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WH I T E PAPER
V 1 . 1 2 S E P T 2 0 1 8
TAB
LE O
F C
ON
TEN
TSEXECUTIVE SUMMARY
ABSTRACT
TOKEN ECONOMICS OVERVIEW
ABOUT LOCAL TOKEN EXCHANGE
TEAM & ADVISORS
CRYPTOCURRENCY MARKETS
P2P CRYPTOCURRENCY MARKETS
CRYPTO EXCHANGE OVERVIEW
THE PLATFORM
LTE TOKEN
PROJECT HISTORY & ROADMAP
TOKEN DISTRIBUTION
USE OF FUNDS
REVENUE STREAMS
FINANCIAL MODEL
SWOT - CHALLENGES & OPPORTUNITIES
SUPPORTED CURRENCIES & CRYPTOCURRENCIES
TRANSPARENCY POLICY
TOKEN SALE RULES
FUND RELEASE STRATEGY
DIVIDEND POLICY
SECURITY
GDPR COMPLIANCE
REFERENCES
IMPORTANT NOTICE
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EXECUTIVE
SUMMARY
WHITE PAPER
We love the flexibility of trading in multiple cryptocurrencies,
but we were fed up with the inefficiencies of centralised
exchanges. So we created Local Token Exchange to integrate
the best of a P2P decentralised exchange with the deep liquidity
of a centralised exchange, which makes trading faster, easier,
more secure and gives the token holder a share in the profits.
Local Token Exchange will:
Offer the possibility to trade a comprehensive range of
cryptocurrencies
Combine this with the deep liquidity normally offered only
in centralised exchanges
Provide fast and easy KYC/AML verification process
Offer transparency
Pay regular dividends
Include future cryptocurrencies by allowing ICO airdrops
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This innovative model will give traders the perfect space to
transact the vast majority of their trades, whilst allowing
them to participate in the success of Local Token Exchange’s
business with regular dividends for token holders.
Put simply, Local Token Exchange is a paradigm-changing
model for a distributed digital currency ecosystem.
Local Token Exchange was
born out of a shared vision
to develop a more efficient
global financial system.
ABSTRACT
Centralized cryptocurrency
exchanges in their current form are
fraught with inefficiencies. There are
long wait times, security risks and
time consuming verification
requirements as well as high barriers
to entry for a large proportion of
potential users, especially novices.
"An approach that strays
from the conventional,
coupled with
consistency, enables us
to contribute to the
company's overall
growth and success."
Problem Solution
P2P marketplaces and exchanges
provide direct access in a
decentralised way to connect buyers
and sellers directly, which represents
the truest form of free market
trading. The future of the digital
currency ecosystem relies on the
development of robust P2P
decentralised exchanges that
support a diverse range of
cryptocurrencies and at the same
time provide traders with sufficient
liquidity, a significant feature of the
best centralized exchanges. The
innovative distributed ownership and
business model offered by Local
Token Exchange will bridge the gap
in the market, whilst delivering the
majority of the profits of the platform
directly into the wallets of token
holders and users.
By harnessing the free market
aspects of the Peer-to-Peer model
and enhancing with the liquidity
from centralized exchanges, Local
Token Exchange will become a force
in the cryptocurrency exchange
space.
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WHITE PAPER
TOKEN ECONOMICSOVERVIEW
Token: LTE
Total Supply / Supply Available: 77,963,600
Accepted Currencies: ETH
Nominal Value of LTE: €0,25c
Nominal Value 1 ETH = 2,286LTE (ETH: €571.60 on 18/5/2018)
Minimum Requirement (Soft-Cap): €1,000,000
Maximum (Hard-Cap): €19,490,900
Payment Currency: Ethereum (ETH)
Bonus Structure: Community Based
Transparency: Open source (public GitHub)
Bounty: 1%: 779,600
Airdrop: 1%: 779,600
Team: 12,5%: 9,745,000
Advisors: 2,5%: 1,949,000
Dividend Reserve: 25%: 12,160,400
Token Sale: 58%
Private Sale Token Issuance:
8,000,000
Pre-ICO Token Issuance:
3,900,000: includes 30% bonus
5,000,000: includes 25% bonus
5,750,000: includes 15% bonus
ICO Token Issuance:
9,900,000: 10% bonus
20,000,000: no bonus
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WHITE PAPER
Pre-ICO Sale:
Stage 1 (30% bonus) July 30 – August 10, 2018
Stage 2 (25% bonus) August 11 – August 20, 2018
Stage 3 (20% bonus) August 21 – August 30, 2018
ICO Sale:
Stage 1 (10% bonus) August 31 – Sep. 30 2018
Stage 2 (no bonus) Oct. 1 – Q4, 2018
ABOUT LOCAL TOKENEXCHANGE
Local Token Exchange was
born out of a shared vision to
develop a more efficient global
financial system. Our
backgrounds include
technology, finance, marketing,
and entrepreneurship - we are
all driven by our natural
inclinations to pioneer
transformation.
We love the flexibility of
trading in multiple
cryptocurrencies, but we were
fed up with the inefficiencies
of centralised exchanges. So
we created Local Token
Exchange to integrate the best
of a P2P decentralised
exchange with the deep
liquidity of a centralised
exchange, which makes
trading faster, easier, more
secure and gives the token
holder a share in the profits.
Given the success of other P2P
exchanges such as
LocalBitcoins and Xcoins, we
plan to capitalize on the
growth of the market
opportunity that exists for a
multicoin P2P decentralised
exchange.
This innovative model will give
traders the perfect space to
transact the vast majority of
their trades, whilst allowing
them to participate in the
success of Local Token
Exchange’s business with
regular dividends for token
holders.
LOCAL TOKEN EXCHANGEWILL OFFER:
The possibility to trade a comprehensive
range of cryptocurrencies
Combined with the deep liquidity normally
offered only in centralised exchanges
Fast and easy KYC/AML verification process
Transparency
Pay regular dividends
Future cryptocurrencies by allowing ICO
airdrops
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WHITE PAPER
TEAM & ADVISORSCore Team
Conor O’Connor - CEO
Serial Entrepreneur who
has successfully founded &
exited several technology
companies and a trained
economist, Conor became
interested in
Cryptocurrencies in 2013.
Pablo Perez Wlasiuk -
Co-Founder & CMO
Seasoned self-made
young entrepreneur since
the age of 17. Pablo
created and launched
several Apps & Websites
including one of the
largest ebook sites with
15M visits/month.
Blockchain Enthusiast
since 2014.
Joe Haslam - Co-Founder
Early adopter of
cryptocurrency and
evangelist. Joe is currently
executive director of the
Owners Scale-up
programme at IE Business
School in Madrid where
he has been assisting
blockchain where he
earned his MBA.
