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Page 1: Presale Ventures White Paper · transparent online crowdfunding platform. Our virtual decentralized venture fund harnesses ‘the Wisdom of the Crowd’, purchase group buying power,

Ver. 01.03 | 20/02/2018 © 2018 Digital Assets Corporation. All rights reserved Page 1 of 43 Pages

Presale Ventures

Virtual Decentralized Venture Fund

and Seed Accelerator for

Blockchain Start-ups

February 2018

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Table of Contents

1. Abstract ............................................................................................................................................................. 4

2. Introduction ....................................................................................................................................................... 5

3. Why Presale Ventures? ..................................................................................................................................... 7

4. Value Proposition .............................................................................................................................................. 9

5. Background ...................................................................................................................................................... 11

5.1. Bitcoin & Cryptocurrency ........................................................................................................................ 11

5.2. The Blockchain and DLT Start-ups .......................................................................................................... 12

5.3. Initial Coin Offering (ICO) ........................................................................................................................ 13

5.4. Crowdfunding, Private Equity & Accelerators ........................................................................................ 16

6. Purpose ............................................................................................................................................................ 17

6.1. Presale Ventures - A Blockchain Startup Accelerator ............................................................................ 17

6.2. Why Focus on the Presale Stage? ........................................................................................................... 18

6.3. The Crypto Community ........................................................................................................................... 19

6.4. Harnessing the ‘Wisdom of the Crowd’.................................................................................................. 19

6.5. Impartiality, Neutrality and Objectives ................................................................................................... 21

6.6. Planning for the 'Peak' ............................................................................................................................. 21

6.7. Key Virtues of Presale Ventures .............................................................................................................. 22

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7. Ecosystem ........................................................................................................................................................ 23

7.1. The Platform ............................................................................................................................................ 23

7.2. For Presale Ventures' Members ............................................................................................................. 24

7.3. For Start-ups ............................................................................................................................................ 25

7.4. Acceleration ............................................................................................................................................. 26

7.5. Long-term Goals ...................................................................................................................................... 28

7.6. Roadmap .................................................................................................................................................. 29

8. Economy .......................................................................................................................................................... 31

8.1. Terms ........................................................................................................................................................ 31

8.2. Cycle & Workflow .................................................................................................................................... 31

8.3. Outcomes for Start-ups ........................................................................................................................... 33

8.4. Use of Funds ............................................................................................................................................ 33

8.5. EVENT Tokens Allocation after Successful IMO ..................................................................................... 34

9. About Us .......................................................................................................................................................... 35

9.1. Founders .................................................................................................................................................. 35

9.2. Team Members ........................................................................................................................................ 37

10. Conclusion ....................................................................................................................................................... 39

11. Disclaimer and Limitation of Liability ............................................................................................................. 40

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1. Abstract

Presale Ventures' unique model is based on the experience of over 50 worldwide seed capital fundraising

events for more than 1,500 start-ups, a blend of business, commercial and legal proven methodologies.

The Presale Ventures’ Virtual, Decentralized Venture Fund and seed accelerator incorporate a unique

business model into a “Members Only” single, state-of-the-art online platform.

By harnessing purchase group buying power, ‘Wisdom of the Crowd,’ in-house acceleration fund and a

remarkable token ecosystem – Presale Ventures provides a safe, smart, platform for Crypto investments in

emerging Blockchain start-ups during their initial coin offering (“ICO”) presale stage. Presale Ventures

provides exclusive early-bird investment opportunities for its members, enabling the astounding financial

prospects, previously reserved for highly-networked and affluent investors, to be more readily available to

a far broader demographic.

By utilising Presale Ventures' hybrid, algorithm based, expert and crypto-community screening and due

diligence processes, Presale Ventures' members are shielded from malicious fundraising practices and

become privy to exclusive, highly-discounted and Blockchain-backed investment opportunities, before

their ICO event. Unlike other ICO models, where the link between a start-up and its newly issued tokens is

severed after the completion of the ICO and the value of the tokens has almost nothing to do with the

performance of the start-up, Presale Ventures backers and contributors will appreciate our innovative

incorporation of a tokens as a license model and the continued use of the tokens as an integral part of the

platform, even once the ICO is over.

Presale Ventures EVENT tokens (“EVENT”) 1 are utilised to validate members’ eligibility to take part in

astounding investment opportunities and as the preferred payment mechanism for the purchase of start-

ups’ newly issued tokens. This constant use of EVENT tokens through the platform will make a significant

difference in the life expectancy and value of our EVENT tokens - and any other tokens out there. Presale

Ventures is committed to maximally reducing members’ investment risks and increasing their return on

investment (ROI) with innovative and supplementary programs.

1 EVENT is an ERC-20 standard-based Ethereum token

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2. Introduction

The rise of e-commerce has undoubtedly left an overwhelming impact on the global financial

community. It presents new investment possibilities for ambitious early adopters, but is accompanied by

a certain degree of risk, which can be rather intimidating. The introduction of Cryptocurrency and

Blockchain technology into the financial industry added further challenges to the mix, particularly for

first movers.

The world has gotten used to conversions between various kinds of currencies and has grown to accept

the value of storage devices. However, while most consumers are now familiar with Bitcoin and

Blockchain, other forms of Cryptocurrency continue to challenge investors and entrepreneurs.

Satoshi Nakamoto first introduced the concept of Blockchain2. It enabled a shifting of authority from the

traditional centralized database to a decentralized consensus - and created a new order for

transactions. The next step was the Ethereum platform, created by Buterin, further revolutionizing the

field.

Democratization, decentralization, and automation have enabled the public to handle its own

contractual procedures, cutting out the middleman. Traditional 3rd parties such as banks, mediators and

other official institutions, may find themselves cast aside, in favor of these new technologies and

innovations.

2 Satoshi Nakamoto White Paper at https://bitcoin.org/bitcoin.pdf

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Nevertheless, as one can imagine, there is more to this new decentralized financial realm than potential

and opportunity. With advances and innovation come added stress, tension, competition and conflict

within the global currency exchange community.

