ALLEX Toward the development of security tokens as financial services

Whitepaper Version 2.0, September 2019

Future of security tokens in the world

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Table of Contents

1. Executive summary…………………………………………………………………………………………… 5

Costs for issuing security tokens (U.S., private placement)

Costs for issuing security tokens (Germany, public offering)

2. Overview………………………………………………………………………………………………………… 8 Laws and regulations in Japan Issues related to the spread of security tokens in Japan 3. The innovation…………………………………………………………………………………………………10 FUTURE MARKET EXPANSION SC STO FUNDING CONTRACT SC STE PLATFORM ALLEX STO SYSTEM ALLEX STO SYSTEM 4. AML/CFT……………………………………………………………………………………………………… 13 AML/CFT in Japan 5. About XUSD………………………………………………………………………………………………… 14 Backing up XUSD assets Move to original chain 6. J-FTA…………………………………………………………………………………………………………… 15 Self-regulatory organization Transaction verification organization Transaction audit organization

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7. About the test cases performed …………………………………………………………………………… 17 Instance configuration Node configuration Lock chain structure Benchmark scenario 8. Proof of transaction ownership …………………………………………………………………………… 18 Approval log Benchmark content Benchmark execution timing Benchmark result summary Approval log and blockchain verification 9. About stable coin …………………………………………………………………………………………… 20 Collateral type assets Cryptocurrency collateral type Unsupported type 10. About JP Protocol…………………………………………………………………………………………… 21 Six functions to ensure the validation of the blockchain market 11. The market…………………………………………………………………………………………………… 23 Overview of the security token exchange market Business model Growth potential 12. Companyʼs RoadMap ………………………………………………………………………………………26 Standard Capital Rare Earth Asia Technologies CEZA (Cagayan Special Economic Zone Authority) 13. About ALLEX token …………………………………………………………………………………………30 Sales information Laws and regulations Milestone

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14. ALLEX specifications ……………………………………………………………………………………32 Overview ALX requirements Server requirements Functions About Securities management 15. ALLEX overview ……………………………………………………………………………………………38 Security token "ALLEX" ST exchange “ALLEX” 16. Evaluation ……………………………………………………………………………………………………39 The future of ALLEX tokens 17. Risks…………………………………………………………………………………………………………… 41 SWOT Analysis CROSS SWOT Analysis Five Forces Analysis Future rules and regulations 18. Company members…………………………………………………………………………………………50 19. Disclaimer…………………………………………………………………………………………………… 58

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1. Executive summary

In Japan, laws and regulations concerning STO are scheduled to be enforced in April 2020. The Cabinet Office Ordinance that stipulates the process will handle securities as Type 2 by securing liquidity by the smart contracts. It is indispensable for the spread of STO.

Overseas, in the United States, fundraising is performed in the private placement market using Regulation, and in Germany, three publicly offered STO projects are implemented with the approval of the regulatory authority BaFin.

STO fundraising is being implemented around the world, but recently, tZERO (USA) 's unique token “TZEROP” has been unlocked for one year by Rule 144, creating a secondary market.

Considering security tokens as an investment product, it has the characteristics of income gain that earns profits through dividends based on yields and has different characteristics from investment products that are actively traded (capital gain) like ICO tokens.

However, in the future the creation of the secondary market is expected to provide the opportunities for general investors and invest in seeded companies.

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As a method of the fundraising by the small-sized growing companies, a method of crowd funding is in line with the growth stage of the businesses in Japan, but large-scale IPOs are frequently used throughout the world. It can be said that a major transformation has been made in recent years at this point.

However, there are cases when the IPO price is broken due to the business situation and does not match the market capitalization. It can be said that there is room for consideration regarding listing in red.

Under such circumstances, STO is performed in compliance with laws and regulations. It has begun to be used as a financing method for growing companies. Automatic dividends distribution and simplified document procedures can be performed by using blockchain technology (smart contracts). It is said that a significant cost reduction can be made by simplifying the process.

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Costs for issuing security tokens (U.S., private placement)

Costs for issuing security tokens (Germany, public offering)

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2. Overview

This time, we are aiming to spread STO not only in the Philippines but also in Japan through the establishment and issuance of security token exchanges in CEZA. Currently, there are two types of securities in Japan: “Electronic record transfer rights (Type 1 securities)” and “Exclusions stipulated by the Cabinet Office Ordinance, taking into account liquidity and other circumstances (Type 2 securities)” Tokens are classified as Type 2 securities.

Legal regulation in Japan

The provisions of the new law stipulate that “when liquidity and other circumstances are accounted by the Cabinet Office Ordinance”. These securities are excluded from the right to transfer electronic records (Type 1 Securities).

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According to the new legislation, if the liquidity is low, the Financial Service Agency points out that in this case securities are not classified as Type 1.

Issues related to the spread of security tokens in Japan

STO funding is expected to spread after The April 2020 Amendment of the law, but more sample cases are necessary. It can be said that schedule is needed. In addition, for the spread of STO in the Japanese market, it is necessary to prove not only legal regulations but also future practicality. Japan's funding market can be said to be actively funded, especially in emerging industries that are expected to grow in the future. Small fund raising such as crowdfunding and social lending has become widely known, and it is used by general investors as a high-yield investment product because it allows small-scale investments. As regulations are established in each country, we believe that creating a precedent case is our mission.

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3. The Innovation

We provide solutions for KYC / AML on ST exchanges, including ST issuance, management, settlement, and related operations. Based on the regulations stipulated by the DATO Act, we will establish an exchange system and design requirements for smart contracts for the solicited amount, number of tokens issued, and profit dividends for each product. We will provide continuous consulting with support for business requirements, including legal, accounting, tax issues. In addition, the provision of technology from Standard Capital makes it possible to use regulations based on the examination standards of the Japanese stock exchange, and it functions as an economic infrastructure system that conforms to social rules. We are developing technology with the aim of building a secondary market. We aim to provide safer and more secure investment opportunities for the large number of investors by improving the reliability and liquidity of financial markets. FUTURE MARKET EXPANSION

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SC STO FUNDING CONTRACT

SC STE PLATFORM

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ALLEX works by issuing ST (primary market) and ST exchange (secondary market), so “procurement company / investor matching”, “information disclosure”, “project investigation”, “collection / solicitation”, “fund settlement” can operate consistently. We are also introducing cutting-edge technologies in the crypto asset industry, including the world's first stable coin dividend.

ALLEX STO SYSTEM

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4. AML/CFT

AML/CFT in Japan In Japan, the “Law on the Prevention of Transfer of Revenue from Crime (Crime Act)” and the “Foreign Exchange and Foreign Trade Act (Foreign Exchange Act)” were established to take measures against money laundering and terrorist financing. In October 2012, the Financial Services Agency announced the “Considerations on Crime Revenue Transfer Prevention Law” based on the Criminalization Law, and clarified management systems such as supervisory guidelines for businesses and response to antisocial forces. The Criminalization Law and Foreign Exchange Law stipulate that identification of the account (KYC) at the time of opening it and notification of suspicious transactions are stipulated as regulations. Anti-money laundering and anti-terrorist financing measures have been strengthened internationally, and cases of severe penalties have been confirmed. If fraudulent outflows due to vulnerabilities in the financial system occur, it may develop an international credit problem. In Japan, the fourth FATF-Japan mutual examination is scheduled to take place this fall, and it is thought that more stringent legislation is necessary for the cases of fraudulent spills on crypto asset exchanges so far. We believe it is essential to tackle anti-money laundering and anti-terrorist financing in the crypto asset market.

