Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 1
TABLE OF CONTENTS
I. Abstract .............................................................................................................................. 2
Market outlook................................................................................................................ 2
Global Raising‟s solution ............................................................................................... 2
II. Market Context .................................................................................................................. 3
Current problems faced by private companies ............................................................... 3
Current problems faced by individual investors ............................................................. 4
III. Global Raising’s Platform ................................................................................................. 6
Key value propositions for private companies ............................................................... 6
Key value propositions for individual investors ............................................................. 7
IV. Key Processes ..................................................................................................................... 9
Screening process for company and asset due diligence ................................................ 9
User journey for individual investors ............................................................................. 9
Transaction course between RG and RFC .................................................................... 11
RG liquidation process ................................................................................................. 11
V. Technical Features ........................................................................................................... 13
Implementation of Smart Contracts with security patterns .......................................... 13
Establishment of a secure and scalable exchange platform for RG .............................. 13
VI. Industry-specific Use Cases ............................................................................................ 15
Tokenised VC funds ..................................................................................................... 15
Case study: Socidea Inc ................................................................................................ 15
Share-based tokens ....................................................................................................... 18
Case study: FCC 2019 .................................................................................................. 18
Asset-backed tokens ..................................................................................................... 23
Case study: INGINE ..................................................................................................... 23
Social contribution business ......................................................................................... 25
Case study: Enerwin Korea Inc .................................................................................... 26
VII. Tokenomics ....................................................................................................................... 29
RG issuance plan .......................................................................................................... 29
RFC issuance plan ........................................................................................................ 29
VIII. Project Roadmap ............................................................................................................. 32
IX. The Global Raising Team ............................................................................................... 33
Philosophy and vision ................................................................................................... 33
Core team ...................................................................................................................... 34
Advisors ........................................................................................................................ 36
X. Disclaimer, Legal Notice & Other Matters ................................................................... 38
Disclaimer ..................................................................................................................... 38
Legal notice .................................................................................................................. 38
Other matters ................................................................................................................ 39
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 2
I. ABSTRACT
Market outlook
Investing in the modern world has never been easier, with mature markets existing for
major asset classes such as public equities (i.e. stocks), fixed income (e.g. bonds), money
market instruments (e.g. treasury bills), real estate and commodities.
However, markets for non-mainstream but still attractive investment opportunities, such as
stocks of highly-valued start-ups and other private companies, remain underdeveloped in
comparison due to a myriad of limitations, which in turn causes problems for private
companies as well as individual investors.
Prime instances of such problems are small- to medium sized private companies finding it
increasingly difficult to raise funds, and individual investors becoming less exposed to
exciting investment opportunities. Altogether, these factors contribute to an unhealthy
investing environment wherein big companies and institutional investors can “squeeze out”
the smaller players (i.e. private companies and individual investors) easily.
Global Raising’s solution
Global Raising‟s internal exchange platform – including the issuance of Rflexcoin (a
utility token) and Reward Gas (a security token) – is geared towards providing high utility
to existing investment markets that exhibit signs of the problems above through tokenisation
of companies‟ shares and/or assets.
By utilising blockchain technology to further solve information asymmetry problems for
individual investors, Global Raising‟s platform is well-positioned to improve the field of
investing for all parties involved.
This White Paper outlines Global Raising‟s vision to bridge the interests of both parties by
building an organic yet robust ecosystem that is rewarding for private companies and
helpful toward individual investors in making optimal investment decisions.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 3
II. MARKET CONTEXT
Current problems faced by private companies
The lack of a public market for individual investors to trade the stocks of private
companies (including start-ups) often results in either over- or under-estimation of their
operations‟ and assets‟ respective intrinsic values, as such value judgements are often
carried out by singular parties (e.g. angel investors, venture capital firms).
A prime example of gross over-estimation of a private company‟s intrinsic value is Snap
Inc (previously branded as Snapchat), which, on 2 March 2017, was listed on the New York
Stock Exchange. Snap Inc‟s Initial Public Offering (IPO) was conducted at USD24.00 per
share at a combined company valuation of approximately USD33.0bn (Crunchbase, 2019).
Snap Inc‟s company valuation at IPO was in line with investment judgements made by
venture capital firms as it had previously raised approximately USD2.7bn over 10 funding
rounds (Crunchbase, 2019).
However, in the public market, investors did not see as much intrinsic value in Snap Inc
and that led to its share price falling tremendously since IPO. As of market close on 8
February 2019, Snap Inc trades at USD9.10 per share, a 62.1% drop from its IPO price.
This example highlights the importance for private companies to have a strong grasp of its
intrinsic value via a free market mechanism (such as in public markets) in order to make
optimal decisions on an operating, financing and investing level.
Fig 1: Common problems that companies face when they over- or under-estimate their intrinsic values
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 4
While a free market mechanism may seem like a double-edged sword for private
companies, it provides much-needed validation for companies that would otherwise have
been under-valued and a “reality check” for companies that would otherwise have been
over-valued, prompting them to actively seek out areas for improvement.
In both cases, free market mechanisms existing within a public market for private
companies‟ stocks to be traded would be a most welcome addition to the companies‟
decision-making processes.