Cryptocurrency and Blockchain have fundamentally changed the makeup of essential and elementary

services, from payment to asset ownership and business development. Conventional methods are now

perceived as old-fashioned, slow, possibly biased, corrupt and ineffective in comparison to the latest

developments. And once financial innovators determine how to reduce the existing high overhead costs,

these old practices will likely and ideally be replaced by the new, Blockchain-based services.

Financial and regulatory systems have yet to adapt to this shift in investment technology and practices.

As a result, start-ups and other investment projects are left without sufficient security measures, failsafe

procedures, legal protections, or expertise.

Most start-ups lack the necessary resources to achieve optimal exposure and attention from the

financial community. Start-ups need a sound commitment from investors before their first and only

chance at a token offering and both parties seek validation that requires a transparent and continuous

collaboration process.

To restore trust and assurance among all involved parties and resolve the structural problems related to

Blockchain-backed start-up investments, a solution that demonstrates predictability, stability,

transparency and above all, maximum effectiveness in minimum time, must be developed.

Presale Ventures took all of these fundamentals and integrated them into a single process, reducing

investment risks and increasing the likelihood of a positive and significant return.

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3. Why Presale Ventures?

Much time, effort and resources go into the launch of any new start-up. Most start-ups are in great

need for funding to develop and produce their proposed project. This is especially critical in the short-

term, to be able to run and implement operations and launch global marketing campaigns prior to the

ICO stage. New start-ups also need the help and experience of industry veterans, to facilitate ameliorate

and accelerate development processes and ensure their products are of superior quality and extremely

safe, so that consumer and investors will want to buy in.

This pertains to all things needed to enable the start-up to start off on the right foot – from project

tweaking and amending to aiding with Blockchain technology, the issuing of tokens and writing smart

contracts, enabling communications with members of the Crypto-community and prospective

contributors, to whitepaper writing, website building, marketing and more. With the assistance of

industry experts, the start-up’s project can garner maximum awareness and increase the chances of the

start-up experiencing a successful ICO.

On the contributors’ side, before any initial investment in a start-up can be made, there is a great need

for assured lowered risk and a secure, fraud free ICO, which can be enabled by having a professional and

impartial entity govern the critical initial fundraising stages. Contributors want to gain a better

understanding of the start-up’s project market. They want to receive pertinent information in layman

terms – and obtain expert opinions on how their bottom line might be affected by investing in the start-

up. It is no secret that contributors wish to pledge to a start-up that has a higher chance of success. And

it wouldn’t hurt if they could receive a higher discount on their tokens purchase.

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As the market is literally inundated with new start-ups readying for launch, fairness, transparency and a

legitimate, fraud-free ICO are essential principles to which any business seeking to optimize innovation

realization must adhere.

The market needs these start-ups to provide as much information on their brands and offerings as

possible, which would facilitate a greater understanding of how successful they are likely to be. The

market also needs more contributors to fund projects. Increasing a positive awareness of Blockchain

technology and its benefits for the start-up world is a step in the right direction.

Presale Ventures attends to the needs of start-ups, contributors and the market with a single, state-of-

the-art online platform. The Presale Ventures platform shields contributors from malicious fundraising

practices and reduces contribution risk through an hybrid expert screening and due diligence processes.

Our innovative practices and supplementary programs enable highly-discounted and Blockchain-backed

opportunities, generate exclusive token generation terms and increase start-ups’ odds at success.

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4. Value Proposition

With Presale Ventures, ‘the whole is truly greater than the sum of its parts’.

The integration of our new, exciting and innovative methodology and focus with a tokenized economy

will most certainly add unprecedented value to the Blockchain community, investors, start-ups,

regulatory bodies and eventually, the global economy!

The Presale Ventures Virtual, Decentralized Venture Fund utilizes an augmented model to incorporate

several proven business and commercial models into a single ecosystem – a one-stop-shop, holistic and

transparent online crowdfunding platform.

Our virtual decentralized venture fund harnesses ‘the Wisdom of the Crowd’, purchase group buying

power, a utility tokens licensing model and a tokenomics ecosystem to drive smart, Crypto investments

in the start-up. Our hybrid screening algorithm drives a comprehensive presale evaluation process

implemented by Presale Ventures experts and the Crypto-community, for a safer, more successful ICO.

Presale Ventures tailors its focus on a specific cutting-edge niche: the presale stage, to be able to

provide investors with the greatest discount on their token purchases (investment in the start-up). We

additionally focus our efforts on innovative Blockchain concept and technology developments, to ensure

every investment is accounted for and secure.

License models, as referred to in the software world, are like keys. They enable legal use and

redistribution of the copyright protected product. When issued tokens are implemented as a floating

license across users, end users (in our case, investors) are granted unique permission to use the Presale

Ventures platform. Without EVENT tokens, a potentially interested investor cannot access the platform

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or contribute to start-ups. And as the tokens are secured via Blockchain technology the Tokens-as-a-

License model makes the funding of start-ups and their projects extremely secure and beneficial for all

parties involved.

The transactional ease and high level of protection afforded by a token economy are the driving force

behind the incorporation of tokens as an integral part of the Presale Ventures platform and ecosystem.

EVENT tokens are directly connected to the system’s operation and are used to purchase young start-

ups’ newly-issued tokens. For precisely these reasons, Presale Ventures members must hold a minimum

amount of EVENT tokens, a mandatory members’ card, to be able to use the Presale Ventures platform

and services.

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5. Background

5.1. Bitcoin & Cryptocurrency

“Nothing is as powerful as an idea whose time has come” (Victor Hugo)

Seven years have passed since the renowned “10,000 bitcoin pizza delivery” took place. These days, that

very same amount of Bitcoin equals to over 100,000,000 US dollars! which is enough money to pay for

pizza deliveries to residents of the entire city. Any city, tip included.

At this rate, Bitcoin could potentially dominate the foreign exchange currency arena within the next

seven years.

A brief review of the benefits of Bitcoin:

• Bitcoin eliminates the need for 3rd parties such as governments, banks, and other financial

mediators.

• A Bitcoin transaction is virtually untraceable (tracing flaws have been further corrected in second

generation Cryptocurrencies) and is therefore at a lower risk for fraud, exploitation and 3rd parties’

interception.

• Transactions are easily verified and extremely difficult to counterfeit.