Luis Perez - CTO
With almost 20 years
experience on secured
web technologies, Luis’
expertise is second to
none. He has been
involved in every aspect of
IT as technical architect,
including security
applications for banks.
Michael Everington - CFO
Qualified Chartered
Accountant and Finance
Director with extensive
international experience
in banking and
communication sectors.
Michael specialises in
high-energy business
growth and profit
maximisation.
Phil has an MBA from
University of Nottingham
and a business degree
from Manchester
Metropolitan University, 15
years international
financial markets, sales of
multiple products, CEO,
Entrepreneur, Co-founder.
Phil Wombell - LTE Sales
Director
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WHITE PAPER
Oleg Abrosimov - Blockchain &
Smart Contract Developer
With a Master of Physics Field
of Study Chemical &
Biological Physics from
Novosibirsk University Oleg
has dealt intensively with PHP
programming, network
connection with weave
networks technology.
Anastasiia Chikina -
Social Media Manager
Anastasiia has a BA Economics
from Saint Petersburg State
University and years of
freelance online social
media/promotional marketing
also with financial accounting,
foreign languages, literatures &
market analysis.
Karin Pinter - Commander
Karin started in SEO when
Google was a baby. Keen on
how we use technology to
optimise our global
community, Karin is an author
& creator who orchestrates the
integrity of a project's pieces
and people.
With a Pitman diploma from
City College, Angel is highly
focused on presentation &
development, administrative
organisation, correspondence
handling & departmental
coordination scheduling..
Angel Garner - Administrator
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WHITE PAPER
Advisors
John Hollway
John has a BA in Spanish & History
from the University of Liverpool, he
has years as regional sales
management, dealing with
business development, product
management and sales in the
Foreign Currency exchange arena.
Ian Cunningham
Ian is Business Development &
Management Leader, 20 years
experience developing
international Markets &
directing multifunctional
teams. A Project Manager for
DAOACT a venture based on
blockchain technology.
Pierre Proner - Co Founder
& CEO of Bright
Serial Entrepreneur & investor
with 18 years of experience
founding and scaling
technology & technology
businesses. Founder of two
successful startups operating
in emerging markets.
Toby is a highly energetic
entrepreneur, prolific writer &
analyst, straddling the worlds of
technology startups, venture
capital and data science. Lewis
has written regularly for the Wall
Street Journal.
Toby Lewis - CEO of Novum
Insights
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WHITE PAPER
Joaquin Grech Gromendio -
Founder of Echoboom Apps
Joaquin is an entrepreneur,
investor with more than 15 years of
experience in finance &
technology. Founded Echoboom
Apps. He has an MBA from IE
Business School & Computer
Science at New York University.
Mark Turrell -
Founder of Orcasci
IMark is a strategist, author, &
entrepreneur. Combines
collective intelligence with
networks, behavioral science &
neuroscience.. Professor at Hult
International Business School.
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WHITE PAPER
CRYPTOCURRENCYMARKETS
OVERVIEW IN NUMBERS
Market cap of cryptocurrencies is experiencing an exponential
growth from less than $18B to more than $600B in 2017
Sunday, Jan 01 2017, 00:02:00 UTC
Market Cap: 17,735,500,000 USD
24h Vol: 130,048,000 USD
Sunday, Jan 01 2018, 00:02:00 UTC
Market Cap: 612,925,000,000 USD
24h Vol: 31,416,500,000 USD
Source: https://coinmarketcap.com
Amount of transactions performed on the crypto market per
day, comparing 1st January 2017 and 1st January 2018
Amount exchanged per day to now more than $30 Billion
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+3400%
x 240
$130 million
WHITE PAPER
P2P CRYPTOCURRENCYMARKETSOVERVIEW IN NUMBERS
Dollar value of BTC traded on LocalBitcoins.com in the last week of 2017
More than 99% of cryptocurrency transactions currently are conducted on
centralised exchanges.
LocalBitcoins.com is currently the world largest P2P cryptocurrency
exchange and only offers BTC with no plans to offer others, unlike Local
token exchange.
Volume
$USD
Exchange
Revenue
2013 2014 2015 2016 2017
68,438,277
684,383
271,865,628 412,561,009 742,237,090 2,135,865,172
2,718,656 4,125,610 7,422,371 21,358,642
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$130 million
WHITE PAPER
CRYPTO EXCHANGEOVERVIEW
Understanding decentralised
exchanges and market
mapping: Exchanges are not
binary, contrary to the use of the
words centralised and
decentralised. At present more
than 99% of cryptocurrency
transaction volume is through
centralised exchanges. There are
a number of variables that exist
on a spectrum from complete
centralisation to complete
decentralization. All these
variables are considered to
know whether an exchange is
centralised or decentralised.
A GENERAL SYNOPSIS
OF THE CURRENT
MARKETPLACE
Centralised Exchanges
When using websites such as
Kraken, Coinbase, to purchase
any cryptocurrency it is a
centralised exchange. This is
purchasing cryptocurrencies
using traditional methods of
payment such as a credit card or
a wire transfer.
A centralised exchange is a platform or app that allows traders to buy or sell cryptocurrencies using fiat or
other cryptocurrencies. It is a marketplace for tokens and many of the centralised exchanges allow new
entrants / non-crypto holders to buy crypto using currency such as USD, EUR.
When using websites such as Kraken, Coinbase, to purchase any cryptocurrency it is a centralised
exchange. This is purchasing cryptocurrencies using traditional methods of payment such as a credit card
or a wire transfer.
A centralised exchange is a platform or app that allows traders to buy or sell cryptocurrencies using fiat or
other cryptocurrencies. It is a marketplace for tokens and many of the centralised exchanges allow new
entrants / non-crypto holders to buy crypto using currency such as USD, EUR.
Users directly deposit money into the exchange, which holds money as a wallet until a trade order is
placed. Exchanges keep their systems off-chain, which means that transactions are not recorded on the
blockchain. As orders are placed the exchange matches buy and sell orders in real-time.
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WHITE PAPER
CRYPTO EXCHANGEOVERVIEW
Centralised Exchanges
Private keys to those cryptocurrencies are not held when money is deposited or traded on such an
exchange. 73% of centralised exchanges take custody of user funds at present, while 23% let users
control keys. Trusting the exchange to safely store and manage users balances.
