PHANTOM AI WEEKLY BITCOIN FORECAST

ICO PROJECT

PHANTOM AI, INC.

1st edition: 2017/10/01

2nd edition: 2017/10/12

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TABLE OF CONTENTS

Abstract ................................................................................................................................................... 4

Objectives ................................................................................................................................................ 7

What is an ICO ................................................................................................................................ 7

Underlying Technology ........................................................................................................................... 8

Phantom AI Engine ................................................................................................................................. 8

Concept ............................................................................................................................................ 8

Structure .......................................................................................................................................... 9

“Phantom AI Weekly Stock Price Forecast” Trial .......................................................................... 10

Known Weaknesses ........................................................................................................................ 10

Statistical Analysis .......................................................................................................................... 10

AI and Time series forecasting ....................................................................................................... 11

Product Details ..................................................................................................................................... 12

Phantom AI Weekly Bitcoin Forecast .................................................................................................... 12

Concept .......................................................................................................................................... 12

Development Process and Progress Updates ................................................................................. 13

Access Method ............................................................................................................................... 13

Known Weaknesses ........................................................................................................................ 14

PAI Token Platform .............................................................................................................................. 15

Summary ........................................................................................................................................ 15

Decentralization ............................................................................................................................. 15

Source of Value .............................................................................................................................. 16

Algorithm Reward Program ........................................................................................................... 16

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PAI Token Technical Details ................................................................................................................ 18

About PAI tokens .................................................................................................................................. 18

Technology Summary .................................................................................................................... 18

Bug Bounty Program ..................................................................................................................... 19

Token Sales ........................................................................................................................................... 21

Issuing Rules .................................................................................................................................. 21

Non-guaranteed Pricing ................................................................................................................. 22

Use of Proceeds ..................................................................................................................................... 23

Step 1 Fund Raised under 3M Dollars ......................................................................................... 23

Step 2 Fund Raised under 10M Dollars ....................................................................................... 23

Step 3 Investments Reach More than 10M Dollars ...................................................................... 24

Roadmap ............................................................................................................................................... 25

Benefits ................................................................................................................................................. 27

Trial Use of “Phantom AI Weekly Stock Price Forecast” ............................................................... 27

Using “Phantom AI Weekly Stock Price Forecast” ........................................................................ 27

Using Other Forecast Engines ....................................................................................................... 27

PAI Token Issuer................................................................................................................................... 28

About Phantom AI, Inc. and its subsidiaries .................................................................................. 28

Relationship with ZAISAN Net, Inc. .............................................................................................. 28

Team ..................................................................................................................................................... 29

Important Notice ................................................................................................................................... 33

Overview ........................................................................................................................................ 33

Buyers of PAI Tokens .................................................................................................................... 33

Risks ............................................................................................................................................... 34

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Disclaimer ...................................................................................................................................... 35

Representations and Warrants by the Buyer .................................................................................. 36

Update on Token Sales .................................................................................................................. 37

Market / Industry Information ....................................................................................................... 37

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ABSTRACT

What is this ICO for

Thank you for your interest in our ICO project “Phantom AI Weekly Bitcoin Forecast”. This project aims to apply Phantom AI Forecast Engine, which was developed by our sister company ZAISAN Net, Inc., to forecast crypto-currency price, and this ICO is to issue PAI Tokens in order to fund it.

Why we can

As has been introduced in media including TV and newspapers, ZAISAN Net, Inc., our sister company, has a proven record of developing "Phantom AI Weekly Stock Forecast" using the Phantom AI Forecast Engine. We aim to develop "Phantom AI Weekly Bitcoin Forecast" by effectively using such technology and know-how.

It is true that many ICO projects are either fraud-suspicious and/or lack of development/marketing capability of the product. Taking into account such concerns, we are currently working to offer free access, to the extent permitted by laws and regulations, to our existing product "Phantom AI Weekly Stock Price Forecast” to retail investors who hold a certain amount of our tokens.

How we will proceed

Our Phantom AI Forecast Engines will identify trends within the market to calculate a baseline predicted value. From Phase 2 development onwards, we will combine transaction data from individual Wallets specific to the crypto-currency market to achieve forecast with superior accuracy.

(1) Launch "Phantom AI Weekly Bitcoin Forecast" that leverages our Phantom AI Engine

(2) Use sample data of crypto-currency transactions that can be collected with PAI tokens

(3) Acquire and use data of all crypto-currency transactions

(4) Acquire and use transaction data in stock, FX, and commodities markets

(5) Release data of crypto-currency transactions and integrate with other’s ideas as a crypto-forecast platform

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How to buy

Pre-ICO will commence on October 21. 2017. Advance registration will commence on October 14, 2017. Please open an account with a crypto-currency trader with at least 7 ETH (approx. 200,000 yen) for the ICO.

For the Pre-ICO, PAI tokens will be sold at lower price than that for Crowd-Sales. Please refer to the “Token Details” section for details on conditions.

When services are available

Phase 1 development is scheduled for Q1 2018, including the initial release of "Phantom AI Weekly Bitcoin Forecast" developed based on our expertise with "Phantom AI Weekly Stock Price Forecast". We will provide access to retail investors who hold a certain amount of our tokens.

