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P R O J E C T
Galaxium Project Proposal Table Of Contents
Schedule - Legal Considerations, Risks and Disclaimer 25
Important Disclaimers 1
Overview 3
Abstract 4
Current business 4
Introduction 5
Cryptocurrrency 6
Blockchain technology 6
Ethereum network 7
General description of the project 9
Gist of the project 10
Goal of the project 10
Key tasks of the project 10
Industry description 11
Analysis of industry dynamics 12
Target market 14
Competition 15
Project description 16
Management Team 17
Musang King Durian variety. Specific of cultivation 18
Project development strategy 19
Project risk assessment 20
Funding & Summary 21
Summary of the Galaxium project 22
Project Milestones 23
Galaxium Loyalty Program 24
Galaxium Project Proposal
IMPORTANT NOTICE:
PLEASE READ THE ENTIRETY OF THE “Legal Considerations, Risks and Disclaimer” SCHEDULE (at
page 25 to page 38) CAREFULLY.
WE RECOMMEND YOU CONSULT A LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL
ADVISOR(S) OR EXPERT(S) FOR FURTHER GUIDANCE PRIOR TO PARTICIPATING IN THE GALAXIUM
TOKEN GENERATION EVENT OUTLINED IN THIS WHITE PAPER.
THIS WHITE PAPER DOES NOT CONSTITUTE A PROSPECTUS OR OFFER DOCUMENT OF ANY SORT
AND IS NOT INTENDED TO CONSTITUTE AN OFFER OF SECURITIES OR A SOLICITATION FOR
INVESTMENT IN SECURITIES IN ANY JURISDICTION. NO PERSON IS BOUND TO ENTER INTO ANY
CONTRACT OR BINDING LEGAL COMMITMENT AND NO CRYPTOCURRENCY OR OTHER FORM OF
PAYMENT IS TO BE ACCEPTED ON THE BASIS OF ALL OR ANY PART OF THE AVAILABLE
INFORMATION. ANY AGREEMENT IN RELATION TO ANY SUBSCRIPTION OF THE TOKENS IS TO BE
GOVERNED BY THE TERMS AND CONDITIONS OF A SEPARATE AGREEMENT AND NO OTHER
DOCUMENT. IN THE EVENT OF ANY INCONSISTENCIES BETWEEN THE TERMS AND CONDITIONS
OF THAT AGREEMENT AND THE AVAILABLE INFORMATION, THOSE TERMS AND CONDITIONS
SHALL PREVAIL.
You must read the “Legal Considerations, Risks and Disclaimer” schedule appended to this White Paper
before: (i) making use of this White Paper and any and all information available on the website(s) of Borneo
Agrium SDN BHD (1273895-V) (the “Company”) located at https://gxmt.io (the “Website”); and/or (ii)
participating in the Company’s token generation event outlined in this White Paper (the “Token
Generation”).
The “Legal Considerations, Risks and Disclaimer” schedule applies to this White Paper and any and all
information available on the Website. The contents of the “Legal Considerations, Risks and Disclaimer”
schedule outlines the terms and conditions applicable to you in connection with (i) your use of this White
Paper and of any and all information available on the Website; and/or (ii) your participation in the Token
Generation, in each case in addition to any other terms and conditions that we may publish from time to
time relating to this White Paper, the Website and the Token Generation (such terms hereinafter referred to
as the “Terms”).
The “Legal Considerations, Risks and Disclaimer” schedule may be updated from time to time and will be
published as part of the latest version of the White Paper which shall be available on the Website. You shall
be obliged to check the latest available version of the White Paper prior to participating in the Token
Generation.
The information set forth in the “Legal Considerations, Risks and Disclaimer” schedule may not be exhaustive
and does not imply any elements of a contractual relationship. While we make every reasonable effort to
ensure that all information: (i) in this White Paper; and (ii) available on the Website (collectively referred to
as the “Available Information”) is accurate and up to date, such material in no way constitutes professional
advice.
The Company neither guarantees nor accepts responsibility for the accuracy, reliability, current state (as of
this White Paper) or completeness of the Available Information. Individuals intending to participate in the
Token Generation should seek independent professional advice prior to acting on any of the Available
Information.
01
Important Disclaimers
Galaxium Project Proposal
Residents of the United States of America, and citizens, nationals, residents (tax or otherwise) and/or green
card holders of each of the Republic of Singapore, the People’s Republic of China, the Republic of Korea
(South Korea), the State of Israel, or any other jurisdiction which prohibits the possession, dissemination or
communication of the Available Information and/or prohibits participation in the Token Generation or the
subscription of the Tokens or any such similar activity (a “Restricted Jurisdiction”) or any other Restricted
Persons are not permitted to participate in the Token Generation. The term “Restricted Persons” refers to
any firm, company, partnership, trust, corporation, entity, government, state or agency of a state or any
other incorporated or unincorporated body or association, association or partnership (whether or not
having separate legal personality) that is established and/or lawfully existing under the laws of a Restricted
Jurisdiction.
Important Disclaimers
02
Galaxium Project Proposal
Overview
03
Galaxium Project Proposal Overview: Abstract & Current Business
Abstract Since the introduction of Bitcoin, blockchain technology has grown in leaps and
bounds. Blockchain has allowed not only cryptocurrencies to flourish, but has opened
other traditional sectors such as agriculture industry to exploit the technology.
The aim of the project is to initiate the mass production of durians in Malaysia to support the
increasing demand of China Durian market. In 2015 alone, China imported a total of 299,000
tonnes of durians (USD 568 Millions in value) and the imports of durian volumes (in term of weight)
are still increasing at a compounded annual growth rate of 12%.
The Galaxium project is planning to expand the durian production in Malaysia by increasing the
plantation territory across the whole Malaysia.
Current Business
The Galaxium project was established by a group of agricultural production professionals,
with over 20 years of experience in producing durian in Malaysia, consulted by software
development experts and professional lawyers in order to take advantage of blockchain
technology in addressing real-life business objectives.
Indeed, the Galaxium project is already an up and running project. Most of our current durian
farms and orchard parks are located in Kampung Kambizaan, Papar, Sabah, Malaysia.
Occasionally, there will be some agriculture tourism activities in our durian orchard park where we
open our durian orchard parks for durian enthusiast individuals and organizations to visit and see
for themselves the vast durian varieties that we cultivate, in addition to the organic and pesticide-
free farming method that we employ to produce durians.
Furthermore, we offer different breed types of durians to our customers, which allow them to
choose the durian they like the most, including the famous Musang King Durian. Other than
China, we also currently export our durians to a number of countries across the globe. This
implicates that we are able to deliver the favorite durians to any part of the world upon any client’s
sales order without the location restrictions, subjects to the sufficient supply of durian production,
which we are seeking to improve through durian plantation territory expansion.
04
Galaxium Project Proposal
Introduction Introduction
05
Galaxium Project Proposal
Cryptocurrency The cryptocurrency market has evolved extensively since its inception with the birth of
Bitcoin. Bitcoin is the most known and valued cryptocurrency in terms of market
capitalization. Altcoins, however, have been diluting Bitcoin‘s market share in recent times.
Altcoins are all the other cryptocurrencies, except for Bitcoin. They come in different forms
and perform different functions, such as Ether, Dash, Monero, Litecoin, etc.
What are cryptocurrencies? Cryptocurrencies are digital mediums of exchange that utilize
cryptography and shared public ledgers (blockchain). These characteristics allow digital coins to be
secure, traceable and anonymous. Cryptography and blockchain are also the foundations for the
creation, mining, and harvesting of digital coins. Cryptocurrencies are decentralized in nature,
meaning that there‘s no central point of concentration, therefore increasing their desirability for
security-conscious users. This also eliminates the middleman, thereby reducing transaction costs.