Current problems faced by individual investors
As most investment fields today are dominated by “big name” players (e.g. major asset
management firms and hedge funds), it is extremely difficult for individual investors to find
exciting investment opportunities, much less have a head start in doing so.
The investment process for individual investors is further made complicated by the fact
that they must go through intermediaries (e.g. stock brokers) and oftentimes, only have
second-hand access to information as provided by financial news agencies, for instance.
Altogether, these factors cause further limitations for individual investors.
Information asymmetry: Unlike major investment firms, individual investors usually
do not have access to communication channels with private companies‟ management
teams. Considering that private companies are not obliged to disclose their financial
information, individual investors face greater risks in their investment decisions due to
the disparity in material knowledge.
The information asymmetry problem is worsened due to time lag – individual investors
are likely to only hear about corporate events after they have been reported in the news
but major investments are likely to learn of them first-hand.
Long payback period: Payback period on investments is a very important
consideration for individual investors, as it indicates the amount of time needed to
recover the initial investment. Payback periods are generally longer for venture capital
investments, with a minimum of three years and an average of five years being the
norm.
On top of that, individual investors cannot liquidate on their under-performing stock
holdings quickly, as investments in private companies are relatively illiquid.
Inaccessible information: Apart from lack of access to critical corporate information,
individual investors also seldom have access to information on private companies‟
fundraising rounds. This puts them at a greater disadvantage when it comes to assessing
what the best investment opportunities are at any point in time.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 5
High transaction fees: By having to go through intermediaries (e.g. hedge funds) in
order to invest in private companies, individual investors often end up incurring large
transaction fees even if their investments (or even the funds, for example) underperform.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 6
III. GLOBAL RAISING‟S PLATFORM
Global Raising will build an entire ecosystem focused duly on (1) improving the
accessibility of private companies‟ stocks and assets as investment opportunities, as well as
(2) adequately recognising the intrinsic value of such investment opportunities.
To achieve this end, Global Raising will issue two tokens – Reward Gas (“RG”), a
security token, and Rflexcoin (“RFC”), a utility token – on an internal exchange platform
with compulsory corporate disclosures required from companies that list using RG. By
making investment opportunities on Global Raising‟s platform transparent and convenient,
individual investors benefit greatly by having more information and time to make superior
investment decisions.
The following illustration explains the relationship between RG and RFC, as well as their
synergy within Global Raising‟s platform.
Fig 2: Synergy between RG and RFC on Global Raising‟s internal exchange platform
Key value propositions for private companies
First and foremost, Global Raising‟s platform allows private companies to enjoy the main
benefits of being listed – the ability to conveniently raise funds and unlock their respective
intrinsic values in a public market – without having to go through the IPO process.
Securitisation of intangible assets: On top of the above, companies can also choose to
securitise their intangible assets on Global Raising‟s platform. For instance, companies
may choose to securitise their Intellectual Property (IP) rights using RG.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 7
The benefits to doing so are two-fold – (1) companies can use RG as “licenses” to
govern their IP-protected materials, and (2) creative companies stand to be better
rewarded for their efforts. An additional side benefit to this is that in terms of
accounting, it will be easier to obtain a fair value for intangible assets if they have been
securitised.
New funding channel for Small & Medium Enterprises (SMEs): SMEs commonly
raise funds through government grants and other financing schemes. However, as the
eligibility criteria becomes more stringent, SMEs are increasingly turning to
crowdfunding to raise funds.
With RG, Global Raising‟s platform then becomes a more efficient market from which
SMEs can seek financing. Considering that most private companies are SMEs, this
makes Global Raising‟s platform especially attractive from a corporate perspective.
Key value propositions for individual investors
The most obvious benefit that Global Raising‟s platform brings to individual investors is
that with RFC, it bridges the gap between them and investment opportunities that were
previously either inaccessible or unavailable.
Global Raising has also streamlined its platform, eliminating complexities that are
commonly found on other investment platforms – for example, purchases of RG and RFC
can be made via smart contracts without the need for third parties to be present.
Improved investment recovery: Investment assets, especially venture investments,
typically require a considerable amount of time before initially deployed funds can be
withdrawn due to liquidation protocols. However, as individual investors can trade RG
and RFC on an internal exchange (i.e. Global Raising‟s platform), such liquidation
protocols can be circumvented, allowing for investments to be recovered much earlier –
this is especially crucial if the individual investor‟s investment is severely
underperforming against expectations.
An important consequence arising from this is that “failed” investments are less likely
to have an adverse impact on individual investors‟ risk appetites as their invested funds
can be recovered relatively easily. This allows investors to focus more assuredly on the
long-term potential of their investments instead of fretting unnecessarily over short-
term losses.
Better reflection of a company’s intrinsic value: Global Raising‟s platform is
accessible globally, allowing for investors to easily trade RG and RFC from anywhere
around the world. Without geographical limitations (fairly common in stock exchanges,
as public companies typically list on their respective domestic exchanges), a company‟s
RG price will be more reflective of its intrinsic values as it takes into account many
trade
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 8
positions taken up by a diverse investor base (as compared to stock exchanges, which
tend to have investor bases that mainly comprise of locals).
