2018 Javvy Cryptocurrency Solution Prospectus · As a "digital asset" [25], cryptocurrency appeals to anyone who is looking for an alternative store of value, investment vehicle,

Javvy Prospectus

2 https://javvy.com Javvy

2018 "Javvy Cryptocurrency Solution" Prospectus

Filed: July 17, 2018

By: Brandon L Elliott, Frank Grogan, Mae Grogan, Harley Grouette

Executive Summary The purpose of writing this document is to clearly define the need for a better way to buy, sell, and use cryptocurrency and how the Javvy solution intends to address that need. Further, this document compares and contrasts existing services that have not met that need, despite having had many years and considerable funding to do so. We will detail where they fell short, and how Javvy's solution and solid plan will address each complex obstacle. In closing, we will show how, with proper funding, Javvy will consolidate traditional web-based cryptocurrency exchanges and crypto wallets into a single, comprehensive solution; the Javvy solution. Javvy integrates its cryptocurrency exchange seamlessly into the comprehensive Javvy wallet solution, eliminating the current need for multiple wallets and exchanges. Users enjoy a much faster, simplified registration and ID verification process, with a reduced learning curve for buying, managing, and using crypto. They are given all the secure tools they need to confidently store, use, and invest in cryptocurrency.

Legal Investment Disclaimer This material does not constitute any representation as to the suitability or appropriateness of any security, financial product or instrument. There is no guarantee that investment in equity of Javvy Technologies Ltd will be profitable or will not incur loss. This information does not have regard to the specific investment objectives, financial situation, and the particular needs of any specific person who may view Javvy investor materials. Investors should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed in the Javvy investor materials and should understand that statements regarding future prospects may not be realized. Investors should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not a guide to future performance. Investing in any security involves certain risks called non-diversifiable risk. These risks include market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any specific, or diversifiable, risks associated with particular investment styles or strategies.

Forward-Looking Statements Materials in this document, and on our website, contain information that includes or is based upon forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results. Any or all of our forward-looking statements here or in other publications may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed, and they may be adversely affected by factors, including general market conditions, competitive product development, product availability, current and future branded and generic competition, federal and state regulations and legislation, service availability issues, timing of trades, patent positions, litigations and investigations. Our actual results may vary materially, and there are no guarantees about the performance of equity in Javvy Technologies Ltd. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

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Javvy Prospectus


Table of Contents

2018 "Javvy Cryptocurrency Solution" Prospectus .......................................................................................... 2

Executive Summary ............................................................................................................................................ 2 Legal Investment Disclaimer ............................................................................................................................... 2 Forward-Looking Statements .............................................................................................................................. 2

Market Overview .................................................................................................................................................... 4 Cryptocurrency .................................................................................................................................................... 4 Market Snapshot ................................................................................................................................................. 4 Target Market ...................................................................................................................................................... 4 Market Challenges .............................................................................................................................................. 5

The Solution: Free Javvy Wallet + Javvy Decentralized Exchange ................................................................. 6 Provides convenient Buy and Sell options inside the wallet ............................................................................... 6 Supports many cryptocurrencies; not just Bitcoin ............................................................................................... 6 Supports many payment methods ...................................................................................................................... 6 Treats securing digital assets with the utmost of importance ............................................................................. 6 Supports "coin" and "token" exchange between many cryptocurrencies ........................................................... 6 Provides an optional, easy way to spend cryptocurrencies, like Bitcoin............................................................. 6 Intuitive and well-documented ............................................................................................................................ 6

Competitive Analysis ............................................................................................................................................ 7 Established Competition ..................................................................................................................................... 7 Competitive Advantage ....................................................................................................................................... 8

Regulatory Advantage .................................................................................................................................... 8 Technological Advantage ............................................................................................................................... 8

Barriers to Entry .................................................................................................................................................. 8 Differentiation Advantage ............................................................................................................................... 9 Low Switching Costs....................................................................................................................................... 9

Sales and Channel Strategies ............................................................................................................................ 9 Money Matters ..................................................................................................................................................... 10

Market ............................................................................................................................................................... 10 Financials - Basis of Preparation ...................................................................................................................... 10 Business Model (Based on “Prudent” Scenario) ............................................................................................... 10 Marketing .......................................................................................................................................................... 11 5-Year Profit Projection ..................................................................................................................................... 11 Capitalization Table .......................................................................................................................................... 13 Exit Strategy ...................................................................................................................................................... 14 Investment Needs ............................................................................................................................................. 14

Early Investors (pre-ICO, traditional equity) ................................................................................................. 14 Initial Coin Offering (ICO, 40% bonus via the Convertible Note) ................................................................. 14

Use of Funds Raised - Roadmap ...................................................................................................................... 14 Appendix A - The Javvy Crypto Solution Roadmap ........................................................................................ 15 Appendix B - The Javvy Team ........................................................................................................................... 16 Appendix C........................................................................................................................................................... 17

Money-laundering and cryptocurrency regulations ........................................................................................... 17 No registration required for basic functionality .................................................................................................. 17 Avoid peer-to-peer interactions and complexities ............................................................................................. 17

Appendix D........................................................................................................................................................... 18 Detailed Comparison of Established Crypto Wallets ........................................................................................ 18

Appendix E - Business Considerations ............................................................................................................ 22 Source of Intellectual Property .......................................................................................................................... 22 Protection of Intellectual Property ..................................................................................................................... 22 Development Plan ............................................................................................................................................. 22 Scalability .......................................................................................................................................................... 22

Citations ............................................................................................................................................................... 23

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Javvy Prospectus


Market Overview

Cryptocurrency A cryptocurrency (or crypto currency; "crypto", for short) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. [1] One of the major differentiators of modern-day cryptocurrency is the emergence of the transaction database in the role of a distributed ledger, referred to as a blockchain. [2] The primary benefit of using a blockchain as a ledger is that it is a freely and publicly available [3, 4, 5] transaction history, making it completely transparent. It is also considered immutable, meaning that the cryptocurrency code developers agree to never change transaction records. The argument for the benefit of this attribute is that transactions may always be trusted, once they are committed to the blockchain ledger and confirmed by other peers. [6, 7] The downside is that accidental loss [8, 9], theft, or fraud can never be undone --an inherent trait of a completely decentralized, unregulated system. [10] One major benefit to cryptocurrency is that it is not stored in a bank, as it is digital, decentralized, and tracked by the blockchain. Many crypto owners prefer to use a "wallet" [11] to manage their private keys [12], which need to be safely stored in order to access cryptocurrency holdings. We are going to disrupt the crypto industry, making web-based cryptocurrency exchanges obsolete, by building a better crypto solution, because despite other projects having nearly a decade and massive investments [13], no existing wallets make buying, selling, converting, managing, sending, and receiving cryptocurrency simple, intuitive, and safe [14, 15, 16].