Please refer to the "Roadmap" section for the rest of development schedule.

Who we are and where we are located

Phantom AI, Inc. and Zaisan Net, Inc. are startup companies based in Tokyo, specializing in AI x Fintech. The companies develop engines for institutional investors including engines to forecast varying length of time of stock prices, as well as Weekly stock forecast.

For whom

This project is suited for those who are highly motivated to invest and look for ICO opportunities with clear products.

(1) Token holders will have access to our Weekly Bitcoin Forecast service.

(2) The larger the number of token holders becomes, the higher the engines' forecast accuracy will be, adding benefits for the token holders.

(3) During and after Phase 4, release of transaction data will drive development of various engines, allowing token holders to access various forecast engines.

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This ICO project is designed that the funding will improve our forecast accuracy, as well as purpose to hold/use our tokens, permitting access to our premium service platform.

And more…

After Phase 4, collected data on crypto-currency transactions will be merged as data for basic analysis. We aim to further improve our engines' forecast accuracy by incorporating transaction data on FX and alternative assets. Such data will also be shared with any mathematicians and statisticians who wish to release forecast engines using the PAI token. Such release of data will serve as an input for statisticians who did not have access to measures to monetize their forecast ideas and for students in financial engineering who are facing challenges in collecting basic data, and an output as reaching out to investors who are interested in the forecast. In such a way, we will achieve higher value of the platform.

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OBJECTIVES

In this project, we will apply the “Phantom AI Weekly Stock Price Forecast” technology created by ZAISAN Net, Inc. to the forecasting of crypto-currency prices.

The “Phantom AI Weekly Stock Price Forecast”, an engine that had gathered much interest from retail investors since its launch in Spring of 2017, will be offered to investors as a part of the “Phantom AI Weekly Bitcoin Forecast” ICO.

“Phantom AI Weekly Bitcoin Forecast” hopes to utilize accessible wallet information of crypto-currency traders to improve its forecast accuracy. Capital raised from ICO will be used to conduct research and development, pay employee wages, and cover other general expenses.

In addition, the aggregated big data will be offered to third party researchers that use the PAI token as a platform. With this benefit, we hope to make the PAI token the platform coin for other similar forecasting engines.

WHAT IS AN ICO

Please refer to the FAQ section for more general information on ICOs.

https://phantom-ai.com/faq/

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UNDERLYING TECHNOLOGY

PHANTOM AI ENGINE

CONCEPT

The Phantom AI Engine, which is the underlying technology behind “Phantom AI Weekly Bitcoin Forecast”, is based on the idea of analyzing trends. “Phantom AI Weekly Stock Price Forecast”, created by ZAISAN Net, Inc., is also based on the same concept.

For example, every company has seasonal and annual patterns. For most Japanese companies, the fiscal year starts in April and ends in March, meaning they tend to boost up more revenue when nearing March. On the other side, April is normally the season for announcing new business plans and organization structure change, therefore we see it as start line of new initiatives in most of Japanese companies. This leads to many positive press releases around April.

This is the same from a national level, at the end of the year/fiscal year, an increase in public infrastructure investment causes positive effects for the construction industry. During the holidays, because most factories halt production, it will lead to fluctuation in inventory for manufacturers. This kind of impact to the value-chain of a company - manufacturing, inventory, revenue - always shows us the importance of analyzing annual and seasonal trends.

By capturing periodical movement of these companies and their trending patterns, we are able to forecast prices for each stock. An example of this would be the advertising industry and the fact that revenues decrease every February and August. This means that quarterly earnings including these two months tend to be weaker: an obvious trend unique to this industry. Conclusively, we know that stock prices dip in the months with the previously mentioned quarterly earnings reports.

The above mentioned facts are information that any institutional investor has a concrete grasp on and they use these indicators to effectively position themselves. However, the same logic does not apply to the retail investors. For retail investors, analyzing a company’s trends/charts are often too difficult. It is hard to determine if a company’s stock volatility is only short-term or is part of a larger trend. Therefore, “Phantom AI Weekly Stock Price Forecast”, using the Phantom AI Engine, is the solution for these investors.

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STRUCTURE

The actual system behind the “Phantom AI Weekly Stock Price Forecast” is more complicated than previously mentioned, but in this section, we will provide a further detailed overview.

� One engine is dedicated to statistical cleansing of the Brownian motion (noises) as a preparation step.

� Another engine will capture 1-year period price movement and analyze patterns.

� The same is done using different engines for different timeframes.

� A different engine is used to capture any short-term volatility.

� At the end, an engine aggregates all findings from the various engines and determines the final forecast.

In short,

� Statistical analysis forecast engines

� AI forecast engines

� Aggregate engines

are utilized.

AI cannot predict the future with 100% accuracy. However, we believe that investors will be able to analyze stocks trends at a higher accuracy with our technology than the traditional method of chart reading. And that is the service of our product, “Phantom AI Weekly Stock Price Forecast”.