This effectively allows individual investors to function as collective intelligence on a
global scale, which is highly likely to result in them making increasingly better
investment decisions.
Diversification and distribution of risk: With RG, individual investors can purchase
fractionated token denominations instead of having to purchase in lots of shares (e.g. in
stock exchanges). This allows individual investors to better diversify the risk in their
investment portfolios.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 9
IV. KEY PROCESSES
Screening process for company and asset due diligence
The following diagram details the actual due diligence process which will take place prior
to a company securitising either its shares or assets with RG.
Fig 3: Asset evaluation process
It is important to note that investment decisions and transactions on Global Raising‟s
platform are to be made at each individual investor‟s discretion and judgement. However, in
order to duly protect investors on the platform, due diligence checks and stringent
assessments will be conducted on companies looking to tokenise via RG.
Throughout the process, in-house and third-party experts will be engaged by Global
Raising to conduct a holistic evaluation chiefly on the financial, technical and legal fronts.
User journey for individual investors
The following diagram illustrates the user journey for individual investors after the
companies have passed the initial due diligence procedures.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 10
Fig 4: User journey on Global Raising‟s platform
In order of flow, the user journey is as follows.
1. Investment property registration: The company will register on Global Raising‟s
platform for either its shares or assets to be tokenised into RG. In both cases, thorough
valuation will be conducted to determine a fair value for the shares or assets.
2. Purchase RFC: Individual investors can choose to purchase RFC on Global Raising‟s
platform with either fiat currency or other cryptocurrency assets (e.g. Bitcoin,
Ethereum).
3. Select investment opportunities: Individual investors closely review the available
investment opportunities and buy their desired tokenised shares or assets with their
previously purchased RFC.
Investors will also be required to provide their particulars and information in
compliance with anti-money laundering laws and other related regulations.
4. Receive RG: Once purchases have been approved, individual investors will receive RG.
5. Investment payment: After the sale has been completed, the relevant company will
receive fiat currency in return.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 11
Transaction course between RG and RFC
Fig 5: Transaction course for RG and RFC
RG and RFC will be transacted on Global Raising‟s internal exchange platform due to the
fact that not many foreign exchanges are able to list security tokens at the moment.
Thereafter, as the market grows bigger, the vision is for RG and RFC to both be listed on
external cryptocurrency exchanges for security tokens and utility tokens respectively.
1. Internal exchange for RG transactions: Transactions will be conducted using RFC
via Global Raising‟s internal exchange platform.
2. Internal exchange for RFC transactions: A secondary market within Global
Raising‟s platform will be used as a channel to distribute RFC (bundled with Vault
Contracts) and for over-the-counter transactions of large quantities. Unlike traditional
utility token exchanges, this secondary market will utilise escrow trading for
international transactions.
3. External exchange for security tokens: As the market for security tokens mature,
many major exchanges will be better positioned to list security tokens. For RG, the
vision is to expand its presence to external cryptocurrency exchanges to accommodate
the forecasted expansion in its investor base.
4. Common crypt foreign exchange: As RFC is a utility token, it will also be listed and
distributed via existing cryptocurrency exchanges.
RG liquidation process
Currently, security tokens can be implemented in four major structures – (1) Tokenised
Venture Capital (VC) Funds, (2) Share-based Tokens, (3) Asset-backed tokens, and (4)
Crypto-bonds – with the Global Raising platform being able to accommodate the first three
structures.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 12
The following denotes the liquidation process that Global Raising will undertake for each
of the three structures described above.
1. Tokenised VC Funds: When the opportunity to liquidate arises (e.g. in cases where the
issuing company is sold), the RG that was issued will be collected and incinerated.
From there, promised shares will be paid out to the individual investors.
2. Share-based Tokens: This is a structure that is similar to ordinary company shares as
it allows security tokens to be issued with voting rights, dividends or revenue share.
Upon liquidation, profits will be confirmed through accounting audits and distributed to
the individual investors.
3. Asset-backed Tokens: Individual investors can liquidate their investments on asset-
backed tokens and earn a profit by selling the tokenised asset rights back to the
respective issuing company.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 13
V. TECHNICAL FEATURES
Implementation of Smart Contracts with security patterns
By issuing a token contract that complies with Ethereum‟s ERC-20 specifications and
further applying the contract‟s security pattern(s), reliable Smart Contracts such as Circuit
Breaker and Vault can be implemented.
The following table shows the security patterns for certain Smart Contracts that Global
Raising can emulate for RFC.
Security pattern Smart Contract
Checks-Effects-Interactions CryptoKitties
Emergency Stop Augur/REP
Speed Bump TheDAO
Rate Limit Etherep
Mutex Ventana Token
Balance Limit CATToken
Fig 6: Security patterns and the corresponding Smart Contracts that employ them
Establishment of a secure and scalable exchange platform for RG
Most cryptocurrency exchanges do not have robust technical infrastructures in terms of
security and efficiency that are on the same level as traditional stock exchanges.
Global Raising‟s internal exchange platform aims to differentiate itself by growing into a
cutting-edge platform that can be fully trusted by both issuing companies and individual
investors. To achieve that, the following are key areas that Global Raising will focus on.
