Posting Date: 09/30/2019
Effective Date: 09/30/2019
NO PROSPECTUS OR OFFER TO INVEST IN OR PURCHASE A SECURITY OR FINANCIAL INSTRUMENT
The IDON Token is designed as a hybrid token (cryptocurrency and utility) and does therefore, according to its structure, not constitute a security or financial instrument. Nothing in this White Paper, Website, Pitch Deck and any other informational document shall be deemed to constitute a prospectus or offer document for securities or financial instruments of any kind in any jurisdiction nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any jurisdiction.
This White Paper, Website, Pitch Deck and any other informational document is for project description and informational, illustration and discussion purposes only and does in no way provide an offer to sell nor a solicitation of any offer to buy neither the planned IDON Token, nor any security, nor any other financial instrument. Furthermore, this White Paper, Website, Pitch Deck and any other informational document does not constitute an investment recommendation to acquire IDON Token nor for the disinvestment of other securities, financial instruments or other assets.
ESTABLISHMENT OF A LEGAL RELATIONSHIP SOLELY ON THE BASIS OF INDIVIDUAL AGREEMENTS
This White Paper, Website, Pitch Deck and any other informational document does not imply any elements of a contractual relationship. The content of this White Paper, Website, Pitch Deck and any other informational document is not binding for the Issuer and is subject to change in line with the ongoing research and development of the Idoneus platform. Any legal relationship between a token purchaser of the planned IDON Token and the Issuer is not established by this document but solely based on separate individual agreements and conditions, in which the rights and obligations of a token purchaser and the Issuer are ruled. In case of any ambiguities or contradictions the regulations of the individual agreement take precedence over the information contained in this White Paper.
EXCLUDED TOKEN PURCHASERS
This White Paper, Website, Pitch Deck and any other informational document and the IDON token sale (including any pre-sales) is directed solely to natural persons and legal entities with registered residence and offices respectively in Switzerland. This White Paper, Website, Pitch Deck and any other informational document and the IDON token sale (including any pre-sales) is in particular not directed at persons with registered residence or office, habitual residence or tax residence in countries or initiate the acquisition of IDON Token from or through countries in which the sale or purchase of tokens and cryptocurrencies is prohibited or subject to certain conditions, such as official approval, which have been classified as high-risk countries and countries under observation with regard to money laundering and terrorist financing by the Financial Action Tasks Force (FATF), or against which embargoes or sanctions have been imposed, in particular by the United States of America or the European Union (hereinafter “Excluded Third Parties”). These countries include, in particular, Bosnia and Herzegovina, the Democratic Peopleʼs Republic of Korea, Ethiopia, Iran, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu, Yemen, the Peopleʼs Republic of China, Singapore and Cuba (hereinafter “Excluded Countries”). There are restrictions for citizens of the United States of America. Citizens of the United States of America may only participate in a token sale if they provide evidence that they fulfil the requirements of an Accredited Private Token Purchaser according to Rule 501 of Regulation D, issued under the Securities Act of 1933. For the evidence it is sufficient to provide within the KYC process the form “Accredited Token Purchaser Certification” truthfully completed, signed and having confirmed the provided information by the own tax advisor. Further information on Accredited Private Token Purchaser are available under the following link:
If during the KYC process an interested participant cannot successfully complete the KYC process because of previously misrepresented information or because of his citizenship or other inconsistencies, the participation in the token sale will be refused. In case of refusal payments of the investment sum made will be refunded, whereby the refused participant has to bear the costs of the cancellation in full. This White Paper, Website, Pitch Deck and any other informational document must not be completely or partially reproduced, copied, published, or saved in an information system regardless whichever way and by which means and not distributed to third parties. This White Paper, Website, Pitch Deck and any other informational document must not be completely or partially distributed to Excluded Parties whichever way and by which means.
NO REPRESENTATION OR WARRANTY AS TO THE INFORMATION CONTAINED
The information contained in this White Paper, Website, Pitch Deck and any other informational document is for general understanding purposes only. This White Paper, Website, Pitch Deck and any other informational document is for discussion and presentation purposes only. The Issuer endeavours to keep the information contained in this White Paper, Website, Pitch Deck and any other informational document up-to-date and correct, however, the Issuer has no obligation to update or keep current any information or projections contained in this White Paper. The Issuer does not make any representation or warranty of any kind as to the accuracy, completeness, reliability, suitability or availability of the information contained and the conclusions reached in this White Paper.