• Bitcoin transfer is inexpensive and straightforward – there are no cancellations or refunds and since

no 3rd parties are involved, there are no arbitrary intermediary fees.

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• Global recognition of Bitcoin is expanding rapidly. The European Central Bank recognized bitcoin as a

convertible and decentralized virtual currency3. Japan has already legitimized it as legal currency4

and Russia is not far behind5. Some of the most prominent international companies have already

implemented Bitcoin, such as Microsoft, Dell, Expedia and TIME.

In the past 2-3 years, digital currency exchanges have been completely revamped, first restructured by

Bitcoin and then populated by alternative Cryptocurrencies.

Some of the new tokens provide dual purposes. Their value is thus based on different types of

evaluations. A token’s practical value (beyond simple exchange) is derived from its corresponding

Blockchain application.

5.2. The Blockchain and DLT Start-ups

Blockchain technology jointly manages and updates Bitcoin, Ethereum and other Cryptocurrency

platforms' transaction databases across a distributed network of computers, establishing a

decentralized global consensus.

It is the digitally shared ledger that gathers transactions records, as they are continuously and

simultaneously updated throughout the systems. This protocol opens the door to a new market niche -

distributed ledger technology ("DLT") applications.

3 http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf

4 https://www.coindesk.com/japan-bitcoin-law-effect-tomorrow/

5 http://coinivore.com/2017/09/10/russia-working-legitimize-cryptocurrencies-regulation/

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The Blockchain was introduced alongside Bitcoin in 2009, providing a solution to the decentralized

consensus challenge. Once a transaction is validated on the Blockchain, it cannot be altered, corrupted,

hacked or deleted. Today, Cryptocurrencies and their tokens are created and exist purely on Blockchain

ledgers. The technology is also applied to other channels, such as to facilitate unique contractual

mechanism between parties across the network, like with Ethereum, Ripple and other platforms.

Ethereum, for example, allows developers to create their own unique tokens and decentralized

Blockchain applications.

Most Cryptocurrencies aim to replace the 3rd party mediator by facilitating currency exchange and

charging a small percentage for each transaction made. But a token is no longer restricted to acting as a

currency; it is also a functional part of Blockchain software applications.

The speculative value and stability of an individual Cryptocurrency is naturally determined according to

the popularity and demand of its associated Blockchain application, as the currency spreads throughout

the global network.

5.3. Initial Coin Offering (ICO)

We are already familiar with the notion of an initial public offering (IPO), during which shares of a

private company are offered for sale for the very first time.

Similarly, an initial coin offering ("ICO") is an event during which newly created Crypto tokens are

offered for sale, in exchange for legal tender and/or existing Cryptocurrencies such as Bitcoin or

Ethereum. The process of minting a new token is usually called a token generation event (TGE) and it is

commonly paired with the ICO.

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Since ICO tokens are sold as digital assets or utility tokens rather than as financial currency, the sale is

not regulated and is more like a private crowdfunding event than an IPO. However, as current safety

and preventative measures are generally limited to banishment and gatekeeping, these sales events

increase the risk of dishonest management, fraudulent activities or the production of an inferior

product.

Much like any other legal tender, ICO tokens are purchased, traded, sold or held as an investment. As

with Bitcoin, Cryptocurrencies cannot be subjected to traditional regulations. Evidence indicates that it

will be a while before the U.S. Securities Industry and the Financial Markets Association6 (SIFMA)

manage to regulate Cryptocurrency exchanges effectively. In the meantime, it may be up to

independent organic and decentralized entities to take initiative and ensure safety of operations, which

could prove to be an overwhelming task.

It is safe to say that Blockchain technology and successful first-mover Blockchain ventures are here to

stay. As such, the value of Blockchain cannot be overlooked or underestimated.

• Lately, the total market cap of Cryptocurrencies is over $500 Billion U.S. Dollars7 (all dollars in this

document are USD). Bitcoin represents roughly half of that sum.

• In 2016, ICOs generated $100,000,000. The estimated sum for 2017 is over $5,000,000,000, from

over 1,000 projects8.

6 Financial Industry Regulatory Authority on ICO industry

7 https://www.coindesk.com/600-billion-cryptocurrency-market-cap-sets-new-record/

8 2016 CoinSchedule Statistics

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• Based on return distribution models, the ICO market yielded some impressive results, enabling

investors to enjoy an annual growth rate (CAGR)9 unparalleled to that of Venture Capital10 or stock

market11 growth.

• In 2013, start-ups like NXT struggled to obtain $20 thousand in funding. Today. NXT’s market cap is

above $60 million, with +412135% ROI since its ICO.

• In June 2017, Block.one raised $185 million in five days12.

• Bancor raised $153 million, of which $83 million were raised in one hour13.

Exciting opportunities created by crowdfunding, as leveraged by Blockchain technology, have

demonstrated the enormous impact that mass innovation has on a global scale.

Examples of return on investments on top 5 tokens since ICO14

• NXT launched 28/09/2013 +5,659,483% ROI

• IOTA launched 25/11/2015 +1,080,647% ROI

• Ethereum launched 22/07/2014 + 270,115% ROI

• Neo launched 10/01/2015 +233,432 % ROI

9 https://icostats.com/roi-since-ico

10 https://www.quora.com/What-is-the-average-IRR-achieved-by-venture-capital-funds

11 https://ycharts.com/indicators/sandp_500_total_return_annual

12 Block.one ICO Record

13 Bancor ICO Record

14 ICO stats numbers as of 19/12/2017, https://icostats.com/

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5.4. Crowdfunding, Private Equity & Accelerators

Decentralization, a central concept with respect to Blockchain technology, already exists in some

capacity on the internet, particularly in relation to funding and investment.

The history of internet crowdfunding can be traced back to platforms like IndieGoGo and Kickstarter, on

which entrepreneurs, businesses, or individuals can run crowdfunding campaigns by pitching their

product prototype, business vision or creative project. Funds are pledged by internet contributors in

exchange for perks, incentives or products. If a minimum goal is met, the funds are used to realize the

project (apart from the reduction of an operations fee by the crowdfunding platform’s operators).

Platforms such as WeFunder more closely resemble a direct investment model, through which pledgers

are enabled to obtain equity on a start-up at a future date, should the start-up go public. Unlike private

equity market investments, a pledge is made without an initial evaluation process15 and is secured solely

by a Simple Agreement for Future Equity ("SAFE").