There are certain levels of assurance with storing crypto assets with a centralised exchange, yet there are
also fundamental risks associated with doing so:
Concentrated liquidity on a few exchanges: Coinbase exchange that list only a few coins, can take
advantage of their large user base. Whenever coins are added, they will gain traction from the public,
rise in value and are significantly appealing when entry prices are lower compared to Bitcoin
Fraud can result in the loss of funds of the user: centralised exchanges are legally accountable for users
funds, but have often been susceptible to theft
Front-running by a related party or the exchange administrator
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WHITE PAPER
CRYPTO EXCHANGEOVERVIEWDecentralised Exchanges
In a perfectly decentralised exchange, users
would have control over their funds. The aim of
a decentralised exchange would be to build a
peer-to-peer marketplace directly on the
blockchain. Money is not sent to an exchange or
wallet that is controlled by a single platform or
entity: instead, order books and transaction
activity take place on the blockchain. As a result,
there are no middleman fees, assets are not
susceptible to hacks, and users are truly in
control of their assets.
An important note is that most decentralised
exchanges out there are semi-decentralised. In
most cases, centralised servers (off-chain) host
order books, but do not hold private keys. When
orders are settled on-chain, they go through the
blockchain, ensuring that the exchange
possesses its characteristics, benefits and
limitations. There are four distinct buckets of
decentralised exchanges: exchanges, P2P
trading, dark pools, and open protocols for DEX.
1. Exchanges
Decentralised exchanges can typically decide whether their orderbooks are located on or off-chain.
However, it is key that orders are settled on-chain. In some cases, when an order is place, there may be a
relayer or orderbook that facilitates the matching process. Users are in control of their own funds and data;
however, there are clear trade-offs.
On-chain trading: users are in control of their own funds and data but can be a tedious process.
Order books: an on-chain order book means that miners are privy to an order before it is posted, which
creates an opportunity for front-running. Blockchain orderbooks do not scale as executing code on
blockchain incurs a cost, thus changing or cancelling orders can quickly become expensive.
Front-running by miners or relayers: as orders are settled on-chain, miners will have the option to execute
cancelled orders with themselves as the counterparty (in addition, the miner may even collect gas costs
from a user’s failed cancellation).
Automatic matching: in cases where orders are matched off-chain, it is possible that the exchange does
not perform automatic matching and thus the exchange can suppress or front-run orders.
Liquidity: due to a lack of users, there is a lack of liquidity, which can cause a more volatile market and
radical change in prices particularly when large orders are placed.
Cross-chain orders: majority of decentralised exchanges currently support trading of Ethereum based or
ERC-20 tokens, but lack the ability to support cross-blockchain orders (for example, trading or operating
over the Bitcoin, Litecoin, etc. networks). The reason for this is that it is hard for two chains and order
books to communicate with each other when they don’t otherwise know about each other.
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WHITE PAPER
CRYPTO EXCHANGEOVERVIEW
2. Peer-to-Peer Trading
Peer-to-Peer trading eliminates the need for an orderbook, as users directly connect with one another via
nodes to place trades. There is no middleman or orderbook facilitating the matching process. Price
negotiation can take place either on or off-chain, but it is key that trades are settled on-chain.
On-chain trading and live nodes: in a peer-to-peer system, users must stay online until their orders have
been filled, as they drive the matching process. An order cannot simply be placed and left for the relayer
or exchange to fill.
Lack of orderbook: the lack of an orderbook minimizes the opportunity for front-running as miners will
not have insight into orders before they are posted on the blockchain.
Front-running and automatic matching: because there is no orderbook, this minimizes the risk of front-
running orders. Peer-to-peer exchanges have adopted protocols that ease the process of automatically
matching makers and takers.
Liquidity: due to a lack of users, there is a lack of liquidity, which can lead to a more volatile market.
Cross-chain orders: peer-to-peer exchanges that have adopted atomic swaps allow for cross-chain
trading to take place. Atomic swaps use a hash time-locked contract, which basically open up a payment
channel between two blockchains. It is important to note that this is not exhaustive — not every
blockchain supports this, and implementation of Lightning Network is necessary.
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WHITE PAPER
CRYPTO EXCHANGEOVERVIEW
3. Dark Pool Exchanges
A hidden order book is the typical way a Dark
pool exchanges operate with. Orders are
matched without revealing the identity of the
trader or the underlying trade until settlement,
which is beneficial for trustless trading large
block orders. In addition, because a “hidden
order book” exists, traders do not have to remain
connected to the network while their orders are
being matched. Once an order is placed, nodes
will run the matching computation until a match
is found or the order is expired, direct
connections between nodes are setup when
possible or if needed.
On-chain trading: users are in control of their
own funds and data, but on-chain trading can
be a tedious process.
Liquidity: because there is lack of users on these
exchanges, there is a lack of liquidity in carrying
out transactions.
Hidden order book: a hidden order book would
allow orders to be matched without revealing
the identity of traders, allowing large block
orders to go through without causing volatility
in the market.
Front-running: as the orderbook is hidden, this minimizes the risk of front-running orders. However, if this
information were to be exposed, the exchange and traders would be susceptible to front-running and
node attacks.
Cross-chain orders: exchanges that have adopted atomic swaps and lightning network allow for cross-
chain trading to take place.
4. Open Protocols for Decentralised Exchanges
Open protocols are infrastructures that allow anyone to build their own services on top of them. With the
aim of running a decentralised application protocols are the pipes to hold decentralised application. With
decentralised exchanges, open protocols aim to allow all projects built on top to interact with one another,
thus creating shared liquidity for the exchange. For example, there are numerous decentralised exchanges
built on top of the 0x protocol.
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WHITE PAPER
ECOSYSTEM OFDECENTRALISED EXCHANGES
Below is an overview of the projects and startups currently in the space that fit into various categories.
Note that projects with a * indicate cross-chain or fiat support, the remainder are focused on ERC20
tokens.
Centralised exchanges with an off-chain orderbook and off-chain settlement mechanism include
examples such as Coinbase, Gemini, Kraken, Binance. Decentralised exchanges with on-chain
settlement and either an on or off-chain orderbook include IDEX, Legolas, NEX, Barterdex, and a variety
of 0x relayers (e.g. RadarRelay).
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WHITE PAPER
ECOSYSTEM OFDECENTRALISED EXCHANGES
P2P trading ranges from centralised examples such as ShapeShift, to more decentralised options where
settlement takes place on-chain. A few examples include Airswap, Etherdelta and Bancor.
Open protocols allow developers to create their own decentralised exchanges on top of their
infrastructure, increasing liquidity.
Examples include 0x, Loopring, OpenRelay, Lendroid, Swap, Heridus, Blocknet and Bitshares. Examples
of dark pools, which provide hidden orderbooks, include OmegaOne.
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WHITE PAPER
ECOSYSTEM OFDECENTRALISED EXCHANGES
With the current players in the ecosystem, there are a few key components to keep in mind when
designing an exchange:
SUMMARY
Purpose: who are you designing for, and what the key purpose of the exchange is.