Compliance management: In order to respond to the latest cyber-attack threats and
enhance internal controls, it is crucial for legal and physical security systems to be
established. Accordingly, Global Raising will establish an exchange system that
complies with regulations regarding Information Technology (IT), systemises IT
business processes and confirms operations.
Technology specifications for compliance management include:
− Privacy compliance response
− Security policy/management system/process improvement
− Respond to ISMS/PIMS/ISO27001
− Security solution review and adoption
− Mock hacking, infrastructure vulnerability check
− Establish BCP
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 14
Security infrastructure management: In order to ensure the safety and reliability of
all RG transactions, Global Raising‟s platform will be geared towards having full
capabilities to efficiently configure and operate networks, hardware, storage as well as
security systems.
Technology specifications for security infrastructure management include:
− Network separation and system access control
− Hot wallet/cold wallet separation and monitoring system
− DDos/IPS/Firewall
− Database encryption
− Access control system
− Key management system
Engine management: Global Raising will establish a rule-based and engine-based
foundation for its platform in order to allow for safe and fast on- as well as off-chain
transactions.
Technology specifications for engine management include:
− Authorisation engine
− Risk engine
− Trading/matching engine
− Blockchain gateway engine
− Hot/cold storage engine
− Reporting engine
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 15
VI. INDUSTRY-SPECIFIC USE CASES
Tokenised VC funds
New fields of technology that had previously not existed are continuously being
researched and rapidly developed by today‟s venture companies as well as start-ups –
Internet of Things (IoT), big data, artificial intelligence, smart sensors, robots, security,
virtual/augmented reality and smart cities are prime examples of such new fields.
Global Raising will support innovative tech-focused ventures to help foster an ecosystem
of companies that can develop useful technology for public good.
In line with that, Global Raising will take the first step towards attracting more investment
opportunities by tokenising the shares of Socidea Inc, a semiconductor technology
development venture company.
Case study: Socidea Inc
1. Company overview
Corporate body Socidea Inc
Company representative(s) Kim
Location(s) Headquarters: Gangnam-gu, Seoul, South Korea
Subsidiary: San Diego, CA, United States of America
Incorporation date 12 June 2018
Area(s) of expertise
Semiconductor process migration services
Sales of EDA Tool and semiconductor foundry IP
Design and development of embedded semiconductors in the
human body
2. Major business lines and core competences
Semiconductor process migration service
− Socidea Inc has the capability to deliver optimal digital process migration
services through mergers and acquisitions of experienced engineers (personnel
that have worked in the early stages of 7nm migration process porting) and
companies providing semiconductor design tools.
− Socidea Inc also has the ability to develop world-class semiconductor process
migration tools and solutions, provide fair migration solutions and development
services to a diverse range of semiconductor companies around the world.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 16
Establishment of non-memory semiconductor foundry IP platform
− Socidea Inc currently has IP process migration technology on top of proven
silicon IP trade methodologies; based on this, a number of small-scale
semiconductor companies will be assisting to develop products using process
platform-based IP in a plug-and-play manner.
− Socidea Inc will provide process migration and IP enforcement in a variety of
process technologies in order to play a key role in government-led system LSI IP
platform projects.
− Socidea Inc will provide market analyses, demand forecasting, customer
engagement, ASIC SoC development and patent protection services.
− Socidea Inc will also provide a new foundry business model.
Fig 7: The structure of foundry IP market platforms
Human-embedded semiconductor development project
− Socidea Inc will develop bio-electronic applications in collaboration with a global
company (hereafter known as “Q”) and serve as exclusive business application
partners of the developed business; there will also be further co-development of
bio-related IP.
− Socidea Inc will also ensure tools (e.g. health tracking, health monitoring, ultra-
low power IoT devices) and manpower through collaboration with another
company (hereafter known as “A”).
3. Related market forecasts and competitiveness
In 2017, the application processor (AP) of smartphones were applied to 10nm
FinFET (3D solid structure design and process technology) processes, which led to
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 17
increasingly advanced process nodes that were able to realise more functions while
maintaining smaller chip sizes.
As mass production became possible with 7nm FinFET technology in 2018, process
technology needs for other small ASIC SoCs increased dramatically. Hence, rapid
growth is expected due to competition within the 7nm process industry.
The foundry market is growing faster than the overall IDM market, and was
projected to hit a market capitalisation of KRW81.0tr by 2018.
Socidea Inc has the world‟s leading semiconductor IP process migration technology
(micro-processing). Based on this, it will be able to provide the optimal digital
process migration service and aid in establishing the semiconductor IP platform.
From there, the smaller semiconductor fabless companies will be able to develop
products using process platform-based IP.
With the acquisition of a German company (hereafter known as “M”) and a
company in the United Kingdom (hereafter known as “I”), Socidea Inc will be able
to enter the migration-related technology market in future, making the previously
monopolised market more competitive in the process.