Market Snapshot The first decentralized cryptocurrency, termed Bitcoin, came into existence circa 2009. [17] The underlying technical system was created by the individual or group known as Satoshi Nakamoto. [18] For many of the early years of Bitcoin's existence, it was largely treated as a "joke" [19] or conversation piece among data scientists, mathematicians, and the early adopters. However, as people began to barter Bitcoin more regularly, the utility of Bitcoin as a functional form of payment became apparent. As more people bought Bitcoin, the price adjusted upward with market demand. As the price rose, more people began to view Bitcoin as an investment vehicle and bought in. Its success eventually sparked the creation of many other cryptocurrencies, deemed "altcoins." [20] While Bitcoin's price has been very volatile, seeing price swings of double digit percentages in short time frames; its trend has been extremely bullish, increasing in price exponentially. [17] Initially, Bitcoin was virtually free, but as of June 2017, commanded nearly $3,000 per coin. [21] Based on the finite supply of Bitcoin (21 million) [22], which cannot be weakened by dilution; some proponents of cryptocurrencies argue that the main cryptocurrencies could easily exceed USD $100,000, per "coin", within the next decade. [23] The continued argument for the utility of Bitcoin includes that it is divisible down to 8 decimal places [24], which means that it would still be possible to buy products and services at low prices by sending a very small fraction of a Bitcoin, in the case that Bitcoin becomes worth a substantial amount per coin.

Target Market As a "digital asset" [25], cryptocurrency appeals to anyone who is looking for an alternative store of value, investment vehicle, or trading resource. In many ways, digital assets are similar to physical precious metals with the added advantage of being easily divisible and transferable for trading goods and services. Due to its finite quantities and independence from any government entity, it can be a hedge against financial warfare, national currency failure, negative government decisions on monetary values [26, 27, 28, 29, 30]), and corruption. While cryptocurrency may be viewed skeptically by the risk averse, due to its volatility, even conservative investors will "buy-in" to diversify their portfolio and spread the risk among a much larger pool of investors. [31, 32] Additionally, many corporate entities are buying in simply to gain access to unique applications built on top of the underlying blockchain technologies. [33, 34, 35, 36] This continues to spur investment by many others who also see the extreme potential for increasing market capitalization and cryptocurrency prices. ➢ All users of cryptocurrencies need an intuitive and functional wallet --to buy, sell, manage, and trade crypto.

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Javvy Prospectus


Market Challenges Challenge #1: Buying and selling cryptocurrency is currently not trivial. Finding a "trustworthy" means to buy-in requires many hours of research and still presents a huge risk. Creating an exchange account is frustrating, slow, and has a high potential for theft of the consumer's identity, deposited funds, and cryptocurrency. Details: Cryptocurrency will always remain unregulated, due to its decentralized architecture, but some governments are working quickly to regulate the conversion of cryptocurrency to and from national currency. This regulation manifests itself when creating accounts to buy and sell cryptocurrency via exchanges. Due to AML (anti-money laundering) [37] and KYC (know your customer) [38] laws, potential customers must provide an abundant amount of documentation for proof of identity. Doing so presents a very high barrier to adoption of cryptocurrency, because providing and verifying the required documentation is confusing, time-consuming, and exposes the customer to identity theft by "rogue" or "unscrupulous" exchanges [39, 40] or from hacking of the exchange itself. [41, 42, 43, 16]

Challenge #2: Existing cryptocurrency wallets are extremely basic, limited in functionality, and buggy; even though several companies have each been funded $5 Million to over $200 Million [13] to provide crypto-related services that included building a better wallet. Details: Since decentralized cryptocurrency was created in 2009 [17], wallets meant to access and trade cryptocurrency have yet to become usable by the general consumer. Existing wallets are not intuitive, have little instruction, and have only the most basic features; They do not have not true solutions for managing, buying, selling, and using cryptocurrencies in the real-world (such as with a debit card). There are even a few wallets that claim to do what the Javvy wallet will do, with regard to buying and selling "coins" inside the wallet, but their solutions continue to rely on centralized, regulated exchanges or risky peer-to-peer exchanges. [44, 45]

Challenge #3: There are many limitations for wallets currently supporting cryptocurrencies other than Bitcoin. Details: There exists a small number of wallets that support altcoins, like Ethereum and Litecoin; but each one has its own limitations and shortcomings. Locating and using a dedicated wallet for each cryptocurrency is a cumbersome and error-prone process. In many cases, those dedicated wallets are not actively maintained, are broken, or have major issues. [46, 47, 48, 49]

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The Solution: Free Javvy Wallet + Javvy Decentralized Exchange Unique Value Proposition: What makes the Javvy crypto solution different? The idea is simple: To build an easy, intuitive, feature-rich, and fully functional cryptocurrency wallet. While building the ideal solution is quite involved and requires very specialized expertise, the Javvy team has that expertise. [Appendix A] Many people are still unaware that a well-designed wallet is essential to maximizing the usefulness of cryptocurrencies. The Javvy wallet has the potential to quickly become the de facto standard.

Provides convenient Buy and Sell options inside the wallet

• Eliminates many hours of research to find "trustworthy" exchanges and understand how they work.

• Everyone, globally, wanting to buy or sell crypto, will enjoy tailored requirements (minimal ID documents).

• Addresses the issue of legality for citizens restricted by money-laundering regulations. [Appendix B]

• Citizens of over 170 countries will enjoy INSTANT identity verification. The rest will wait only 1-3 days.