Cross-chain orders: if applicable, implementing infrastructure to enable cross-chain orders to
allow for additional cryptocurrencies such as Bitcoin, Litecoin.
Orderbook and matching orders: when orderbooks exist, determining if it should be placed off or
on-chain, and ensuring that the issue of front-running is addressed. In peer-to-peer systems, it is
key to determine how orders can be traded without having to continuously stay online until an
order is filled.
Liquidity: speculating ways to increase liquidity, and designing an easy to use exchange with a
friendly UX that can be understood by a variety of individuals.
Latency and front-running: designing a process that ensures orders are immediately cancelled
and addressing the issue of miner front-running due to potential lag time between off-chain
orderbooks and on-chain settlement.
Volatility: designing for a volatile market and, if in scope, addressing the issue of “Whales” trading
with large sums of money.
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WHITE PAPER
THE PLATFORM
1. OPPORTUNITY
Local Token Exchange will allow traders to buy and sell a diverserange of cryptocurrencies in a decentralised, peer to peer manner aswell as offering centralised trading and liquidity.
2. SIGN IN
Sign in to Local Token Exchange instantly and deal withoutunnecessary verification requirements for P2P transactions.
3. EXPLORE
Search a wide variety of cryptocurrency ads and offers and chose themost appealing offer.
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4. TRADE
Select or Agree on the payment method and enter into a trade.
5. ESCROW TRANSACTIONS
Local Token Exchange holds the cryptocurrency in escrow while directpayment is made between traders or fulfilled immediately throughthe order book.
6. COMPLETE
Once payment is made the cryptocurrency is released to the buyerand the trade is complete.
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LTE TOKEN
1. INVEST
Purchase Local Token Exchange LTE Tokens (LTE) through the InitialCoin Offering.
2. PROFIT
The Local Token Exchange generates revenues and profits fromescrow fees and all the currency trades on the platform, as well as ICOpromotions.
3. DISTRIBUTION OF DIVIDENDS
Every six months, 70% of the profit will be distributed to LTE tokenholders.
4. EQUAL WEIGHTING
If a contributor holds 1% of LTE tokens they will receive 0.7% of theprofit.
6. INCOME
Receive a regular stream of income in multiple currencies fromholding a single token.
5. AIRDROPS
When new ICO’s are listed on our platform, all Local Token ExchangeLTE Token holders will receive a representative amount of that tokenin return for each LTE Token they hold.
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TOKEN DISTRIBUTION
LET'S CONTINUE TO BUILD THE PATH FOR FUTURE GENERATIONS.
58% of tokens are to be sold, and the majority of the remainder is reserved for Dividends, to be paid out
to token holders in the future. Other allocations are to compensate the Team and Advisors, and the
remaining 2% are used for Bounty and Airdrop promotions of the LTE token.
Token Sale 58%
Bounty 1%
Team 13%
Advisors 3%
Dividend Reserve 25%
Airdrop 1%
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WHITE PAPER
USE OF FUNDS
THE FUTURE IS DECENTRALISED.
The primary use of funds will be to develop the platform, grow the team and further the development,
promotion and management of the project.
Our emphasis will be on platform performance and security, as well as building a strong community
and a user experience that supports higher trust in peer to peer exchange.
Marketing 25%
Legal 3%
Development 40%
Contingency 3%
Operations 30%
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REVENUE STREAMS
Local Token Exchange charges 1% on all trades, no matter what currency is digitally transferred or
traded.
Trading Fees
Escrow Fees
Whenever LTE is used as escrow for a transaction, we charge 5% of the amount.
Withdrawal Fees
A fixed fee of 0.0005 BTC for every withdrawal outside of Local Token Exchange
ICO Listing
New ICOs can advertise in Local Token Exchange, our initial fee is 1BTC and this will raise as we gain
popularity.
ICO Airdrop
The cost of completing an ICO Airdrop will be the equivalent of €30,000.00 to be paid in LTE
tokens..
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FINANCIALMODELThe financial model for the project is based on a three year period starting in May
2018 and which corresponds to each stage of development. The core project is a
Peer-to-Peer exchange for cryptocurrencies.
The model parameters are determined on the basis of certain market research, as
well as statistical information on the state of each specific market segment. The cash
flow of the project is formed from the amount of commissions paid from each
successful transaction between participants of the exchange.
The model assumes growth rates corresponding to the market average (based on
market research data) and taking into account seasonal factors and the expected
inflation rate. The capitalisation of the model is calculated on the basis of a DCF
model using the standard Venture Capital Method.
The model uses cash flow before tax.
Channels by which Local Token Exchange will generate fee revenue:
.
Trading Fees 1% on all trades
Escrow Fees of 5%
Withdrawal Fees – ONLY Crypto 0.0005 BTC
ICO Listing - 1 BTC
ICO Airdrop - €30,000.00.
LTE Illustrative Financial Projection
Trading Fees
Escrow Fees
Withdrawal Fees
ICO Listing &
Airdrop
Net Income
1,610,000
2,415,000
966,000
1,990,000
6,981,000
4,735,000
7,102,500
2,841,000
3,600,000
18,278,500
6,910,000
10,365,000
4,146,000
3,600,000
25,021,000
FY May to April
2018/2019
FY May to April
2019/2020 2020/2021
FY May to AprilEuro
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FINANCIALMODEL
The assumptions used follow blockchain Peer-to-Peer industry growth rates and the
latest market and competition research.
Costs and Expenses
Customer Acquisition cost is assumed to be €5.
Significant business costs are connected with ongoing research and development
processes, infrastructure and existing product maintenance. Platform development
costs are shown as capitalised investments. Marketing is by far our largest cost,
which we expect to be €600,000 in year 1.
The business is assumed to be fully funded and does not incur any external
borrowings.
From H2 2018 the business plan assumes the launch of the exchange in accordance
with the Roadmap.
According to our financial projection, an initial intensive period of development is
expected. Upon successful implementation of our strategy, the effect on Earnings
before Tax is anticipated to increase by 196% from year 1 to year 2 from €5.9m to
€17.4m. In year 3 we anticipate a further increase of 38% to €24.1m which is in line
with current industry competitors.
Depending on our exact position in the market and the legal & regulatory situation
at large, we may adjust our position and move towards regulated status. Malta and
Gibraltar are two of the jurisdictions under consideration for such purpose. There
will be a number of significant one-off capital expenditures for license acquisitions
and necessary business combinations that may affect profitability in the long-term.
We anticipate the bi-annual token dividend to be in excess of 10 cents by Q4 year 3.