4. Future business schedule
Division Business overview Schedule
Semiconductor
process migration
service business
Merger and acquisition of “M”
and “I”
Complete acquisition of “M” in
March 2019
Complete acquisition of “I” in
May 2019
Complete merger with US
subsidiary in 2019
Propel full-scale business from
2019 onwards
Establishment of
non-memory
semiconductor
foundry IP platform
Key role in government foundry
IP platform business
Participation of platform
construction business stake in
December 2018
Participate in businesses from
the second half of 2019 onwards
Propel full-scale operations from
2010 onwards
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 18
Division (cont’d) Business overview (cont’d) Schedule (cont’d)
Human embedded
semiconductor
development project
Establish a subsidiary in the US
and jointly develop a
semiconductor unit that can be
integrated into the human body
with “Q”
Obtain essential semiconductor
IP through collaboration with
“A”
Sign a contract with “Q” in
March 2019
Sign an equity participation
contract with “A” in March 2019
Complete joint development
project with “Q” in 2019
Propel full-scale business from
2020 onwards
Fig 8: Planned business roadmap for Socidea Inc‟s divisions
5. Investment plan
Establish corporation June of 2018 with USD 0.27M (established capital)
Established capital to USD 1M up to now
Planned capital to reach USD 40M in 2019
Share-based tokens
This token structure issues tokens based on several types of rights correspondingly
attached. Global Raising aims to raise funds for a fashion project titled „FCC 2019‟ by
issuing tokens attached with revenue share rights.
This is particularly useful for relatively short-term yet profitable projects because the
overall structure scales proportionately to the number of tokens that have been bought at the
end of each project.
Case study: FCC 2019
1. Project vision
To support the growth of new designers by selecting excellent young fashion
designers through a collective intelligence and actively supporting them through
dedicated growth programmes
To complete a fashion IP platform by sourcing novel fashion IP and establishing
global sales through distribution channels
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 19
To generate interest in fashion IP investments to lead new designers and innovative
projects into the broader market
Fig 9: Project overview for FCC 2019
2. FCC 2015
Track record
− The first FCC online contest was held in September 2015
− Developed and applied self-developed general public evaluation algorithms
(C.E.S)
− Operated websites in eight languages, as well as 17 individual Facebook pages
Result
− High participation rate, with designers from 127 countries and evaluation teams
from 204 countries
− A separate FCC Festival was held at the Himalaya Centre in Shanghai in January
2016, with 1,800 attendees
− Launched FCC TV – Lotte.com
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 20
Fig 10: Homepage snapshot from FCC 2015‟s official website
Fig 11: FCC Festival held in January 2016
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 21
3. Project flow
Fig 12: Project progress flow for FCC 2019
4. Investment structure
Designers in season units – Spring-Summer (“SS”) and Fall-Winter (“FW”) – will
request investment of season business expenses.
FCC will verify the designers and evaluate their respective investment potential
(done by the public and professional evaluation teams).
Very first purchase of designs from FCC will be with RFC. Creation of a system for
the public to invest will be based on RG issuances.
Market entry will be conducted through mass production of potential designs.
Distribution of investment income will be carried out after the end of each season
(every six months).
Fig 13: Investment structure for FCC 2019
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 22
5. Core value propositions
Designer
Possible to operate only with minimum item production
Given growth opportunities
Secure and stable revenue source
Seasonal investment attraction
Given global opportunities
Improved reputation and fan base
Industry
Given fresh IP
Able to identify trends and forecast demand
Sustainable and reliable designer sourcing
Industry-wide activation due to smooth fund attractions
Investor
Secures a proven investment in the public markets
Rapid investment returns (seasonally adjusted)
Additional revenue generation based on RFC
Additional activities such as designer sponsor and purchase of goods
Customer
Able to find a designer that suits his/her taste
Curation service based on evaluation data
Possible to own custom fashion that is not ready-made
Able to communicate directly with designers and be feasible to donate
6. Project schedule
Dec
2018
Jan
2019
Feb
2019
Mar
2019
Apr
2019
May
2019
Jun
2019
Jul
2019
Aug
2019
Sept
2019
Operation
organisati
on settings
Website
open
Season 1 Recruitment
for designers
Online
Showroom
Season 1
Sale
Season 2 Recruitment
for designers
Assessm
ent &
Selection
Assessm
ent &
Selection
Season 1
Investment
Season 1
Settleme
nt
Establish cooperative
network
CFDK*
MOU
Selecting a sales
platform
LEKETAN
MOU Chinese IP marketing Chinese orders
*Council of Fashion Designers of Korea
7. Investment plan
Invested USD30.0m to build FCC platform in January 2019
RG to be issued for 2019 FW season launch by May 2019
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 23
Asset-backed tokens
Asset-backed tokens are essentially either tangible or intangible assets that undergo a
tokenisation process. Such assets do not have to be fully developed, as it can also be an
undeveloped asset that will be commercialised at a later stage. Common cases wherein
asset-backed token structures are applied include renewable energy projects (e.g. natural
resources, photovoltaic development).
There are two key important factors behind the application of asset-backed tokens – (1)
assets can be liquidated more easily, and (2) asset-backed tokens make it easier for
companies to bear heavy asset development costs. For instance, developing countries with
natural resources but are lacking in capital are often assisted by developed countries or even
multi-national corporations to improve their allocative efficiency in utilising the natural
resources.
However, in such scenarios, the developing countries often find themselves surrendering
control of their own natural resources to their “benefactors”, further driving home the point
that possession of resources without the economic or military power to fully maximise
usage has long been a pain point for those countries.