• Vastly improves security by eliminating the need to register with risky exchanges. [39, 40, 41, 42, 43, 16]

• Eliminates the reliance on risky peer-to-peer exchanges and potentially malicious users. [Appendix B]

Supports many cryptocurrencies; not just Bitcoin

• Proprietary use of Javvy token (JVY) eliminates need for crypto reserves so most cryptos supported initially.

• Supports, at a minimum, the top 3 cryptocurrencies (by market cap) and the Javvy token.

• Supports adding many of the 1,200+, as of 2017, cryptocurrencies [50], as demand warrants.

Supports many payment methods

• Pay with CASH (at a Partner Location, Western Union, Wal-Mart, etc).

• Pay by eCheck (adds 3% fee but settles in 1 day), or bank transfer (ACH or Wire, adds 3-5 days delay)

Treats securing digital assets with the utmost of importance

• Supports an access PIN (securely encrypted w/ a salt value) and securely encrypt the wallet on disk.

• Enforces secure passwords (configurable complexity for "experts" with a reasonable default).

• Supporting hardware "cold storage" wallets (Ledger, TREZOR) is on the roadmap.

• Will consider Two Factor Authentication (2FA), if demand exists.

• Provides secure backups of private keys to help users avoid losing access to their assets.

Supports "coin" and "token" exchange between many cryptocurrencies

• Supports easy conversion to and from JVY, the Javvy wallet token.

• Supports easy conversion from any major crypto to any other major crypto.

Provides an optional, easy way to spend cryptocurrencies, like Bitcoin

• Provides a way for anyone to obtain a crypto-funded, international debit card (optional).

• Users will be required to register by submitting ID verification, and must hold a small account balance.

Intuitive and well-documented

• Consolidates and condenses the mountain of research required to understand the technology and buy in.

• Wallet translated into all major languages (initially English with others added, as demand necessitates).

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Javvy Prospectus


Competitive Analysis There are numerous crypto wallets available, as of 2018. Most wallets support only Bitcoin or are dedicated to specific "altcoins" only. Few wallets support multiple cryptocurrencies. Even though the market started back in 2009, and massive investments have been poured into projects, since then, that promised to build better wallets [13], no wallet currently exists that offers the most basic feature that mainstream users expect:

• The ability to buy and sell Bitcoin, inside the wallet without having to register with an online exchange.

Established Competition The Javvy crypto solution is the only option that speeds up and simplifies the registration process to take advantage of the convenient Buy/Sell functions! Here is how our wallet stacks up to incumbent competitors:

Javvy Wallet Bitcoin Core Blockchain Coinbase Exodus Jaxx Electrum bisq

Average Time Spent Getting Started (Researching)

< 5 minutes 10-15 minutes 10-15 minutes 10-15 minutes 10-15 minutes 10-15 minutes 10-15 minutes < 5 minutes

Integrated Buy & Sell Options *

BUY/SELL Fees 1.25% ** NO Buy/Sell

capability Fee Varies; Limited ***

1.49% NO Buy/Sell

capability NO Buy/Sell

capability NO Buy/Sell

capability

1.00%, if a seller accepts

buyer's offer

Time for ID Verification < 5 minutes * N/A

7-21 DAYS (if approved)

7-21 DAYS (if approved)

N/A N/A N/A Trade only;

Auction system

Supported Crypto(s) BTC, ETH, JVY

& more soon BTC only BTC & ETH BTC, ETH, LTC

BTC, ETH, & many others

BTC, ETH, & many others

BTC only BTC, ETH, & many others

Cryptocurrency Conversion

[ Optional ] International Prepaid Card

Supported Platform(s)

Windows, MAC Linux, Apple

iOS, & Android

Windows, MAC & Linux

Web, Apple iOS, & Android

Web, Apple iOS, & Android


Windows, MAC Linux, Apple

iOS, & Android



Mobile App Price Change Notifications

Intuitive & Attractive User Interface

User Controlled Private Keys

*The Javvy wallet is free and anonymous to use, except for BUY/SELL orders, which require minimal Javvy exchange registration. **Lowest cost, direct way to BUY/SELL crypto, and will release a marketplace for maker-taker low fee trading (0.25%), if sufficiently funded.

Note: There are many wallets and exchanges, but most do not serve users globally, support few cryptos, and/or are missing key features.

Please refer to Appendix D for a more detailed comparison of established cryptocurrency wallets.

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Competitive Advantage The Javvy wallet enjoys several competitive advantages:

Regulatory Advantage We believe that citizens, of countries that do not regulate cryptocurrency, should be allowed to buy and sell it anonymously. However, building a solution that is safe for consumers is currently impossible, due to the USA pushing AML/KYC policies, upon all other nations, for all online transactions. Compliance requires a high risk tolerance, very careful risk management, and a comprehensive plan that encompasses where the business is registered, how it's structured, very detailed anti-money laundering (AML) policies, detection of suspicious activities, regulatory oversight for those citizens who are subject to identity verification, establishing unique banking relationships, and the technology to process transactions in a way that does not violate the regulations of any country (refer to the Javvy whitepaper for details). Having a non-USA corporation, which owns subsidiaries, in target zones, allows for a more diverse and tailored, overall AML policy, with tailored sub-policies, as needed. This extra layer of separation between business entities allows a controlled AML policy for each, providing the necessary framework to avoid over-regulation by isolating certain operations to specific business units. This is necessary to avoid over-regulation policies from attempting to "flow upstream" or unilaterally across disparate functions of the Javvy solution that should not be grouped or combined (e.g. would not be regulated as separate companies, so should be exempt when under one roof, provided that all necessary precautions are taken to ensure AML policies are met). Fortunately, the Javvy team has the plan, the motivation, and the ability to deliver this game-changing solution.

Technological Advantage Once the Javvy wallet is integrated with our exchange solution and made available for download, the doors will be opened for Bitcoin, and all cryptocurrencies, to appeal to the masses. Additionally, we believe that the many secondary features of the Javvy wallet will solidify its place in the market and establish it as the leading wallet solution rather quickly. Please refer to the Javvy wallet whitepaper for details on how the solution will work.