Their decentralized nature means that cryptocurrencies are not backed by governments or other
financial institutions such as central banks. Central banks control the flow of finance within
geographical regions and act as individuals within a global financial ecosystem. In decentralized
platforms, the users control the flow of finances, data, etc. Individual users operate as a collective
within decentralized platforms. Their values are determined by perception and other economic
factors, such as demand and supply.
Blockchain Technology Blockchain technology is the foundation of the Galaxium Project and is the next “industrial
revolution”. It is a decentralized ledger system with enhanced security, is simple in design and
inexpensive to operate. The ledger system allows for transactions to be done with complete
accuracy because it is a fusion of computer peer-to-peer (p2p) technology, cryptography and
database systems. The fusion of these technologies leads to a ledger system that is immutable and
irreversible, meaning that transactions cannot be tampered with when signed and transferred.
Transactions become final and there is no double-spending. Cryptography is utilized for encrypting
messages on the ledger, but is significantly used for signing off transactions by users and to proof
these transactions. With cryptography, blockchain does not require supplementary security
solutions to protect the authenticity of transactions. Blockchain‘s decentralized and p2p nature
means that the ledger eliminates the need for a data-centre and a disaster recovery centre (DRC)
that houses core systems. The end result is that the ledger will always be up and running.
“The cryptocurrency and blockchain markets are still relatively young,
but have potential for exponential growth, leading to new offerings in the market.”
The strategic goal of the project is a core modification of business and export relationships
connected to the production and delivery of durians. The initiators of the project have set a goal —
to decentralize the process of business expansion and take it beyond the framework of traditional
partnerships. The Galaxium Project will facilitate wider recognition of blockchain technology on the
commodity market, forming a close connection with blockchain communities — Bitcoin, Ethereum
ERC 20 and others.
Introduction: Cryptocurrency & Blockchain Technology
06
Galaxium Project Proposal
Ethereum Network & ERC-20 Token
We see that Ethereum has a vision for a ‘world computer,’ (in more specific words, a world
network of decentralized applications) and it is determined to develop an ecosystem where
everything functions as one without problems. The main part of this vision is that the
‘world computer’ will depend on tokens for its power.
Ethereum launched in 2014 by several coders and a cipher teenager. It was designed in a way that
it allows anybody to code different types of application, and introduces it to the blockchain. Now,
these apps (decentralized applications DAPPs) require their unique token that could be exchanged
and sold, and that could also aid in several other transactions. Based on this indisputable fact, the
ERC-20 token standard was created, almost eighteen (18) months ago, and it is difficult, to sum up,
the value of this interface.
Several defined rules should back Ethereum-based tokens, and the ERC-20 alerts wallets,
exchanges, and various smart contracts developers to these regulations. This helps them know
beforehand, the proposed behavior for any new standard-based token. With this information,
developers can create their applications to be compatible with these tokens out of the box. In the
long-haul, there would be no need to recreate the wheel whenever there is the advent of a new
token system.
“Ether is the traditional currency for the Ethereum blockchain.”
However, when there are so many talks about tokens, it is important to shed more light on
the subject of tokens before sailing further.
Relating tokens to the Ethereum network, they can be described as digital assets which can depict
anything ranging from loyalty points to vouchers, IOUs, and can even represent objects in the real
world. These tokens can also come as tools; something likened to in-game items, which can be
used to interact with various smart contracts.
To just put it, a token runs over the Ethereum blockchain as a smart contract, nothing more, and
nothing less. Therefore, a token has functions (or a set of codes) that are linked to a database.
These features describe the behavior of a token, and the stated database can be called a table
having rows and columns that track owners of many tokens.
Contrary to tokens, the native currency ‘ether’ is firmly coded in the Ethereum blockchain. As a
result, ether can only be sold and exchanged as a virtual currency, and it powers the Ethereum
network. To power the Ethereum network, a smart contract transaction fee must be paid by the
users. Every form of computation on the Ethereum network has a cost, which is known as ‘Gas
Cost.’
Therefore, when you send tokens to an exchange, you are required to pay for that transaction in
ether (the deal could be a request to the token’s contract, that its database should be updated). A
miner collects this payment after he has confirmed that the transaction is in a block, which is later
added to the blockchain.
Introduction: Ethereum Network & ERC-20 Token
07
Galaxium Project Proposal
In the early parts of the Ethereum’s history, these token standards were part of the general plan,
which was to create a user-friendly and a widely accessible system. However, just like all standards,
ERC-20 evolved after a very long time, over hours and hours of discussion and thoughtful
deliberations.
In 2015, at the first major Ethereum conference before DevCon1, Vitalik Buterin, Ethereum’s
founder, introduced the world to the initial standards token. Before the end of 2015, a developer
who was on the team of developers working on the Ethereum mist wallet, Fabian Vogelsteller, took
the standard and made some changes.
He later proposed the standard to the Ethereum community as ERC-20 to stir-up a formal
discussion on how the community should implement the rule. However, in April, because if the
changed the Ethereum Foundation made in the organization of its GitHub, ERC-20 standard
relocated to a GitHub pull request. Some of these functions include, for example, how to transfer
token (either by the owner or by proxy), and how to access data (such as names, symbols, supply,
balance) around the token. The standard explains two events which are; signals that smart contracts
can disseminate, and these signals which other smart contracts also ‘listen’ to receive.
Ethereum tokens function the same way almost everywhere on the Ethereum ecosystem when
these functions and events work hand in hand. Due to this fact, practically all ether compatible
wallets such as’ MyEtherWallet.com, Jaxx, and Ethereum Wallet (Popularly known as Mist Wallet),
can also accept ERC-20 compliant tokens.
A significant innovation in the development of tokens which are Ethereum-based is the
ERC20 protocol standard. It bears similarity to the HTTP protocol that defines the internet,
as the ERC-20 serves as a protocol that establishes various commands that should be
implemented by a token.
The ERC-20 is a technical specification; it is not just a piece of code or software or technology.
Therefore, any token that implements the specification of standard tokens is an ERC-20 token.
The functions contained in the ERC-20 protocol standard are essential, and any reliable token
should uphold these duties to initiate transactions. Some of these deals are; transfer of tokens,
balance inquiry of tokens from a specific address, and a complete supply of tokens. Due to the reliability factor, Galaxium will create tokens using Ethereum ERC-20, and coins will be
emitted based on the market price of 1 kilogram of durian and limited to 50 million units of coins.
Introduction: Ethereum Network & ERC-20 Token
08
Galaxium Project Proposal
General Description
of The Project
09
Galaxium Project Proposal
General description of the project
Galaxium is a blockchain project aiming to achieve a core modification of the durian
production industry, similar to how Uber has revolutionized the taxi industry or how
Upwork has brought freelancing to a new level. In short, the initiators of the project create
processes in the production of durians through the implementation of an economic
element in the seemingly completely understood export relations of the product.
THE GIST OF THE PROJECT The initiator of the project is planning to expand durian production in Malaysia by increasing
production area. We aim to expand the territory of the plantation from 30 to 1,000 acres.
THE GOAL OF THE PROJECT The goal of the project is to ensure over 300% growth in product sales on the Chinese market
through expansion of production areas.
THE KEY TASKS OF THE PROJECT In order to achieve this goal, the initiator of the project is planning to implement the following
strategic initiatives:
Issue GXM tokens for Galaxium Project; 1 Purchase and expand the area for durian production (cultivation) using received funds, and its preparation for the production cycle (60 months);
2
Harvest and sale of durians grown on the new plantation; 3
Putting Galaxium tokens into circulation as loyalty reward points for Galaxium Project members;
4
Exchange of tokens for goods or services within Galaxium ecosystem; 5
General Description of the Project
10
Industry Description
11
Galaxium Project Proposal
Analysis of Industry Dynamics
According to Malaysia's Agriculture Department. Durian trees are planted on nearly half
the land cultivated for fruits in the country in 2017. Durian has generated a sales volume of
RM1.97 billion from the 66,038ha of land planted with the fruit, or 47% of the total
139,476ha of land cultivated with premium fruits.