In this regard, asset tokenisation is crucial as it not only addresses such related problems,
but also benefits resource owners, brokers and buyers – resource owners can raise funds to
cover development costs while brokers and buyers can own a fraction of the asset-backed
token at a much lower cost than purchasing the entire asset off the market.
Global Raising has plans for several projects in the renewable energy and public housing
fields to be supported by asset-backed tokens. Currently, Global Raising is reviewing the
degree of public interest in those projects and in the process of developing other new
projects that can raise public interest and adequately generate profits for investors.
Updates on projects supported by asset-backed tokens on Global Raising‟s platform will
be posted in future reviews of the White Paper as well as official communication platforms.
Case study: INGINE
1. Company overview
INGINE is an innovative technology company that aims to become the first mover
in wave power generation.
For most ocean wave technology companies, high commercialisation costs have
been key obstacles to their market entry strategies. To that end, INGINE has
developed a differentiated approach to address those challenges.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 24
− First, expensive underwater cables that are necessary for most ocean wave
technologies are not needed for INGINE‟s technology because in INGINE‟s case,
power is generated onshore while kinetic energy from waves is captured in the
sea.
− Second, INWave™, INGINE‟s core competence in multi-directional energy
harvesting technology, recovers energy from all wave moments (i.e. heave, yaw,
sway, pitch, roll, surge) in all directions, which results in greater efficiency levels
and power generation.
− Third, INGINE‟s technology adopts a modular approach based on a system
comprising one set of buoys attached to an onshore power generating unit
(installation of this system can be scaled according to distributions on a small or
large scale). Even for large scale facilities, the geographic footprint is fairly small
(smaller than solar and wind energy systems).
2. Market potential
There is enormous potential in the commercialisation of wave energy, which is
commonly viewed as the third-best renewable energy source, after solar and wind.
Investments geared towards the commercialisation of wave energy are now
widespread globally, with wave energy now at pre-commercial stages. Out of over
200 companies specialising in wave energy, there are 10 that can be viewed as
INGINE‟s competitors.
However, all 10 companies adopt an offshore power generating approach, which
involves expensive underwater power transmission cables in a power generating unit
that is placed in either a corrosive or constantly moving environment. This is
completely different from INGINE‟s approach.
3. Growth plan
The first commercial project will consist of two phases – the first project, which
comprises installing the first one or two modules, and the subsequent scale project,
which involves installing multiple additional units to reach commercial scale. From
the first project, INGINE aims to attain credibility in the industry as well as
demonstrate economic viability/technical feasibility.
To achieve that, INGINE has worked with major industry players such as Korea
Electric Power Corporation, EDF UK, Abbey Ecosse and Indonesia Power, who are
all interested in both the first and scale projects.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 25
In addition, INGINE has also signed an MOU with a French partner who is willing
to conduct a 40MW scale project. As a result, INGINE has completed location
selection, feasibility study and site approval preparations for the first project, with a
targeted launch in 2019.
Following the first project, commercialisation will be achieved by launching the
scale project between 2020 and 2021. Beyond that, INGINE plans to list on a stock
exchange via an Initial Public Offering sometime between 2021 and 2022.
Fig 14: Visualisation of INGINE‟s growth plan
4. IP portfolio
INGINE will continue to expand its IP portfolio with the help of the South Korean
IP Office and Muhan, a leading South Korean IP law firm.
INGINE currently has 284 applications, disclosures and registration cases in 68
countries (98 patents, 186 design patents) and a patent portfolio for differentiated
technology areas. Its entire IP portfolio is managed with support from the South
Korean government (South Korean Patent Office).
Social contribution business
At Global Raising, we firmly believe in doing our part to protect the environment and will
be contributing towards efforts to tackle global warming as well as climate change.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 26
Global Raising will use a portion of business profits for research and developmental
support towards renewable energy (e.g. solar and wind power) as well as smart farming
projects in Mongolia. Through this, we hope to supply a smooth supply of electricity in
Mongolia and to reduce fossil fuel usage by providing environmentally friendly electric
heating solutions.
Case study: Enerwin Korea Inc.
1. Company overview
Enerwin Korea is a renewable energy company specialising in small- and medium-
scale S-SAWT (Smart Symmetrical Airfoil Blade Wind Turbine Technology) wind
turbines with patents in South Korea and overseas. The S-SAWT is able to produce
electricity at low wind velocities.
Enerwin Korea plans to provide clean energy to remote islands and rural areas
without electrical grids – in particular, the continent of Africa – by distributing its
hybrid power solutions in order to increase energy access around the globe.
Enerwin Korea is going to penetrate into the global Micro-grid market based on the
performance in the domestic market through the „Energy Independent Island project‟
with KEPCO (Korea Electric Power Corporation) after obtaining certification and
building a manufacturing facility in Naju Energy Valley.
2. About wind power
Wind power is technology that can most efficiently produce energy in a safe and
environmentally sustainable manner – it has zero emissions, is inexhaustible and
competitive.
Currently, there are 1.1bn people around the world with no access to the electrical
grids; in some other areas, small wind turbines are used for power generation,
however, the efficiency is low and the availability of sites is limited. Because those
turbines are not able to generate power in low wind velocities.