For instance, by using the Bollinger Band® investors can expect the next day’s stock price to land in ±1σ (Standard Deviation) range from the simple moving average at about a 68% chance. In comparison, according to past records, “Phantom AI Weekly Stock Price Forecast” has an accuracy rate of over 80%. For more on “Phantom AI Weekly Stock Price Forecast” please refer to the next chapter.

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For instance, when a rebound in price is expected for a stock that is gradually declining, instead of hastily buying those stocks, you would have the option to stay put for another day. Although there’s the case that price will rebound immediately in the next day, but with statistical analysis, an investor might be able to mitigate risks of another dip in price.

“PHANTOM AI WEEKLY STOCK PRICE FORECAST” TRIAL

Our plan is to grant users who hold a certain amount of our tokens trial access to ZAISAN Net, Inc.’s “Phantom AI Weekly Stock Price Forecast”, to a level complaint to regulations, which will let investors experience similar service as “Phantom AI Weekly Bitcoin Forecast”.

When trial access to “Phantom AI Weekly Stock Price Forecast” is granted, users will be able to login through a dedicated website by using their wallet addresses.

KNOWN WEAKNESSES

Unable to be applied to events with no leading signals

Because our product is based on historical trend reading, incidents that show no prior indication in terms of trends will not be forecasted. For example, “The exact date of when North Korea will launch an ICBM missile” will not be inputted into our engines as other investors will not have access to this information as well. However, “North Korea’s launch of an ICBM is imminent” can be inputted as it is vital information that can be seen as a trend in market prices.

STATISTICAL ANALYSIS

For more information on our engines’ statistical analysis, please refer to the following page.

https://phantom-ai.com/technology/

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AI AND TIME SERIES FORECASTING

Time series forecasting using AI technology has had a bad success rate in the past and is often regarded as problematic. Many financial institutions have incorporated AI forecasting given that it is theoretically effective, however they fail to produce results. This phenomenon can be explained from the random walk theory, a large part of time series forecasting is only accurate after removing effects of the Brownian motion.

General approaches to AI time series forecasting and its failed attempts are further explained in the Fintech Summit 2017 workshop “A working practice from AI forecast.” (Japanese only)

https://www.slideshare.net/godzgodz/20170920finsumworkshopzaisannet

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PRODUCT DETAILS

PHANTOM AI WEEKLY BITCOIN FORECAST

CONCEPT

“Phantom AI Weekly Bitcoin Forecast” will utilize previously mentioned technology from the weekly stock price forecasting and aim to produce a higher quality product, by blending in additional information such as crypto-currency investor’s wallet address information. The capital raised will go towards the research & development, employee wages, and other various expenses necessary for this project.

Firstly, we will use the investments to improve the accuracy of crypto-currency forecasting. In the case of crypto-currency, unlike stock trades and forex trading, third parties can observe which wallets are conducting which deals. With this information, we can track wallets that have a big impact on the market and determine which wallets are first movers and which is the followers. As we monitor PAI token holders and their use of “Phantom AI Weekly Bitcoin Forecast”, we can gather sampling data for the entire crypto-currency market.

Then we will transition into analyzing all data transmitted on blockchain network. This is the equivalent of analyzing all tick data for stocks, but with identification for each transaction.

Like stocks, forex and all other asset trading, the positioning of larger investors have a bigger impact on the market than retail investors. Also, there are first mover investors, who adapt to the market flow as quickly as possible, and following investors, who like to observe the market for a while before making any moves. This means that as we track wallet addresses and label each as a certain type of investor, we will know the behaviors of different type of investors.

At ZAISAN Net, Inc., we are developing an engine that analyzes all transactions and tick data for stocks and detects any anomalies. This technology can be used on the Bitcoin Market and detect its unusual behavior or anything a trader might pick up as an anomaly. In the case of stock market, nobody could monitor these data except regulators, however in case of crypto-currency, the transparency in transactions makes it possible to obtain these data.

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DEVELOPMENT PROCESS AND PROGRESS UPDATES

Development will commence post-Crowd-Sales in 2018.

Progress in research & development will be updated on our official website for PAI token holders once every month.

Phase 1 Applying the Phantom AI Engine to “Phantom AI Weekly Bitcoin Forecast”

Phase 1 is expected to be completed during Q1 2018.

Phase 2 Applying crypto-currency transaction data collected from (PAI) token holders to “Phantom AI Weekly Bitcoin Forecast”

Phase 2 is expected to be completed during Q2 2018.

Phase 3 Applying non-token crypto-currency data to “Phantom AI Weekly Bitcoin Forecast”

Phase 3 is expected to be completed during Q4 2018.

Phase 4 Applying other asset class such as stocks, currency, gold, oil and their transaction data to “Phantom AI Weekly Bitcoin Forecast”, as well as granting access to the PAI token to other forecast engines.

Phase 4 is expected to be completed after 2019.

ACCESS METHOD

After completion of Phase 1, an access site exclusively for token holders will be launched. Investors with a certain number of PAI tokens will be granted access to “Phantom AI Weekly Bitcoin Forecast” by using their wallet addresses to login.

Details on access will be emailed to users upon token distribution, which is expected to be in December 2017.