The value of China’s fresh imports of durian fruit has climbed an average of 26% a year over the
past decade, reaching $1.1 billion in 2016, according to United Nations data. Thailand dominates
that market, but Malaysian politicians are counting on durian diplomacy to expand access beyond
frozen fruit pulp. A Malaysian durian festival in Nanning, in southern China, in November 2017 had
about 165,000 people lining up to taste thawed, whole-fruit samples of the country’s premium
Musang King Durian variety. “Some of them said that, now in China, there are two things that
people will queue up for: the iPhone X, and Malaysian durians,” said by Malaysia Minister of
Agriculture and Agro-based Industry Ahmad Shabery Cheek.
Across Malaysia, where the durian is dubbed the “King of Fruits,” orchards are recording a spike in
Chinese tourists eager to savor a food that is routinely banned from hotels, airports and on public
transportation for its polarizing smell
Industry Description: Analysis of Industry Dynamics
12
Galaxium Project Proposal
Analysis of Industry Dynamics
Why Durian?
Durian is rich in energy, vitamins, and minerals. It offers phytonutrients, water, protein, and beneficial fats.
While very low in cholesterol and sodium, it is rich in dietary fiber and is a good source of antioxidant
vitamin C, which helps scavenge harmful free radicals and assists in your body’s resistance against infection.
Durian is also considered an excellent source of B vitamins, including niacin, riboflavin, B5, B6, and thiamin.
These are essential vitamins, meaning you have to replenish them in your body through external sources.
The fruit boasts a good amount of minerals such as manganese, copper, iron, and magnesium. It also
contains potassium and the essential amino acid tryptophan, which the body converts in two chemical steps
to serotonin and may help in the treatment of depression.
Health areas that durian is said to positively impact include digestion, blood pressure and cardiovascular
health, aging (due mainly to its antioxidant properties), insomnia, sexual dysfunction, cancer, bone health (as
a great source of magnesium, potassium, manganese, and copper), and anemia.
Industry Description: Analysis of Industry Dynamics
13
Galaxium Project Proposal
Target Market
The Chinese appetite for durians is huge and growing. In 2015 China imported from
Thailand and Malaysia a total of 299 thousand tonnes of durians (US$568 million in value),
not including durian paste and other durian products. This is an amount close to all the
durian produced in Malaysia.
Durians ranked fourth in terms of China’s fruit imports and between 2010 and 2015
Chinese imports of durian increased at a compound annual growth rate of 12% in terms of
the weight of all the durians imported and 31% in value.
Thailand is the world’s top durian producer and exporter, and exported 358 thousand tonnes or
US$388 million worth of durians in 2015. We eat most of the durians we grow, which made
Malaysia a distant second; we exported 20 thousand tonnes or US$17 million worth. In 2014,
Malaysians alone consumed 349 thousand tonnes, an average of 11.2 kg per person.
In 2015 we cultivated on average 5,490 kg of durian per hectare per year. According to the
Department of Agriculture the yield could go up to 13,800 kg per hectare if farms adopted all the
practices recommended by the department.
Industry Description: Target Market
14
Galaxium Project Proposal
Competition
Thailand is the world’s top durian producer and exporter, and exported 358 thousand
tonnes or US$388 million worth of durians in 2015.
Thailand has a better position for the Chinese market for fresh durian. For one thing, the
production volumes of Thai durian are larger than those in Malaysia. Another reason for Thailand’s
strong competition has to do with ripeness. Unlike the varieties that are grown in Malaysia, Thai
durian can be harvested while it is still unripe. Thai consumers prefer unripe durian, while the unripe
stage of the fruit also allows for a better shelf life.
“We’ve tried to harvest our durian at an earlier stage, but it didn’t work because the local culture
prefers ripe durian. For this reason, Malaysian durian has a shelf life that lasts about a week.” said
one of the top durian export companies in Malaysia.
China has depended on Thailand for its durian stock mainly because the Southeast Asian country’s
varieties can be harvested just before they ripen, making overseas shipments convenient. Malaysian
durians, on the other hand, tend to be left to ripen on the tree and ferment quickly after being
harvested, making exports to China an arduous task.
Industry Description: Competition
15
Project Description
16
Galaxium Project Proposal
Management Team
The Galaxium Project team consists of like-minded people with outstanding experience in
successful business development.
In order to ensure a quality production with the agricultural development, the Galaxium project has
contract with Malaysia FAMA (Federal Agricultural Marketing Authority) which provides integrated
programme to guarantee Galaxium’s agricultural production returns commensurate with the effort.
This effort includes creating high added value into the agricultural production through processing,
grading, packaging, labelling and branding activities.
The Galaxium Project team has got Federal Agricultural Marketing Authority (FAMA), and Malaysian
Pineapple Industry Board to act as a buyer, and agree to guarantee market crops where farmers
produce the crop by type, variety, quality, grade, packaging and set production schedule. This is
because the durian production gave the buying authorities a good confidence, with the supervision of
the below authorities :
- Department of Agriculture,
- Farmers’ Organization Authority,
- Malaysian Pineapple Industry Board,
- Ministry of Agriculture and Food Industry (MAFI) Sabah, and
- Ministry of Modernisation of Agriculture, Native Land and Regional Development Sarawak (MANRED)
Under the programme, Galaxium is not only assured of receiving technical advisory and systematic
farm management support from agencies and departments, but also to be trained to improve
innovation, knowledge and technique in agriculture.
Project Description: Management Team
17
Galaxium Project Proposal
Musang King Durian Variety -
Specifics of Cultivation
Specialists of the project have identified territories in Papar province, in Sabah, where the soil is the
most fertile and nutritious. Most of our current durian farms and orchard parks are located in
Kampung Kambizaan, Papar, Sabah, Malaysia. The main competitive advantages for the production
of durians conferred by this location are:
• High average air temperatures (24-32°C);
• Moist environment with 75-80% humidity;
• Fertile soil;
• Availability of a cheap water source;
Due to the land’s rich natural resources, the lands in Papar, Sabah are among the best
spots in Malaysia to cultivate and produce durians. The nutritious soils nature and weather
conditions in Sabah put it in the position of being able to produce among the best durians
across the whole Malaysia. In Malaysia durian varieties registered with the Department of
Agriculture since 1993 are included in Varieties Registered For National Listing (Non-
Protected Varieties), in which the popular durian variety Musang King (D197), which is also
called Raja Kunyit, is listed under I.D. 150.
Musang King is originally called the Durian of clone no. D197. It has few local names like Raja Kunyit
or Mau Shan Wang or Cat Mountain King, or more commonly known as Musang King. The fruit
shape of Musang King Durian is oval to ellipsoid and has a light green husk. It has a thick, golden
yellow flesh, very smooth with little or no fibres. Possessing sticky and creamy texture with sweet
and bitter taste, Musang King is the most popular variety at present. It is very interesting to note
that the word "musang" here does not refer to the civet cat but rather to the region "Gua Musang"
where this clone was first planted and became very popular among the farmers there.
We have a great team and experts in cultivating one of the best durian species - Musang
King, in our durian orchard park. Our durian farms strived to employ the pesticide-free and
healthy farming methods in order to produce durians which are naturally produced. Our
principle is not to use any artificial flavorings or chemicals to enhance the shelf life and the
taste of our durians. Thanks to the gifted natural environment as a good spot to cultivate
durians, durians produced in our farms and orchards taste sweet naturally.
Project Description: Musang King Durian Variety – Specifics of Cultivation
18
Galaxium Project Proposal
Project Development Strategy
Our project development strategy can be divided into two parts:
SHORT-TERM STRATEGY involving the expansion of our plantation areas by areas, from 100 to 1,000 acres.