Crypto assets using blockchain are digital currencies that do not require a banking system or even the government. They are characterized by decentralization (distributed). Since this technology was introduced in 2009, it has been widely used by traders and investors, and many general investors participate in the crypto asset market. Recently, institutional investors have begun accepting crypto assets, and efforts have been made to use them as a means of payment. One of them is a stablecoin, which is being developed in various countries as a payment method using blockchain technology.

However, there are problems with crypto assets (anonymous transactions). For this reason, international regulations by FATF are scheduled to be implemented because cryptocurrency exchanges have insufficient measures for anti-money laundering and anti-terrorist financing. Also, crypto assets are not tied to a specific country and it can be difficult to determine which country imposes penalties. In addition, when Bitcoin exceeded $ 20,000, the number of unconfirmed transactions exceeded 200,000, the transaction fees increased to several tens of dollars, and transmission speed ranged from days to weeks. In the future, crypto assets will replace credit cards, and companies may use it as a payment method for international import / export and services. Settlement speed, the number of transactions associated with it, and fees are the main issues. Currently there are many challenges for the blockchain technology and for the crypto assets in circulation, so measures must be taken to withstand all future possible problems.

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5. About XUSD

ALLEX, in partnership with XUSD Inc., has pioneered the distribution and liquidity of stable coins used on the ST platform for such purpose

XUSD is a stablecoin that is pegged to the USD and with other legal currencies to suppress the price fluctuations (volatility) and stabilize it. Currently, there are various crypto assets, but there are many related problems such as the fact that they are used for speculative purposes and investors are not properly protected from the severe price fluctuations. Because stable coin prices are stable, it is attractive way of payment in various cases, and it has attracted a great interest from central banks and financial institutions in different countries.

XUSD uses a collateral security system backed by assets covered by A or AA insurance when tokens are issued. If a company receives a loan from a bank or insurance company and the collateral system, provided to the company is not sufficient, the company can issue its own bonds to the lender as collateral for the loan. However, if the loan is not repaid by the company by the due date, it violates the agreement, the lender holds these bonds and has the right to possess them. The lender has the right to receive interest only from the loan amount, but it does not affect the bonds issued as collateral. XUSD is issued as collateral and has low influence from the external factors.

Backing up XUSD assets

All assets owned by the issuer are covered by insurance rated “A” or “AA”. As a result, over 100% returns from the asset are guaranteed over a period of several years. XUSD INC. will issue an appropriate amount of XUSD depending on the assets it owns. It is designed, that the market capitalization of XUSD does not exceed the total valuation of the assets held.

Move to original chain

XUSD is launching as an ERC20 issuance and listing on exchanges in order to ensure liquidity and distribution, but we will implement swaps to the original blockchain by July 2020. J-FTA based on JP standards developed by Standard Capital will be used for the blockchain.

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6. J-FTA

J-FTA has a system designed to separate authority for each organization for the investorsʼprotection. Based on “Hyperledger Fabric”, which IBM has developed, its goal is to create a system that can achieve both high-speed processing and authority distribution. We are also using the blockchain system of other companies such as “Stellar”, which is used in the international bank's stablecoin issuance plan.

Hyperledger Fabric: An open source blockchain platform. Blockchain infrastructure that will become an international standard as a Linux Foundation project. We conduct joint verification with each product for its development. Collaborative verification is performed by distributed data processing and management on computers connected to the Hyperledger Fabric network. This open source platform is designed to be the foundation for developing blockchain technology. With a modular architecture, HyperledgerFabric enables a network that is both scalable and confidential. Stellar: established by Mt GOX founder Jed McCaleb, Stellar develops an efficient payment system for personal use. It offers the benefits of reducing the costs of international remittances and speeding up payments, using the proprietary protocol (Stellar Consensus Protocol). It is characterized by high efficiency such as cooperation with financial institutions and its widely known as a new payment technology.

Each organization is assigned to each J-FTA, and a system is established to secure the assets of investors (users) by ensuring the transparency and confidentiality of transactions. In order to build the validation in the blockchain, we have introduced a system that separates authority for each organization ahead of the rest of the world. Currently, blockchains connected to exchanges face challenges such as hacking risk and confidentiality of private data.

J-FTA is a decentralized body of three organizations and it is building a chain

Self-regulatory organization

Standard Capital is responsible for KYC (identity verification) and AML (money laundering countermeasures) to ensure the safety of users information. Investors must also meet KYC / AML requirements after registering an account, and they will be reviewed by the exchange before sharing information on the blockchain. If the investor is registered as an unauthorized user, measures such as suspending the account will be taken. In this case anti- money laundering policy is activated. Self-regulatory organizations ensure the protection of investors, as it will also eliminate anti-social forces and terrorism funding.

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Transaction verification organization

Whereas self-regulatory organizations are primarily responsible for managing user information, transaction verification organizations are responsible for ensuring the authenticity of transactions themselves. The transaction verification organization verifies the investor's J-FTA transaction and requests approval from the transaction audit organization when more than a certain number of verification results match. Even in case of hacking attacks, the system can operate because information is distributed on the blockchain. Increased resistance to hacking makes the system sustainable. In addition, transaction information is automated by electronic signature technology and plays a role in investors protection, such as blacklisting during impersonation. Currently, we are developing our own blockchain through Stellar verification

Transaction audit organization

The transaction auditing organization has ultimate control over user data and transaction information. It is responsible for the final approval of transaction verification, and have the authority to forcibly cancel transactions or chargeback when fraud is detected. If a user loses his / her password, a new account can be issued and assets can be transferred with a certain number of agreements. The transaction auditing organization is also responsible for final verification of AML and updating of information. The transaction audit organization can access AML information in addition to user data and transaction information, but all update rights are divided by each organization. This ensures the confidentiality of the information.

We plan to invest in surplus funds from revenues, including development of J-FTAs and security token trading systems, as well as in technology development and infrastructure development that are being considered for practical use in the future. We are also considering business investments from medium- to long-term development, such as system modification in line with changes in blockchain technology-related laws and regulations, as well as hiring legal staff. This includes cyber security upgrades and global expansion of products and services. We plan to use surplus funds from revenue for further business development.

However, because we are currently developing and designing a standard on AWS that assumes high-speed transactions of 10,000 TPS, we are also discussing swapping with this standard.

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7. About the test cases performed

Instance configuration

T2.micro x 5 T2.medium x 1 T2.xlarge x 9

Node configuration

5 master nodes (t2.xlarge x 5) 5 super nodes (t2.xlarge x 4, t2.medium x 1) 5 normal nodes (T2.micro x 5)

Blockchain structure

The blockchain structure is based on the general UTXO format. Its purpose is to measure TPS of GLS to the last, so a block chain dedicated to remittance with an extremely simple structure will be used. In addition, the matching node, which greatly increases or decreases the benchmark score, is not performed, and the approver node only performs transaction verification and approval.

