WHITE PAPER CRYPTOCEAN ECOSYSTEM PROCESSING EXCHANGE www.cryptocean.io ENGLISH 60 PAGES THIS DOCUMENT IS THE WHITE PAPER OF THE CRYPTOCEAN PROJECT. ITS PURPOSE IS TO PRESENT CRYPTOCEAN PROJECT AND ITS CRON TOKEN TO POTENTIAL TOKEN HOLDERS IN CONNECTION WITH THE OFFERED ICO - THE INITIAL COIN OFFERING. 3 / 03.09.2018 ico.cryptocean.io icocryptocean.io 2 CONTENTS Contents. 2 Summary . 3 Introduction . 4 Problems 5 Market Review 8 Project review 12 Mission of the Project 12 Values of the Project . 12 Our Advanteges . 12 Why us . 13 What has already been done 14 Services Description 15 Cryptocards . 15 Payments . 16 Transfers 18 Autopayments 19 Conversion . 20 Escrow accounts 22 Crypto accounts . 23 P2P transfers 25 Tokenomics . 27 Tokens emission 27 The token purchase 27 The advantages of token holding . 27 Private Pre-ICO . 28 Public Pre-ICO 28 Main ICO . 30 Tokens destribution . 31 The Bounty-campaign . 31 Economics . 33 Busines-model . 33 Financing . 34 Self-sustainability 35 Project Participants 36 Team 36 Advisers . 38 Partners 41 Roadmap 42 Under the hood . 44 Architecture . 44 Applications . 45 Subsystems 46 Technologies 47 Integration 47 Warning 48 Market Research 49 3 SUMMARY CRYPTOCEAN- is ablockchain based ecosystem that combines financial and technological services for working with crypto-currencies, digital financial assets and traditional fiat money. The core of the ecosystem is the processing plat, developed by the CRYPTOCEAN, which provides Legality and compliance with KYC Entering fiat funds into the personal account of the ecosystem user; The issue of plastic cards linked to the user account in the ecosystem; Binding of a plastic card to a fiat, crypto or smart account; Withdrawal of funds from the ecosystem to a bank account, or to a third-party plastic card; Possibility to exchange Fiat, digital assets, crypto currency in any combination instantly; Non-contact payments using mobile devices; Payments and transfers using mobile, desktop and Internet apps; Payments and transfers via instant messengers Whatsapp, Viber, Telegram, Wechat, Kakao, etc. The possibility of the instant conversion of crypto currency into Fiat and vice versa for the implementation of B2B, B2C and B2G application services On-line shop transactions crypto currency transferring fiat funds to the current account; The possibility of payment with crypto-currencies in restaurants, cafes, gas stations, trade outlets around the world; Crypto currency payments of state taxes, duties and fees, etc.; The possibility of regular auto payments of bills; The management of crypto-wallets, accounts and keys to them are in the hands of the client, which provides additional security. All of this processed in the integrated and well-protected blockchain based environment. This ecosystem provides services developed by CRYPTOCEAN team, as well as services of our partners, we cooperate according to the ‘win-win principle’. 4 INTRODUCTION We are all witnesses to a very exciting moment in history. A whole new world of crypto currencies and block chain has emerged out of nowhere. Only few heard of it 3 years ago, today the overall capitalisation of crypto currency and ICO-projects is more than 2 trillion. Such rapid development has never happened before in any other industry. Right in front of our eyes people create fortunes out of thin air and become dollar billionaires. Forbes one of the most respected magazines in the field of international finances made a rating of crypto billionaires 08.02.20181 Billionaire Wealth Comment 1 Chris Larsen 7,5 - 8 bln. 57 years old, co-founder Ripple 2 Joseph Lubin 1 - 5 bln. 53 years old, Ethereum co-founder, ConsenSys founder 3 Changpeng Zhao 1,1 - 2 bln. 41 years old, CEO of Binance 4 Brothers Winklevoss 0,9 - 1,1 bln. 36 years old, co-founders of Winklevoss Capital 5 Matthew Mellon 0,9 - 1 bln. 54 years old, individual investor 6 Bryan Armstrong 0,9 - 1 bln. 35 years old, CEO of Coinbase 7 Matthew Roszak 0,9 - 1 bln. 45 years old, founder of Tally Capital and co-founder of Blog 8 Anthony Di Iorio 0,75 - 1 bln. co-founder of Ethereum, founder of Jaxx  BitFloor. Hacked in 2012 and 2013, and then it was closed. During the break-in 24,000 BTC were stolen;  Poloniex. The attack occurred on March 4, 2014. The exact amount is still unknown, but the accounts of all Exchange users were cut by 12.3;  Bitstamp. On January 4, 2015, hackers stole 19,000 BTC at that time about 5,000,000;  Bitfinex. The attack occurred in August 2016. 120,000 BTC were stolen about 72 million at that time;  LocalBitcoins. The most popular P2P bitcoin exchange was hacked in 2015;  Cryptsy. The Korean currency exchange was hacked and as a result closed in 2016. The damage amounted to 13,000 bitcoins and 300,000 light-coins, which was about 5.2 million dollars at that time;  Parity. The cryptocurrency wallet was twice hacked in 2017. 