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SWOT - CHALLENGES &
OPPORTUNITIES
Strengths Weaknesses
Opportunities Threats
Multiple cryptocurrency options (new and
existing)
Low user fees
Fast compliance and user verification
Owners share profits
Passive income stream
Easy to understand and navigate the
exchange
Supports fiat currencies
Minimum number of steps to place an
order
Beginner friendly
Multi crypto support
Native Mobile App (live Q2 2019)
Unknown brand in the crypto Exchange
space
95% digital assets in cold storage
Volume of trading will be low for 2018
Expansion into other locales
Potential to apply for regulation in
Gibraltar or Malta in Q4 2018
Listing and trading of more Crypto assets
Multi wallet support
Heavy competition in the Crypto
Exchange Space
Security risks
Regulatory landscape
Legal pressures
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SUPPORTED CURRENCIES &
CRYPTOCURRENCIESLocal Token Exchange will open with direct support for a minimum of 5 of the
most popular cryptocurrency wallets and a trading capability of over 300
cryptocurrency pairs.
These will include:
Bitcoin (BTC)
Bitcoin Cash (BCH)
Ethereum (ETH)
Litecoin (LTC)
Ripple (XRP)
Additional cryptocurrencies will be added. Local Token Exchange will also support
multiple payment methods, which shall be available in Q3 2018.
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WHITE PAPER
30
TRANSPARENCY POLICY
The business will operate a clear transparency policy that specifies:
Bi-weekly detailed updates on our project as a minimum
A dedicated communications manager will be responsible for delivery of the transparency policy
Any key new team member introduced will be publicly disclosed
The above policies do not require Local Token Exchange to reveal any information that could be damaging
to staff, business operations or disclose sensitive information that competitors might take advantage of.
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WHITE PAPER
TOKEN SALE RULES
Capital will be raised and managed through a portal hosted at https://ico.localtoken.exchange that
operates over a SSL encryption, has DDOS protection from CloudFlare, firewalls and server access
policies in place.
The base rate per LTE token will be set to 1ETH = 2,286 LTE during both pre-sale and main token sale
regardless of the cryptocurrency used. Total supply of LTE created will be 77,963,600 with 44,550,000
available for contributors. Any unsold LTE will be burned at the end of the main token sale.
Pre-ICO:
A public pre-sale will be conducted between July 30, 2018 and August 30, 2018
The specific requirements will be:
Maximum funding cap of €3,000,000
Maximum available tokens: 14,650,000
Anyone who joins the pre-sale will receive a token bonus on the entire amount they contribute and will
receive priority in delivery of tokens.
Please visit https://localtoken.exchange and register your interest in joining the presale.
July 30, 2018 - August 30, 2018
ICO:
Stage 1: 10% bonus: August 31 to September 30, 2018;
Stage 2 no bonus: October 1 2018 till Q4 2018
Pre-ICO Sale
Main Token Sale
The final token sale will commence on September 6, 2018 and end Q4, 2018.
The crowdfund will remain open until one of the following is met: The maximum cap of €19,490,900 is
achieved and/or close date is reached.
If the token sale events fail to raise a minimum of €1,000,000 in cryptocurrency values at the end of the
funding period, then all funds raised will be returned to contributors, minus any transaction fees incurred.
Strict policies and procedures are in place to deal with the level of funding, protection and management of
the funds. However, no guarantees can be made that funds are 100% safe, as is intrinsic to the crypto-
currency industry.
Based on this, should there be any attack or breach that results in the loss of funds that would not be
considered disastrous for the project to launch, all contributors will still have tokens issued proportionally to
the funding they provided.
At the end of the token sale, a full audit process will take place that will involve ensuring no more funding
is received, funds received are verified at the addresses and checks that transactions match contributors.
Once Local Token Exchange officers are satisfied with the audit process, the distribution of LTE Tokens will
be sent to contributors and this completed within 30 days.
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WHITE PAPER
BONUS STRUCTURE
Bonus Structure
In order to encourage early support at launch of the crowdfund an attractive bonus scheme that scales
down based on supply sold is defined as below:
3,900,000: including 30% bonus
5,000,000: 25% bonus
5,750,000: 15% bonus
Pre-ICO
ICO
9,900,000: 10% bonus
20,000,000: no bonus
1 ETH Contribution
2972
2857
2629
2515
2286
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WHITE PAPER
FUND RELEASE STRATEGY
Initial funding release once minimum cap of €1,000,000 reached
Date in 2018 €1,000,000
Successful token sale completion and tokens distributed to contributors
Date in 2018 25%
Release of beta version of Platform,
Date in 2018 50%
Introduction of working beta platform
December 2018 75%
Full Platform Release
Date in 2019 100%
34
WHITE PAPER
DIVIDEND POLICY
Objectives
To define the policy and procedures of Local Token Exchange in relation to the
calculation, declaration and settlement of Dividends and the determination of the
form and time periods within which Dividends are paid
To ensure that the Local Token Exchange has sufficient distributable profits and/or
general reserves, as determined by a review of audited financial statements, prior
to any declaration and/or payment of Dividends.
To create a transparent and methodological Dividend Policy, adherence to which
will be required on an annual basis, with any deviations clearly identified and
promptly communicated to contributors. .
LTE will not declare any Dividend(s) where:
There are reasonable grounds for believing that Local Token Exchange is or would
be, after a Dividend payment, unable to pay its liabilities or discharge its
obligations as and when they become due.
Pursuant to Dividend decision date, Local Token Exchange is insolvent or
bankrupt in accordance with the provisions of insolvency or bankruptcy law, or
where, as a result of paying Dividends, Local Token Exchange would be rendered
insolvent or bankrupt;
Prior to the Dividend decision date, the net asset value of Local Token Exchange is
less than its available capital and reserves.
There is any other case set forth by any applicable law.
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WHITE PAPER
DISTRIBUTION OF
DIVIDENDS
Dividends shall be paid out of the Company’s distributable profits and/or general
reserves, and shall be allocated among Contributors on a pro rata basis according
to the number of each LTE token held.
The amount of Dividends is determined upon recommendation of the
management of Local Token Exchange and may not exceed the amount so
recommended.
Dividends will be paid to Token holders of record who have held their tokens for
at least 10 days in aggregate within the 90 day period preceding the relevant
Payment Date.
The Payment Dates will be 30 June and 30 December in each calendar year. There
will be no dividend payments in 2018.
Dividend payments will be made by way of LTE tokens held in reserve for such
purpose.
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WHITE PAPER
SECURITY
Local Token Exchange is developed
by Senior coders and cryptocurrency
experts to industry standard Best
Practice and utilises a custom-
embedded StreamDB database with
error-checking and multiple
volumes. We run our software across
multiple Tier 3 data
centers on dedicated hardware with
biometric access control.
Our platform has been vetted by
multiple third-party security audit
firms and penetration test
consultants. The Local Token
Exchange and Wallet Environment is
built on the same technology used
by CME and Scotiabank and
conforms to the CryptoCurrency
Security Standard (CCSS).