Benchmark scenario

Each normal node shall remit its own UTXO to a randomly chosen existing address.

Note that the UTXO format has a TxOut division function to improve versatility. However, for the purpose of this benchmark is to measure pure TPS, the split function can greatly increase or decrease the benchmark measurement results. Therefore, in this benchmark, the same number of UTXO is remitted.

As an example, in case of one UTXO that shows 100 tokens, one UTXO is transferred as it is. Therefore, TxIn and TxOut as a transaction are always one-to-one.

In addition, the initial issued token shall be stored by one normal node and distributed to other normal node each time a benchmark is performed. For this reason, a small number (TPS) is displayed in the benchmark several times immediately after startup.

Based on this, multiple measurements are taken when the benchmark score is stable, and the average value is taken as the final benchmark result.

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8. Proof of transaction ownership

In this benchmark, P2PK is performed.

Approval log

The approval log outputs the following items in JSON format.

1. Source address (unique address based on public key)

2. Remittance destination address (unique address based on public key)

3. Remittance amount

Benchmark contents

Carries out in two stages.

1. Only the TPS and latency are measured without writing the approval log.

2. Write the approval log and verify the integrity of the data.

Benchmark execution timing

1 second to 10 seconds: Benchmark without approval log output

10 seconds to 30 seconds: Standby

30 seconds to 40 seconds: Benchmark with approval log output

40 seconds to 60 seconds: Standby

Summary of benchmark results

The following items are displayed every second.

Normal node-> average number of transactions sent by itself and approved by master nod

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Normal node-> average transaction latency

The total number of transactions received by the normal node is the overall TPS, and the average latency of the normal node is the overall average latency.

Approval log and blockchain verification

The approval log is output in JSON format.

A function to download blockchain history by normal nodes is provided, and a separate application is provided to convert and output blockchain data to JSON format text files.

"$ ./gls-bench-cli -router=""52.14.197.67:8080"" start

2019/08/16 18:54:20: Approval log output-> False

2019/08/16 18:54:20: Benchmark preparation is in progress.

2019/08/16 18:54:22: Benchmark start preparation is complete.

2019/08/16 18:54:22: Start benchmarking.

2019/08/16 18:54:29: The benchmark is complete.

2019/08/16 18:54:29: Getting reports.

---------- summary ----------

Start date: 2019/08/16 9:54:22

End date: 2019/08/16 9:54:29

Time required: 6,715ms

Total sent transactions: 50,000.000

Total approved transactions: 50,000.000

TPS: 10,582.820

Average latency: 1,546.368ms

Minimum Latency: 323.961ms

Maximum latency: 2,922.725ms "

See August 16 data

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9. About stable coin

Stable coins transform directly into stabilized coins and being pegged to legal currencies such as yen and dollars, so they are the crypto assets with prices that are always constant. Those with low grounds for supporting value are weaker and more likely to fluctuate compared to stocks, etc., but XUSD is issued backed by assets covered by insurance, so prices should always be constant. Since stable coins can be transferred without going through a bank, payments can be accelerated. In addition, it is expected to be a low-cost payment method because fees can be reduced. Internationally, efforts are being made to use it as an evacuation currency, and stable coins will be used in the future not only as a cryptocurrency asset but also as the value of their own currency flows. There are three types of stable coins.

Asset-backed type Legal currency collateral types that are linked to the prices of legal currencies such as dollars and euros (“dollar pegs” and “euro pegs”). Legal currency collateral is important for the trust of a centralized organization that guarantees value, such as the governmental institutions. XUSD is backed by assets covered by insurance and its classified as asset-backed.

Virtual currency collateral type

The virtual currency collateral type is a currency whose price is stable by linking with other virtual currencies. Although it seems unsuitable to use virtual currency as a collateral for the price fluctuations, which are dramatic, the virtual currency used as collateral is deposited in surplus to cope with the price fluctuations. The virtual currency collateral type is non-centralized, but it is less stable than the legal currency collateral type.

Unsecured type Some unsecured stable coins do not have collateral backed by assets. The price is stabilized by using the smart contract function. Although it does not hold assets as collateral, smart contracts have the function of purchasing a portion of the supply in circulation with excess profits, causing excess demand and reducing prices by reducing supply

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10. About JP protcol

The crypto asset industry is experiencing a series of hacking damages on crypto asset exchanges, but it is assumed that investors (users) own their own accounts on the blockchain and “identification and decentralization on the blockchain '', “system design that can be organized according to the system”” and “introduction of an investor protection system that enforces asset recovery and legal action by forcibly canceling transactions and chargeback” are possible solutions. Guaranteeing of the compliance with KYC / AML and protecting investors are the top challenges in the current crypto asset market.

Many products have developed proprietary protocols that extend the ERC20 standard, and some of them have the ability to monitor investorʼs and customerʼs information. Previously, inadequate customer confirmation by ICO and countermeasures for money laundering were problems, so each exchange operated in accordance with laws and regulations in cooperation with protocols ( KYC / AML) implement the proper measures which applies for the token issuance as well.

Investor protection efforts are being carried out around the world, and by solving this issue, the safety and reliability of the blockchain will be ensured, and more people will be able to invest and raise funds. JP standards have six functions to ensure the validation of the blockchain market.

Six functions to ensure the validation of the blockchain market

1. KYC (Know Your Customer) Thorough customer identification and document procedures when opening a new account.

2. Anti-Money Laundering (AML) To prevent money laundering by anti-social forces and terrorist organizations and eliminate unnatural transactions and loan fraud.

3. User protection. Prevent transaction data from being tampered by impersonation and take measures against loss of account passwords and private keys.

4. Confidentiality of user information. Ensure that personal data and transaction information of users are not disclosed to others.

5. Validity of system information. System information should always be correct and updated. Users and transaction data are the subject of audit.

6. Systemʼs persistence. Keeping the system operational without interruption.

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XUSD's original blockchain implementation still has many problems such as: “Forced transfer of user assets in case of theft or deadlock” “Strengthening resistance to hacking” “Improving confidentiality of information through decentralization”. We will continue to work toward practical solutions.

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11. The market

Overview of the security token exchange market

In the United States, in most cases, the SEC registration exemption “Regulation” is applied in case the security tokens are issued. Recently, the one-year lock-up (transfer restrictions) has been lifted, and trading in the secondary market has begun.

Business model

① Established a joint venture between SC and Rare Earth in the Cagayan Special Economic Zone in the Philippines, and obtained a license to operate the ST exchange from CEZA (Cagayan Special Economic Zone Agency).

② The joint venture between SC and Rare Earth will not directly operate the ST exchange.

③ A joint venture between SC and Rare Earth, or a non-consolidated SC, engages in sales activities and solicits companies that will operate the ST exchange and outsource the operation. * Virtual currency exchanges that already have an exchange system

④ Revenue is collected in the form of revenue share or license fees.

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Growth Potential

The STO market is expected to grow up to US $ 2 trillion by 2030 and reach an average annual growth rate (CAGR) of 59% by 2019-2030.