HIGH RISK OF LOSS
The purchase of IDON Token involves considerable risks. Therefore, a token purchaser should not invest a substantial part of its assets for the purchase of IDON Token and should be economically able to cope with a total loss of the investment. A token purchaser should have experience with cryptocurrencies, in particular issued by start-up companies, and should be able to understand the economic and technical interdependencies of the entrepreneurial activities of the Issuer and the IDON Token and the impact on the value of the IDON Token.
NO FINANCING THROUGH LOAN
It is strongly advised against the financing of the purchase of IDON Token through a loan. The obligations to pay interest and amortization remain even if the purchased IDON Token should become worthless.
NO REPLACEMENT FOR COMPETENT ADVICE
This White Paper, Website, Pitch Deck and any other informational document merely gives an overview over the planned investment and business activities of the Issuer, the IDON platform and the planned IDON Token. This White Paper, Website, Pitch Deck and any other informational document does not constitute investment, economic, legal, tax, regulatory, financial, accounting or other advice, and is not intended to provide the sole basis for any evaluation of a transaction on acquisition of IDON Token. This White Paper, Website, Pitch Deck and any other informational document cannot replace investment, economic, legal, tax, regulatory, financial, accounting or other advice. Prior to the acquisition of IDON Token, a token purchaser should independently assess any possible risks, seek advice with respect to the economic, legal, regulatory and tax implications of the purchase of IDON Token and should consult with his/her own investment, legal, tax, accounting or other advisors to determine the potential benefits, burdens, risks and other consequences of a purchase of IDON Token. The Issuer does not accept any liability with respect to the personal economic goals a token purchaser strives with the purchase of IDON Token.
CALCULATIONS, FORECASTS AND FORWARD-LOOKING STATEMENTS
The information set forth in this White Paper, Website, Pitch Deck and any other informational document may not be exhaustive. The calculations and forecasts in this White Paper, Website, Pitch Deck and any other informational document are essentially based on the experiences or assessments of the management of the Issuer. In this respect, this White Paper, Website, Pitch Deck and any other informational document contains forward-looking statements, in particular subjective objectives of the future business development, which are associated with uncertainties and risks. Opinions, assumptions, assessments, (forward-looking) statements or the like reflect the current state of perceptions and expectations of the Issuer and constitute only subjective views, beliefs, outlooks, estimations or intentions of the Issuer. These perceptions and expectations may contain perception errors and errors in assessment and thus prove to be incorrect. The calculations were made with care and with commercial caution. Nevertheless, it cannot be excluded that events or developments, which were not taken into account within the calculations and forecasts, lead to significant deviations of the actual results of the Issuer and thus possibly to a deterioration in the value of the Idoneus platform and the planned IDON Token. Opinions, assumptions, assessments, (forward-looking) statements or the like should not be relied on, are subject to change due to a variety of factors, including fluctuating market conditions and economic factors, and involve inherent risks and uncertainties, both general and specific, many of which cannot be predicted or quantified and are beyond the control of the Issuer. Therefore, there can be no assurance that the events and developments described in this White Paper, Website, Pitch Deck and any other informational document can be achieved. The token purchaser bears the risk of deviating events and developments.
IDONEUS INTERNATIONAL AG, IDONEUS PLATFORM AND IDON TOKEN
The Issuer and the Idoneus platform have limited operating history, which makes it hard to evaluate its ability to generate revenue through operations. The Issuer may be forced to cease operations for some reason. The Issuer may not successfully develop, market and launch the Idoneus platform and the IDON Token and even if launched the Idoneus platform and the IDON Token may not be widely adopted, may have limited users, could be subject to significant competition and may not be successful and not meet the expectations. The Issuer exclusively offers to facilitate mediation of services and the handling of payments but is in no way responsible for the execution of the facilitated service via the Idoneus platform. IDON Token purchaser will not have voting rights or the ability to influence the Issuerʼs decisions. The IDON Token is a payment token (cryptocurrency) and a utility token, thus a hybrid token, which does not substantiate any debt claim against the Issuer and comprises no any other rights but the right to use and have access to the Idoneus platform and its services via the IDON Token, thus no further rights than described in this White Paper, Website, Pitch Deck and any other informational document neither vis-à-vis the Issuer nor third parties, in particular no participation or membership rights, no voting rights, no dividend rights, no subscription rights. IDON Token does not represent an investment or a share in a company. Token purchasers have no claim to any benefits. Token purchasers have no right to return acquired IDON Token to the Issuer. There is no assurance that IDON Token retain its value. There is no assurance that token purchasers will receive a return on or of their investment and are able to sell their IDON Token. Rather, there is the risk of deterioration in the value and a total loss of the investment. Prices of tokens as the IDON Token are extremely volatile, especially over short time horizons, and fluctuations in the price, which are to be expected, could materially and adversely affect the Issuerʼs business.