Private equity investments have traditionally been reserved for highly networked, high net-worth

investors and funds. They have served as a means for acquiring profitable assets at a lower cost, before

they are made available to the public. The WeFunder16 model was one of the first to transform private

equity investments into a publicly accessible field.

Start-up accelerators and incubators guide and support start-ups during their early stages. They are also

an extension of the private equity industry. Accelerators and incubators provide start-ups with

opportunities to connect with investors and funds, typically via privately held gatherings like workshops,

15 Save for a valuation cap, the relevance of which will be expanded upon later.

16 https://wefunder.com/wefunder

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presentations, strategy meetings and networking events. These have also migrated to the public

domain, through platforms like Y Combinator17, for example.

Y Combinator offers support for start-ups willing to relocate for the duration of their incubation phase.

This methodology successfully accelerated Airbnb, Stripe and Dropbox. Y Combinator is also the original

developer of SAFE.

6. Purpose

6.1. Presale Ventures - A Blockchain Startup Accelerator

“Ethereum Founder Says 90% of Token Startups Will Fail”18 (Vitalik Buterin)

As ICOs continue to grow in popularity (in 2016 there were less than 100 ICOs, nowadays hundreds of

ICOs are launched every week) the relative ease in which money can be raised has opened the door to

dishonest actors and scammers. The market has become flooded with questionable start-ups.

Presale Ventures resolve this challenge and provide a much-needed and valuable service to investors

and start-ups. In creating an early-bird Blockchain start-up investment system, Presale Ventures is able

to increase an investment's safety, return on investment (ROI), and the likelihood of a fruitful ICO.

17 http://www.ycombinator.com/

18 https://futurism.com/ethereum-founder-says-90-of-token-startups-will-fail/

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6.2. Why Focus on the Presale Stage?

“Presale is a process, or a set of activities/sales normally carried out before a customer is acquired... The

sale of service or goods before its release date generally has a discount rate greater than 50%; this is

done as the producer wants to assess the market's willingness to pay and buy the product due to the risk

factor being very high.” 19 (Wikipedia)

Presale Ventures aims to increase an ICO’s return on investment through its “Members Only” platform

for ICO presales, by linking visionary and anticipative investors with promising Blockchain-related start-

ups.

The heterogenic nature and geographical spread of the investment community, necessitates the

formation of a truly effective investors’ association. Presale Ventures believes that membership through

a collective purchase group successfully realizes this goal.

Presale Ventures' model is therefore based on a unique blend of business and commercially proven

methodologies, an augmented screening process (opinions of experts and ‘Wisdom of the Crowd’), a

contractual mechanism, an online platform and multiple perks for investors and start-ups. Where

Investors are given access to early-bird purchases of Crypto-assets at a pre-determined discount.

19 https://en.wikipedia.org/wiki/Presales

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6.3. The Crypto Community

The millions of devoted global Bitcoin and Cryptocurrency followers virtually meet and communicate

over dedicated websites, forums and chat platforms. Some channels are intended for general discussion

(bitcointalk.org), others for following and discussing the release of new ICOs (coinschedule.com) and still

others to obtain the latest industry news and updates (coindesk.com).

Crypto community members prioritize technical, moral, and regulatory issues. Being able to provide a

practical, simple and efficient design and adhering to the philosophic principles of Cryptocurrency is a

challenge for Crypto-innovators and early adopters. It keeps the design process in line and assures

technological integrity and quality, without compromising on innovation.

The critical guidelines of the Crypto community no longer require potential Crypto businesses to achieve

consensus, though it does remain a crucial stepping stone on the path to achieving market growth.

Instead, vital support with much less control can be provided via the Crypto community and its

members.

6.4. Harnessing the ‘Wisdom of the Crowd’

Presale Ventures believes in the power of the “Wisdom of the Crowd.” As such, we enable the presale

screening and evaluation process to include this unique evaluation capability.

Presale Ventures’ screening and evaluation process is a fundamental part of its system. Screening

candidates saves members time and resources, while increasing the probability of uncovering hidden

golden opportunities.

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It is only reasonable to assume that there will be members whose expertise exceeds that of the core

Presale Ventures' team, such as analysts, advisers, researchers, interviewers and others. Such

brainpower, knowledge and skills, known collectively as the ‘Wisdom of the Crowd’ will provide support

to Presale Ventures’ experts evaluation and provide all members with a more comprehensive and

considerable influence within the Crypto community.

Presale Ventures’ primary role is to carefully select the most promising, profitable and safe start-ups, in

which its members can invest. Presale Ventures therefore aims to remain neutral and run an algorithm-

based hybrid screening and evaluation process based on transparency and integrity. Prospective start-

ups undergo a rigorous compliance and screening process, which includes the assessment of standards

such as personal character, business concept, reliability, legitimacy and more.

These issues and others are directly addressed through communications with interested members, in an

attempt to persuade cautious investors on the viability of their business. Once the screening and

evaluation process has been completed and the start-ups received their mark, members are given the

final word as to which start-ups are worthy of their trust and funds through the purchase of their newly

issued tokens during the presale stage.

Adhering to the notion of a decentralized community, Presale Ventures will continue an ongoing

exploration of ways to leverage its unique screening impact for crowdfunding and crowd-growing

purposes.

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6.5. Impartiality, Neutrality and Objectives

The most critical part of Presale Ventures’ method is its ability to remain impartial, neutral and objective

while endeavoring to maximize successful presales.

A start-up that ranks high, but eventually fails and disappears may put a considerable dent in Presale

Ventures’ validation capability and credibility. Presale Ventures’ impartial screening methodology aims

to reduce the risk inherent in any investment through a number of processes.

The most valuable way for Presale Ventures to support start-ups is not necessarily to present them in

the most favorable light - Presale Ventures reviews these start-ups under the largest spotlight.

Broad exposure is a significant and desirable advantage for start-ups and is highly appreciated by

investors, as it reveals investment contenders’ strengths, weaknesses, risks and opportunities. Presale

Ventures’ effective fundraising creates a safe and urgency-free space for start-ups and investors,

reducing hasty decision making and the effects of misleading sales tactics.