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12. Company RoadMap

Standard Capital

We named the company “Standard Capital” with the aim of “creating investment standards in Japan”. In modern society, where emerging industries such as blockchain and AI technology are creating new business models one after another, even when trying to start a new business, it often ends up being unable to take an action due to lack of funds. In particular, many venture companies and SMEs often have to give up because of the time it takes to raise funds even if they have a business model they want to establish.

There is another problem, that only a limited number of investors can invest in listed stocks due to large minimum investment requirements. Because it is difficult to invest in companies that you want to support in this way, you are currently facing a loss of investment opportunities. The reality of a society where more people can challenge business opportunities implies that experiencing more failures leads to success. As a solution, we are working on the development of STO platform and stablecoin.

This makes it possible for businesses who have not been able to participate in the investment process to invest aggressively, enabling companies to procure small funds and speedy remittances. We are working on security token development to change the way we raise funds in Japan. Development of a security token standard in Japan has started since its inception, and in March 2019 Standard Capital, Early Works, and IDCM announced an alliance for JP standard development.

Three companies are jointly conducting a transaction, processing speedy demonstration experiment, standing for mutual development through the sharing of technical information. In the future, JP standard technology will be developed with the goal of using blockchain technology for securities trading. The JP Standard Development Team is comprised of successful entrepreneurs, experienced blockchain developers, and numerous fintech engineers.

In June 2019, we signed a business alliance with Rare Earth Asia Technologies, Philippines. The business alliance has been agreed in order to establish a joint venture to operate the security token exchange, and the provision of JP technology to the exchange. The joint venture will be established in the Cagayan Special Economic Zone in the Philippines, and we are working to expand our overseas business.

The purpose of this business alliance is to explore various business synergies that contribute to the development of the security token market in Japan and Asia. After discussions with ABACA, we plan to open a security token exchange in January 2020. We will work to create a secondary market based on laws and regulations.

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Regulators around the world are striving for STO as a funding method that complies with regulations as they work to strengthen the market by restricting the regulations on ICOs. Overseas, efforts are being made to use blockchain technology to stimulate the economy, and the financial industry is also actively developing security tokens and creating secondary markets. In Japan in May 2019, the “Amendments to the Fund Settlement Act and the “Financial Securities and Exchange Act” were passed, and efforts are being made to provide safer investment opportunities for more investors.

Standard Capital plans to establish a joint venture with Rare Earth Asia Technologies in order to operate the security token exchange.

It is going to be established in Cagayan Economic Zone managed by CEZA (Cagayan Special Economic Zone Authority), so we are working on creating a secondary market.

CEZA (Cagayan Special Economic Zone Authority): Philippine government agency supporting Blockchain and FinTech companies

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Rare Earth Asia Technologies

Rare Earth Asia Technologies provides support services for global crypto-assets and Blockchain companies operating in the Cagayan Special Economic Zone.

Rare Earth Asia Technologies was commissioned by CEZA (Cagayan Special Economic Zone Agency).

Rare Earth Asia Technologies supports licenses and approvals necessary to legally operate crypto assets and security token businesses for overseas crypto assets and Blockchain companies in the Cagayan Special Economic Zone.

Rare Earth Asia Technologies makes efforts to provide the economic growth in the Philippines by expanding the business related to the crypto assets and Blockchain companies in the Cagayan Special Economic Zone.

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CEZA (Cagayan Special Economic Zone Agency).

CEZA (Cagayan Special Economic Zone Authority), which manages the Cagayan Special Economic Zone, was established on February 24, 1995, by Article 7922 of the Republic Act known as the “Cagayan Special Economic Zone Act of 1995”. It is a special agency, located in the northern part of Luzon Island in the Philippines. Various incentives are granted to the companies investing in Cagayan Special Economic Zone and free ports.

Based on the “Cagayan Special Economic Zone Act of 1995”, we have the legal authority to approve applications independently without prior approval from the governmental agencies, i.e. “CEZA Offshore Virtual Currency Exchange (OVCE) Licensees” should be issued.

There are three types of OVCE Licensees: “CEZA OVCE Principal Licensees”, “CEZA Regular Licensees ‒ OVCE”, and “CEZA Regular Licensees ‒ Financial Technology Solutions Business Enterprise (FTSBE)”.

* Rare Earth Asia Technologies owns “CEZA OVCE Principal Licensees”, which can be viewed at the following site.

https://ceza.gov.ph/article/list-ceza-offshore-virtual-currency-exchange-ovce-licensees#

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13. About ALLEX token

Sales information

Main Sale：1, Dec. 2019 -31, Mar. 2020

Country：Philippines・CEZA

Soft cap: $ 10 million (USD)

Hard cap: $ 30 million (USD)

Token price: $ 0.1 (USD)

Minimum investment: $ 100 (USD)

Maximum investment: $ 100,000 (USD)

Available for sale: 300 million (30%)

Token supply: 300 million

Number of token issued: 1 billion

Purchase requirements: KYC, AML

Symbol: ALX

Blockchain: Built with our original chain based on Stellar (XLM)

Available currencies: XUSD, USDT, Bitcoin, Ethereum, Ripple, etc.

Dividend: 0.4XUSD per 100 token distributed per year (4% annual dividend)

Business profit dividend (10% of profit / once a year, dividend scheduled for October)

* Dividend by stable coin "XUSD"

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Laws and regulations

Rights granted to tokens: Revenue dividend rights

Regulation: DATO Act (CEZA)

Prospectus approved: Philippines CEZA Philippine Securities and Exchange Commission

Company name:ALLEX

Company address: Cyberpark, St. Ana, Cagayan, Philippines

Milestone

2019 (Early): Opening of ST exchange in CEZA Philippines, advertising, marketing

2020/2021 (Series A): Establishment of ST exchanges in Malaysia, Estonia, USA, Chile, etc., acquisition of licenses, establishment of bases in the Asian market.

2022 (Series B): Development of new markets and provision of blockchain technology to financial markets

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14. ALX specifications

ALX is a security token based on Stellar, and it is not different from Stellar originally.

See the link below for Stellar developer documentation

https://www.stellar.org/developers/

Overview

ALX runs on an ALX network. The ALX network is based on the Stellar network, and it is a decentralized network that is highly reliable and secure.

The ALX network is a specialized structure for making all payments smart, and consists of two systems called Horizon and Core.

Horizon is an API server that performs various operations of ALX and it is a Restful HTTP API server, so it can be used without complicated settings.

Core plays a central role in ALX for transaction approval, etc. Horizon can perform various operations by connecting to Core.

The development of Stellar was based on Ripple. Like Ripple, the consensus building algorithm can be approved only by an administrator or an approver (validator) authorized by the administrator, so Proof of Consensus (PoC) is adopted.

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ALX requirements

名称 name ALLEX Slug ALX Number of issues 1,000,000,000 Fee 0

Server requirements

Application Size Number

Validator server M5.large 3

API server T2.medium 1

History server T2.medium 1

※Can be created if necessary. Can also be used with other servers. A validator server is a server that acts as an administrator who approves transactions.

The API server is a server that accepts requests from software such as wallet apps and web wallets.

The history server is a server serves to publish the transfer history of securities.