Barriers to Entry It took years to build and vet the distributed, fully automated cross-currency exchange, and we feel that even the most talented, well-funded development teams would struggle to build one quickly. This presents quite a barrier to entry, such that Javvy should be sufficiently entrenched by the time any competitors could build a working solution, which Javvy has already patented. The methodology for our exchange provides a layer of separation to help prevent over-regulation that attempts to unilaterally target disparate business units that should be exempt. All crypto exchanges, to this point, have primarily supported only Bitcoin. A select few, larger, well-funded exchanges have expanded to support Ethereum, and one, Coinbase, also supports Litecoin (recently added). The reason for the lack of support for direct purchase of cryptocurrency stems largely from the need to hold a large reserve for each supported cryptocurrency. Since cryptocurrency is currently very volatile, and unproven cryptocurrencies are even more so; it is too risky for exchanges to offer more than the top cryptos. However, Javvy has a patent pending on an elegant solution, utilizing the Javvy token (JVY) to act as an intermediary conversion layer between Javvy and a 3rd-party crypto-to-crypto exchange service, freeing up vast sums of currency from reserves. In hindsight, this may seem like a common-sense approach but no exchanges employ this solution, so Javvy patented it. One reason may be that exchanges do not want to pay the 3rd-party crypto-to-crypto exchange fees, but Javvy's financial model will show that, even with the added conversion fees, the Javvy solution will be extremely profitable. Other exchanges may not see the value in spending considerable resources to patent this process and method. However, they will be at significant disadvantage, relatively soon, when "atomic swaps" [53, 54] or other trustless crypto conversion methods become available and they are prevented from taking advantage of those virtually free conversions, due to this simple but patented technique. There is a very high barrier to entry for this market niche, due to the technical, financial, and regulatory expertise that is required. Even without the complex distributed, cross-currency exchange, building a fully functional, cross-platform wallet with integrated Buy and Sell options, and a very simple registration process, is very difficult

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Javvy Prospectus


to achieve. Case in point, nobody has achieved it in almost a decade since the launch of Bitcoin in 2009, despite massive amounts of funding for improving upon existing crypto wallets. [13] However, the Javvy wallet team has the expertise and the Javvy CEO, Brandon Elliott, has the way. To take things to the next level, the Javvy wallet will integrate numerous, other features that will further help propel the Javvy wallet to become the first real solution to the problem of easily buying, selling, managing, and using cryptocurrency in the real world. Together, we will build the crypto solution that everyone has been needing, and this will finally allow cryptocurrencies to truly change the word in the way that it was always meant to.

Differentiation Advantage The Javvy wallet's technological advantages and unique features create a barrier to entry that will position it to easily retain its foothold as the market leader and dominate the industry. Since established wallet providers have had many years and significant funding but still have not provided an adequate solution, it is unlikely that they will be prepared to compete with the Javvy wallet. Monetization Most wallets have no way to monetize. The few wallets that support buy/sell options may use third-party exchange integrations, but they require the frustrating process of registering with each of those exchanges; a potentially risky proposition. The Javvy Solution monetizes via fees and commissions on buy, sell, and convert operations, as well as international debit cards. This revenue provides for continued development, code maintenance, increased salary, team expansion, and increased reserves to allow for faster acquisition of users.

Low Switching Costs Many cryptocurrency wallets are 100% free to use, as is the core functionality of the Javvy wallet. Therefore, users will have no objection or hesitation to use the Javvy wallet, concurrent with any other wallet, and should discover the many reasons to switch, soon after testing it out. Features for which our wallet charges fees or commissions are not available with other wallets, so they will be extremely desirable and cater to everyone who will appreciate the convenience and freedom provided by those unique features.

Sales and Channel Strategies Primarily, we will utilize viral marketing to spread the word about our service. We believe that the "influencers" in the crypto community will be very excited about our plan and will gladly spread the word. We will have an outreach team dedicated to answering questions and reaching out to identified influencers. Initially, there will be great interest in the Javvy wallet, simply as a result of the initial coin offering (ICO) to raise funds by holding a pre-sale of tokens. The more successful the fundraising; the more that media will pick up that story. Then, mainstream media will likely want to report on the first beautiful, intuitive, and truly usable cryptocurrency wallet, and bloggers will want to be the first to shout its praises also. It is likely that bloggers will post "how-to" tutorials to explain how to use the wallet, make creative investments with it, et cetera. While we will devote some advertising budget for online advertising, social marketing and advertising, with most efforts focused on building partnerships and distribution arrangements with crypto-related companies, websites, and industry influencers. Since the success of those types of efforts cannot be solidly predicted, the Javvy financial projections are derived solely from website, newsletter, and social advertising metrics. As a result, the financials are built from the bottom up and very accurately represent and justify projected revenue.

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Javvy Prospectus


Money Matters

Market As reported in the Global Cryptocurrency Benchmarking Study [55, 56], Dr Garrick Hileman & Michel Rauchs, Cambridge Centre for Alternative Finance, 2017 the combined market value of cryptocurrencies was $27 billion in Apr-17 and the number of unique active users of cryptocurrency wallets was estimated to be between 2.9 million and 5.8 million with between 5.8 million and 11.5 million wallets “active”. Since then, the markets have pushed past $200 billion and climbing quickly. Although Bitcoin remains the dominant cryptocurrency in terms of market capitalization, Ethereum has rapidly established itself as the second dominate cryptocurrency, and since Apr 2017, the volume of Ethereum transactions has, at times, surpassed Bitcoin. From Jan 2017 to Jul 2017, the daily market volume of transactions has grown an estimated 49.0% each month.

Source: coinmarketcap.com

Fig 1. Daily Market Volume 7 Day Average at end of Month

Financials - Basis of Preparation Javvy Technologies Ltd., trading as Javvy, whose registered office is McGrath Tonner Corporate Services Limited, Genesis Building, Grand Cayman, Cayman Islands, PO 446 GT, KY1-1106 is a private company limited by shares registered under the laws of Cayman Islands. Javvy Trading Co., whose registered office is 3423 Piedmont Road NE, Atlanta, GA 30305, is a private company limited by shares registered in the State of Georgia. Javvy is a provider of a cryptocurrency wallet and cryptocurrency exchange. These forecasted consolidated financial statements have been prepared in compliance with the International Financial Reporting Standard ("IFRS") issued by the International Accounting Standards Board. They are presented in U.S. Dollars ("$"), the functional currency of the company.

