products including finance lease type products such as electric bus, consumer car finance, aircraft leasing, and medical equipment, etc.

c. Share of commercial real estate, and sales, trading, and transactions

d. Tollway assets

e. Government public/private partnership project, local debt share projects, local debt share Sales, and digital distribution

f. PE/VC fund financing platform, and share-based stock fractionalization transfer platform

g. Trust-based asset digitization and trading

h. Transportation infrastructure and utility assets, including gas pipeline, refineries, wind farms, solar power, and power station asset-backed fractionalization and securitization

i. Supply chain finance

2) Commodity/Energy Digital Assets. Commodity and energy digital assets represent the sourcing of actual commodity and energy-based products (physical assets, supply chain contracts, futures and derivatives etc.) This includes gold, iron, and energy products such as oil, coal, or hydroelectric. Our dynamic ontology-based super intelligence engines produce the world’s leading index products.

3) Consumer Digital Assets. Consumer Digital Assets serve as new digital mediums for engaging with merchants and service providers as well as providing for stores of value. These assets can be used in a variety of methods such as media, copyright and licensing, digital collectibles, gaming, celebrity fanfare, social media influencer activities, loyalty management and retail consumer facing web and mobile application uses.

4) TradeTech Digital Assets. Vertical industries typically include a value chain of suppliers, processors, manufacturers, distributors, and other support entities in order to ensure that products and services get to market. TradeTech Digital Assets are ecosystems with their own settlement tokens. Theses digital ecosystems include supply chain management and supply chain financing platforms, settlement assets, payment mediums, stores of value, supply chain contracts, indexes and other digital means of supporting and enabling specific industry verticals.

Our Revenue Model. SSC is an operating company and digital asset management company that supports a portfolio of Artificial Intelligence (AI) and blockchain-enabled technology companies. Our primary business model is directly connected with the agreements and partnerships that we engage in. These include the following:

· Proceeds of new digital asset creation (i.e. Token Generation Event) on behalf of portfolio companies

· Proceeds from the creation and issuance of risk management, ratings, and financial instruments tied with new AI-based products such as indexes and futures

· Fees collected by the fractionalization, securitization, tokenization/primary digital issuance, and trading of digital assets

· Revenue sharing agreements with strategic partners

Additionally, part of SSC’s business includes the sourcing portfolio companies that we will place through our Digitization Foundry. SSC has an option to receive an ownership equity interest in these portfolio companies. As these companies grow and their values increase, SSC will consider portfolio liquidity/exit opportunities with all key stakeholders. In cases where valuable IP is generated by portfolio companies, SSC will consider strategic licensing agreements and additional business models in exchange for our services to further enhance profitability.

The portfolio will include companies owned by SSC, companies in which SSC has investments, companies from SSC’s parent company Sun Seven Stars Investment Group, as well as companies born and incubated out of Ideanomics’ Global Headquarters for Technology and Innovation through the Global Center for Digital Revolution (C4DR). The campus will also house a Global Digital Assets Institute, Global Fintech Incubation Hub, Fintech Trading Center, Fintech Investment Fund Group. Of note, Sun Seven Stars is Asia’s leading media, technology, and investment company.

Ideanomics Global Headquarters for Technology and Innovation (aka Fintech Village). SSC will soon be building its Global Headquarters for Technology and Innovation on 58-acres of land in the heart of West Hartford, Connecticut, located at 1700 and 1800 Asylum Avenue.

The site is the former West Hartford University of Connecticut campus, which is centrally located between New York City and Boston. Not only is the location in proximity to 40+ institutions of higher learning, but it is also in the heart of 1/3 of the US economy and in proximity to 2/3rds of the Canadian economy. Hartford is of historical significance as the first Chinese students to study in the United States, called the Mission Boys, studied at Yale and other Ivy League Colleges starting in 1871 during the era of the Qing Dynasty.

The mission for the campus is to inspire and build a community of innovation centered on blockchain technology, digital assets, and artificial intelligence, empowering mankind in its digitization journey. This campus will serve as a world-class center of excellence, leveraging best of breed developments in high technology for the purposes of high impact private, public, and social good thereby accomplishing its mission of enabling digital transformation of traditional industries.

The $283 million project is intended to transform the former UConn campus into the world’s leading fintech hub and high-tech future job market, focusing on business use case applications. The project is expected to create 330 jobs over the next five years. The site will host a portfolio of operational Artificial Intelligence (AI) and blockchain technology companies that deliver world class capabilities to Ideanomics’ fintech ecosystem.

The portfolio will include companies owned by SSC, companies in which SSC has investments, companies from SSC’s parent company Sun Seven Stars Investment Group, as well as companies born and incubated out of our Global Headquarters for Technology and Innovation. The campus will also house a Global Digital Assets Institute, Global Fintech Incubation Hub, Fintech Trading Center, Fintech Investment Fund Group. Of note, Sun Seven Stars is Asia’s leading media, technology, and investment company.

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