The validator server is made up of three units in a redundant manner, created for stable operation and for improving system processing capacity.

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Construction

The wallet app and web wallet are connected to the API server in order to obtain information, when the transaction is sent to the validator server through the API server.

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Functions

ALLEX has the following functions in addition to the basic virtual currency functions.

- Securities management function (smart contract)

- Securities registration function

- Owner search

- History tracking function

- Ownership change function

- Stop the ownership change procedure function

- Token issue function

- Wallet

- External API communication device

About Securities management

・Examination of specifications for securities management

Securities management in the ALX network is operated by the management organization. The specifications that are envisioned, focusing on how each function will be performed in the ALX network that copied Stellar.

・Securities management

ALX manages securities as assets. The name of the securities to be stored in the blockchain should not exceed 12 alphanumeric characters in accordance with Stellar asset specifications.

https://www.stellar.org/developers/guides/concepts/assets.html#alphanumeric-12-character-maximum

At present, asset management is effective, but as an alternative, a method of managing the securities identification number in the extended field of the transaction is also conceivable, but it is excluded from consideration from the viewpoint of traceability.

Stellar has a smart contract function, which is used to manage securities. However, Ethereum smart contracts are deployed on the blockchain, whereas Stellar is implemented by including it in the transaction.

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・Securities registration function

Securities registration transfers assets to a multi-sig account. As a precondition for this function, since the securities management organization wants to control securities in a proper manner even after transferring securities from operation to a third party, smart contracts are kept in mind. At present, a system for lending a multi-sig account with securities is assigned to the transfer destination in exchange for sending a future securities return transaction to the operating organization.

Securities registration is done in transactions, and anyone can execute smart contracts, so if it is necessary to prove that the security is correct, the operation will register and transfer the security to the holding broker for confirmation. It is necessary to discuss how to handle securities registered by a third party without permission.

・Owner search

Identify the current owner from the amount of assets stored in the blockchain.

Since it is different from Ethereum, there is no concept of accessing smart contracts and it is necessary to follow the transaction. Securities managed by the system are handled by building a separate database. If it is crucial to manage securities registered by a third party, it is necessary to search all records or check all transactions and manage them in the database.

・History tracking function

Since the account of the operating organization is always routed when the securities are transferred, the transaction history of that account can be interpreted as the securities transfer history.

Since it is different from Ethereum, there is no concept of accessing smart contracts and it is necessary to follow the transaction, which is supported by building a DB separately from the ALLEX blockchain. History etc. can be published by creating an Explorer site.

・Ownership change function

In order to change the ownership, the management organization executes the “future securities return transaction” held by the management, and changes the ownership in exchange for the “future securities return transaction” with the future securities holder. In case where the grant of securities is deprived with the authority of the operating organization, a “future securities return transaction” is executed.

Ownership can be changed by sending a transaction like a normal remittance. Since the owner is tied to the address, only the person who has the secret key of the address can change it. In order to transfer ownership, the owner must sign the transaction, and without the private key, the procedure cannot be conducted.

For this reason, important securities and securities certified by ALLEX management can be handled by the management side by holding part of the private key. If ALLEX administration passes a security to an address that does not have a private key, it stops each security by suspending the address.

・Stop the ownership change procedure function

Since the operating organization has a “future securities return transaction” for the securities after the transfer, if the securities are returned to the operating organization, the change can be suspended by executing the transaction. If the transaction is lost, use the asset function of Stellar to invalidate the asset of the new account.

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・The asset deactivation process for accounts at the new location

https://www.stellar.org/developers/guides/issuing-assets.html#requiring-or-revoking-authorization

※Since the asset holding amount remains in the invalidated account, we do not consider active use of it.

In order to transfer ownership, the owner must sign the transaction, and without the private key, the change cannot be performed. For this reason, for important securities and securities certified by ALLEX management, the management side can handle even a part of the private key. If ALLEX administration passes a security to an address that does not have a private key, it stops each security by suspending the address. However, since blockchain cannot delete data, it is necessary to be careful that it is not a complete deletion but only suspending.

・Token issue

Stellar has an asset issuance function which is similar to tokens, so tokens can be issued using this function.

However, the asset function is used for securities management, and if a currency token is issued separately from ALLEX, it is needed to decide the regulation for isolation.

・Wallet

The wallet is developed by using the following external API communication device. In the wallet application, address generation and transaction signatures that operate the secret key are not uploaded to the server as much as possible, and the application side does not put the secret key in communication.

・External API communication device

ALLEX consists of a node called Core and an API server called Horizon, and provides external API communication functions by allowing access to Horizon.

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15. ALLEX Overview

Security token "ALLEX"

Security token "ALLEX" was approved by ABACA, a self-regulatory organization of CEZA in the Philippines, and will be sold on October 15, 2019.

In order to implement STO at CEZA, it is necessary to comply with the DATO law. In this STO implementation, after 5 months of discussions with CEZA, the essential requirements will be prepared as well as the ALLEX white paper (Prospectus). Moreover, technical development for opening the ST exchange is on the way. ALLEX Token (ALX) will be a security token issued by ALLEX ( Name of the joint venture). The monthly dividend (annual yield of 4%) and earnings dividend (once a year) according to business results will be obtained by stable coin "XUSD" (now on planning, it depends on laws and regulations).

“ALLEX” uses Stellar Blockchain's original protocol “SCP (Stellar Consensus Protocol)” and is mainly used for small remittance between individuals. In terms of scalability (processing capacity of 1,000 times/second), Stellar can be used internationally with high speed, for example, linking with IT company “IBM” and financial consulting company “Detroit Tohmatsu” because it can reduce transaction costs. In areas such as the Philippines and West Africa, Stellar is expected to cover the needs of people who could not have the bank accounts so far, such as using low-cost financial services.

The ALLEX token is being developed on the assumption that various security tokens will be issued based on the ALLEX token in the future, aiming to become an axis currency in the security token industry. In the crypto-asset market, various tokens have been issued based on Ethereum, but in the security token market, we will continue our efforts to make the alternative role of ETH.

Besides, we plan to announce the functionional addition and roadmap of the ST exchange “ALLEX” during the current fiscal year.

February 2020 Release of ALLEX TOKEN wallet app

February 2020 Provision of ALLEX TOKEN transaction service

February 2020 Provision of ALLEX TOKEN smart contract service

April 2020 Implementation of ALLEX TOKEN rights transfer and transfer functions

September 2020 Implementation of ALLEX TOKEN chargeback function

December 2020 Full support for ALLEX TOKEN AML and KYC on the Blockchain

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16. Evaluation

The future of ALLEX tokens

This STO will distribute up to 300 million ALX tokens to raise $ 10 million. Soft caps are set at $ 10 million and hard caps are set at $ 30 million, and the funds raised are intended to be used for the businesses.

Establishment of ST exchanges in Malaysia, Estonia, USA, Chile, etc. and acquisition of license: $ 5 million

R & D expenses: $ 2 million

ST exchange operation in CEZA Philippines: 1 million dollars

Advertising: $ 1 million

Marketing: $ 500,000

New market development, legal affairs, intellectual property support: $ 500,000

ALLEX Token distributes (ALLEX) net income dividends to investors, prepares and publishes financial statements quarterly, thereby enabling highly transparent business operations.