Business Model (Based on “Prudent” Scenario) The Projected breakdown of revenue for 12 months ending Dec 2019 is as follows: Convenient Buy/Sell Fees $77.3M / 95.8% Downloading of the Javvy wallet will be 100% free of charge. Users will be able to send and receive cryptocurrency for free. User will be charged a commission fee on crypto-crypto, crypto-national currency, and national currency-crypto exchange transactions. The fees are expected to be 1.25% for Javvy Direct Sale (safe and convenient, without leaving the wallet software).

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Bitcoin Ethereum Ripple BitcoinCash NEM Litecoin IOTA NEO DASH EthereumClassic Other

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Javvy Prospectus


Crypto Conversion Fees $3.9M / 4.2% By default, we assume that approximately 18% of daily transactions will be crypto-to-crypto conversions. Javvy receives further commissions from cryptocurrency conversion partners for these transactions. Once free (or nearly free) alternative conversion methods exist (e.g. lightning network, atomic swaps, etc); these fees may be reduced significantly (by 50% or more), while still earning Javvy the same revenue. The projection of the growth of the number of daily market transactions, and volume of transactions has been calculated using publicly available data for Jan 2017 to Aug 2017 and applying a very conservative growth factor. By Dec 2019, we expect there to be 2,043,000 daily transactions with a daily volume of at least $4.3B.

Marketing Aside from organic growth from our website, Javvy will use paid digital advertising on cryptocurrency websites, as well as paid digital advertising using search engine marketing. Further new users are gained from “word of mouth” and social media posts from our users. As part of our marketing program, we plan to offer the first $500 of trades for free. By Dec 2019 we plan to have 400,000 installs of the Javvy wallet, initiated from the following sources: Paid Digital Advertising – Cryptocurrency Websites 5.78% Paid Digital Advertising – SEM 44.14% Partnerships and Sponsored Emails 48.6% WOM and Social Media 1.48% After applying a retention rate, we expect that by Dec 2019 there will be 160,000 monthly active users, who we define as users who have logged into their wallet in the last week. Some passive users may continue to hold currency in their wallet. Each user will generate on average $76.6 of revenue in the month of Dec-19.

5-Year Profit Projection The 5-year consolidated profit projection is shown in Fig 2. with an insight graph in Fig 3. With a fundraise of $5M in Nov 2017, the company predicts that revenue will grow to $81.2M for the 12 months ending Dec 2019, with an EBITDA of $51M or 55%. Please keep in mind that all financials and figures in this prospectus are based on an extremely conservative view that the company will achieve only 4.5% market share by the 5th year. With sufficient funding for reserves and operations, we expect that market share will be significantly higher than this “pessimistic” assumption. Fig 4. shows an analysis of the cash flow.

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Javvy Prospectus


Key Performance Indicators (End of Year)

Year 1 Year 2 Year 3 Year 4 Year 5

No of Monthly Active Users 61,699 160,144 238,444 309,428 381,279

Total Crypto Market Users 4,184,664 5,003,260 5,981,988 7,152,174 8,551,269

Market Share 1.5 % 3.2 % 4.0 % 4.3 % 4.5 %

Lifetime Value of a Customer ($) 979 1,471 2,209 3,318 4,984

Monthly Revenue per User from Commissions ($) 39.1 58.8 88.2 132.6 199.1

LTV : CAC 84.1 117.3 164.7 233.5 334.6

Profit & Loss Account

‘000 USD


Revenues 8,175 71,301 182,923 372,201 701,836

Variable Costs 3,183 27,765 71,232 144,938 273,301

Crypto-Crypto Fees 573 4,998 12,822 26,089 49,194

National-Crypto Fees 2,610 22,767 58,410 118,849 224,107

Gross Margin 4,991 43,536 111,692 227,263 428,535

Overhead Costs 3,958 5,724 6,640 7,404 8,310

Staff 1,445 1,978 2,224 2,335 2,452

General Costs 140 143 146 149 153

Marketing 929 1,625 2,046 2,584 3,254

EBITDA 1,033 37,812 105,051 219,859 420,225

as percentage of sales 13 % 53 % 57 % 59 % 60 %

Depreciation 95 98 102 102 102

Finance Costs 10 10 10 10 10

Profit Before Taxes 929 37,704 104,940 219,748 420,114 Taxes 0 2,994 8,133 17,030 32,559 Net Profit 929 34,710 96,807 202,717 387,555

Fig 2. Forecasted consolidated statement of comprehensive income and retained earnings for the years ended 31 December 2017-2022

Fig 3. Revenue / EBITDA analysis for the first 12 quarters

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-656 -839

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70,000

Q 1 Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 Q 9 Q 10 Q 11 Q 12

Revenue/EBITDA Revenues EBITDA EBITDA as %

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Fig 4. Cash flow analysis for the first 12 quarters

Capitalization Table With 45,000 Ordinary shares outstanding at a par value of $1, assuming a purchase multiple of 1,000x the pre-money value of the Company is $45M. With adjustments for cash and cash equivalents, and debt, assuming a transaction value of $5.0M, the Company will have a post money enterprise value of $50.0M.

Capitalization Table Year 1 Shares (%) Year 2 Shares (%) Year 3 Shares (%) Year 4 Shares (%)

Series A

Series B

Series C

Series D

Common Shares (#) 50,000

50,000

50,000

50,000

Current shareholders 45,000 90.0 % 50,000 100.0 % 50,000 100.0 % 50,000 100.0 %

New investors 5,000 10.0 % 0 0.0 % 0 0.0 % 0 0.0 %

Options (#) 0

0

0

0

Current shareholders 0 0.0 % 0 0.0 % 0 0.0 % 0 0.0 %

Employees 0 0.0 % 0 0.0 % 0 0.0 % 0 0.0 %

Fully Diluted (#) 50,000 100.0 % 50,000 100.0 % 50,000 100.0 % 50,000 100.0 %

Investment ('000 $) $5,005

$5,005

$5,005

$5,005

Founders ('000 $) $5

$5,005

$5,005

$5,005

New investors ('000 $) $5,000

$0

$0

$0

Price per share ($) $1,000.00

$0.00

$0.00

$0.00

Liquidation preference 2.00x

2.00x

2.00x

2.00x

Company Valuation ($) $50,000,000 $0 $0 $0

Fig 6. Capitalization Table

Assuming an exit in 2022, investors in the initial equity round could potentially receive an IRR of between 472.4% (“Pessimistic”) and 10,056.3% (“Prudent”) or between 5.72x and 100.0x cash on cash return.