LEGAL ENVIRONMENT WITH RESPECT TO INITIAL COIN OFFERINGS (ICOS) AND TOKEN GENERATING EVENTS (TGES) IN SWITZERLAND
All statements on the legal situation with respect to Token Generating Events (TGEs), Initial Coin Offerings (ICOs) and the sale of cryptocurrencies and utility tokens (IDON) presented in this White Paper are limited to Switzerland and the Swiss law and explicitly do not refer to other countries and jurisdictions respectively with possibly deviating regulations. It cannot be excluded that according to such other jurisdictions, TGEs, ICOs and the sale of cryptocurrencies and utility tokens (IDON) are subject to prior official authorization, subject to prospectus requirements or other restrictions or obligations. TGEs, ICOs and the sale of cryptocurrencies and utility tokens (IDON) respectively are subject to very complex and evolving legal environment. TGEs, ICOs and the sale of cryptocurrencies and utility tokens (IDON) are currently not subject to any specific regulation and are under current law subject to interpretation. For the time being, there are only very limited guidelines and comments from authorities on the legal treatment of TGEs, ICOs and the sale of cryptocurrencies and utility tokens (IDON) in Switzerland and it is possible that authorities and courts will in the future have opinions different from those expressed in this White Paper. At the moment, there is no generally accepted classification of tokens, neither in Switzerland nor internationally.
In its guidelines of February 16, 2018, the Swiss Financial Market Supervisory Authority (hereinafter “FINMA”) set up its own approach in classifying the tokens based on the underlying economic function. FINMA distinguishes between payment, utility and asset tokens. The payment tokens (= cryptocurrencies) are tokens which are intended to be used as a means of payment for offered goods or services or as a means for the transfer of money or value. Cryptocurrencies are not coupled with any claim against the issuer. Utility tokens are tokens which are intended to provide access digitally to an application or service on a blockchain-based infrastructure. Asset tokens represent a specific asset or claim, such as a debt or equity claim on the issuer. Asset tokens promise, for instance, a share in future company profits or future capital flows. Therefore, these tokens are, based on their economic function, similar to equities, bonds or derivatives. Tokens which enable physical assets to be traded on the blockchain also fall into this category. There is the possibility that utility and asset tokens are combined with payment tokens, which then classify as hybrid tokens.
RESTITUTION AND REPAYMENT EXCLUDED
Because IDON is a mere payment token, restitution of IDON Token to the Issuer and repayment of the purchase price by the Issuer are explicitly excluded. Purchasers of IDON Token must therefore take into account that the money used to purchase IDON Token might be tied in IDON Token and can only be changed in fiat currencies or other cryptocurrencies via trading systems of third parties, insofar as such trading systems are available. Unless a third party is willing to acquire IDON Token from the purchaser against fiat currencies or other cryptocurrencies, the purchaser of IDON Token cannot sell IDON Token and the acquired IDON Token might become useless or worthless to the purchaser.
TRADABILITY AND VALUE FLUCTUATIONS
Tradability of IDON Token cannot be guaranteed. Although the Issuer aims that the IDON Token will be listed on one or several trading systems for trading, it cannot be excluded that the Issuer fails to find one or several trading systems who are willing or able to list the IDON Token for trading. Even if the Issuer succeeds to list the IDON Token for trading at one or several trading systems, it cannot be excluded that because of the absence of buyer or seller no trading will take place. Even if the Issuer succeeds to list the IDON Token on one or more trading systems for trading, it must be expected that the trading price and thus the value of the IDON Token will be subject to substantial short-term fluctuations. Furthermore, it cannot be excluded that trading prices and thus the value of the IDON Token will develop very differently on different trading systems. The development of the value of the IDON Token on trading systems may also be affected massively by the development of the value of other cryptocurrencies, such as e.g. Bitcoin or Ether, even if the operating business of the Issuer provides no reason or starting point for any changes in value. The Issuer does not guarantee that a trading system, in which the IDON Token is listed, will perform or offer a transparent determination of the price or will be in the position to meet legal or regulatory requirements. The purchaser of IDON Token must further consider that the trading of acquired IDON Token probably will incur costs, which will have to be covered by the purchaser and which will further affect the value of the purchased or traded IDON Token.