Enerwin Korea‟s S-SAWT enables utilisation of sites with low annual average wind
speeds (which were not previously used) by extending the range of application as the
system is able to produce electricity at low wind velocities (from 1.5m/s onwards).
3. Market potential
Renewable energy will make up almost two-thirds of global power capacity by 2040,
according to a global energy outlook published by International Energy Agency in
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 27
2018. Grand View Research further postulates that the global small wind market will
grow at an annualised rate of 14.3% and reach a market value of USD1.8bn by 2025.
Increasing awareness regarding renewable energy, along with government
regulations that control growing carbon footprints, is expected to further propel
market growth.
With S-SAWT, Enerwin Korea is expected to have over 20% of the market share for
small wind turbines by 2025.
4. Core competences
In terms of technology, Enerwin Korea has its own blade design and development
capabilities, having also been selected for government research projects in
recognition of its excellence. Enerwin Korea also offers grid-connection and
islanded modes of operation using the Power Conversion System (PCS),
Supervisory Control and Data Acquisition (SCADA) and Condition Monitoring
System (CMS). The S-SAWT was also designed according to international standards
(IEC 61400-2).
Enerwin Korea has patents registered in South Korea, Japan, China and the United
States of America for its horizontal-axis wind turbine using airfoil blades with
uniform width and thickness.
Fig 15: Key benefits of the S-SAWT
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 28
Section Existing technology S-SAWT technology
Blade profile
Tapered and twisted blade profile
(complex)
Symmetrical blade profile formed of
the same width and thickness (single)
Manufacturing Complex manufacturing process Simplified auto manufacturing
process (cost & time reduction)
Control of power Stall
(passive output control)
Pitch
(active output control)
T S R Within 6 8 – 9
Rated wind speed 11 – 14m/s 9 – 10m/s
Patents
The technology that is most
commonly used
(partial patents)
Acquired patents in South Korea,
Japan, China and USA
(system original patent)
Annual Energy
Production (AEP)
18,000 kWh
20.5%
27,000 kWh (more than 1.5 times
compared to conventional wind
turbines) 30.8%
Fig 16: Technology comparison
5. Business outlook
Enerwin Korea‟s innovative wind turbine, combined with its patented technology, is
expected to increase its market share rapidly in related industries both in South
Korea and overseas.
Enerwin Korea aims to be a global energy group valued at USD10bn in 10 years.
Enerwin Korea is going to achieve its goal through joint projects with existing wind
energy companies, quick and stable financing, revenue diversification, as well as
analysis on market and political trends.
(KRWm) 2019F 2020F 2021F 2022F 2023F
Sales 1,000 4,000 20,000 50,000 90,000
Operating profit 30 240 1,800 6,000 10,800
Net profit 15 186 1,549 5,422 9,760
Fig 17: Forecasted earnings from 2019F to 2023F
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 29
VII. TOKENOMICS
Global Raising will be using a two-tier token issuance model, with RG and RFC. Both
tokens will be based on ERC-20 protocols.
RG issuance plan
Since RG is a security token, individual Smart Contracts will be customised to each share
or asset‟s unique requirements and securitisation model. Each share or asset will be issued
with a unique corresponding RG – for example, if companies A and B issue RG, RG-A will
have a different Smart Contract from RG-B.
Since each RG is incinerated during liquidation, the volume of RG issuances is not subject
to any significant restrictions. However, since the total supply of RFC (which is used to
trade RG) is limited, the total issuance volume of RG will be loosely limited by the total
supply of RFC.
RFC issuance plan
RFC is a utility token to be used for trading RG on Global Raising‟s internal exchange
platform. In all, a total supply of 10bn RFC tokens will be issued – this volume was derived
based on the estimated number of RG tokens that will be issued and also, the optimal
amount of RG tokens that can be traded.
Other factors that led to our determination of RFC‟s total supply include the influx of
investors to Global Raising‟s platform on a mid- to long-term horizon, as well as the
liquidation cycle for RG tokens.
Key statistics
− Coin name: Rflexcoin (RFC)
− Total issuance: 10bn RFC tokens
− Issue price: 1 RFC = USD1.00
− Purchasing means: Bitcoin, Ethereum, fiat currency
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 30
RFC distribution structure
Fig 18: RFC token allocation
− Contributors: Assigned to purchasers or RFC and RG tokens
− Founders & team: RFC will be time-locked via a Vault contract, with the lock
period lasting for one year after RFC‟s listing, after which they will be distributed
− Advisors & partnerships: RFC will be time-locked via a Vault contract, with the
lock period lasting for one year after the listing of external suppliers and business
partners; remaining amount will be retained in the foundation reserve
− Exchange reserve: The volume of trading will be determined according to the level
of user input after the RG‟s internal exchanges are in full swing
− Foundation reserve: It will be used primarily as a financial resource for controlling
the amount of money for stable transactions of the internal exchanges; it will also be
used for the expansion of the company‟s future business and for long-term
technology development
Coin sales
− Private sale: 20m RFC tokens have been sold at a price of USD0.25
− Pre-sale: Total sales of 180m RFC tokens at a price of USD0.40 (sales at this stage
will mainly be targeted at existing investors, with only a small portion being sold to
the general public)
− Pre-market stage: Total amount of 1bn RFC tokens will be sold at a price of
USD1.00
− Public sale: 1.6bn RFC tokens will be sold at USD1.00
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 31
Funds usage plan
Fig 19: Funds utilisation from RFC sales
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 32
VIII. PROJECT ROADMAP
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 33
IX. THE GLOBAL RAISING TEAM
Philosophy and vision
Eliminate information asymmetry in making investment decisions
While it is difficult for members of the public to have insights and knowledge on par
with major investment firms, it is our primary aim to improve individual investors‟
accessibility to important information and in so doing, bridge the knowledge gaps that
hold back their decision-making abilities.