153 000 ethereums were stolen, at the time it equaled 105 million. As a result of errors in the code of the wallet, there was some amount of ethereums frozen 275 million worth;  Bitcoin Gold. Through this cryptocurrency wallet, BTC, BTG, ETH and LTC a total of over 33 million was stolen. These are just several examples of the most well-known hackings that have become known to the general public1. 1 - https// THE SOLUTION FROM CRYPTOCEAN We offer integration of several complementary services within a single plat – crypto cards, legal entry and withdrawal of fiat funds, exchange, money transfers, integration with business, Escrow account, crypto account, P2P transaction. This will solve the most of everyday tasks of users without the need for a “zoo“ of applications. The keys to access the main wallets will be kept with the client, so to access the operating wallets, a multi-signature is used, which will at any time limit access to your funds. A quality, secure, well-protected code is developed by the two independent teams of professionals which passes a mandatory multi-level audit. The list of services is not limited to the above. We position CRYPTOCEAN as an ecosystem, a plat to which any services in the field of financial technologies and blockchain exchanges, retailers, online shops, payment services, banks can be connected at any time, expanding their own opportunities and gaining access to a common ocean of liquidity. 8 MARKET REVIEW In order to assess whether CRYPTOCEAN will be in demand, its services are competitive, and ICO is doable and prompt, we conducted a study of the markets of cryptocurrencies, payment systems, cryptocards, finteh-services and ICO. The results of the study in full can be found in Appendix A. Here we present you a brief summary and the most interesting and relevant findings. PROSPECTS OF THE CRYPTOCURRENCY MARKET The first thing that is worth paying attention to is the long-term prospects of the market for the next 5-10-20 years. This will help us understand the viability of the CRYPTOCEAN concept. The fundamental driver of the market growth is the overheating of the stock and currency markets. There is too much money, the profitability of stocks and traditional assets is low. Investors are looking for ways to enter the markets that will provide higher incomes. The cryptocurrency market can become such a refuge for capitals for the next 10-15 years, which predetermines its potential growth in this time interval but having a long-term growth trend does not exclude regular falls and adjustments. Sum Indicator 1 630 tn. The Global Derivatives Market 2 199 tn. The Global Debt 3 80.9 tn. The totalvolumethe money supply cash and non-cash 4 70 tn. The Global Stock Market 5 26.6 tn. Fast Money annual turn over of cash and non-cash money 6 7.8 tn. Global Gold Reserves 7 7.6 tn. Commercial real estate apprx 30 of all real estate 8 5 tn. The costs of all coins and bills 9 0.35 tn. The Cumulative Capitalisation of the TOP-100 cryptocurrencies as of 23.03.2018 by Forbes March 2017 As we can see, the total capitalization of TOP-100 leading cryptocurrencies today did not reach 1 of the stock market it was close to it at the end of 2017 when it approached 800 billion at its peak. Thus, the cryptocurrency market has obvious growth prospects at least 20-25 times up to 10-12 of the stock market. Until it reaches this number the influence of the cryptocurrency market on the financial markets can be considered insignificant. In the most likely conservative scenario this year, the cryptocurrency market will experience corrections after a significant increase in the capitalization and sharp increase of rates for almost all existing cryptocurrencies at the end of 2017. According to various estimates, the turnaround and further market recovery is expected from the 3-4 quarter of 2018 to summer of 2019. Nowadays, USA, the EU, China, Japan, Korea, Russia and other countries are making active steps in law-making on the regulation of cryptocurrencies, its exchange, ITO and other aspects related to cryptocurrencyfintech services. The peak of legislative activity is expected in the second half of 2018 - the first half of 2019. This creates additional risks for the cryptocurrency market, which may result in reducing rates and increasing the volatility of the market exchange fluctuations. 