6.6. Planning for the 'Peak'

The most important stage for upcoming start-ups is the ICO. But before the ICO is reached, a successful

presale is held, potentially influencing the future success of a start-up's ICO - and beyond.

Presale Ventures’ primary purpose and critical vision of its culture and philosophy (in its mission as an

enabler and mediator of the presale ecosystem) is to help start-ups achieve their highest possible ICO

peak. The presale process is start-up’s 'conditioning' for the ICO, much like an athlete trains and

conditions before a big competition.

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6.7. Key Virtues of Presale Ventures

Presale Ventures serves several primary functions for its members:

• Enables a significant discount on start-ups' ICO-offered token price.

• Creates a group buying scenario, for greater group purchase power.

• Runs a hybrid screening and evaluation, algorithm based process.

• Provides an in-depth analysis of start-ups' qualities, strengths and weaknesses.

• Facilitates an exclusive virtual boardroom.

• Engages in conceptual vision and business justification.

• Justifies and validates upcoming ICO terms and conditions.

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7. Ecosystem

7.1. The Platform

Presale Ventures is issuing its unique ERC 20 token, named ‘EVENT,’ to be used within Presale Ventures’

own platform. Use of the token will provide members with exclusive benefits, such as:

• Access to early, exclusive ICO presale events.

• Significant and exclusive discounts on issued tokens.

• A lower risk of investing in fraudulent start-ups.

• Being part of and benefiting from the “Wisdom of the Crowd” decision-making process.

• A higher likelihood of a fruitful investment.

• Access to an extensive, up-to-date database of information, lucrative opportunities, discussions and

news.

Presale Ventures membership can be obtained holding 100 EVENT tokens.

Presale events will be held to present token purchase opportunities for attractive start-ups. Depending

on the level of interest, demand and market conditions, the amount and duration of these events may

grow to multiple events in a single week.

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7.2. For Presale Ventures' Members

Only Presale Ventures’ members can participate in ICO presale events and be awarded up to 60% off on

ICO token prices. These discounts are comparable with the elite rates previously reserved for the

privileged few, such as: funds, companies and institutions.

The initial purchase of EVENT tokens during Presale Ventures’ own presale and Initial Membership

Offering (“IMO”) stages, presents contributors with significantly greater value rewards with respect to

pre-screenings, networking, early bird access and a highly discounted token price.

To assure secure conversion of EVENT tokens into future start-ups’ tokens, Presale Ventures shall use

SAFT20, the Simple Agreement for Future Tokens – a modified version of the SAFE, or other equivalent

legal tools.

To participate in Presale Ventures' activities, receive exclusive investment opportunities and enjoy an

oriented, scam free environment, Presale Ventures’ members must hold the minimum amount of

EVENT Tokens acquired during Presale Ventures' IMO or purchased from the market under the EVENT

tokens' licensing terms and conditions.

The mandatory minimal EVENT token ownership gives members the right to access presale events.

Access is enabled so long as the required amount is maintained or restored.

20 Simple Agreement for Future Tokens

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7.3. For Start-ups

A successful presale event results in an immediate, measurable and positive outcome for a start-up.

To be considered for a presale, start-ups will undergo a “Know Your Startup” process, similar to the

better known “Know your Client” (KYC) procedures. The start-ups’ founders will have to present

documentation (whitepaper, business plan, justification), participate in interviews (face-to-face or

through other technological means) and provide personal and other relevant information. In the event

that some flexibility in the pre-screening process is allowed, members will be notified and instructed to

consider this factor during the presale.

Preparation for a successful ICO is extremely intensive, scattered and requires a meaningful investment

of time and marketing efforts. This can prove to be very stressful for first-time entrepreneurs, as it can

cause confusion, lack of focus and sometimes lead to missed opportunities.

Collaborating with Presale Ventures can reduce a great deal of stress, while providing significant added

value for entrepreneurs:

• Effective time management – start-ups can devote their full time and attention towards areas of

personal expertise, instead of spending precious time recruiting investors.

• Problems and hiccups that may appear during presale can be addressed at a lower level of urgency

than with the direct-to-ICO approach.

• When a start-up achieves a maximum presale goal and/or a high hybrid review rating, it can become

a potential candidate for additional funding from a pre-determined budget taken from Presale

Ventures’ Acceleration Fund and held in a publicly visible wallet. Such injection of capital would yield

two major benefits:

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o Maximize raising of the start-up’s successful ICO capital.

o Subsidize increased presale discounts for members.

7.4. Acceleration

Presale Ventures’ added value extends beyond funding. It creates a virtual home for the start-

up. Communication channels are immediately opened with the start-up’s first potential investors, who

are considerably more lenient and accessible. The start-up is enveloped with support, advice and

answers to burning questions and challenging issues beyond its areas of expertise.

If a start-up identifies multiple issues during the presale, it can depend on the full cooperation, expertise

and abilities of key Presale Ventures’ personnel. All involved parties share a common interest in the

start-up's success.

Technically, the relationship between a start-up and Presale Ventures officially terminates at the end of

the ICO, once Presale Ventures’ members have received their presale-purchased tokens from the start-

up. However, Presale Ventures (and the platform) continues to influence start-up investment success

beyond the presale period. A start-up that has come out of the Presale Ventures acceleration program

tends to receive higher valuations, as it has been carefully evaluated and validated by Presale Ventures’

hybrid screening process and received the Crypto community’s thumbs up.

This stressful period of a start-up’s launch can at times birth internal conflicts between the start-up’s

members. Relationship management and mediation support are inherently provided during the presale

period and can continue during a start-up's ICO and beyond. Presale Ventures’ personnel always remain

attentive and available, keeping a close relationship with start-up companies, as necessary.

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There is an additional incentive for start-ups that demonstrate remarkable initiative and competence

during the presale:

• In certain cases where start-ups are specially marked by Presale Ventures’ hybrid screening and

evaluation process, they become eligible to receive an additional payment from Presale Ventures'

designated acceleration fund, to be used for ICO preparations.

• The extra budget will be allocated according to what will deliver the highest return for Presale

Ventures’ members.

• This special capital injection from Presale Ventures’ acceleration fund will add an additional safety

layer and increase the start-up’s momentum as it enters its ICO stage.