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KNOWN WEAKNESSES

Unable to be applied to events with no leading signals

Because our product is based on trend reading, incidents that show no prior indication in terms of trends will not be forecasted. For example, “The exact date of when North Korea will launch an ICBM missile” will not be inputted into our engines as other investors will not have access to this information as well. However, “North Korea’s launch of an ICBM is imminent” can be inputted as it is vital information that can be seen as a trend in market prices.

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PAI TOKEN PLATFORM

SUMMARY

The PAI token will act like sonar of submarines placed underwater across the sea. In the same way as large and small fish creating ripples on the surface of the ocean when they jump, large and small investors create volatility when they invest.

Investors that back this project can be considered having a certain amount of existing investments in other asset classes, which mean they are aggressive first mover type investors. By looking at when and where these first mover investors look at our forecasts, and how it correlates with Bitcoin price movement, we will be able to acquire useful sampling data, through our token sales.

By releasing this big data to the public, our token will become the platform for all forecasting programs.

When you take an investment strategy such as “using the relative strength index on a 5 minute candlestick chart to buy in at 30% and exit at 70%”, and this is just one indicator for professional investors, but for non-RSI users it will be vital for their trading. As token holders use other effective algorithms, we are able to gather more valuable information.

DECENTRALIZATION

Information from our tokens will be inputted into our overall trend forecast system and the aggregated big data will be inputted into the PAI token platform for future algorithm developers.

This is the network effect of decentralization created by our token.

In addition, as Phase 2 is completed and transaction data from the entire blockchain network is analyzed, the big data collected from the PAI tokens will increase in value. After Phase 4, third party engines will have access to our PAI token, which will effectively use the decentralized nature of the blockchain network.

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SOURCE OF VALUE

Users with a certain number of tokens will be granted access to “Phantom AI Weekly Bitcoin Forecast”. This means that the “Phantom AI Weekly Bitcoin Forecast” is where the value is created. When “Phantom AI Weekly Bitcoin Forecast” improves in accuracy, more people will seek access to the service, resulting in increased demand for our token. On the other hand, if development fails or the emergence of other competing indicators appears will result in a decrease in demand for our service, the token will lose its value.

The value of the PAI token is not limited to our engine. We expect to expand our systems to allow mathematicians and statisticians from around the world to use our platform and develop their own forecasting engines.

There are countless ideas for forecasting engines that don’t see the light of day, due to the lack of matching between researchers and potential users.

・ Release accumulated transaction data and big data

・ Reaching out to investor groups with an interest in the engine

will be made possible with the PAI token platform.

As these engines gain active users, based on “Phantom AI Weekly Bitcoin Forecast”, we will distribute PAI tokens to their respective developers as compensation and create an economy of rewarding value of research.

By limiting our issuance of tokens, initially we will only grant access to 10,000 users. By establishing a sense of exclusivity for access, we create sustained value for our tokens.

ALGORITHM REWARD PROGRAM

Apart from our engines, in the event a forecast algorithm created by a user is adopted, PAI tokens or tokens backed by PAI tokens will be rewarded. More details will be released post-Phase 2.

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PAI TOKEN TECHNICAL DETAILS

ABOUT PAI TOKENS

TECHNOLOGY SUMMARY

The Phantom AI token is compliant with the public Ethereum blockchain’s ERC20.

PAI tokens can be used with wallets that are ERC20 compliant and work well with the existing Ethereum ecosystem. In the future, tokens will not only be used for our service, but will be publicly traded.

Phantom AI token details

Token Name: Phantom AI token

Symbol: PAI

Accuracy: 18 digits

Similar to other ERC20 compliant tokens, token transactions can be conducted between any two parties, but only when both wallet addresses are valid.

The example below details a transaction between Person A and Person B.

The transferred amount is V.

(1) The reserved amount from A to B is V.

(2) Authorization event.

(3) V is subtracted from the reserved amount from A to B.

(4) V is subtracted from A’s balance.

(5) V is added to B’s balance.

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(6) Transferring event of V from A to B is conducted.

(7) The reserved amount from A to B is set to 0.

(8) Authorization event.

Contract addresses for the Pre-Sales/Crowd-Sales may vary depending on the number of tokens issued and other conditions, so please always check our official page. (Please ignore any notifications with contract addresses impersonating to be ours.)

Regarding token usage for our service, by creating a new Ethereum address at MyEtherWallet and depositing over 1000 PAI when you register or first login, you will be granted access. Please keep the secret keys that you receive when you create your wallet. (The product below is still in development and is still subject to change.)

Although there is little incentive to misuse the service, token issues and other major events will be monitored, and in the event a user is found misusing our service, the account will be blacklisted and all further transactions will be dismissed. Losses due to an account freeze of misuse will not be compensated.

BUG BOUNTY PROGRAM

There is always the possibility of the PAI token having bugs. If bugs can be reported in a timely manner, the user who reports it will be granted 0.1% tokens of the already issued amount as a reward.

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TOKEN SALES

For the Pre-Sales and Crowd-Sales, PAI tokens will be sold in a 1000 token lot, meaning a minimum of approximately 200,000 yen (Pre-Sales).

Issuing details are as below. Issuing numbers are at present and are subject to change as well as an issuing of adjustment tokens according to demand. This ICO project does not have a minimum funding amount.