ALLEX token holders can preferentially receive a net profit dividend depending on the details set. Security tokens are distributed on the blockchain, and we are also working on application development so that not only PCs but also smartphones can be checked.

Also, ALLEX token holders can earn trading profits (capital gains) on the ST exchange (secondary market), but the laws and regulations vary from country to country. Although we are designing tokens in compliance with the DATO law established by CEZA, we are working to meet the laws and regulations of each country.

The current STO market is new under the guidance of regulators such as the United States and Germany, as well as countries that have not been put into practical use because of the lack of legal regulations regarding STO.

In the United States, STO has been implemented by applying Regulation because of the history of legislation for small-growth companies raising funds through the private placement.

Since there are many cases where large-scale IPOs fail, STO is expected to increase in practical terms as a new financing method.

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On the other hand, in Germany, a public offering type STO has been implemented, and it has been confirmed that regulators and products negotiate to reduce the minimum investment so in this case the general investors can participate.

Allex tokens will be issued in compliance with the CEZA / DATO law and will have great significance in the current security tokens and crypto-asset market.

Furthermore, the creation of the ST exchange can lead the world's security token market as a pioneer in the secondary market.

ALLEX tokens may also be listed on other ST exchanges in the future (e.g. Gibraltar Stock Exchange (GSX) Malta Stock Exchange (MDX) London Stock Exchange (LDX)).

※See EValuation documentation

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17. Risks

ALLEX's main business is the development of the ST exchange “ALLEX” and the development of the security token “ALLEX TOKEN”. As a result of practical use cases such as the construction of cryptographic asset security system and legal interpretation of DATO law, we aim to expand the initiatives in Asian markets including Japan after 2020. One of the future risk factors is that “effective sharing of management strategies and success stories in the secondary market, which is an immature market,” is not in the current market environment. Security tokens themselves are dividend yield products (income gains), and it is difficult to say that there is a need for exchanges for trading purposes. Security tokens are being used in the United States as a way to raise funds for small-growth companies, but the trading volume of each ST exchange is still not high.

SWOT Analysis

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CROSS SWOT Analysis

Five Forces Analysis

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Future rules and regulations 1 Rule on the blockchain protocol Summary：Only protocols that are approved by the association can be used. Problems of cryptocurrency trading：Currently differently protocols are being used depending on the chains and some chains don't have user protection or AML measures. Current plans：Creating an approval system by the association so that the protocol is standardized. Additional information：Create a certification prcess for protocols. 2 Rules on AML and CFT Summary：Sharing the blacklist among all businesses. Sharing the graylist amon all businesses. Conduct Tx monitoring to prevent fraudulent transactions. Follow the FATF standard. Problems of cryptocurrency trading： （Blockchain specifit issues） ・Cryptocurrency related money laundering cases are already happening, and there isn't sufficient coutnermeasure to this issue. ・Because cryptocurrency tradings through cryptocurrency exchanges are off chain, by using exchanges with lower level KYC or by using mixing, dirty money is being laundered by criminals.(In general） ・Once they transfer money abroad, it is impossible to trace both the entry and the exit of the movement of the money. Current plans： ・Connect KYC information and a wallet ID so that the flow of money can be easily tracked (designated wallet). ・Use a blockchain that does not support anonymous chains and mixing. ・Make the transfer of ST to foreign exchanges that are not partners impossible. ・When ST is moved to a non-partner exchange, the account will be temprorary frozen. ・Ban use of cryptocurrencies such as BTC and ETH to ST. ・Make the user register bankaccount at the point of user registration. Additional information：There is no shared DLT blacklist, so there is a need for one. ST wallet must be connected to （a new chain is needed）track transaction record. We believe that both the entrance and the exit for AML and fix bank accounts.

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3 Rule on charge back and in-wallet fund transfer by the service providers Summary：In the case customers have lost their secret keys or death, in-wallet asset can be moved only after ID confirmation and KYC. In the case a fraudulent transaction is detected, the Tx can be overwridden to cancel the transaction. Problems of cryptocurrency trading： （Blockchain specifit issues） ・Is not ready to help customers who have lost their keys. ・Is not ready to help customers in the case of asset transfer due to death. ・There is no standardized protocol to respond to fraudulent access or transaction. Current plans： ・By allowing businesses to move in-wallet assests, so in case of losss of key, the company can help transfer the asset. ・The copy of the secret key will be held by the company. ・Use AI to detect fraudulent trade before it is completed. ・Create a custody service for secret keys. ・Create a new blockchain that support roleback of designated trades. ・Mining by certain businesses. Additional information：There is a need to help users in case of loss of the secret key of in the case of inheriting assts. In the case of frauduletn transaction or criminal activities, the current role back system cancells all transaction within the period, so there is a new system both from the standpoint of investor protection and CFT. 4 Rule on security Summary：Follow the FISC security standard in order to create and maintain a cybersecurity saffety standard. Problems of cryptocurrency trading：The security issues seen recently are not caused by blockchain but caused mostly due to the lack of cybersecurity in the IT system. Which means we could radically reduce these incidents if we have a stronger cybersecurity. Current plans： ・Support audit by blockchain codes by audit companies. ・Create a financial system standard equivalent to FISC/PCIDSS. ・Conduct a regular system audit by external auditors. Additional information：We expect numerous businesses to be involved in the DLT industries except for the current securities dealers, so the limitation of the business fiels and security measure is essential.

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Especially businesses that use wallet is expected to incfrease, so there is a need for a mechanism to regulate and control the usage. 5 Rule on the system risk management Summary：STO is digitally issued, traded, and matured. So not only system developers but also system operators need to have a certain level of knoledge. Problems of cryptocurrency trading： ・System management standar is not clarified. ・People with limited knolwedge are working as managers and causeing issues. Current plans： ・Create a system management standard. ・Conduct lectures by managers. ・Create a certification process of managers. 6 Rule on the management of ST Summary：Non-brokers also need to have a certain level of knowledge so there needs to be a minimum standard. Problems of cryptocurrency trading：There is no standard, so it depends on the business. There is no certification Current plans： ・Mandated lecture. ・Create a certification examination. ・Conduct regular lectures by the association. 7 Rule on wallet management Summary：Customers' assets are held in a cold wallet and the assts that are maintained in hot wallets must be 100% backed by trust protection. Assets held in cold wallets are maintained by multi-signature and the eachy key is individually managed. Include wallet freezing mechanism to counter fraudulent transaction. Problems of cryptocurrency trading： ・Hacking incidents are occuring frequently. ・Loss of asset due to loss of secret key. ・When searfched for walled ID, all of the in-wallet can be seen (It could be increasing hacking incidents.