REGULATORY RISKS, NO REGULATORY AUDIT OR CLEARANCE
The Issuer assumes that the IDON Token qualifies as a payment token combined with a utility token and that the issuance, sale and purchase of IDON Token and the payment, access to and use of services via the IDON platform with IDON Token – in each case performed by non-excluded third parties – is not subject to regulation and not subject to approval by any government agency. However, the legal environment of blockchain projects, distributed ledger technologies, smart contracts and their applications, in particular of TGEs and ICOs and the sale of cryptocurrencies and utility tokens (IDON), is complex, evolving and not clearly regulated, neither national nor international. Therefore, it cannot be excluded that due to national or international regulatory or legal action or by reason of new jurisprudence, the issuance, acquisition, management (including trade) of or payment for products or services with cryptocurrencies and utility tokens is legally qualified differently, prohibited in whole or in part or possible only under certain conditions. The legal situation, thus, may change. This can lead to significant negative effects on the Issuerʼs business model and the development of the value of the Issuer and the IDON Token, e.g. in the case of a repatriation of IDON Token or termination of the business operations as the result of an official directive and the bankruptcy of the Issuer and to the total loss of the investment. Furthermore, it cannot be excluded that third parties, who are offering the trading of cryptocurrencies and tokens such as the IDON Token on their platform are prohibited to further offer their services as a trading platform in general or without an official permit, so that there might not be any trading platforms anymore to trade or exchange the IDON Token into other cryptocurrencies or fiat currencies. Also, this might result that IDON Token become worthless.
This White Paper, Website, Pitch Deck and any other informational document has neither been submitted to any authority for examination or clearance nor been reviewed or approved by any government agency. Currently, no specific regulations or legal requirements exist with respect to the content of this White Paper, Website, Pitch Deck and any other informational document. Accordingly, this White Paper, Website, Pitch Deck and any other informational document is not composed in accordance with, and is not subject to, laws or regulations of any jurisdiction, which are designed to protect token purchasers. The content of this White Paper and its structure are solely based on the decisions of the management of the Issuer.
FURTHER RISK FACTORS
Any ICO process involves risks that cannot be eliminated. The risks described hereinafter should not be considered as all the risks that exist. There may be additional risks that are not know or considered immaterial at this time, but if they do occur, they could have a substantially negative effect on the operation of the business, the operating results, or the financial situation of the Issuer. The order in which the risks are related, should not be interpreted as an index that indicates its possibility or that indicates its level of materiality. Each token purchaser invests at its own risk.
The capital invested in the Token Generating Events (TGEs), Initial Coin Offerings (ICOs) or the sale of cryptocurrencies and utility tokens (IDON) is not guaranteed and could in an extreme case be entirely lost. The projects financed through the funds collected through crowdfunding are at an early stage of development and based on assumptions that could turn out to be overly optimistic or just unrealistic. There is no way to anticipate with certainty the success of the projects and the Issuer at the time of investing in the crowdfunding. It is also possible that the blockchain and the Issuerʼs tokenized ecosystem (IDON platform) will not be used by many individuals, companies and other entities or that there will be limited public interest in the creation and development of the Idoneus platform. Such a lack of use or interest could negatively impact the development of the Idoneus platform and the potential usefulness of the IDON Token.
The Issuer is a start-up and has just a short operating history against which purchasers of the token may consider the appropriateness of purchasing the token. Many risks and uncertainties affect start-up and early stage companies, which often have very limited operating history, profits or cash flow. There can be no assurance of the success of such enterprises. Their potential must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with new or developing businesses, including technology risks, unproven business models, untested plans, uncertain market acceptance, competition and lack of revenues and financing.