THE SHORT-TERM STRATEGY INCLUDE THESE STEPS
LONG-TERM STRATEGY Involving the expansion of our production areas up to a maximum of 1,000 acres and developing
agricultural tourism business.
1
2 4
3 Blockchain architecture of agritech (for
durian plantations) and creation of
Galaxium token.
Flotation of the token at trading
platforms or exchanges for the general
market.
Durian agricultural cultivation and
industrial production (60 months).
All tokens are exchangable for
goods (including durians) or services
by merchants within the Galaxium
Ecosystem.
Project Description: Project Development Strategy
19
Galaxium Project Proposal
Project Risk Assessment
Development Risks Risks Minimizing Method
Ecological Risks
We are planning to create an organic farm, as recommended by Skim
Organic Malaysia (SOM), a certification scheme drawn up by Malaysian
Department of Agriculture to recognize farms that practice organic
farming based on Malaysian Standard MS 1529:2001 The Production,
Processing, Labelling and Marketing of Plant Based Organically Produced
Food.
Production Efficiency
The use of smart farming technologies and ICT in plantation will be
intensified to improve production efficiency and reduce dependency on
labor.
ICT-based applications to support plantation management, precision
farming, and monitoring and surveillance will be expanded to increase
productivity and reduce the cost of production. Early detection and
warning alerts on disease outbreaks as well as provide interactive
platforms for technical advice.
Skill of Farmers
To cooperate with higher learning institutions and industry players to
continuously review existing training curriculums to meet industry
demand.
The current skill sets of farmers will be assessed and up skilling
programmes will also be introduced to assist them in adopting modern
technologies and good agricultural practices.
Market Access
Marketing will be improved by linking producers to commercial outlets,
establishing market outlets and increasing market-compliant products.
Online marketing, promotion, and branding will also be used to help
stimulating product sales.
We will also consider the direct involvement of the Federal Agricultural
Marketing Authority (FAMA) in the marketing of agricultural produce
through contract farming arrangements.
We will join MATRADE for the promotion of agricultural products in
relevant international markets through trade and food exhibitions with
the collaboration of agriculture attaches under the Ministry of Agriculture
and Agro-based Industry. The use of halal and green logistics will be
emphasized to increase the marketability of agricultural exports.
Project Description: Project Risk Assessment
20
Galaxium Project Proposal
Funding
21
Galaxium Project Proposal
Summary of The Galaxium Project
Why participate in the Galaxium Project?
The value of the produced good is in high demand – durian is ranked no. 1 in Malaysia
exportation value.
Now is “a chance for durian diplomacy.” Durian prices increase because of Chinese’s surge of
demand. The value of China’s fresh imports of durian fruit has climbed an average of 26% a year
over the past decade, reaching US$1.1 billion in 2016, according to United Nations data. In China,
consumers are embracing different foods incorporating the tropical fruit, it is being used to flavor
products from yogurt and cookies to coffee and pizza. In China, a single piece may cost about 100
yuan (US$15).
Galaxium is a participant-oriented project, aiming to exploit the advantages of blockchain
technology to revolutionize the production of durians.
It is important to note that while the Galaxium Project intends to harness blockchain technology, it
is using native blockchain tokens to raise funds – which is done by pre-ICO and ICO to
sophisticated investors through the issuance of GXM tokens.
Blockchain is used in agritech, to digitize the farm-to-table value chain for durians; and we (the
Galaxium Project) will be reputably one of the first in the world to do so! Blockchain is further
employed to create a broader Galaxium Ecosystem that is powered by the Galaxium Coin which
will fully actualize in the year 2020.
22
Summary of The Galaxium Project
Galaxium Project Proposal Project Milestones
Project Milestones
The main stages of attracting
funds:
PRIVATE PLACEMENT
June 2018
Private placement of 2,000,000
Galaxium coins.
Funds will be used for Musang
King needling nurturing and
infrastructure.
PRE-ICO
July 2018
30,000,000 Galaxium coins.
Expand Musang King durian
plantation areas.
INITIAL COIN OFFERING (ICO)
February 2019
8,000,000 Galaxium coins.
Private Placement4%
PRE ICO60%
ICO16%
Galaxium Team20%
Galaxium Token Chart1
2
3
23
Galaxium Project Proposal Galaxium Loyalty Program
Galaxium Loyalty Program
TECHNOLOGICAL FEATURES
CONVENIENCE. Tokens are integrated into tokenized wallets, which will be utilized on
cryptocurrency exchange markets, and will eventually be able to be integrated with
existing stores.
USE OF BLOCKCHAIN ARCHITECTURE. Emission of Galaxium tokens is done on the
Ethereum blockchain, which is among the most stable on the market today.
EASE OF USE. Galaxium Coin is being developed as an easy to use token with an
understandable fiat equivalent (in the form of 1 kg of durians). It does not require
specialized knowledge in cryptography or blockchain technology.
ADVANTAGES
INDEPENDENCE. Tokens have their own intrinsic value and not dependent on banks or
financial institutions.
PROTECTION FROM INFLATION. Tokens based on commodity value are pegged to the
market value of durians. Therefore, tokens are well protected against inflation in
comparison with fiat currencies, and they demonstrate extremely low historical volatility..
TRANSPARENCY. Use of blockchain technology ensures increased transparency.
Participants will have access to information on crops growth, provenance, origin trail, the
volume of the harvest and its subsequent sale on the market. When this feature is
implemented, it provides a total transparency to all parties on all data
Growing durian has great potential for business growth,
thanks to the favorable weather conditions in Malaysia,
while the growing Chinese market translates into further business growth potential.
It is obvious that China, with a deficit of areas suitable for cultivating fruit
and a constantly growing consumption,
does not have any other options to satisfy demand, other than to import goods.
24
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
Schedule - Legal Considerations, Risks and Disclaimer
1. Legal Considerations
The Company has approached the Token Generation in a responsible and sensible manner. Given
the uncertain and largely unregulated status of distributed ledger technologies, businesses and
activities as well as cryptocurrencies and cryptocurrency-related businesses and activities, the
Company has spent a significant amount of time and resources to consider its business approach
and where it proposes to operate now and in the future. The Company will look to comply with all
laws and regulations that it is subject to. However, due to the current uncertain state of regulation
across the world, the Company cannot guarantee the legality of the Company’s business platform
and/or its ability to develop, structure and license any future Token functionality in every
jurisdiction but the Company will strive to be responsive and compliant in the face of any
regulatory inquiry.
The Tokens are intended to serve as functional utility tokens designed for the Company’s loyalty
program. The Tokens are not viewed by us as securities. In the event that you subscribe for the
Tokens, your subscription cannot be refunded or exchanged, unless otherwise stated in the White
Paper. The Company does not recommend subscribing the Tokens for speculative investment
purposes. The Tokens do not entitle you to any equity, corporate governance, dividends, voting
or similar right or entitlement in the Company or in any of its affiliated companies. The Tokens are
issued as utility tokens with functionality to facilitate the implementation of its loyalty program. The
Company does not recommend that you subscribe for the Tokens unless you have prior
experience with cryptographic tokens, blockchain-based software and distributed ledger
technology and unless you have taken independent professional advice.
2. Regional Restrictions
Residents of the United States of America, and citizens, nationals, residents (tax or otherwise)
and/or green card holders of each of the Republic of Singapore, the People’s Republic of China,
the Republic of Korea (South Korea), the State of Israel, or any other jurisdiction which prohibits
the possession, dissemination or communication of the Available Information and/or prohibits
participation in the Token Generation or the subscription of the Tokens or any such similar activity
(a “Restricted Jurisdiction”) or any other Restricted Persons are not permitted to participate in the
Token Generation. The term “Restricted Persons” refers to any firm, company, partnership, trust,
corporation, entity, government, state or agency of a state or any other incorporated or
unincorporated body or association, association or partnership (whether or not having separate
legal personality) that is established and/or lawfully existing under the laws of a Restricted
Jurisdiction.