Number of tokens to be issued

Price Notes

Pre-Sales 500,000Token (Est) 1000Token＠8ETH

1000Token＠7ETH Preregistered Users

Crowd-Sales 2,000,000Token (Est) 1000Token＠10ETH

1000Token＠9ETH Preregistered Users

Sales Adjustment Token 2,000,000Token (Est) TBD

Issuing Reserve 5,500,000Token (Est) Incentive Distribution is included

Issuing Amount Cap 10,000,000Token (Est)

ISSUING RULES

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Access to our “Phantom AI Weekly Stock Price Forecast” will be granted to users with 1000 tokens or more.

The number of tokens issued for the Pre-Sales and Crowd-Sales are subject to change due to demand.

We will not buy back tokens.

Funds gathered through Pre-Sales and Crowd-Sales will be used for research and development and marketing expenses; not reserved.

NON-GUARANTEED PRICING

We will not buy back tokens.

With that being said, our tokens will grant exclusive access to “Phantom AI Weekly Bitcoin Forecast”. The investments we gather will be used for further development. This will improve the accuracy of our forecasts and increase the demand for our tokens.

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USE OF PROCEEDS

Our ICO does not have a minimum funding amount limit.

The below general management, marketing & sales, and administrative costs covers the costs of establishing and maintaining the company as well as taxes, legal fees and other administrative costs. The research and development costs also covers the server fees and AI machinery fees.

STEP 1 FUND RAISED UNDER 3M DOLLARS

All investments will go toward project expenses, legal entity GS&A , and the development costs for Phase 1 of “Phantom AI Weekly Bitcoin Forecast”.

Project related costs

Procurement costs 20％（Est.）

Promotion costs 20％（Est.）

GS&A 20％（Est.）

R&D 40％（Est.）

STEP 2 FUND RAISED UNDER 10M DOLLARS

In addition to step1, Phase 2 and 3 of “Phantom AI Weekly Bitcoin Forecast” development will be funded.

GS&A 20％（Est.）

R&D 80％（Est.）

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STEP 3 INVESTMENTS REACH MORE THAN 10M DOLLARS

In the event we are funded for more than 10M dollars, in addition to steps 1 and 2, funding will go towards Phase 4 of “Phantom AI Weekly Bitcoin Forecast”, which needs long term research.

GS&A 20％（Est.）

R&D 40％（Est.）

PF R&D 40％（Est.）

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ROADMAP

2017/10/07 Pre-Sales Registration commences

The rate to be offered for investors registered at this stage: 1,000 PAI Tokens @7 ETH

2017/10/21 Pre-Sales commences

The rate to be offered for investors registered at this stage: 1,000 PAI Tokens @8 ETH

500,000 tokens (Max. 500 users) are expected to be issued.

2017/11/18 Crowd-Sales Registration commences

The rate to be offered for investors registered at this stage: 1,000 PAI Tokens@9 ETH

2017/12/01 Crowd-Sales commences

The rate to be offered for investors at this stage: 1,000 PAI Tokens @10 ETH

2,000,000 tokens (Max. 2,000 users) are expected to be issued.

2017/mid-12 Token issuer will complete corporate registration (overseas).

2017/12/24 PAI Tokens will be distributed.

2018/Q1 Phase 1 Development Applying “Phantom AI Weekly Stock Price Forecast” engines. Phase 1 development is expected to be completed during Q1 2018.

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2018/Q2 Phase 2 Development (Est.)

Applying data on PAI token holders to “Phantom AI Weekly Bitcoin Forecast”.

Phase 2 is expected to be completed during Q2 2018.

2018/Q3-4 Phase 3 Development (Est.)

Applying data of crypto-currency transaction made by non-token holders to “Phantom AI Weekly Bitcoin Forecast”.

Phase 3 is expected to be completed during Q4 2018.

2019 Phase 4 Development (Est.)

Applying transaction data of other asset class to “Phantom AI Weekly Bitcoin Forecast”.

Phase 4 is expected to be completed in/after 2019.

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BENEFITS

TRIAL USE OF “PHANTOM AI WEEKLY STOCK PRICE FORECAST”

As described above, our plan is to provide, to the extent permitted by laws and regulations, any user holding a certain number of tokens with free access to “Phantom AI Weekly Stock Price Forecast” starting late 2017 following the issuance of PAI tokens.

USING “PHANTOM AI WEEKLY STOCK PRICE FORECAST”

After the development of Phase 1 in Q2 2018, users will be granted the access to “Phantom AI Weekly Bitcoin Forecast”.

USING OTHER FORECAST ENGINES

After Phase 4, other parties’ forecast engines that use our platform and big data may become available.

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PAI TOKEN ISSUER

ABOUT PHANTOM AI, INC. AND ITS SUBSIDIARIES

Phantom AI, Inc. is a company that was founded with the purpose to develop forecast technologies including "Phantom AI Weekly Bitcoin Forecast" and to promote such platforms. Our goal is to promote platforms that can provide token holders with a number of forecast engines as the company being one of benchmarks.