Screened employees vetted by our
management team will only have
certain access to required
information when regulating a trade.
Internal service interactions use
separate
authentication contexts and are
never exposed to the internet.
We encrypt all sensitive user
information in real time, both in
transit and at rest. Messaging and
banking information are subject to
Transport Layer Security encryption
and after a transaction is completed
we have no access to any
communication between traders.
To protect customer accounts from
unauthorised by third parties Local
Token Exchange implements several
forms of two-factor authentication
(2FA). Our global setting protections
prevent unauthorized account
activity including unusual
withdrawal requests. We use rate-
limiting, concurrent connection
limits, and active whitelists and
blacklists to counter Denial of
Service (DoS) and Distributed Denial
of Service (DDoS) attacks . All
website data is transmitted via
encrypted Secure Socket Layer (SSL)
and Transport Layer Security (TLS)
connections and protocols.
Cold wallet storage protocol is used
with all outgoing transactions which
utilizes a smart contract on the place
and limits the size of transactions.
In addition, no emails will be sent by
Local Token Exchange without client
consent and we will not provide
customer data to third parties.
Our team of legal advisors will
ensure that we stay compliant with
all relevant regulations. We do not
accept fiat currency transfers directly
or have any possession of the fiat
currency portion of any transaction
therefore we are not considered to
be a financial intermediary under
current regulations.
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WHITE PAPER
GDPR COMPLIANCE
Consent
Local Token Exchange respects and complies with the EU General Data Protection
Regulations (GDPR).
Some of the key ways we comply with these regulations are:
We explain what you’re consenting to clearly and without ‘legalese’, and ask that you
explicitly consent to contact from us.
Breach Notification
In the event of a breach we will notify affected users within 72 hours of first having
become aware of the breach.
Right to Access
Users can request confirmation as to whether or not personal data concerning them
is being processed, where and for what purpose. Further, we shall provide a copy of
the personal data, free of charge, in an electronic format.
Once we have compared your (the subjects') rights to "the public interest in the
availability of the data", we may delete your personal data where you have requested
this.
We allow you to receive the personal data concerning you, which we will provide in a
'commonly used and machine readable format' and you have the right to transmit
that data to another ‘controller’.
Right to be Forgotten
Data Portability
Privacy by Design
We implement appropriate technical and organisational measures, in an effective
way, in order to meet the requirements of this Regulation and protect the rights of
data subjects'. We hold and process only the data absolutely necessary for the
completion of our duties (data minimisation), as well as limiting the access to
personal data to those needing to act out the processing.
38
WHITE PAPER
REFERENCES
https://swap.tech/whitepaper/
http://hackingdistributed.com/2017/08/13/cost-of-decent/
https://www.coindesk.com/solving-liquidity-challenge-decentralized-exchanges/
https://www.cointelligence.com/content/guide-to-atomic-swap-trustless-cross-
chain-trading/
https://goo.gl/yia4Gu
https://coin.dance/
https://coinmarketcap.com/
39
WHITE PAPER
IMPORTANT NOTICE
Please read this section and the following sections, entitled “Disclaimer Of Liability”, “No
Representations And Warranties”, “Representations And Warranties By You”, “Cautionary Note
On Forward-Looking Statements”, “Market And Industry Information And No Consent Of
Other Persons”, “No Advice”, “No Further Information Or Update”, “Restrictions On Distribution
And Dissemination”, “No Offer Of Securities Or Registration” and “Risks And Uncertainties”
carefully.
IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT
YOUR LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S)
DEFINITIONS
Throughout this document, the following definitions shall be used:
“White Paper” refers to the document describing LTE Token which is available for download
from the website http://www.localtokenexchange.com “LTE Token” refers to the Proof of
Work ERC 20 tokens issued by the Distributor using the Ethereum Blockchain for purposes
of raising funds for the development of LTE by the Company. “LTE” refers to the Blockchain-
based banking application referred to in the White Paper.
“Distributor” refers to the Spanish company, Local Token SL (“Company”), CIF No: 93548030
and the promoter of the LTE Token ICO. “Company” refers to the future company or
foundation that shall be formed in the Cayman Islands by the Distributor, after the Pre-ICO
fundraising exercise to develop the LTE project. “LTE Token Pre-ICO” refers to the initial round
of the fundraising exercise by the Distributor to raise funds for the development of LTE by
the Company through the sale of LTE Token. “T&Cs” shall refer to the terms contained in the
agreement between the Distributor and you for the sale and purchase of LTE Tokens and
shall be treated as a separate document from this Notice.
INTRODUCTION
Throughout this document, the following definitions shall be used:
“White Paper” refers to the document describing LTE Token which is available for download
from the website http://www.localtokenexchange.com “LTE Token” refers to the Proof of
Work ERC 20 tokens issued by the Distributor using the Ethereum Blockchain for purposes
of raising funds for the development of LTE by the Company. “LTE” refers to the Blockchain-
based banking application referred to in the White Paper.
“Distributor” refers to the Spanish company, Local Token SL (“Company”), CIF No: 93548030
and the promoter of the LTE Token ICO. “Company” refers to the future company or
foundation that shall be formed in the Cayman Islands by the Distributor, after the Pre-ICO
fundraising exercise to develop the LTE project. “LTE Token Pre-ICO” refers to the initial round
of the fundraising exercise by the Distributor to raise funds for the development of LTE by
the Company through the sale of LTE Token. “T&Cs” shall refer to the terms contained in the
agreement between the Distributor and you for the sale and purchase of LTE Tokens and
shall be treated as a separate document from this Notice.
40
WHITE PAPER
The Distributor will use proceeds of sale of LTE Tokens to provide funding for the LTE project
by the Company and its affiliated businesses and operations. The Distributor intends to
incorporate the Company after the completion of the fundraising exercises through the sale
of the LTE Tokens which may include further fundraising rounds after the LTE Token Pre-ICO.
LTE Tokens are issued for the purpose of raising funds for the development of LTE and may
possibly have no utility or intrinsic value.
No person is bound to enter into any contract or binding legal commitment in relation to
the sale and purchase of the LTE Tokens, and no cryptocurrency or other form of payment is
required to be accepted solely on the basis of the White Paper.
Any agreement between the Distributor and you in relation to any sale and purchase of LTE
Tokens is to be governed by the T&Cs. In the event of any inconsistencies between the T&Cs
and the White Paper, the former shall prevail. You are not eligible and you shall not purchase
any LTE Tokens in the LTE Token Pre-ICO if you are a citizen, resident (tax or otherwise) or
Green Card holder of the United States of America, or a citizen or resident of the People’s
Republic of China (PRC) or a citizen or resident of Spain.