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Once an ID is known, it could be used in other crimes). We have seen extortion incidents to people who hold high volume of BTC. ・There is no regulation on wallet management. ・Custodian is not set. Current plans： ・Use multi-signature and set the key manager individually. (this will lower the risk of hacking and leak of the sercret keys.) ・Regular ID change of hot-wallet. ・Wallet ID will be private and won't be revealsed. ・Conficure the system that will monitor transactions and alerts when unusual activities are detected. Additional information：Hot wallet must be managed strictly. Some measures on the wallet side should be considered in the case of illicit transacions. Consensus algorithm will be the consortium type. 8 Rule on audit process of STO businesses Summary：Make a business continuity valuation based on J-sox and ITGC and Create a rule on asset protection, operation process and B/S check criteria. Problems of cryptocurrency trading： ・No clear audit/research standard of ICO/IEO business by third parties. Current plans：Audit might not be needed to all offers. Accountants and securities companies might be utilized depending on the case. 9 Rule on system audit Summary：Conduct periodic audits. Problems of cryptocurrency trading：There is no clear audit standard of exchange systems and user management systems. Current plans：Conduct a regular audit to the transaction system and the management system to lower the risk of incidents. 10 Rule on KYC Summary：KYC information will be managed standalone once the account is opened and the information will be kept safely. KYC information will be shared by entities that hold KYC information taking into account personal information protection (GDPR). However, in the case of blacklist, this rule does not apply.

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Problems of cryptocurrency trading： ・No KYC standard. ・No shared KYC information which makes it difficult to share the information of suspicious users. ・No set ways to share information. ・No management standard of KYC information. ・Different countries have different management standards of user information. ・Trading between companies that don't conduct KYC. Current plans： ・Use the standalone method ・Set a KYC standard ・Create an international standard ・Information sharing by zero knowledge proof. ・Share information by encrypting the information using hash. ・Create a personal information sharing platform. Additional information：KYC content must be standardized and must be shared for both user information protection and AML purposes. When sharing the information, the user information protection act and GDPR must be considered. We believe that user information sharing is also useful for blacklisting some users. 11 Rule on smart contract Summary：When using smart contract, the smart contract must be pre-audit. The information of the smart contract must be revealsed to the users. Problems of cryptocurrency trading： ・Trade is not automated and too much resource is required. ・There are instances where a transaction is not completed event whene the user makes the payment. ・There could be a hacking incident due to a bug in the smart contract. ・After the release, smart contract might not function as expected. Current plans： ・Mandate smart contract to trade when creating the platform. ・Mandate audit of the smart contract code. Additional information：Smart contract is essential for transaction, so we need to build a new mechanism for it. 12 Rule on lockup Summary：Set up a lockup period using smart contract after the start of an STO. The lockup period will be set

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in another clause. Problems of cryptocurrency trading： ・ICO participants often resell tokens violating terms. ・There could be cases of insider trading after offering before listing. Current plans： ・Lockup setting. ・Distribution of token happens only after listing. ・Smart contract of token transfer will be a permit system. Additional information：The lockup period will vary based on businesses. 13 Rule on user protection Summary：The contract address and the wallet ID that holds the highest volume will be revealed as part of information reveal? Problems of cryptocurrency trading： ・There is no set way to respond to incidents such as hacking. ・There is no set way to respond when a user account is hacked. Current plans： ・Avoid loss of asset by allowing charge back in case of unintended transactions. ・By creating a platform of education to users, encourage users to accumulate knowledge. ・Remove accounts with suspicous activities to protect users. ・Obligate companies to create system that makes user protection its priority. Additional information：When using different systems in different plaforms, make the Tx so that it can be followed publicly or have an external organization monitor the Tx. 14 Rule on data contained in blockchain Summary：Clause that designate the content, data and the blockchain protocol that must be recorded in the blockchain. Problems of cryptocurrency trading： ・Since there is no standard of the chain protocol or the data that should be recorded in the blockchian the traceability of blockchain is not fully utilized. ・ Ther is a possibility of money laundering using anonymous cryptocurrencies and mixing.

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Current plans： ・Desgin the blockchain so that rights transfer and token transfer record can easily be trackes. ・Design the blockchain so that users can be identified at the time of toke ntransfer with assistance of participating businesses. ・Wallet ID will be able to be identified and off chain token transfer is banned.

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18. Company members

Taisei Yamaguchi

HEAD OF BUSINESS DEVELOPMENT

Summary

My greatest desire has always been to positively influence as many people as I could. To fulfill this goal, I had met with many politicians and even aimed to become one since the

age of fourteen. However, I also began questioning the strictness of politics or the types of drawbacks that came with having a large influence, and sought to seek another way to

influence others. At seventeen, I began thinking about creating a business, and soon began my own sales business. By nineteen, I had worked in more than five businesses, gaining

insight and experience, and soon began business transfers by 23 years of age. After, I worked for a company with a financial license, and engaged in work with several companies

dealing with various regulations such as special real estate businesses. Here, I began to think about the future of blockchain technology, and the creation of regulations for them to

follow. Now, as of 2018, I have launched my own company, Standard Capital Co., Ltd. with a primary focus on the design and development of security token standards.

Experience

・STANDARD CAPITAL Co.,Ltd.

2019- Chief Executive Officer

2018- Company chairman

・LEVIAS Inc.

Senior Staff of HR department

2017 ‒ 2018

・LBI Inc.

Senior Staff of IT department

2017 ‒ 2018

・Cool Creation Co.,Ltd.

Chief Executive Officer

2014 ‒ 2019

・Japan Manegement Strategy Creation Institute

Representative partner

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2014 ‒ 2019

・Yʼs international LLC

Representative partner

2014 ‒ 2019

・Nedline Co.,Ltd.

Chief Executive Officer

2013 ‒ 2019

52

John Bailon

CHIEF STRATEGIST OFFICER

Co-Founder and CEO at Satoshi Citadel Industries

NCR - National Capital Region, Philippines

Summary

Since 2014, John has been building a Bitcoin ecosystem in the Philippines with the help of like-minded partners. John leads the team as CEO, guiding the vision of the company

and development of SCIʼs products. The rare combination of technical expertise alongside business acumen has allowed him to lead the companyʼs rapid growth, and his passion

for developing Bitcoin technology is reflected in SCIʼs successful lineup of products and services today. John is convinced that money transfers is an enormous opportunity in the

Philippines, with at least US$30 billion entering the country in 2014 alone, and another US$40 billion in internal remittances. More importantly, he sees Bitcoin as the

breakthrough technology that will revolutionize this industry. John understands technology, recognises business opportunities and combines them into winning products.

Experience

・Satoshi Citadel Industries

Co-Founder and Chief Executive Officer

January 2014 ‒ Present （Philippines）

・Rebit.ph

Co-Founder and Chief Executive Officer

June 2014 ‒ Present

NCR - National Capital Region, Philippines

・Bitmarket.ph

Co-Founder and Chief Executive Officer

January 2014 - April 2018 (4 years 4 months)

Philippines

・Baicapture Inc.

Chief Executive Officer

2007 - May 2014 (7 years 5 months)

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Ronald M. Tucker

CHIEF STRATEGIST OFFICER

Founder & President at Blockchain Australia (ADCA) | Founder, Bit Trade Australia

Sydney, New South Wales, Australia

Summary

"Ronald M. Tucker is the Founder and President of the Blockchain Australia (formally Australian Digital Commerce Association, ADCA), the peak body for Blockchain businesses

in Australia, and co-convenor of the Global Blockchain Forum, (the international body representing trade body's for the US, Canada, the UK, UAE, Singapore, India, New

Zealand, Philippines, Japan and Australia). Mr. Tucker has been living in Australia for the last several years and presently resides in Sydney as well as Asia. He launched Bit Trade

Australia, the countries first blockchain asset investment platform, in 2013, and its sister company Bit Trade Labs, a Blockchain development consultancy a year later.