3. No Advice
No part of the Available Information should be considered to be business, legal, financial or tax
advice regarding the Company, the Tokens, the Token Generation or any of the matters to which
all or any part of the Available Information relates. You should consult your own legal, financial,
tax or other professional advisor regarding the Available Information. You should be aware that
you may be required to bear the financial risk of any subscription of the Tokens for an indefinite
period of time.
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
4. Limitation of Liability
In no event shall the Company or any current or former employees, officers, directors, partners,
trustees, representative, agents, advisors, contractors, or volunteers of the Company (hereinafter
the “Company Representatives”) be liable for:
(i) any loss of profits, lost savings or incidental, indirect, special or consequential damages,
arising out of your use or inability to use the services or products or Tokens offered by the
Company or the breach of any of these Terms by you or by any third party;
(ii) any security risk such as hacker attacks, loss of password, loss of private key, or similar;
(iii) mistakes or errors in code, text, or images involved in the Token Generation or in any of
the Available Information or any information contained in the Available Information or any
expectation promise representation or warranty arising (or purportedly arising) therefrom;
(iv) any losses resulting from the volatility in pricing of the Tokens in any countries and on any
exchange or market (regulated, unregulated, primary, secondary or otherwise);
(v) any losses or damages arising out of or in connection with the subscription, use, sale or
otherwise of the Tokens, or arising out of or in any way connected to your failure to
properly secure any private key to a wallet containing the Tokens, (collectively, the
“Excluded Liability Matters”).
The Available Information (including the Website and the White Paper) and the Tokens are
provided on an “as is” basis and without any warranties of any kind, either expressed or implied.
You assume all responsibility and risk with respect to your use of the Available Information and
subscription of any amount of the Tokens and their use. If applicable law does not allow all or any
part of the above limitation of liability to apply to you, the limitations will apply to you only to the
maximum extent permitted by applicable law.
To the maximum extent permitted by applicable law, you hereby irrevocably and unconditionally
waive: (i) all and any claims (whether actual or contingent and whether as an employee, office
holder, trustee or in any other capacity whatsoever or howsoever arising) including, without
limitation, claims for or relating to the Excluded Liability Matters, any payment or repayment of
monies, indemnity or otherwise that you may have against the Company or against any of the
Company Representatives; and (ii) release and discharge the Company and all of the Company
Representatives from any and all liability (of whatsoever nature or howsoever arising) it or they
may have to you. If for any reason you hereafter bring or commence any action or legal
proceeding in respect of any claim purported to be released and discharged pursuant to this
paragraph or these Terms, or otherwise attempt to pursue any such claim against the Company
or any Company Representative then you hereby irrevocably and unconditionally undertake to
indemnify, and keep indemnified the Company and all Company Representatives fully on demand
from and against:
(a) all liabilities or losses suffered by the Company or any Company Representative; and
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
(b) all reasonable costs, charges and reasonable expenses (including without limitation
reasonable legal costs and expenses) reasonably and properly incurred by the Company
or any Company Representative, in each case by reason of or in connection with the
bringing or commencement of such action or pursuit of such claim by you.
If any provision or part-provision of this “Legal Considerations, Risks and Disclaimer” schedule is or
becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent
necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant
provision or part-provision shall be deemed deleted. Any modification to or deletion of a
provision or part-provision under this “Legal Considerations, Risks and Disclaimer” schedule shall
not affect the validity and enforceability of the rest of this “Legal Considerations, Risks and
Disclaimer” schedule.
5. No Representation & Warranties
The Company does not make or purport to make, and hereby disclaims, any representation,
warranty or undertaking in any form whatsoever to any entity or person, including any
representation, warranty or undertaking in relation to the truth, accuracy and completeness of any
of the information set out in the Available Information.
6. Representation & Warranties by You
By howsoever accessing and/or accepting possession or communication of all or any part of the
Available Information, you represent and warrant (and shall be deemed to represent and warrant)
to the Company on the date of such access or on the latest date on which you retain possession
of all or any part of the Available Information as follows:
(a) you are over 18 (eighteen) years of age;
(b) you agree and acknowledge that the Tokens are not designated as securities and do not
constitute an investment of any form in any jurisdiction;
(c) you agree and acknowledge that the Available Information (including the White Paper and
the Website) does not constitute a prospectus or offer document of any sort and is not
intended to constitute an offer of securities in any jurisdiction or a solicitation for
investment in securities and you are not bound to enter into any contract or binding legal
commitment and no cryptocurrency or other form of payment is to be accepted on the
basis of the Available Information;
(d) you agree and acknowledge that no regulatory authority has examined or approved of
the Available Information, no action has been or will be taken under the laws, regulatory
requirements or rules of any jurisdiction and the publication, distribution or dissemination
of all or any part of the Available Information to you does not imply that the applicable
laws, regulatory requirements or rules have been complied with;
(e) you agree and acknowledge that the Available Information, the undertaking and/or the
completion of the Token Generation, or future trading of the Tokens on any exchange or
market (regulated, unregulated, primary, secondary or otherwise), shall not be construed,
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
interpreted or deemed by you as an indication of the merits of the Company, the Tokens,
the Token Generation or the Available Information;
(f) the distribution or dissemination of the Available Information any part thereof or any copy
thereof, or acceptance of the same by you, is not prohibited or restricted by the
applicable laws, regulations or rules in your jurisdiction, and where any restrictions in
relation to possession are applicable, you have observed and complied with all such
restrictions at your own expense and without liability to the Company;
(g) you agree and acknowledge that in the case where you wish to subscribe for any Tokens,
the Tokens should not be construed, interpreted, classified or treated as:
(i) any kind of currency or commodity;
(ii) debentures, stocks or shares issued by any person or entity (whether the Company
or otherwise);
(iii) rights, options or derivatives in respect of such debentures, stocks or shares;
(iv) rights under a contract for differences or under any other contract the purpose or
pretended purpose of which is to secure a profit or avoid a loss;
(v) units in a collective investment scheme;
(vi) units in a business trust;
(vii) derivatives of units in a business trust;
(viii) any other security or class of securities; or
(ix) any type of investment or financial product which requires a separate licence,
permit, approval or authorization from any governmental or statutory body to
which you are subject;
(h) you are fully aware of and understand that you are not eligible to subscribe for any
Tokens or access the Available Information if you are a citizen, national, resident (tax or
otherwise) and/or green card holder of a Restricted Jurisdiction or if you are a Restricted
Person;
(i) you have a basic degree of understanding of the operation, functionality, usage, storage,
transmission mechanisms and other material characteristics of cryptocurrencies,
blockchain-based software systems, cryptocurrency wallets or other related token storage
mechanisms, blockchain technology and smart contract technology;
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
(j) you are fully aware and understand that in the case where you wish to subscribe for any
Tokens, there are risks associated with: (A) the Company and its business and operations;
(B) the Tokens; (C) the Token Generation; and (D) relying or acting on all or any part of the
Available Information;
(k) you agree and acknowledge that the Company is not liable for any indirect, special,
incidental, consequential or other losses of any kind, in tort, contract or otherwise
(including but not limited to loss of revenue, income or profits, or loss of use or data, or
loss of reputation, or loss of any economic or other opportunity of whatsoever nature or
howsoever arising), arising out of or in connection with any acceptance of or reliance on
the Available Information or any part thereof by you; and
(l) all of the above representations and warranties are true, complete, accurate and not
misleading from the time of your last access to and/or possession of (as the case may be)
the Available Information.