Presale Ventures’ goal is to safely and successfully fundraise for each start-up.

• By default, all funds deposited by members during the presale event are transferred to the start-up,

after the deduction of operational expenses.

• In the future, Presale Ventures intends to implement several changes to the start-ups' token

purchase process, as well as to the platform, enabling deposited funds to be held until the end of

the ICO and controlling the start-up’s use of such funds. These changes shall provide members with

two advantages:

o Presale Ventures’ control and direction of deposited funds should yield a better ICO success

rate.

o In case of an ICO failure, all funds deposited during the presale stage shall be reimbursed to

members, apart from the funds transferred to the start-up prior to its ICO.

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7.5. Long-term Goals

Presale Ventures’ vision is to create a comprehensive, sustainable ecosystem, dedicated to investments

and incubations.

Further plans and process enhancements that are yet to be integrated into the platform include:

• Presale token purchase within a flexible time frame – based on members’ feedback and requests, as

well as start-up buy-ins.

• Successful replacement of the use of SAFT with smart contracts for the exchange of EVENT

tokens21.

• Creation of an internal Presale Ventures’ Crypto Futures Exchange – Following the presale event,

start-ups will be able to list their soon-to-be-issued tokens on Presale Ventures’ Crypto Futures

Exchange as ‘futures.’ This will enable members to trade tokens while providing valuable indication

of the start-up’s upcoming ICO’s success rate22.

21 In case 70% of required funds are raised

22 In case 90% of required funds are raised

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7.6. Roadmap

Presale Ventures has experienced many milestones along its path to providing start-ups and investors

with an easy-to-use and extremely secure platform.

From the formation of the Presale Ventures core team to launch of the Presale Ventures platform, the

road to enabling EVENT tokens to fund and fuel new start-ups has never looked so promising.

Q3 2017 Core team formation, expert advisors added.

Q4 2017 Smart Contract completed.

Q1 2018 Whitepaper completed.

Q1 2018 Whitepaper, Terms and conditions, License and other related documents, first version release.

Q1 2018 Website soft launch.

Q1 2018 Start of presale stage.

Q2 2018 Website, White Paper, Terms and conditions, License and other related documents, final version release.

Q2 2018 Presale Ventures International corporate infrastructure completed.

Q2 2018 Start of Initial Members Offer stage.

Q2 2018 International infrastructure for Cryptocurrency-legal tender conversion completed.

Q3 2018 EVENT tokens added to selected exchanges.

Q3 2018 Portfolio of 10-20 "hand picked" high-potential start-ups with high potential built using the Presale Ventures Acceleration Fund.

Q3 2018 First version of Presales Ventures platform using EVENT tokens launched.

Q3 2018 Legal compliance infrastructure for non-regulated countries completed.

Q3 2018 First start-ups being presented.

Q3 2018 Addition of Visa, Mastercard, bank transfers & fiat deposits from non-regulated countries to the platform. *

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Following a minimum 60% of required funds raised

Q4 2018 Legal compliance infrastructure for regulated countries completed, including the US.

Q4 2018 Adding Visa & Mastercard & bank transfers, allowing fiat deposits into the platform from Regulated Countries. *

Q1 2019 “WIX style” constructor launched.

Following a minimum 90% of required funds raised

Q2 2019 “Futures Exchange” established.

Q3 2019 Turnkey incubator for start-ups looking to adopt Blockchain technology set up.

*Fiat deposits will have significantly lower presale discount

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8. Economy 8.1. Terms23

8.2. Cycle & Workflow

• Presale Ventures issues EVENT tokens to the public, raises a substantial initial capital base and

finalizes the development of its platform and recruitment of all needed personnel, experts and

advisors.

• Investors holding the minimum required EVENT tokens gain access to the Presale Events Platform.

Those who acquire fewer EVENT tokens benefit from their value and gain access to certain

information and activities held by Presale Ventures or on the Presale Ventures website.

• The initial application process for start-ups is intended to raise funds and test the level of public

interest in what each start-up has to offer.

• Once scheduled, a start-up's presale is activated on the Presale Ventures’ platform and a designated

wallet is set up for Ethereum and EVENT token purchase. If the presale minimum investment goal is

not achieved - all tokens used for crowdsale purchase are returned to the members.

• Start-ups reserve a certain percent of their ICO token supply to Presale Ventures. If the minimum

fundraising goal does not succeed, investments are refunded.

23 The latest terms and conditions of the EVENT tokens sale governs the presale and IMO stages are stipulated in the agreement

published on Presale Ventures website

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• Anyone who wishes to participate in a presale event should provide an Ethereum wallet address.

The wallet should have a minimum required amount of EVENT tokens inside.

• The Presale Ventures platform verifies that the minimum EVENT tokens are available in the investor

wallet, prior to every presale event.

• This verification is performed before every presale event to assure that only investors with the

required minimum amount of EVENT tokens can access the event.

• As a presale event participant, members are provided with all necessary information about the start-

up and its token purchase opportunity.

• During the presale event, an initial purchase shall be done with a certain amount of EVENT tokens.

These tokens will “unlock” purchase options, enabling remaining payments to be made with EVENT

tokens or Ethereum. The ratio between Ethereum and EVENT tokens depends on EVENT token

availability and other member benefits.

• As Presale Ventures matures as a platform, only EVENT tokens will be used for presales.

• Following a successful presale event, Presale Ventures will receive its commission from the start-up;

an agreed percentage of the raised amount (typically 10%). The commission will typically be used for

the following purposes:

o 70% of the charged payment shall be allocated towards Presale Ventures’ revenues.

o 30% of the charged payment shall be transferred to the Presale Ventures Acceleration Fund.

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8.3. Outcomes

Although very cautious not to over-promise, Presale Ventures firmly believes that higher discounts will

result in more significant raised capital for start-ups.

What’s more, as Presale Ventures’ brand value rises, it will become more attractive to start-ups, not

only as a means for reaching early-bird investors, but also to receive the desired seal of approval -

validation by Presale Ventures and the wisdom of the Cryptocurrency community will mean greater

interest future ICOs.