For more detailed financials and projections, you may request detailed spreadsheets, provided you have interest and are able to show sufficient source of funds. If these details are desired, please email [email protected].

5,000

-378

3,964

-841137

2,335

4,788

7,634

10,781

14,366

18,428

23,185

28,512

34,527

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q 1 Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 Q 9 Q 10 Q 11 Q 12

Cash Flow Operational CF Financing CF

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Javvy Prospectus


Exit Strategy This project aims to aggregate all traditional, web-based cryptocurrency exchanges, thereby consolidating all revenue across the cryptocurrency industry. With the Javvy wallet becoming “the easy button for crypto”, the revenue generated should be substantial, with the result of pushing company valuation multiples extremely high. Equity investors will reap their rewards upon future IPO (initial public offering on a stock exchange), merger, or acquisition. Those who purchase JVY during the ICO are able to "exit" at any time, after any applicable lock-up period, by trading JVY on exchanges that support it (e.g. likely Bittrex, Poloniex, Bitfinex, etc).

Investment Needs

Early Investors (pre-ICO, traditional equity) Javvy will be accepting a small sum of investment funding, prior to the ICO, from no more than 2,000 non-accredited investors [57, 58, 59, 60]. Javvy will have two registered entities, one foreign corporation for primary operations and one US C-corporation. The foreign corporation will be the parent company of the US corporation, with the goal of the US corporation becoming a money services business [59, 60] to serve confirmed US citizens' purchases. The terms of this investment offering will be as follows:

• Convertible Note: Term Sheet provided upon request. Conversion to equity and/or JVY tokens

• Investors: This offer is open to non-US citizens and accredited US investors under section Reg D, 506(c)

• Exit: Equity investors to be cashed out upon IPO, merger, negotiated buyback, or company sale

Initial Coin Offering (ICO, 40% bonus via the Convertible Note) Terms of the Javvy token (JVY) offering:

• Maximum CAP: $75,000,000 USD

• Reserved Tokens: 25% o 5% for founding partners o 10% for operational use when buying/selling cryptocurrency in the Javvy wallet o 4% for attracting and retaining top talent, post launch o 5% for key people, advisors, and influencers o 1% for bounty rewards

• JVY Token Price: $0.15 each, Minimum 0.1 ETH

• Bonus Tokens: 25% (0 - 20,000 ETH), 10% (20,001 - 50,000 ETH), 5% (50,001 – 100,000 ETH)

• Emission rate: No new JVY tokens will ever be created

• Sale period: August 1, 2018 @ 13:00:00 UTC until August 31, 2018 @ 13:00:00 UTC

• Accepted currencies: ETH (Alternate payment methods available during pre-ICO pre-sale ONLY)

• Coin distribution date: Immediate (but locked until ICO completion)

• Regulatory: Treated as a security under US SEC Reg D, 506(c) statutes * *While the Javvy (JVY) token passes the “Howey Test” [61], further backed by a patent pending (“the Javvy protocol”), Javvy decided to treat the token as a security to avoid any future issues. The token should be listed with all exchanges that are compliant to list securities.

Use of Funds Raised - Roadmap The primary constraints on crypto exchange growth are the operating expenses and reserves required to handle each new customer. Therefore, competitors are constantly working to raise capital. The architecture of our system and utility of the Javvy token (JVY) reduces our startup and growth expenses significantly. This allows us to focus on core competencies, rather than raising funds. We expect to raise the equivalent of at least USD $5 Million, which will be sufficient to launch the initial release of the Javvy wallet with integrated Buy/Sell functionality and the most user-friendly registration process. See Appendix A for the graphical roadmap, showing the high-level overview of the feature deployment timeline, based on funding raised.

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Appendix A - The Javvy Crypto Solution Roadmap

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Javvy Prospectus


Appendix B - The Javvy Team

Brandon Elliott, CEO (Chief Executive Officer)

Mr. Elliott is the founder, creator, and current CEO of ShrinkTheWeb, a fully automated website screenshot service provider that was launched in 2008. Within its first year, ShrinkTheWeb was able to displace the largest, established website screenshots provider, Alexa Site Thumbnails (an Amazon Web Service), by attracting most of their customers to quickly become the market leader. Clients include(d) big brands, such as Symantec, Adobe Systems, GoDaddy, Microsoft, RetailMeNot, VMWare, TRUSTe, and many more.

Mr. Elliott engineered nearly every complex component of ShrinkTheWeb, which has grown to the point of automatically processing billions of screenshots per month. In order to handle such incredible volume and growth, he built an infinitely scalable screenshot capturing back-end that was completely distributed, auto-scaling, and self-healing. Mr. Elliott has a rare talent for solving the toughest problems that many other "experts" claim are "impossible." This ability stems from a penchant for learning and gaining expertise, knowledge, and depth of experience across numerous technical areas. A combination of launching several startups and prior years of consulting to small businesses, global corporate clients, financial institutions, and Banker's Banks for network infrastructure, network security, and business optimization honed his expertise in:

• Server administration

• Network and application security

• Infrastructure design and troubleshooting

• Database design and optimization

• Automation

• Multiple programming languages The foundation for this expertise resulted from:

• College studies in business management practices and higher mathematics.

• Attaining numerous certifications, to become classed as an expert in many fields:

✓ CISSP (highest level Security certification) ✓ CCNA (Cisco Network certification) ✓ MCSE (high-level Microsoft Systems Engineer certification) ✓ MCP+I (Microsoft Internet Specialty) ✓ MCT (Microsoft Certified Trainer) ✓ and A+ hardware expert

Being able to master so many areas, view problems from the "big picture" perspective, and then drill down to identify a solution is what uniquely qualifies Mr. Elliott to create elegant solutions for today's complex problems.