Phantom AI, Inc. (Japanese entity) will accept Ethereum and other crypto-currencies for token purchases. Token issuing company will be our subsidiary (foreign legal entity) that is currently under preparation, through which we plan to distribute the tokens after the Crowd-Sales is completed.

RELATIONSHIP WITH ZAISAN NET, INC.

ZAISAN Net, Inc. is a leading FinTech company with its CEO being a board member of the Fintech Association of Japan, and sees opportunities in "AI x Finance". With its mottos "For easier and safer asset management" and "Providing you with professional asset management techniques", it offers "Shisan no Madoguchi", a user-friendly service that helps general users for easier self-analysis to take a next step, and introduces "Kabuto Yoho" to media, that effectively uses know-hows of experienced sales force and traders.

For institutional investors, ZAISAN Net’s optimization learning process leverages big data analytics of accumulated stock price data, statistical analysis based on financial engineering, and machine learning AI, to produce Weekly stock forecast. It also sells AI chatbot that can recognize natural language.

ZAISAN Net, Inc. is a sister company of Phantom AI, Inc. Although mutual investors do exist, there are no capital ties between the two.

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TEAM

~ Backed by Ph.D.s / Master of Sciences ~

CEO, Phantom AI, Inc. and ZAISAN Net, Inc.

Shirabe Ogino

He holds master’s degree from Harvard University and Ph.D from University of Tokyo. While attending graduate school, he developed new businesses with Sony, etc., including a 50 billion yen business reorganization. In his 30s, while at Sumitomo and Itochu's VC, he invested in dozens of Silicon Valley companies and executed dozens of M&As and IPOs. In 2011, he joined GREE, Inc. where he led the Business Development Division and its subsidiaries. His duties included engaging in tie-ups, investments and exits, business launches and business divestitures. He established an AI × finance company ZAISAN Net, Inc. in 2015, and Phantom AI, Inc. in 2017 with the goal of developing the "Phantom AI Weekly Bitcoin Forecast". He is currently a board member of the Fintech Association of Japan.

Blockchain Technology

Kenzo Arai

While working at an SIer in the financial sector, he was mainly engaged in IT consulting businesses

including construction and operation of securities trading systems and core business systems, system

transfer and others. This was followed by work at Deloitte Touche Tohmatsu LLC where he was

involved in advisory services related to FinTech and auditing for crypto-currency exchange traders.

While involved in prototype development of multiple blockchain products at work, he participated in

NRI Hackathon 2016 - Hack for Share as an individual and received the Tokio Marine & Nichido Fire

Insurance Award (東京海上日動火災保険株式会社賞) and the Nippon Life Insurance Company Award

(日本生命保険相互会社賞).

Web Content Manager

Hiroyuki Arai

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As an engineer, he gained experience in website creation using the PHP, HTML and CSS markup languages, SEO engineering and access analytics analysis. This was followed by work as a consultant to established enterprises, based on IT technologies and trends. He then worked for multiple IT companies, focusing on launching new businesses related to webs and apps, O2O and IP rights, gaining wide experience in launching businesses and companies, ranging from business development to management planning. His experience include launching seed phase ventures, advisory and mentoring on management strategy, organizational strategy and PR strategy, and mentoring on multiple acceleration programs.

Coordinator

Taiichiro Kubo

While he was a student at graduate school of Waseda University and developing web media and applications, he passed the certified public accountant examination. Immediately after graduation, he joined Deloitte Touche Tohmatsu LLC where he was engaged in providing support for stock listings and internal control construction, as well as in auditing duties. He joined Ceres Inc. in 2015 where his main duties included investing in Bitcoin and blockchain companies, alternative listing to the first section of the Tokyo Stock Exchange, new businesses using Bitcoin, construction and operation of internal control systems and the preparation of securities reports. In 2017, he founded ”Adjust Advisory, Inc.” that provides support for ICO, stock listing and the like in finance as well as develops auditing tools for crypto-currency businesses.

Blockchain Accountant

Hitoshi Kakizawa

After working at Mizuho Bank, he joined Deloitte Touche Tohmatsu LLC where he was mainly engaged in auditing for stock listing preparation and providing support for construction of internal control systems. He was involved in more than 15 IPOs. Since 2015, he has worked as a "Blockchain accountant" as part of the FinTech team for Deloitte Tohmatsu venture support. In addition to holding seminars and giving lectures related to ICOs, his works include consulting on blockchain verification, monitoring multiple crypto-currency exchanges, providing advice on risk assessment and auditing procedures, and improving internal systems. He is also engaged in information distribution to global firms.

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Director of Market Analysis, ZAISAN Net, Inc.

Nobuyuki Fujimoto

As a market analyst, Fujimoto has been called the marketplace's "God of Fortune."

He meets with more than 200 listed companies' management each year and provides individual investors with leads to companies enjoying true growth. He is popular for his unique and cheerful greeting "Ma-i-do!". After working at Nikko Securities, Monex, Kabu.com Securities and SBI Securities, he assumed his present position, Director of Market Analysis at ZAISAN Net, Inc. In addition to hosting three flagship radio programs on Radio Nikkei, he makes a number of television appearances and contributes to newspapers and magazines as well.