8.4. Use of Funds

Presale Ventures estimates that the funds raised through its IMO and future earnings will be used as

follows24:

• 18% towards technology development

• 30% towards business development

• 20% towards operations

• 16% towards the Acceleration Fund

• 6% towards legal

• 10% for reserves

24 The actual allocation of funds shall be updated from time to time based on the relevant operation needs.

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8.5. EVENT Tokens Allocation after Successful IMO

• 60% of EVENT tokens will be distributed to the public.

• 12% of EVENT tokens will be distributed among advisors and strategic partners25.

• 10% of EVENT tokens will be distributed among the founders and the team26.

• 16% of EVENT tokens will be allocated towards the Acceleration Fund.

• 2% of EVENT tokens will be allocated towards a bounty program.

25 Advisors and strategic partners shall commit to a 12 to 24 month vesting period and a 3-months cliff, providing further assurance to Members on Presale Ventures’ interest with the medium and long-term goals of the project.

26 Founders and team Members shall commit to a 12 to 24 month vesting period and a 3-months cliff, providing further assurance to members on Presale Ventures’ interest with the medium and long-term goals of the project.

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9. About Us

9.1. Founders

27 Sergey Ost LinkedIn

28 http://www.aviveilon.law/

Sergey Ost27

Chief Executive Officer

A businessman, IT specialist, entrepreneur, and patent holder. Sergey oversees the Presale Ventures team of analysts, experts and programmers and liaises with external advisers. Presale Ventures is his brainchild. The Founder & CEO of one of the first hosting companies in Israel (up.co.il, exit 2003 and the former Co-Founder and CEO of the UK Mobile Virtual Network Operator (MVNO) working under the brand of "World8" as a “Free Roaming” Sim card distributed through 600 Post Office branches with over 100,000 customers (World8.co.il, exit 2016), Sergey’s knowledge of start-ups is vast.

Aviv Eilon, Adv.28

Legal Counsel

Aviv received a Bachelor of Laws degree from Oxford Brookes University, England, and a Master of Laws degree from the Tel Aviv University and the University of California, Berkeley’s joint program. In 1999, Aviv established the foundations of his boutique law firm Aviv Eilon & Co, which provides legal counsel and litigation services, specializing in technology & internet law, as well as corporate, commercial and intellectual property law, in national and international environments. For the past 20 years, Aviv has worked with a variety of organizations throughout their corporate life cycle and has provided counsel to innovative ventures and start-ups making their first steps in the business world.

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29 David Hava LinkedIn

30 Timur Shemsedinov LinkedIn

David Hava29

Chief Business Development Officer

Through his acceleration network at Marketing Innovation Worldwide, David, a natural-born investor and tech expert, has attracted various contacts who are applying to run presale events on the platform. The Founder of Marketing Innovation Worldwide, a tech start-up accelerator with a rich portfolio that crosses NY, San Francisco, New Delhi, Munich, Dusseldorf, London, Moscow, Johannesburg, and Rio De Janeiro, David has a keen eye for stellar business opportunities.

Timur Shemsedinov 30

Chief Technology Officer

A top software architect, university lecturer, and project leader, Timur leads a team of researchers and developers linked to the Kiev Polytechnic Institute in Ukraine, appointed to develop the software stack and infrastructure for the Presale Ventures platform. Timur has devoted over twenty years to IT. Altogether, he has (1) developed distributed corporate applications & systems architecture, (2) become an expert in Node.js, JavaScript, C#, Delphi, etc. and (3) mastered cybernetics, programming, production automation, network servers & protocols.

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9.2. Team Members

Tal Eilon

Organization Development

For the past 15 years, Tal has specialized in emerging start-ups, developing and managing innovative platforms to accommodate their operational, HR and online marketing growth in an ever-changing environment. Tal holds a BA degree in Communications and an MBA in Management and Business Psychology.

Eytan Ashtamker

Marketing Director

A marketing specialist, business consultant and coach for start-ups and established businesses, Eytan has a rich background in assisting clients analyze, implement and evaluate business projects to meet performance expectations.

Tzofia Gaash

Customer Relationship Manager

With two years of experience in managing retail sales and three years of customer success management for large clientele in the financial industry, Tzofia knows exactly how to ensure Presale Ventures’ customers are satisfied.

Vitalik Daliloff

Early Investor

A Managing partner and surgeon at the Orchid Clinic (Pl.,2001), Vitalik is an independent, strategic and operational planning advisor in a number of Ukrainian, Polish, Australian, Canadian and other companies. Currently, Vitalik is invested in several medical start-ups.

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Yuri Snigur

IT Adviser

An IT project management professional, Yuri works with system integration, analytics and business processes. A specialist in re-engineering, complex automation systems implementation and support, Yuri has more than ten years of experience in solution managing for the following fields: geospatial and GPS systems, medical information systems, asset tracking, mobile applications, computer games, financial and corporate systems. He has also developed software for RTIntel, ITAdapter, Alien Technology, SinceTV and other businesses.

Alexey Orlenko

Alexey is a specialist in high load network protocols, including Node.js Core Collaborator. He is one of the key developers of Metarhia technology stack and an expert in JavaScript, C, C++, Rust, React, Node.js, RPC, TCP/IP, IPC, Linux/Unix, WebSocket, parsing, serializing and de-serializing and performance optimization.

Mykola Bilochub

A specialist in the development of server APIs for high load web and mobile applications, Mykola is one of the key developers of the Metarhia technology stack. He is also an expert in JavaScript, C, C++, Go, Node.js, TCP/IP, Linux/Unix, parsing, serializing and de-serializing, information systems security and data protection.

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10. Conclusion Today's economic landscape is characterized by the ease, volume and speed of transactions – of

information, communications, or valuable items. While these advances unlock exciting new

opportunities, they also bring with new risks and challenges.

Presale Ventures was established to connect start-up companies with investors. It is Presale Ventures'

innovative, sophisticated methodology and platform that unifies collaborative development and early-

bird investment, into a single, win-win solution.

Presale Ventures and its Crypto-community hybrid screening process will sift through start-ups to

carefully select those that demonstrate an actual, validated potential. Such start-ups are provided with

exposure, vital support and a real chance at success.