9 Simultaneously, large players such as Venrock from Rockefeller Group or Morgan Creek are entering the market. A typical strategy for such companies is entering the market at the bottom, with the goal of buying assets at minimal prices, after that the market starts growing. If we assume that a typical market cycle is about 20 years and start counting from 2018, the probable forecast will look like it is shown in the graph below. Cryptocurrency capitalization the forecast ones are the normal font. As you can see, the number of types of cryptocurrency cards should be about 75 - 80, but only 40 have been declared, and only 5-7 projects have been actually implemented. But the most interesting thing is not the number of types and brands of cryptocurrency cards, but their turnover. Today according to different estimates the figures vary from 500 million to 2 million. If we look at the ratio of turnover to capitalization, the number should be about 75 billion 30 -100 times more. That describes the potential of the market for plastic cryptocurrency cards in the best way. Many cards declarthat there is no commission fee or that the commission is 0.5. But if you look closely at the terms of cards issue and take into account the average turnover on the card about 1000/month, average purchases checks about 80, fees for withdrawing cash from ATMs, card maintenance fees and other additions, you will see that the actual level of commissions is 3-4, without considering the exchange rate of cryptocurrency and fiat money spread - up to 5-7. SummaryAs this analysis shows, there is an opportunity for issuing CRYPTOCEAN cards and bringing their turnover to the sums estimated in billions of dollars per year. The main risks for cryptocurrency cards are the legal ones. The development of legal aspects in conjunction with the observance of KYC Payments acceptance and processing of payments with cryptocurrencies for goods and services; Transfers between multicurrency and conventional crypto-wallets; Auto payments in accordance with the specified terms and / or request of the service provider; Escrow accounts accounts with confirmation of transactions by the certified party; Conversion exchange of cryptocurrencies and to fiat money; Crypto accounts a wallet for the majority of cryptocurrencies and fiat; P2P transactions exchange of assets via Escrow accounts and smart contracts. In addition to these services, the following integration is envisaged with cryptocurrency exchanges for ensuring best exchange cryptocurrencies rates and for combining liquidity banks, with banks for card transactions, acquiring, payments, transfers and Escrow transactions and with payment systems. VALUES OF THE PROJECT The CRYPTOCEANconcept implies legal compliance and abidance of the law, partnerships with clients and financial service companies. Anyfintech start up or an established company may use CRYPTOCEANs ecosystem for increasing their profits. The values of the CRYPTOCEAN project are Legality - compliance with laws and regulations in the field of KYC Beneficial conditions of use; Transparency and convenience for the client; Safety and security; Openness to partnership and new development ideas. OUR ADVANTEGES The main advantages of CRYPTOCEAN today are Profitable commissions of our services for conducting and processing payments; 13 Profitable rates and minimal spreads due to the effective schemes; All necessary permits for working with cryptocurrencies have been received; Agreements with banks on issuing cryptocurrency cards; Cryptocards issued in compliance to the national legislature; The ecosystem operates in compliance with the national financial regulators rules; All transactions are legal in compliance of KYC Confirmation of the legality of the transaction the fiat and the cryptocurrency; Our project offers services which are in high demands by the market; The high liquidity and stability are guaranteed by CRYPTOCEANs own exchange; The lomg-term prospects of the ecosystems development is guaranteed by the partnership strategy; Transparent business model that provides profit to investors. WHY US As in any other branch of the economy, innovators are the first to go ahead, they take risks and, when they succeed, they reap the benefits and open up new worlds. But innovators are not always interested in such things as quality of service, reliability, convenience, and sometimes legality of what they do. The innovators are followed by the professionals. Their task is to build effective, convenient, reliable, legal, profitable services based on proven innovations. They construct a stable, legal and sustainable business that can provide them with the work and generate profit streams for investors. Our project has emerged as a result of a careful analysis of the market, trends and prospects for the development of the cryptocurrency, of the personal experience of the project participants, of the experience of experts and advisers, as well as a thorough analysis of the problems that people who deal with cryptocurrencies are faced with. To implement this project, we have assembled a professional team of managers, financial, cryptocurrency and blockchain-technologies experts, lawyers and experts in international law, technical experts and developers. In order to carry out all the necessary preparation, we attracted the money of private investors within the framework of the Private Pre-ICO. Private investors believed in us and our team, and invested more