7. Cautionary Note on Forward-Looking Statements
All statements contained in the Available Information, statements made in any press releases or in
any place accessible by the public and oral statements that may be made by the Company or the
Company Representatives (as the case may be), that are not statements of historical fact,
constitute “forward looking statements”. Some of these statements can be identified by forward-
looking terms such as “aim”, “target”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “if”,
“intend”, “may”, “plan”, “possible”, “probable”, “project”, “should”, “would”, “will” or other similar
terms. However, these terms are not the exclusive means of identifying forward-looking
statements. All statements regarding the Company’s financial position, business strategies, plans
and prospects and the future prospects of the industry which the Company is in are forward-
looking statements. These forward-looking statements, including but not limited to statements as
to the Company’s revenue profitability and growth, expected revenue profitability and growth,
prospects, future plans, other expected industry trends and other matters discussed in the
Available Information regarding the Company are matters that are not historic facts, but only
estimations and predictions. The Company makes no representation or warranty on having made
any predictions or estimates or expectations on the basis of any formula, any mathematical or
scientific modelling or forecast, or having made any due and proper enquiries or having
undertaken any independent research or studies or otherwise. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause the actual future
results, performance or achievements of the Company to be materially different from any future
results, performance or achievements expected, expressed or implied by such forward-looking
statements. These factors include, amongst others:
(a) changes in political, social, economic and stock or cryptocurrency market conditions, and
the regulatory environment in the countries in which the Company conducts its business
and operations;
(b) the risk that the Company may be unable or execute or implement its business strategies
and future plans;
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
(c) changes in interest rates and exchange rates of fiat currencies and cryptocurrencies;
(d) changes in the anticipated growth strategies and expected internal growth of the
Company;
(e) changes in the availability and fees payable to the Company in connection with its
business and operations;
(f) changes in the availability and salaries of employees who are required by the Company to
operate its business and operations;
(g) changes in preferences of customers of the Company;
(h) changes in competitive conditions under which the Company operates, and the ability of
the Company to compete under such conditions;
(i) changes in the future capital needs of the Company and the availability of financing and
capital to fund such needs;
(j) war or acts of international or domestic terrorism;
(k) occurrences of catastrophic events, natural disasters and acts of God that affect the
businesses and/or operations of the Company;
(l) other factors beyond the exclusive control of the Company; and
(m) any risk and uncertainties associated with the Company and its business and operations,
the Tokens, the Token Generation and reliance on all or any part of the Available
Information.
All forward-looking statements made by or attributable to the Company or Company
Representatives are expressly qualified in their entirety by such factors. Given that risks and
uncertainties that may cause the actual future results, performance or achievements of the
Company to be materially different from that expected, expressed or implied by the forward-
looking statements in the Available Information, undue reliance must not be placed on these
statements.
These forward-looking statements are applicable only as of the later of the date of publication of
the White Paper and the latest date that the Website has been updated. Neither the Company nor
the Company Representatives nor any other person represents, warrants and/or undertakes that
the actual future results, performance or achievements of the Company will be as discussed in
those forward-looking statements. The actual results, performance or achievements of the
Company may differ materially from those anticipated in these forward-looking statements.
Nothing contained in the Available Information is or may be relied upon as a promise,
representation or undertaking as to the future performance or policies of the Company. Further,
the Company disclaims any responsibility to update any of those forward-looking statements or
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
publicly announce any revisions to those forward-looking statements to reflect future
developments, events or circumstances, even if new information becomes available or other
events occur in the future.
8. Risk Factors
You should carefully consider and evaluate each of the following risk factors and all other
information contained in these Terms before deciding to participate in the Token Generation.
To the best of the Company’s knowledge and belief, all risk factors which are material to you in
making an informed judgment to participate in the Token Generation have been set out below. If
any of the following considerations, uncertainties or material risks develops into actual events, the
business, financial position and/or results of operations of the Company and the maintenance and
level of usage of the Tokens could be materially and adversely affected. In such cases, the trading
price of Tokens (in the case where they are listed on an exchange or market (regulated,
unregulated, primary, secondary or otherwise)) could decline due to any of these considerations,
uncertainties or material risks, and you may lose all or part of your Tokens or the economic value
thereof.
8.1. Risks Relating to Participation in the Token Generation
There is no prior market for the Tokens and the Token Generation may not result in an active or
liquid market for the Tokens.
Prior to the Token Generation, there has been no public market for the Tokens. Although the
Company may use reasonable endeavors to seek the approval for availability of the Tokens for
trading on a cryptocurrency exchange or market, there is no assurance that such approval will be
obtained. Furthermore, even if such approval is granted by a cryptocurrency exchange, there is no
assurance that an active or liquid trading market for the Tokens will develop, or if developed, will
be sustained after the Tokens have been made available for trading on such market. There is also
no assurance that the market price of the Tokens will not decline below the original or issue
subscription price (the “Subscription Price”). The Subscription Price may not be indicative of the
market price of the Tokens after they have been made available for trading on a market.
A Token is not a currency issued by any central bank or national, supra-national or quasi-national
organization, nor is it backed by any credit nor is it a commodity in the traditional sense of that
word. The Company is not responsible for, nor does it pursue, the circulation and trading of the
Tokens on any market. Trading of Tokens will merely depend on the consensus on its value
between the relevant market participants. No one is obliged to purchase any Token from any
holder of the Token, including the purchasers, nor does anyone guarantee the liquidity or market
price of Tokens to any extent at any time. Furthermore, Tokens may not be resold to purchasers
who are citizens, nationals, residents (tax or otherwise) and/or green card holders of Restricted
Jurisdictions or to Restricted Persons or to purchasers in any other jurisdiction where the purchase
of Tokens may be in violation of applicable laws. Accordingly, the Company cannot ensure that
there will be any demand or market for the Tokens, or that the Subscription Price is indicative of
the market price of the Tokens after they have been made available for trading on any
cryptocurrency exchange or market.
Future generation or issuance of the Tokens could materially and adversely affect the market price
of the Tokens.
Any future sale or issuance of the Tokens would increase the supply of Tokens in the market and
this may result in a downward price pressure on the Token. The sale or distribution of a significant
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
number of Tokens outside of the Token Generation (including but not limited to the sales of
Tokens undertaken after the completion of the initial crowdsale, issuance of Tokens to persons
other than purchasers for purposes of community initiatives, business development, academic
research, education and market expansion and issuance of Tokens as a reward to users of the
Company’s loyalty program or otherwise), or the perception that such further sales or issuance
may occur, could adversely affect the trading price of the Tokens.
Negative publicity may materially and adversely affect the price of the Tokens.
Negative publicity involving the Company, the Company’s loyalty program, the Tokens or any of
the key personnel of the Company and/or regulation of distributed ledger technologies,
cryptocurrencies and/or generation of tokens in any jurisdiction, may materially and adversely
affect the market perception or market price of the Tokens, whether or not it is justified.
There is no assurance of any success of the Company’s loyalty program or any future Token
functionality.
The utility of the Tokens hinges heavily on the implementation of the Company’s loyalty program
and the continuous active engagement of its users and success of the Company’s contemplated
business lines. There is no assurance that the Company’s loyalty program will gain or continue to
gain traction. Furthermore, there is no assurance that any future Token functionality will be
realized. While the Company has made every effort to provide a realistic estimate, there is also no
assurance that the cryptocurrencies raised in the Token Generation will be sufficient for the
development and implementation of the Company’s loyalty program and/or for the proper
development, structuring and licensing of the anticipated future Token functionality. For the
foregoing or any other reason, the development and implementation of the Company’s loyalty
program and the launch of the anticipated Token functionality may not be completed and there is
no assurance that it will be launched at all. As such, distributed Tokens may have small or no
utility, and may have little worth or value and this would impact its use and liquidity
The trading price of the Tokens may fluctuate following the Token Generation.