The platform distinguishes the most promising start-ups from those that cannot or have yet to prove

substantial justification. We avoid red flags that may lead to failed investments, loss of funds or financial

crimes, such as fraud and corruption. Once start-ups complete their presale phase with Presale

Ventures, they are infinitely more practiced and prepared to successfully peak during their upcoming

ICO event.

Presale Ventures believes that the ideal outcome can only be achieved through a comprehensive

solution. The relationship between entrepreneurs, start-ups and investors must be made clear, reliable,

honest and mutually beneficial.

This synergy is at the heart of Presale Ventures’ vision. This platform will provide a solid foundation that

will unite investors and projects into a single cohesive community.

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11. Disclaimer and Limitation of Liability

PLEASE READ THE FOLLOWING DISCLAIMER AND LIMITATION OF LIABILITY CAREFULLY BEFORE

EVALUATING, ASSESSING AND/OR USING ANY PART OF THE INFORMATION PROVIDED IN THIS

WHITEPAPER ("Information").

ANY USE OF THE INFORMATION WILL BE DEEMED AS YOUR COMPLETE AND IRREVOCABLE CONSENT AND

ACCEPTANCE TO THIS DISCLAIMER AND LIMITATION OF LIABILITY AND TO THE TERMS AND CONDITIONS

OF THE AGREEMENT PUBLISHED ON PRESALE VENTURES’ WEBSITE, AS AMENDED FROM TIME TO TIME

(https://presale.ventures/terms) ("Agreement"). IT WILL ALSO BE UNDERSTOOD AS YOUR UNDERTAKING

TO SATISFY ALL REQUIREMENTS OF THE TERMS AND CONDITIONS OF THE AGREEMENT.

Presale Ventures is part of the Digital Assets Corporation, registration number 166861, located in New

Horizon Building, Ground Floor, 3 1/2 Miles Philip S.W. Goldson Highway, Belize ("Company"). The

Company shall the sole discretion to change or modify any part of this whitepaper, at any time. Such

changes, modifications, additions or deletions shall be effective immediately upon posting the revised

document on Presale Ventures’ website at https://presale.ventures/ ("Website"). Therefore, any

interaction with the EVENT tokens and/or any other activities (as defined in the Agreement published on

the Website) constitute your acceptance of such changes, modifications or additions. You are encouraged

to periodically visit the Website and to review the most current whitepaper version.

This whitepaper provides information on Presale Ventures' intended business model and activities, the

intended use of the EVENT tokens, EVENT token purchase details and other issues related to potential

token holders in connection with the proposed EVENT token presale and initial membership offering

stages.

The sole purpose of this whitepaper is to provide a reasonable depiction of the proposed activities and

use of the EVENT tokens, to allow potential EVENT token purchasers to evaluate and examine purchase

opportunities. Therefore, the Information does not imply and/or create any type of engagement and/or

any contractual relationship.

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Although the Company took reasonable efforts to ensure that the information in this whitepaper is clear,

accurate and up-to-date, the information may be incomplete and/or inaccurate and it may carry mistakes

and omissions.

This whitepaper is not intended to be regarded or taken as professional advice and is not directed at any

specific person located in any particular country, territory or jurisdiction where such information

publications and/or use of such information may or would be contrary to local laws or regulations. It is

your responsibility to ascertain the terms of and comply with any local laws or regulations prior to using

the information.

Any engagement with and/or performance of any part of Presale Ventures' offered activities may carry a

significant risk. Therefore, you are aware of all the advantages, disadvantages, risks and any restrictions

associated with Cryptocurrency, digital tokens and Blockchain technologies and you should have a

sufficient level of understanding in all technical, business and legal related issues to the scope of this

whitepaper. Please do not purchase any EVENT tokens if you do not possess a sufficient level of skill and

expertise concerning Blockchain technology and/or Cryptocurrency and/or Crypto tokens. Before

determining whether/to purchase EVENT tokens and/or perform any part of the offered activities, you

must take all needed measures to carefully consider all risks involved with such activities and consult to

the fullest extent necessary with any relevant professionals, such as an accountant and/or lawyer and/or

tax consultant.

This whitepaper does not solicit for any investment and/or offer of securities in any jurisdiction, territory

and/or your place of residence. EVENT tokens have no rights, uses or attributes outside the use permitted

by Presale Ventures’ license to use the EVENT tokens through its online platform or otherwise

(https://presale.ventures/license) ("License"). EVENT tokens may have no value outside of the License

incorporated by reference into each EVENT token as stipulated in the Agreement.

The Company strives to provide you with useful, accurate, and timely information. Accordingly, the

Company has attempted to provide accurate information, but assumes no responsibility for the accuracy,

reliability, profitability, and completeness of that information.

The Company may change the content of any information at any time, without notice. Nevertheless, the

Company does not commit to updating the information which, as a result, may be out of date.

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Any non Presale Venture information and opinions expressed in and by third parties in this whitepaper

and/or linked from this whitepaper and/or any other third parties' content and services referred to in this

whitepaper are not those of the Company and by using such third parties' information, content and

services, you assume all responsibilities and liabilities to such use and waive any and all responsibilities,

liabilities and outcomes of such use from the Company and/or its related entities, such as employees,

officers, directors, shareholders, consultants, affiliates, agents, contractors, representatives, vendors,

suppliers, service providers, parent/child/sister companies, subsidiaries, any other third party related to

the Company and any of their predecessors, successors and assignees ("Related Entities").

Your use of any part of the Information is entirely at your own risk, and it shall be your responsibility to

ensure that any part of the information available herein meets your specific requirements. Due to the

nature of Presale Ventures’ activities, the Blockchain, and Crypto-market new business model, EVENT

tokens may show high volatility, which may result in an extreme drop of value.

THE INFORMATION AVAILABLE IN THIS WHITEPAPER IS PROVIDED ON AN "AS IS" BASIS AND THE COMPANY

MAKES NO WARRANTY AS TO THE INFORMATION’S USE OR PERFORMANCE BY YOU. THE COMPANY DO

NOT AND CANNOT WARRANT THE PERFORMANCE OR RESULTS YOU MAY OBTAIN BY USING THE

INFORMATION, EXCEPT FOR ANY WARRANTY, CONDITION, REPRESENTATION OR TERM UNLESS EXCLUDED

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