The Growing Javvy Team Mr. Elliott manages a team consisting of Frank Grogan, Kirubel Girma, Andreas Pachler, Dmitry Evdokimov, Nikita Novikov, Yasitha Bogamuwa, Michael Lu, Harley Grouette, Toshendra Sharma, Oleg Sergeykin, Leah Elliott, Valerie Pierce, and numerous consultants. Many valuable team players work on ShrinkTheWeb, and all will be working together on the Javvy crypto solution! For a complete list of Javvy team members, please visit the website at: https://javvy.com/javvy-core-team.html Do you have what it takes to join us? Get in touch!

https://javvy.com/

https://javvy.com/javvy-core-team.html

Javvy Prospectus


Appendix C

Money-laundering and cryptocurrency regulations Addresses the issue of legality for citizens restricted by money-laundering regulations. Option 1: Ban the Buy/Sell functionality by blocking all US IP addresses.

• Downside: Potentially cuts out 20%-30% of the current crypto market.

• Note: US citizens would still be driven to use the wallet for all of the other superior features. Therefore, those users would still earn commissions from other wallet actions.

Option 2: "Honor System" - Detect users from the US (by IP) and ask them if they are a US citizen.

• This accounts for foreign citizens traveling abroad in a country that restricts only their citizens.

• If answering "Yes" then the functionality is blocked. If answering "No", then all functionality is allowed.

• An email is dispatched to explain that citizens of XYZ restricted country are not allowed access.

• The major exchange, Bitfinex, had an indirect crackdown when all USD transfers were denied for months, in 2017. [63] As a result, Bitfinex now uses this "Honor System" method.

Workaround: In either case, if enough funds are raised, we would register a US-based corporation as an MSB (Money Services Business). Then we could offer to serve restricted citizens for Buy/Sell operations, if they opt to submit to the regulations and verification. So, at least they would have that option using our trusted wallet versus using a potentially risky alternative exchange.

No registration required for basic functionality Everyone, everywhere, will be able to download the Javvy wallet, without any registration. If using only the send, receive, convert, and manage features, no registration would ever be required; not even an email. Registration is only necessary in the case that a user wants to buy or sell cryptocurrency or use advanced features. Advanced features include funding an international debit card, which is available to nearly everyone in the world, and sending money from one registered Javvy user to another registered Javvy user (no fees!). Thanks to Javvy's focus on tailored regulatory requirements for ID verification, registering is much easier than using existing crypto exchanges, requires far less documentation, in most cases, and can typically be completed instantly for citizens of more than 170 countries, and 1-3 days for the rest of the world. Providing an email, when downloading the wallet, is OPTIONAL.

• Only needed if the user wants updates, announcements, news, or technical support.

• Even if email is provided, it would not be linked to a specific wallet or account.

• We may also send special offers related to cryptocurrency.

• We will never send spam or provide user's emails to any entity, for any reason.

Avoid peer-to-peer interactions and complexities Peer-to-peer exchanges require quite a bit more effort, in that users must present offers, potentially counter-offer or negotiate, and then process a trade that could be time-consuming, error-prone, or end up in arbitration. In the event of a dispute or arbitration, anonymity must be sacrificed, which is not a concern with the Javvy Distributed Exchange. We believe that nobody wants to deal with peer-to-peer disputes, if they don't have to, and would prefer the convenience of a seamless transaction, at the lowest market rates, without having to negotiate prices. Additionally, it is natural that prices in a thinly traded marketplace will tend to veer higher, because sellers will not typically sell at a low price when they could simply sell elsewhere for more (e.g. arbitrage [64]). Therefore, they are inclined to sell at a premium when there is little competition or to go elsewhere when there is competition. Either way, it is a seller's market and prices tend to climb upward, in these cases.

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Appendix D

Detailed Comparison of Established Crypto Wallets

Note: The original Bitcoin wallet; released in 2009 A.K.A.: Bitcoin-QT client Market Share: No Data Available Buy/Sell Support: None Cryptocurrencies: Bitcoin Platforms Supported: Windows, Linux, MAC Extended Functionality: None Security: Stores private key locally (user controlled) Storage Type(s): Hot & Cold User Interface: Very basic

Obstacle: Bitcoin Core is listed here, because it is maintained by the Bitcoin Core team itself and was the first Bitcoin wallet ever created. So, it is a very established wallet, although it is a bit antiquated these days. Users looking for modern solutions typically chose other wallets with more advanced features or better reviews. Bitcoin Core Disadvantages:

• No way to buy/sell within the wallet, making the process unnecessarily complicated.

• No support for mobile users.

• Supports only Bitcoin.

• Only provides basic functionality.

Note: Claims to be the #1 wallet, but this cannot be verified. Market Share: No Data Available (claims 14M+ wallets created) Buy/Sell Support: Coinify integration (EU only) Cryptocurrencies: Bitcoin & Ethereum Platforms Supported: Web, Apple iOS, & Android Extended Functionality: Shapeshift.io integration for converting cryptocurrencies Security: Stores private key locally (user controlled) Storage Type(s): Hot & Cold User Interface: Very basic

Obstacle: Blockchain made this list only because it claims to be the largest wallet currently in use. However, this cannot be independently verified, as there have been no concrete ranking comparisons to date. Regardless, it has been around for a while and is a very established wallet. Users look elsewhere for desktop wallets, more advanced features, or better reviews. Blockchain Disadvantages:

• External exchange integration to buy/sell within the wallet. o Does not overcome the difficulty of regulation and verification. o Does not support regulated countries (EU only).

• No support for desktop/offline users (Web & Mobile only).


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Note: Provided by Coinbase exchange. Must register first. Market Share: No Data Available Buy/Sell Support: Coinbase integration Cryptocurrencies: Bitcoin, Ethereum, & Litecoin Platforms Supported: Web, Apple iOS, & Android Extended Functionality: Crypto Price change notifications Security: Stores private key remotely (exchange controlled) Storage Type(s): Hot & Cold User Interface: Intuitive and attractive.

Obstacle: Coinbase is the only other wallet that currently has Buy/Sell functionality integrated into the wallet. However, it services those requests through its exchange, of course, which means everyone must register for an account first. Coinbase users have an incentive to choose this wallet, but users may look elsewhere for desktop wallets, more advanced features, or better reviews. Coinbase Disadvantages:

• External exchange integration to buy/sell within the wallet. o Does not overcome the difficulty of regulation and verification.

• No support for desktop/offline users (Web & Mobile only).