The utility or prices of cryptographic tokens in general tend to be relatively volatile, and can
fluctuate significantly over short periods of time. The demand for, and the corresponding utility or
market price of, the Tokens may fluctuate significantly and rapidly in response to, among others,
the following factors, some of which are beyond the control of the Company:
(a) new technical innovations;
(b) analysts’ speculations, recommendations, perceptions or estimates of the Token’s utility or
the Company’s financial and business performance;
(c) changes in market valuations and token prices of entities with businesses similar to that of
the Company that may be listed on the same cryptocurrency exchanges or markets as the
Tokens;
(d) announcements by the Company of significant events, for example partnerships,
sponsorships or new product developments;
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
(e) fluctuations in market prices and trading volume of cryptocurrencies on cryptocurrency
exchanges or markets;
(f) additions or departures of key personnel of the Company;
(g) success or failure of the Company’s management in implementing business and growth
strategies; and/or
(h) changes in conditions affecting the blockchain or financial technology industry, the
general economic conditions or market sentiments, or other events or factors.
The funds raised in the Token Generation are exposed to risks of theft.
The Company will make every effort to ensure that the funds received from the Token Generation
will be securely held in an escrow wallet, which is a multi-signature address with access thereto by
private keys held by multiple trusted parties. Further, the Company may make every effort to
ensure that the funds received by it from Token Generation will be securely held through the
implementation of security measures. Notwithstanding such security measures, there is no
assurance that there will be no theft of the cryptocurrencies as a result of hacks, sophisticated
cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on the Token
Generation website, in the smart contract(s) on which the escrow wallet and the Token Generation
relies, on the Ethereum blockchain or any other blockchain, or otherwise. Such events may
include, for example, flaws in programming or source code leading to exploitation or abuse
thereof. In such event, even if the Token Generation is completed, the Company may not be able
to receive the cryptocurrencies raised and the Company may not be able to use such funds for
the development and implementation of the Company’s loyalty program and/or for launching any
future Token functionality. In such case, the launch of the Company’s loyalty program and the
structuring and licensing of any future Token functionality might be temporarily or permanently
curtailed. As such, distributed Tokens may hold little worth or value and this would impact their
trading price.
8.2. Risks Relating to the Escrow Wallet
The private keys to the escrow wallet may be compromised and the cryptocurrencies may not be
able to be disbursed. The escrow wallet is designed to be secure. However, any one or more keys
to the escrow wallet may, for any reason whatsoever, be lost, destroyed or otherwise
compromised, and the funds held by the escrow wallet may not be able to be retrieved and
disbursed, and may be permanently unrecoverable. In such event, even if the Token Generation is
successful, the Company will not be able to receive the funds raised and the Company will not be
able to use such funds for the development and implementation of the Company’s loyalty
program or the development of any future Token functionality. As such, distributed Tokens may
hold little worth or value and this would impact their trading price.
8.3. Risks Relating to the Company
The Company’s business
Any events or circumstances which adversely affect the Company or any of its successors or
affiliated operating entities may have a corresponding adverse effect on the Company’s business,
the loyalty program and/or on any future Token functionality, including but not limited to the
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
development, structuring and launch of the Company’s loyalty program and of any future Token
functionality. Such adverse effects would correspondingly have an impact on the utility, liquidity
supply and demand of the Tokens.
The Company may be materially and adversely affected if it fails to effectively manage its
operations as its business develops and evolves, which would have a direct impact on its ability to
maintain or operate the Company’s loyalty program and/or develop, structure and/or license any
future Token functionality.
The financial technology and cryptocurrency industries in which the Company competes have
grown rapidly over the past few years and continue to evolve in response to new technological
advances, changing business models, shifting regulations and other factors. As a result of this
constantly changing environment, the Company may face operational difficulties in adjusting to
the changes, and the sustainability of the Company will depend on its ability to manage its
operations, ensure that it hires qualified and competent employees, and provides proper training
for its personnel. As its business evolves, the Company must also expand and adapt its operational
infrastructure. The Company’s business will in part rely on its blockchain-based software systems,
cryptocurrency wallets or other related token storage mechanisms, blockchain technology and
smart contract technology. All of these systems, tools, and skillsets represent complex, costly, and
rapidly changing technical infrastructure. In order to demonstrate continued ability to effectively
manage technical support infrastructure for the Company’s business and loyalty program, the
Company will need to continue to upgrade and improve its data systems and other operational
systems, procedures, and controls. These upgrades and improvements will require a dedication of
resources and are likely to be complex and increasingly rely on hosted computer services from
third parties that the Company does not or will not control.
If the Company is unable to adapt its systems and organization in a timely, efficient, and cost-
effective manner to accommodate changing circumstances, its loyalty program, business, financial
condition and/ or results of operations may be adversely affected. If the third parties whom the
Company relies on are subject to a security breach or otherwise suffer disruptions that impact the
services the Company uses, the integrity and availability of its internal information could be
compromised, which may consequently cause the loss of confidential or proprietary information
and/or economic loss. The loss of financial, labour or other resources, and any other adverse
effect on the Company’s loyalty program, business, financial condition and/or operations, would
have a direct adverse effect on the Company’s ability to maintain or operate the Company’s
loyalty program, business and/or to develop, structure and/or license the anticipated future Token
functionality. Any adverse effects affecting the Company’s loyalty program, business or technology
are likely to also adversely impact the utility, liquidity, and trading price of the Tokens.
The Company may experience system failures, unplanned interruptions in its network or services,
hardware or software defects, security breaches or other causes that could adversely affect the
Company’s infrastructure network, and/or the Company’s business and loyalty program.
The Company is not able to anticipate when there would be occurrences of hacks, cyber-attacks,
distributed denials of service or errors, vulnerabilities or defects in: the Company’s business and/or
loyalty program, in the smart contracts on which the Company or the Company’s and/or loyalty
program relies, or on the Ethereum or any other blockchain.
Such events may include, for example, flaws in programming or source code leading to
exploitation or abuse thereof. The Company may not be able to detect such hacks, cyber-attacks,
distributed denials of service errors vulnerabilities or defects in a timely manner, and may not have
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
sufficient resources to efficiently cope with multiple service incidents happening simultaneously or
in rapid succession.
The Company’s network or services, which would include the Company’s business and/or loyalty
program and, if successfully structured, developed, licensed and launched, the future Token
functionality, could be disrupted by numerous events, including natural disasters, equipment
breakdown, network connectivity downtime, power losses, or even intentional disruptions of its
services, such as disruptions caused by software viruses or attacks by unauthorized users, some of
which are beyond the Company’s control. There can be no assurance that cyber-attacks, such as
distributed denials of service, will not be attempted in the future or that the Company’s security
measures will be effective. The Company may be prone to attacks on its infrastructure intended to
steal information about its technology, financial data or user information or take other actions that
would be damaging to the Company and/or holders of the Tokens. Any significant breach of the
Company’s security measures or other disruptions resulting in a compromise of the usability,
stability, and security of the Company’s business platform may adversely affect the utility, liquidity
and/or trading price of the Tokens.
The Company may in the future be dependent in part on the location and data center facilities of
third parties.
The Company’s future infrastructure network may be established in whole or in part through
servers which it owns and/or houses at the location facilities of third parties, and/ or servers that it
rents at data center facilities of third parties. If the Company is unable to renew its data facility
leases on commercially reasonable terms or at all, the Company may be required to transfer its
servers to a new data center facility, and may incur significant costs and possible service
interruption in connection with the relocation. These facilities are also vulnerable to damage or
interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and
telecommunication failures.
Additionally, the third-party providers of such facilities may suffer a breach of security as a result
of third-party action, employee error, malfeasance or otherwise, and a third party may obtain
unauthorized access to the data in such servers. The Company and the providers of such facilities
may be unable to anticipate these techniques or to implement adequate preventive measures.
General global market and economic conditions may have an adverse impact on the Company’s
operating performance, results of operations and/or cash flows.
The Company could continue to be affected by general global economic and market conditions.