No regulatory authority has examined nor approved any information set out in the White
Paper. No such action has been or will be taken under the laws, regulatory requirements or
rules of any jurisdiction. The publication, distribution or dissemination of the White Paper
does not imply that the applicable laws, regulatory requirements or rules have been
complied with.
There are risks and uncertainties associated with the Company, the Distributor, the LTE
project, the LTE Tokens, and the LTE Token Pre-ICO.
The White Paper, and copies of it, whether in full or in part, must not be taken or transmitted
to any country where distribution or dissemination of the White Paper is prohibited or
restricted.
No part of the White Paper may be reproduced, distributed or disseminated without
including this section and the following sections entitled “Disclaimer of Liability”, “No
Representations and Warranties”, “Representations and Warranties By You”, “Cautionary Note
On Forward- Looking Statements”, “Market and Industry Information and No Consent of
Other Persons”, “Terms Used”, “No Advice”, “No Further Information or Update”, “Restrictions
On Distribution and Dissemination”, “No Offer of Securities Or Registration” and “Risks and
Uncertainties”.
41
WHITE PAPER
To the maximum extent permitted by applicable laws, regulations and rules, the Distributor
shall not be liable for any direct, indirect, special, incidental, consequential or other losses of
any kind, in tort, contractor otherwise (including but not limited to loss of revenue, income
or profits, and loss of use or data), arising out of or in connection with any acceptance of or
reliance on the White Paper or any part thereof by you.
DISCLAIMER OF LIABILITY
NO REPRESENTATIONS AND WARRANTIES
The Distributor do not make or purport to make, and hereby disclaims, any representation,
warranty or undertaking in any form whatsoever to any entity or person, including any
representation, warranty or undertaking in relation to the truth, accuracy and completeness
of any of the information set out in the White Paper.
REPRESENTATIONS AND WARRANTIES BY YOU
By accessing and/or accepting possession of any information in the White Paper or such part
thereof your present and warrant to the Distributor as follows:
You agree and acknowledge that the LTE Tokens do not constitute securities in any form in
any jurisdiction; You agree and acknowledge that the White Paper does not constitute a
prospectus or offer document of any sort and is not intended to constitute an offer of
securities in any jurisdiction or a solicitation for investment in securities and you are not
bound to enter into any contract or binding legal commitment and no cryptocurrency or
other form of payment is to be accepted solely on the basis of the White Paper; You agree
and acknowledge that no regulatory authority has examined nor approved of the
information set out in the White Paper, no action has been or will be taken under the laws,
regulatory requirements or rules of any jurisdiction and the publication, distribution or
dissemination of the White Paper to you does not imply that the applicable laws, regulatory
requirements or rules have been complied with; You agree and acknowledge that the White
Paper, the undertaking and/or the completion of the LTE Token Pre-ICO, or future trading of
the LTE Tokens on any cryptocurrency exchange, shall not be construed, interpreted or
deemed by you as an indication of the merits of the Distributor, the LTE Tokens, and the LTE
Token Pre-ICO; the distribution or dissemination of the White Paper, any part thereof or any
copy thereof, or acceptance of the same by you, is not prohibited or restricted by the
applicable laws, regulations or rules in your jurisdiction, and where any restrictions in
relation to possession are applicable, You have observed and complied with all such
restrictions at your own expense and without liability to the Distributor;
42
WHITE PAPER
All statements contained in the White Paper, statements made in press releases or in any
place accessible by the public and oral statements that may be made by the Distributor or
its respective directors, executive officers or employees acting on behalf of the Distributor,
that are not statements of historical fact, constitute “forward-looking statements”. Some of
these statements can be identified by forward-looking terms such as “aim”, “target”,
“anticipate”, “believe”, “could”, “estimate”, “expect”, “if”, “intend”, “may”, “plan”, “possible”,
“probable”, “project”, “should”, “would”, “will” or other similar terms. However, these terms are
not the exclusive means of identifying forward-looking statements.
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
You agree and acknowledge that if you wish to purchase any LTE Tokens, the LTE Tokens are
not to be construed, interpreted, classified or treated as securities; You are aware and
understand that you are not eligible to purchase any LTE Tokens during the Pre-ICO if
you are a citizen, resident (tax or otherwise) or Green Card holder of the United States of
America, or a citizen or resident of the People’s Republic of China, or a citizen or resident of
Spain. You have a basic understanding of the operation, functionality, usage, storage,
transmission mechanisms and other material characteristics of cryptocurrencies, blockchain-
based software systems, cryptocurrency wallets or other related token storage mechanisms,
blockchain technology and smart contract technology; You are aware and understand that if
you wish to purchase any LTE Tokens, there are risks associated with the Company, the
Distributor and its business and operations, the LTE Tokens, and the LTE Token Pre-ICO; you
agree and acknowledge that the Distributor is not liable for any indirect, special, incidental,
consequential or other losses of any kind, in tort, contract or otherwise (including but not
limited to loss of revenue, income or profits, and loss of use or data), arising out of or in
connection with any acceptance of our reliance on the White Paper by you; and all of the
above representations and warranties are true, complete, accurate and non-misleading from
the time of your access to and/or acceptance of possession the White Paper or such part
thereof any kind of currency other than cryptocurrency; debentures, stocks or shares issued
by any person or entity; rights, options or derivatives in respect of such debentures, stocks or
shares; rights under a contract for differences or under any other contract the purpose of
which is to secure a profit or avoid a loss; units in a collective investment scheme; units in a
business trust; derivatives of units in a business trust; or any other security or class of
securities.
All statements regarding the Distributor’s financial position, business strategies, plans and
prospects and the future prospects of the industry which the Distributor is in, are forward
looking statements. These forward-looking statements, including but not limited to
statements as to the Distributor’s revenue and profitability, prospects, future plans, other
expected industry trends and other matters discussed in the White Paper regarding the
Distributor are matters that are not historical facts, but only predictions.
These forward-looking statements involve known and unknown risks, uncertainties and other
factors that may cause the actual future results, performance or achievements of the
Distributor to be materially different from any future results, performance or achievements
expected, expressed or implied by such forward-looking statements. These factors include,
amongst others: changes in political, social, economic and stock or cryptocurrency market
conditions, and the regulatory environment in the countries in which the Distributor
conducts its businesses and operations; the risk that the Distributor may be unable to
execute or implement its business strategies and future plans; changes in interest rates and
exchange rates of fiat currencies and cryptocurrencies; changes in the anticipated growth
strategies and expected internal growth of the Distributor; changes in the availability of
funding and fees payable to the Distributor in connection with their respective businesses
and operations; changes in the availability of and salaries of employees required by the
Distributor to operate/- support its businesses and operations; changes in preferences of
customers of the Distributor; changes in competitive conditions under which the Distributor
operate, and the ability of the Distributor to compete under such conditions; changes in the
future capital needs of the Distributor and the availability of financing and capital to fund
such needs; war or acts of international or domestic terrorism; occurrences of catastrophic
events, natural disasters and acts of God that affect the businesses and/or operations of the
Distributor; other factors beyond the control of the Distributor; and any risk and
uncertainties associated with the Distributor and its business and operations, the LTE Tokens
and the LTE Token Pre-ICO.