• Supports only Bitcoin & Ethereum.


Name: Exodus Market Share: No Data Available Buy/Sell Support: None Cryptocurrencies: Bitcoin, Ethereum, & many others Platforms Supported: Windows, Linux, & MAC Extended Functionality: Shapeshift.io integration for converting cryptocurrencies; Portfolio overview feature. Security: Stores private key locally (user controlled) Storage Type(s): Hot & Cold User Interface: Intuitive and attractive, with customization options Obstacle: Exodus has enjoyed good growth, due to its attractive and intuitive interface and its wide support of cryptocurrencies. Being able to trade cryptocurrencies within the wallet is also a likely draw for die-hard crypto fans. This wallet's developers have long-term cryptocurrency experience, having written many crypto-related apps over the past several years.

Exodus Disadvantages:



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Market Share: No Data Available Buy/Sell Support: None Cryptocurrencies: Bitcoin, Ethereum, & many others Platforms Supported: Windows, Linux, MAC, Apple iOS, Android, & several browsers via plugins Extended Functionality: Shapeshift.io integration for converting cryptocurrencies Security: Stores private key locally (user controlled) Storage Type(s): Hot & Cold User Interface: Intuitive and attractive

Obstacle: Jaxx has enjoyed good growth, due to its attractive, minimalistic, and intuitive interface and its wide support of platforms and cryptocurrencies. Being able to trade cryptocurrencies within the wallet is also a likely draw for die-hard crypto fans. Jaxx Disadvantages:

• No way to buy/sell within the wallet, making the process unnecessarily complicated. Jaxx Advantages:

• Jaxx actually supports more platforms (browser plugins) than the Javvy wallet will support. However, we do not feel that lack of additional support will make much difference in the adoption of our wallet, and we feel that security is an issue with browser plugins (malware, hacking, key transmission when syncing, etc).

Name: Electrum Market Share: No Data Available Buy/Sell Support: None Cryptocurrencies: Bitcoin Platforms Supported: Windows, Linux, & MAC Extended Functionality: None Security: Stores private key locally (user controlled) Storage Type(s): Hot & Cold User Interface: Very basic Obstacle: Electrum doesn't have much to offer and is incredibly basic in functionality, but it does have quite a following due to its stability and reputation as being a solid wallet over the years. However, without a major overhaul and new features, this wallet will likely fall into obscurity in the new few years, even if the Javvy wallet were never to launch onto the scene.

Electrum Disadvantages:





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Market Share: No Data Available Buy/Sell Support: Integrated peer-to-peer exchange Cryptocurrencies: Bitcoin, Ethereum, and many others Platforms Supported: Windows, Linux, & MAC Extended Functionality: Convert among many cryptocurrencies Security: Stores private key locally (user controlled); Uses Tor Storage Type(s): Hot User Interface: Complex Auction/Bidding System Obstacle: bitsquare is a recent newcomer, which tries to solve the same issues the Javvy wallet will solve, by creating a peer-to-peer exchange, like Napster or BitTorrent for cryptocurrency. Their decentralized network touts’ anonymity, routing over the Tor network, up to the point of communicating with the buyer or seller.

Bisq Disadvantages:

• Complicated peer-to-peer barter system inside the wallet o Not 100% anonymous, as "sting" operations can still lead to user convictions [65, 66] o Users will pay a premium (too little competition), unless a HUGE number of users participate. o Lack of buyers and sellers could severely limit liquidity (no way to buy or sell) [67] o Offers human arbitration, for a required fee. Why pay for arbitrators and bother with disputes?


• Only provides basic functionality. Other Competitors There are many other cryptocurrency wallets (mostly Bitcoin-based), but none of them have had much success. There are not many quality wallets, because current wallets cannot monetize properly, giving little incentive to develop something that truly works. Even the behemoth companies that were gifted with massive investments [13] have not invested enough resources and attention into their wallets, because they either cannot figure out how to build the solution or they are content with the money they raised and just providing a mediocre service.

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Appendix E - Business Considerations

Source of Intellectual Property Javvy wallet's code is based upon intellectual property developed by Neosys Consulting, LLC. All rights and ownership of all proprietary code is transferred to the Javvy organization for its exclusive use.

Protection of Intellectual Property Javvy wallet’s core technology cannot be patented, because the "idea" of buying, selling, managing, and trading cryptocurrency in a "wallet" is not novel and similar code has already been disclosed publicly. The technology and methodology powering the distributed, cross-currency exchange and the proprietary use of a crypto TOKEN to eliminate cryptocurrency reserves do meet the novelty requirement for patent protection, so we have filed US Patents Pending 62543097 and 62558597, respectively. In case our patents are pigeonholed [68] or never approved, we will focus on being first to market with our game-changing plan. Soon after successful ICO, before 12 months from original patent filing, we will file a PCT (Patent Cooperation Treaty) application [69]. Then, we will "nationalize" the patent in various countries [70] for international protection.

Development Plan We plan to build on to our core services as demand warrants and will keep the Javvy wallet competitive and innovative by adding requested features, fixing discovered bugs, and constantly improving the wallet's interface.

Scalability We will maintain contingency and scalability plans throughout each phase of our launch, utilizing redundant servers, backups, and contingency plans to avoid experiencing downtime. Fortunately, operating the back-end servers (API endpoints) costs such a small fraction of the revenue generated that scaling should be handled smoothly, even with extreme growth and widespread wallet adoption. Additionally, our expert infrastructure engineers have extensive experience building scalable solutions that utilize load-balancers, serving traffic across multiple nodes capable of automatically scaling to meet extreme demand. They also worked closely together to enable self-healing capability in the infrastructure, meaning that unhealthy nodes will be instantly detected and replaced automatically. Below is a scaling cost analysis:


Estimated Users 10,000 250,000 2,500,000 10,000,000 25,000,000

Est Daily API Calls 2,750 70,000 700,000 2,800,000 11,200,000

Estimated Costs $12,000 $12,000 $12,000 $25,000 $25,000

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Javvy Prospectus


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Javvy Prospectus


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Documents

2018 Javvy Cryptocurrency Solution Prospectus · As a "digital asset" [25], cryptocurrency appeals to anyone who is looking for an alternative store of value, investment vehicle,