Challenging economic conditions worldwide have from time to time, contributed, and may
continue to contribute, to slowdowns in the information technology industry at large. Weakness in
the economy could have a negative effect on the Company’s business, operations and financial
condition. Additionally, in a down-cycle economic environment, the Company may experience the
negative effects of a slowdown in usage of the Company’s loyalty program and may delay or
cancel the development, structuring, licensing and/or launch of the anticipated Token
functionality.
Suppliers on which the Company relies for servers, bandwidth, location and other services could
also be negatively impacted by economic conditions that, in turn, could have a negative impact
on the Company’s operations or expenses. There can be no assurance, therefore, that current
economic conditions or worsening economic conditions or a prolonged or recurring recession will
not have a significant, adverse impact on the Company’s business, loyalty program, financial
condition and results of operations, and hence, the Company’s and/or loyalty program and/or the
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
ability to develop, structure, license and/or launch any future Token functionality. Any such
circumstances would then correspondingly negatively impact the utility, liquidity, and/or trading
price of the Tokens.
The Company or the Tokens may be affected by newly implemented regulations.
Distributed ledger technologies, businesses and activities as well as cryptocurrencies and
cryptocurrency-related businesses and activities are generally unregulated worldwide, but
numerous regulatory authorities across jurisdictions have been outspoken about considering the
implementation of regulatory regimes which govern distributed ledger technologies, businesses
and activities as well as cryptocurrencies and cryptocurrency-related businesses and activities. The
Company or the Tokens may be affected by newly implemented regulations relating to distributed
ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrency-
related businesses and activities, including having to take measures to comply with such
regulations, or having to deal with queries, notices, requests or enforcement actions by regulatory
authorities, which may come at a substantial cost and may also require substantial modifications
to the Company’s business, loyalty program and/or the anticipated Token functionality. This may
impact the appeal or practicality or functionality of the Company’s business, loyalty program
and/or the anticipated Token functionality for users and result in decreased usage of and demand
for the Company’s business, loyalty program and the Tokens. Further, should the costs (financial
or otherwise) of complying with such newly implemented regulations exceed a certain threshold,
maintaining the Company’s business, loyalty program and/or developing, structuring, licensing
and/ or launching the future Token functionality may no longer be commercially viable, and the
Company may opt to discontinue the Company’s business, loyalty program, the anticipated future
Token functionality, and/or the Tokens. Further, it is difficult to predict how or whether
governments or regulatory authorities may implement any changes to laws and regulations
affecting distributed ledger technology and its applications, including the Company’s business,
loyalty program, the anticipated future Token functionality, and/or the Tokens.
The Company may also have to cease operations in a jurisdiction that makes it illegal to operate in
such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary
regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the utility,
liquidity, and/or trading price of Tokens will be adversely affected and/or Tokens may cease to be
traded.
Risk of dissolution of the Company
It is possible that, due to any number of reasons, including but not limited to, an unfavorable
fluctuation in the value of cryptographic and fiat currencies and a decrease in the Token’s utility
due to negative adoption of the Company’s business, loyalty program, the Company’s business
and/or loyalty program may no longer be viable to operate and the Company may dissolve.
The Tokens may be affected by the Company’s decisions
Because Token’s confer no governance rights of any kind with respect to the Company, all
decisions involving the Company will be made by Company at its sole and absolute discretion,
including but not limited to, decisions to discontinue the Company’s business, loyalty program, or
to sell or liquidate the Company. These decisions could adversely affect the Company’s business,
loyalty program and the Tokens.
There may be unanticipated risks arising from the Tokens.
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
Cryptographic tokens such as the Tokens are a relatively new and dynamic technology. In addition
to the risks included in the above discussion of risk factors, there are other risks associated with
your subscription, holding, and use of the Tokens, including those that the Company cannot
anticipate. Such risks may further appear as unanticipated variations or combinations of the risks
discussed above.
9. Privacy Policy
By subscribing for the Tokens, you agree to your personal data, (i.e., your e-mail address, name,
address and other details personal to you) being processed by the Company for its business
purposes or the purposes of building, promoting, and communicating the Company’s business,
loyalty program and the Tokens. The Company agrees to keep your email address and other
personal data private and not share it with the public (e.g., by including it on any external lists or
selling to any third parties).
10. Disclaimer
The presentation of the Available Information is solely for informational purposes. Anyone
interested in subscribing for the Tokens and participating in the Token Generation should consider
the various risks prior to making any kind of decision in respect of the Token Generation. The
Available Information does not comprise any advice by the Company or by the Company
Representatives, or any recommendation to any recipient of the Available Information, by virtue of
any participation in the Token Generation or otherwise.
The Available Information does not necessarily identify, or claim to identify, all the risk factors
connected with the Company, the Company’s business, loyalty program, the Tokens, the Token
Generation, any future Token functionality or the Available Information. All the participants must
make their own independent evaluation, after making such investigations as they consider
essential, of the merits of participating in the Token Generation and after taking their own
independent professional advice. Any participant in the Token Generation should check with and
rely upon their own investment, accounting, legal and tax representatives and consultants in
respect of such matters concerning the Company, the Company’s business, loyalty program, the
Tokens, the Token Generation, any future Token functionality and the Available Information and to
assess separately the financial risks, consequences and appropriateness of the subscription for the
Tokens, or if in any doubt about the facts set out in the Available Information.
Subscription for the Tokens comprises considerable risk and might involve extraordinary risks that
may lead to a loss of all or a significant portion of monies or monetary value utilized to acquire
the Tokens. Participants in the Token Generation are urged to completely understand, be aware of
and accept the characteristics of the Company, the Company’s business platform, the Tokens, the
Token Generation, any future Token functionality and the Available Information. If you are not
prepared to accept any or all of these Terms or the risks set out in these Terms then you are
urged not to participate in the Token Generation.
No guarantee or assurance is given by the Company or by the Company Representatives that the
Company’s proposals, objectives and/or outcomes set out in the Available Information will be
achieved in whole or in part. You are urged to consider whether participation in the Token
Generation is suitable for you having regard to your personal and financial circumstances and
your financial resources.
11. Restrictions on Distribution and Dissemination of the Available Information
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Galaxium Project Proposal Schedule – Legal Considerations, Risks and Disclaimer
The distribution or dissemination howsoever of all or any part of the Available Information may be
prohibited or restricted by the laws, regulatory requirements and rules of certain jurisdictions. In
the case where any such restriction applies, you are responsible for informing yourself in respect
of the same and for observing any such restrictions which are applicable to your possession
and/or dissemination of all or any part of the Available Information at your own expense and
without liability to the Company.
Persons to whom a copy of all or any part of the Available Information has been distributed or
disseminated, provided access to or who otherwise have all or any part of the Available
Information in their possession shall not circulate it to any other persons, reproduce or otherwise
distribute any information contained herein for any purpose whatsoever nor permit or cause the
same to occur.
12. No Offer of Securities or Registration
This White Paper does not constitute a prospectus or offer document of any sort and is not
intended to constitute an offer of securities or a solicitation for investment in securities in any
jurisdiction. No person is bound to enter into any contract or binding legal commitment and no
cryptocurrency or other form of payment is to be accepted on the basis of all or any part of the
Available Information. Any agreement in relation to any subscription of the Tokens is to be
governed by the terms and conditions of a separate agreement and no other document. In the
event of any inconsistencies between the terms and conditions of that agreement and the
Available Information, those terms and conditions shall prevail.
You are not eligible to subscribe for any Tokens in the Token Generation if you are a citizen,
resident (tax or otherwise) or green card holder of a Restricted Jurisdiction or you are a Restricted
Person. No regulatory authority has examined or approved of any of the Available Information.
No such action has been or will be taken under the laws, regulatory requirements or rules of any
jurisdiction. The publication, distribution or dissemination of the Available Information does not
imply that the applicable laws, regulatory requirements or rules have been complied with.
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