Instil robust compensation schemes to promote support for creative works
Social overhead capital projects, resource exploration reports, semiconductor design
assets, costume designs and auction-able artworks require actual trading, along with
more time and value realisation. Global Raising aims to promote creative innovation by
adequately compensating creative work and sharing successes with those who made it
possible by providing opportunities for them to realise profits.
Create a democratic decision-making environment based on collective intelligence
By opening up investment opportunities to individual investors, who collectively form
a large proportion of the general public, collective intelligence is mobilised. This gives
rise to a transparent and reliable decision-making environment that can be created
under a decentralised structure rather than the existing closed and rigid decision-making
framework.
Create a platform that can act as a supplier and a consumer
RFC donors can used RFC as a means of purchasing goods and services and trading
them within an ecosystem where RFC is the payment method. In other words, RFC
donors can be both a provider and a consumer. In the case of goods and services
provided by a funded or affiliated company, discounting the purchase with RFC can
increase sales and help marketing. Individuals can actively influence the markets with
an act of donation or, as in the previous example, an act of direct purchase.
As the utilisation of RFC increases, its value will rise proportionately as well.
Furthermore, as the ecosystem grows, there will be more beneficiaries and the donors‟
means of being compensated will also be diversified.
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 34
Core team
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 35
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 36
Advisors
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 37
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 38
X. DISCLAIMER, LEGAL NOTICE & OTHER MATTERS
You agree that RFC White Papers do not constitute investment advice, solicitation or
investment proposals and that you are not legally or administratively bound.
You agree and acknowledge the following disclaimers, legal notices and other matters.
Disclaimer
All information and suggestions expressed or implied by RFC in this White Paper may
change in accordance with business environments and management policies. It will not
guarantee or guarantee any future results, and we will be excused from any liabilities
that may arise.
The English version of this White Paper is the official version. The translation is for
reference only and is not authorised by a reputable institution. If there are discrepancies
between the official and translated versions, the English version will take precedence.
This White Paper is for reference purposes only and cannot be copied, distributed, or
used for any commercial purposes without the express permission of Global Raising. If
we breach the above, we will be excused from all legal liability.
Global Raising shall not be responsible for any damages, losses, breach of contract,
negligence, tort or strict liability of the donor.
Regardless of the form or legal theory raised in connection with the content of this
White Paper, no action can be taken against Global Raising.
Legal notice
The statements and information contained in our White Papers are content and
information about forward-looking statements.
The content and information contained in the forward-looking statements contained in
our White Papers are uncertain due to related laws, policies, and known and unknown
risks and other circumstances, and are subject to change. Actual results are based on
statements and the implications of the results and White Papers may be materially
different.
The content of our White Paper does not include recommendations or suggestions for
trading or investment. Also, RFC described in our White Paper does not provide a basis
Rflexcoin – An Introduction February 2019
© Copyright Global Raising, All Rights Reserved 39
for inducing or trading in purchases or sales.
RFC does not mean securities, nor is our white paper for issuing securities. RFC shall
not be liable for any indemnification, civil or criminal liability for any financial
damages, losses, damages, liabilities, or any other form of loss, damage or liability of
any kind whatsoever arising from the reading of our White Paper or any donor's
decision or use of this White Paper.
RFC shall not provide, distribute, resell or transfer RFC to citizens (natural persons),
corporations, etc., which are prohibited or prohibited from ciphering transactions by
laws and regulations.
RFC may refuse or cancel donations immediately if the information to be provided by
the person making the donation of RFC is inadequate, inaccurate or misleading and is
presumed to be a donor. If a donor has donated RFC, donations may be prohibited and
restricted immediately if they are made through illegal and unauthorised means. We
also have no obligation to cancel or invalidate the donation of RFC if it is cancelled or
invalidated.
It is up to donors of RFC to determine whether it is legally possible to donate RFC in
the donor's area or whether it is possible to resell RFC to other donors in a particular
area. All liability arising out of the intervention of the donor shall be with the person
providing, distributing, reselling or transferring RFC to the donor.
Other matters
Donation limiters:
− Organisations and donors who violate Anti-Money Laundering regulations or the
Anti-Terrorism Act
− NCCT (anti-money laundering non-cooperative country) National and residents
− Organisations and people whose contributions are restricted according to the laws
and regulations of each country
RFC may not work or develop due to unexpected environmental changes (e.g. changes
in legal environment, technical difficulties, lack of funds, changes in the price of
cryptographic assets).
RFC is at risk of being attacked by various malicious groups or organisations.