He is a member of the Securities Analysts Association of Japan and the author of "IT Strategist All About Stocks Guide."

Director of Engineering, ZAISAN Net, Inc.

Tadashi Takahashi

After working at Fuji Soft ABC, he established UMN. At ZAISAN Net, Inc., he directs the development of "Shisan No Madoguchi" and other web-based applications.

Academic Advisor, ZAISAN Net, Inc.

Ryozo Miura

He received a Ph.D in statistics from the University California, Berkeley. Since his retirement as a professor, he has been Professor Emeritus at the Graduate School of International Corporate Strategy, Hitotsubashi University. He served as the chairman of the Japanese Association of Financial Econometrics and Engineering (JAFEE) from 2001 to 2005.

Legal Advisor

Ken Kawai

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He received a bachelor’s degree in law from Kyoto University in 1988 and had been engaged in derivative transactions and other marketing activities for about 15 years at a major financial institution. He later worked at Anderson Mori & Tomotsune providing FinTech-related legal advice on a variety of subjects to FinTech companies and existing financial institutions. In addition to acting as a legal advisor to self-regulatory organizations concerned with crypto-currency, he is actively engaged in providing advice on laws and policies to public organizations, etc. both inside and outside Japan.

Takato Fukui

Graduated from Sophia Law School in 2008. After working for about 5 years at a foreign-affiliated law firm, he worked for two and a half years at the Supervisory Bureau of the Financial Services Agency where he was in charge of legal affairs in the Nonbank Financial Companies Office which oversees applications of the Money Lending Control Act and the fund settlement law. He was engaged in development of administration guidelines regarding crypto-currency exchange business, as well as in supervisory activities on money lenders, fund transfer service providers, providers of advanced payment method and the like. In 2017, he began working at Anderson Mori & Tomotsune, providing legal advice to FinTech companies including crypto-currency exchange traders, as well as to financial institutions.

In addition, members supporting this project include over a dozen of interns and students majoring in financial engineering, statistics, mathematics and AI.

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IMPORTANT NOTICE

OVERVIEW

Phantom AI, Inc. will conduct token sale of PAI tokens for the purpose of developing and providing "Phantom AI Weekly Bitcoin Forecast," highly accurate forecast engines on crypto-currency transactions. Once completed, "Phantom AI Weekly Bitcoin Forecast" will be available to holders of a certain amount of tokens.

PAI tokens are not intended to be treated as securities in any country or region. Furthermore, this white paper is not a solicitation for investing in any country or region and is not an inducement to sell securities by any manner.

Individuals, companies or organizations considering purchasing PAI tokens should take full consideration of the risks, costs, disadvantages and benefits related to the purchase of PAI tokens, and if necessary, seek advice from experts concerning these points with their own responsibility. Also, if the interested party is unable to understand or accept any of the risks associated with the purchase of PAI tokens described in this white paper, that party should refrain from purchasing PAI tokens.

Please note that once a PAI token has been purchased, the purchase amount cannot be refunded.

BUYERS OF PAI TOKENS

Citizens or residents of a country or state in which the purchase of cryptographic tokens or other such cryptographic tokens is not permitted or is considered a violation of regulations are not allowed to buy PAI tokens. In particular, citizens or residents of the United States of America or the People's Republic of China are not allowed to purchase PAI tokens during the token sale.

Upon the token sale, only participants with a sufficient experience and understanding of the use and complex nature of cryptographic tokens and of blockchain-based software systems and other related

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matters will be allowed to purchase PAI tokens. Phantom AI, Inc., officers and employees of Phantom AI, Inc., ZAISAN Net, Inc., or officers and employees of ZAISAN Net shall not be liable for any loss related to PAI tokens, other cryptographic tokens, crypto-currency or legal currency that results from any action taken by the buyer of PAI tokens. Those who lack adequate experience or knowledge in these areas should refrain from purchasing PAI tokens or participating in the sale of tokens.

RISKS

There are risks involved in the purchase of PAI tokens. Before purchasing PAI tokens, prospective buyers should fully consider the risks listed below, including consulting with various experts, and make the decision with own responsibility to purchase PAI tokens or not.

1. Risks related to project development

"Phantom AI Weekly Bitcoin Forecast" is a program that is currently under development. As

such, there is a possibility that its development may not be completed or that if completed, its

forecasting accuracy may not reach the expected level.

2. Risk of bankruptcy

As with other issuers of cryptographic token, there exist the chance of bankruptcy or liquidation due to future deterioration in management. Because PAI tokens are not a security such as stocks, should Phantom AI, Inc. go bankrupt or liquidate, none of its residual assets will be distributed to PAI token holders.

3. Risks related to the continuation of service

Should Phantom AI, Inc. or ZAISAN Net, Inc. liquidate, the business that provides services available for PAI token holders may be sold to a third party. In such a case, "Phantom AI Weekly Bitcoin Forecast" may become unavailable with previously issued PAI tokens.

4. Risk of bugs

There is a possibility that bugs will appear in PAI tokens. The smart contract for our token is designed so that it can be updated, for the slight possibility of a bug being discovered.