Ron organised and led the successful industry response to the Digital Currency Inquiry called by the Senate Economics References Committee in 2015, the two-day Global Digital

Currency Conversation forum during the G20 Leadersʼ Summit in Brisbane 2014, helped establish the Federal bi-partisan Blockchain caucus, and has worked closely with

Australian and Chinese officials (as well as other cross-border industry stakeholders), on bi-lateral blockchain ecosystem development. He has worked consultatively with

regulatory stakeholders resulting in progressive policy and legislative outcomes for the Digital Economy. Mr. Tucker, also successfully spearheaded the self-regulatory DC Code of

Conduct initiative by industry, contributing to these changes following the Senate's recommendations and subsequent adoption by Government.

He is presently engaged in consulting and government relations advisory work in the ASEAN region for the Digital Economy industry. Page 1 of 6 Most recently, Mr Tucker

organised the Virtual Asset Service Providers Summit ("V20" - an officially endorsed business event of the G20), bringing together the worlds largest crypto exchanges, national

trade associations, regulators and legislators in Osaka Japan, during the 2019 Osaka, Japan, G20 Leaders Summit. Ron was born in Newfoundland, Canada in 1981, and undertook

studies in IT (Canada) as well as Business Management (Australia). He travels extensively for work in his advisory roles, and has been an entrepreneur for most of his working life

having started businesses in the areas of retail, marketing, technology, government relations, and publishing in the US and Canada."

Experience

・Blockchain Australia

Founder & President

March 2014 - Present

・Bit Trade Australia Pty Ltd

Founder

April 2013 - Present

Sydney, Australia

・V20

Convener (Organiser)

June 2019 - June 2019 (1 month)

Osaka, Osaka, Japan

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・Global Blockchain Forum (GBF)

Founding Member

April 2016 - June 2019 (3 years 3 months)

New York, NY

・Bit Trade Labs

Director

April 2015 - October 2018 (3 years 7 months)

Sydney, Australia

・Bit Trade Labs offers the following services:

Blockchain & Distributed Consensus Systems Consulting

Problem Solving & Use Case Modelling

Prototyping & Sandbox Experimentation

Distributed Consensus Systems Production, Development & Integration

Crypto-token/Digital-currency & Smart Contract Implementation

Communication & Training

・Holly Star Australia

Founder-Partner

December 2011 - November 2013 (2 years)

Sydney, Australia

・LOVE MEDIA GROUP INC

Managing Director

November 2008 - December 2010 (2 years 2 months)

Vancouver, Canada Area

・The Ashbury Shoe Company

Proprietor

February 2007 - December 2010 (3 years 11 months)

Vancouver, Canada Area

Fashion Retail. (3 locations)

・LOVE. Magazine

Puslisher.

August 2008 - June 2010 (1 year 11 months)

Vancouver, Canada Area

・Rogers Communications

Corporate Trainer + Sales Manager

December 2005 - January 2008 (2 years 2 months)

National Canadian corporate telecom provider.

・Fotrot America Co., LLC

Partner-Proprietor

April 2003 - March 2005 (2 years)

Greater Salt Lake City Area

Fashion retail. (2 locations)

・Rogers Communications

Corporate Retail Sales: BC Western Region

September 2000 - November 2003 (3 years 3 months)

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BRIAN ALDOUS L. FERNANDEZ

LEGAL MANAGER

Experience

・FERNANDEZ AND SINGSON LAW OFFICES

Partner

・HUAWEI TECHNOLOGIES PHILS., INC.

Assistant Legal Manager,

April 2013 ‒ January 2016

・FORNIER FORNIER SAÑO & LAGUMBAY LAW OFFICES

Associate Lawyer, July 2007-March 2013

・UY, CLERIGO, & DE GUZMAN LAW OFFICES

Under Bar Associate, 2004

・QUISUMBING TORRES LAW OFFICES

Internship Program, 2002

・MANAGEMENT TRAINEE, INTERNATIONAL GOLDEN HORIZON CUISINE AND CRUISE, INCORPORATED

Assisted Marketing Manager in advertising and promotions. Handled the preparation of vouchers and checks as well as its accounting methods, February-March 1997.

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LOUE B. OLIVARES, CPA

FINANCE OFFICER

Experience

・Project Head at Century Properties Group Inc.

Finance Officer

Aug 2016 ‒ Present

・Revolution Precrafted Limited Inc.

Financial Consultant

Aug 2016 ‒ Present

・Macroasia Corporation

Business Development Associate

Nov 2014 ‒ Sept 2016

・Eagle Cement Corporation

Internal Auditor

Jan ‒ Oct 2014

・Sycip Gorres & Velayo (SGV & Co. Auditing Firm),

Junior Audit Associate

Nov 2011 ‒ Dec 2013 -

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Minoru Ymazaki

BLOCKCHAIN STRATEGIST

Experience

・ Standard Capital Co.,Ltd.

Officer

Japan Security Token Operator Association

Blockchain consulting

6 months

・Block GeNEX

Provision of blockchain service tokens and business models

1. Provision of service model for VR real estate asset project

2. Provide service models for trading game projects

3. Provision of service model for Southeast Asian government official exchange project

4. Provision of monetization models for the European Online Casino Project

5. Construction of human resource education and job matching projects

Blockchain design and consulting for projects

1. Technology and marketing support for VR real estate projects

2. Technical and marketing support for Southeast Asia Exchange Project

3. Marketing support for original mining software project

4. Technical support for the European Online Casino Project

2 years

・Digital information technology

In-house system engineer at some major listed company

1 year

・Broadband security:

Security consulting

PCI-DSS compliant consulting

3 years

· NTT-Com

Network Engineer

Cloud Engineer

6 years

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19. Disclaimer

The purpose of this white paper is to give investors an overview of the ALLEX token project and important facts about our management. The information and materials in this white paper are posted in compliance with the relevant rules and regulations. However, there is no guarantee whatsoever.

In addition, we are not responsible for the contents of this white paper.

The contents of this white paper related to future performance, such as our forecasts, outlooks, and management strategies, our outlook is based on the current available information.

It includes risks and uncertain factors that can be foreseen and unforeseen due to natural disasters and so on in the future.

This document does not imply a contractual relationship between company and token purchasers.

It does not guarantee the accuracy, reliability, or completeness of the materials contained in this whitepaper or posted elsewhere in connection with the ALLEX token, and assumes no liability.

We do not make other types of representations, warranties or promises to other entities or others, including representations, warranties or promises regarding the truth, accuracy, and completeness of the information contained in this White Paper.

We do not intend to do so, and we refuse to make such representations, warranties or promises.

If you understand the above and make any investment decisions, please refer to the materials of security token exchanges issued by us and make decisions at your discretion. We do not accept any responsibility for the investment results based on earnings forecasts.