43
WHITE PAPER
All forward-looking statements made by or attributable to the Distributor or persons acting
on behalf of the Distributor are expressly qualified in their entirety by such factors. Given that
risks and uncertainties may cause actual future results, performance or achievements of the
Distributor to be materially different from that expected, expressed or implied by the
forward looking statements in the White Paper, undue reliance must not be placed on these
statements. These forward-looking statements are applicable only as of the date of the
White Paper. Neither the Distributor nor any other person(s) represent, warrant and/or
undertake that the actual future results, performance or achievements of the Distributor will
be as discussed in those forward-looking statements. The actual results, performance or
achievements of the Distributor may differ materially from those anticipated in these
forward-looking statements. Nothing contained in the White Paper is or may be relied upon
as a promise, representation or undertaking as to the future performance or policies of the
Distributor. Further, the Distributor disclaims any responsibility to update any of those
forward-looking statements or publicly announce any revisions to those forward-looking
statements to reflect future developments, events or circumstances, even if new information
becomes available or other events occur in the future.
44
WHITE PAPER
The White Paper includes market and industry information and forecasts that have been
obtained from internal surveys, reports and studies, where appropriate, as well as market
research, publicly available information and industry publications. Such surveys, reports,
studies, market research, publicly available information and publications generally state that
the information that they contain has been obtained from sources believed to be reliable,
but there can be no assurance as to the accuracy or completeness of such included
information. Save for the Distributor and its directors, executive officers and employees, any
other persons whose names are included in the White Paper are named merely as external
advisors to the Distributor and no representation, warranty or undertaking is provided as to
the accuracy or completeness of such information by such person and such persons shall not
be obliged to provide any updates or clarification on the same.
While the Distributor has taken reasonable actions to ensure that information is extracted
accurately and in its proper context, the Distributor has not conducted any independent
review of the information extracted from third party sources, verified the accuracy or
completeness of such information or ascertained the underlying economic assumptions
relied upon therein. Consequently, neither the Distributor, nor its directors, executive officers
and employees acting on its behalf makes an representation or warranty as to the accuracy
or completeness of such information and shall not be obliged to provide any updates on the
same.
MARKET AND INDUSTRY INFORMATION AND NO CONSENT OF OTHER PERSONS
TERMS USED
To facilitate a better understanding of the LTE Tokens being offered for purchase by the
Distributor, and the business and operations of the Distributor, certain technical terms and
abbreviations, as well as, in certain instances, their descriptions, have been used in the White
Paper. These descriptions and assigned meanings should not be treated as being definitive
of their meanings and may not correspond to standard industry meanings or usage. Words
importing the singular shall, where applicable, include the plural and vice versa and words
importing the masculine gender shall, where applicable, include the feminine and neuter
genders and vice versa. References to persons shall include corporations.
NO ADVICE
No information in the White Paper should be considered to be business, legal, financial or
tax advice regarding the Distributor, the LTE Tokens, and the LTE Token Pre-ICO. You should
consult your own legal, financial, tax or other professional adviser regarding the Distributor
and its business and operations, the LTE Tokens, and the LTE Token Pre-ICO. You should be
aware that you may be required to bear the financial risk of any purchase of LTE Tokens for
an indefinite period of time.
45
WHITE PAPER
No person has been or is authorised to give any information or representation not contained
in the White Paper in connection with the Distributor and its business and operations, the
LTE Tokens, and the LTE Token Pre-ICO and, if given, such information or representation
must not be relied upon as having been authorised by or on behalf of the Distributor. The
LTE Token Pre-ICO shall not, under any circumstances, constitute a continuing
representation or create any suggestion or implication that there has been no change, or
development reasonably likely to involve a material change in the affairs, conditions and
prospects of the Distributor or in any statement of fact or information contained in the
White Paper since the date hereof.
NO FURTHER INFORMATION OR UPDATE
RESTRICTIONS ON DISTRIBUTION AND DISSEMINATION
The distribution or dissemination of the White Paper or any part thereof may be prohibited
or restricted by the laws, regulatory requirements and rules of any jurisdiction. Where any
restriction applies, you are to inform yourself about, and to observe, any restrictions which
are applicable to your possession of the White Paper or such part thereof at your own
expense and without liability to the Distributor. Persons to whom a copy of the White Paper
has been distributed or disseminated, provided access to or who otherwise have the White
Paper in their possession shall not circulate it to any other persons, reproduce or otherwise
distribute the White Paper or any information contained herein for any purpose whatsoever
nor permit or cause the same to occur.
NO OFFER OF SECURITIES OR REGISTRATION
The White Paper does not constitute a prospectus or offer document of any sort and is not
intended to constitute an offer of securities or a solicitation for investment in securities in
any jurisdiction. No person is bound to enter into any contract or binding legal commitment
and no cryptocurrency or other form of payment is to be accepted solely on the basis of the
White Paper. Any agreement in relation to any sale and purchase of LTE Tokens is to be
governed by only the T&Cs of such agreement and no other document. In the event of any
inconsistencies between the T&Cs and the White Paper, the former shall prevail. You are not
eligible to purchase any LTE Tokens in the LTE Token Pre-ICO if you are a citizen, resident
(tax or otherwise) or Green Card holder of the United States of America, or a citizen or
resident of the People’s Republic of China (PRC) or a citizen or resident of Spain. No
regulatory authority has examined or approved of any of the information set out in the White
Paper. No such action has been or will be taken under the laws, regulatory requirements or
rules of any jurisdiction.
The publication, distribution or dissemination of the White Paper does not imply that the
applicable laws, regulatory requirements or rules have been complied with.
46
WHITE PAPER
Prospective purchasers of LTE Tokens should carefully consider and evaluate all risks and
uncertainties associated with the Distributor and its business and operations, the LTE Tokens,
and the LTE Token Pre-ICO, all information set out in the White Paper and the T&Cs prior to
any purchase of LTE Tokens. If any of such risks and uncertainties develops into actual
events, the business, financial condition, results of operations and prospects of the
Distributor could be materially and adversely affected. In such cases, you may lose all or part
of the value of LTE Token.
RISKS AND UNCERTAINTIES
HTTPS://LOCALTOKEN.EXCHANGE
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