If, however, the proper handling of the PAI token becomes difficult in the instance it is modified for an improper purpose such as hacking, a hard fork may be executed.

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5. Risk of Ethereum blockchain misoperation

PAI tokens are sold on an Ethereum blockchain. Because of this, a malfunction or unexpected action in the Ethereum protocol may affect the transfer or holding of PAI tokens in a negative way.

DISCLAIMER

Phantom AI, Inc. (”Company"), its officers and employees, ZAISAN Net, Inc., its officers and employees shall not assume liability for direct, indirect, special, incidental, consequential or any other damages suffered or incurred as a result of trust placed in the contents of this white paper (including liability for unlawful acts, contractual liability or other liabilities of a legal nature).

The Company and ZAISAN Net, Inc. shall provide no guarantees regarding the completion of the currently under-development "Phantom AI Weekly Bitcoin Forecast", while buyers of PAI tokens acknowledge such condition. Buyers of PAI tokens acknowledge that the Company shall not be liable for any loss or damage suffered or incurred as a result of the incomplete development of "Phantom AI Weekly Bitcoin Forecast" and the failure to provide it for use.

Furthermore, in the event that the development of "Phantom AI Weekly Bitcoin Forecast" is completed, that completion shall not guarantee its superiority to other tools and indicators. Also, such completion shall not be a recommendation that the output results of "Phantom AI Weekly Bitcoin Forecast" be applied in the execution of transactions by users. Such results, like other indicators (i.e., moving average, RSI, RCI, VIX, etc.), must be used as one type of information to be referenced in making trading decisions.

Regulators in countries around the world are carefully monitoring businesses related to cryptographic tokens. Buyers of PAI tokens acknowledge that the business model of the Company and ZAISAN Net, Inc., and/or "Phantom AI Weekly Bitcoin Forecast" have possibility of change in accordance with laws and regulations of any countries or regions, and that the Company's officers and employees shall not be liable for any loss or damages incurred as a result of such changes.

The Company and ZAISAN Net, Inc. shall not represent or warrant the truthfulness and completeness of the information described in this white paper, nor do they grant any representation, warranty or indemnity to any person.

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REPRESENTATIONS AND WARRANTS BY THE BUYER

By purchasing PAI tokens, the buyer represents and warrants the following:

(1) That the buyer has the complete ability to purchase PAI tokens under the laws and regulations of the country or region in which the buyer resides.

(2) That the buyer of PAI tokens is responsible for the determination that the purchase of PAI tokens is an appropriate action for the buyer.

(3) That the buyer is not acting as a proxy for another party who wishes to participate in the purchase of PAI tokens or the sale of tokens.

(4) That the buyer has fully taken into account the risks, costs and other disadvantages related to the purchase of PAI tokens and understands them in connection with the sale of tokens.

(5) That the buyer is not engaged in speculative actions in connection with the purchase of PAI tokens.

(6) That the buyer agrees and understands that PAI tokens do not correspond to securities of any form and in any country or region.

(7) That the buyer agrees and understands that this white paper does not fall into any category of prospectus or solicitation documentation; that it is not a solicitation to sell securities in the country or region in which the buyer resides; and that it is not an inducement for an investment related with securities.

(8) That the buyer agrees and understands that in the sale of tokens, PAI tokens do not equate with any of the following, nor are they interpreted, classified or treated as such:

(i) As a crypto-currency or legal currency;

(ii) As shares or bonds issued by the Company;

(iii) As rights, options or derivatives related to shares or bonds in (ii) above;

(iv) As investment scheme equity;

(v) As trust equity; and

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(vi) As derivatives relating to trust equity in (v) above.

(9) That the buyer has a full understanding of the mechanisms and other important characteristics of the operation, function, use, storage and transfer of crypto-currencies; of blockchain-based software systems, crypto-currency wallets and other mechanisms for the storage of tokens; and the technologies behind blockchains and smart contracts.

(10) That the buyer, upon the purchase of PAI tokens, fully acknowledges and understands the risks involved with the Company and its business and operations.

(11) That the buyer fully agrees and understands that the Company shall not assume liability for direct, indirect, special, incidental, consequential or any other damages suffered or incurred as a result of trust placed in the contents of this white paper.

(12) That the representations and warranties listed in (1) to (11) above have been and remain true, complete and accurate, and not misleading from the time the buyer first had contact with the information contained in this white paper.

UPDATE ON TOKEN SALES

The Company may, at its own discretion, change, revise, add or delete any part or conditions of this white paper during the period of token sales. By purchasing PAI tokens, the buyer agrees to any and all such changes made. Buyers should refrain from purchasing PAI tokens if they have an objection to any part or condition contained in this white paper.

MARKET / INDUSTRY INFORMATION

In addition to market and industry information, this white paper contains forecasts obtained from surveys, reports and research conducted by the Company and from market research, public information and the like. Information included in the said surveys, etc., is not guaranteed for its accuracy or completeness. The Company has not conducted its own surveys or verifications to ascertain the accuracy and completeness of the said information. The Company, its officers and

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employees, ZAISAN Net, Inc., its officers and employees and others shall make no representations or warranties regarding accuracy and completeness of such information.