The technological fields and markets that many start-up and early stage companies address have undergone and are expected to continue to undergo rapid and significant change. Rapid technological developments may result in the technology of companies becoming obsolete, uneconomical or uncompetitive before any commercial success or financial return can be achieved. Numerous other risks may affect developing companies and ventures, including risks that products or services will be found to be ineffective, unreliable, unsafe or uncompetitive and risks that such companies’ technologies, products or service will not achieve market acceptance or penetration.
Market acceptance of new products, services or technologies depend on many factors and uncertainties and cannot be assured. In a start-up business, the loss or disability of a key person(s) can result in significant financial hardship, in some cases the failure of the company. More than other businesses, start-ups are highly dependent on the skills and contributions of very few key employees.
Any projections, forecasts, plans or other forward-looking statements are subject to numerous risks, uncertainties, changing circumstances and other factors that could cause actual results, performance, plans, prospects, operations and opportunities to differ materially from any forward-looking statements, including competition, inability to identify and do business with appropriate customers, existing and future law and regulations, liabilities under the securities laws, inability to hire, retain or qualify sufficient management and staff, general economic conditions, rapid technological change, cost overruns, delays in bringing products or services to market, marketing failures, difficulty in penetrating markets, delays or failures in developing anticipated capabilities, products or services, failure to obtain necessary regulatory approvals, insufficient funding, lack of availability of capital, rates of economic growth, levels of consumer and business spending, conditions in the technology and financial industries, dependence on strategic partners and business relationships, unproven business models, adverse developments affecting customers and end-users, fluctuations in securities markets and valuations, limited marketing, expansion risks, losses and costs, uncertain revenues and profitability, conditions in particular industries, accounting problems, costs, delays and liabilities arising from legal proceedings, failure to obtain and maintain intellectual property or proprietary rights and management failures.
LACK OF FINANCING OF THE ISSUER
The Issuer as a young company depends on generating adequate funding for the development and expansion of the business (including the maintenance of an infrastructure for using the IDON Token). Should the Issuer not be successful in generating adequate funding, e.g. in the event of failure of the Token Generating Events (TGEs), Initial Coin Offerings (ICOs) or the sale of cryptocurrencies and utility tokens (IDON) , there is a risk that the Issuer cannot develop and expand its business operations as planned and as the case may be has to wholly or partly cease its business operations or even declare itself insolvent. Such a development could have a lasting negative effect on the usability or intrinsic value of the IDON Token until they become useless or worthless.
REGULATORY AND LEGAL RISKS
Reference is made to the information in the Legal Disclaimer section above. The IDON Token is not being structured or sold as securities or any other form of investment product. Accordingly, none of the information presented in this White Paper, Website, Pitch Deck and any other informational document is intended to form the basis for any investment decision, and no specific recommendations are intended.
The Issuer expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: reliance on any information contained in this White Paper; any error, omission or inaccuracy in any such information; or any action resulting from such information.
The regulation of TGEs, ICOs, etc. is in development and at different stages of maturity in different markets. Further regulatory developments are expected to take place during 2020 and 2021. In this dynamic regulatory environment, the Issuer does every effort to comply with known regulations, to anticipate regulatory trends, and to promote the best practice that grants best possible consumersʼ / token purchasersʼ protection, accordingly. There is a risk that the regulation may develop in a way unfavourable to TGE, ICO, etc. and TGE, ICO, etc. participants. By no means are token purchasers protected in their investments to a level comparable to when investing in fully regulated financial products. This risk is amplified in the case of international token purchasers and due to the significant differing status of TGE, ICO, etc. regulations internationally. It is possible that, due to any number of reasons, including, but not limited to, an unfavourable fluctuation in the value of Bitcoin, Ether, or other cryptocurrencies, decrease in IDON Tokenʼs utility (including its utility for obtaining services), the failure of commercial relationships, or intellectual property ownership challenges, the Idoneus platform may no longer be viable to operate and the Issuer may dissolve. It could be, as a way of illustration, that regulatory actions could negatively impact the Idoneus platform and the IDON Token through a determination that the IDON Token is a regulated financial instrument that requires registration or licensing. The Idoneus platform may cease operations in a jurisdiction, or undergo significant redefinitions, if such regulatory actions make it commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction.
Token purchasers are obliged to identify themselves prior to purchasing the IDON Token in accordance with the anti-money laundering regulations and regulations on the financing of terrorism and on tax evasion and to this end to disclose its personal data to the Issuer. Token purchasers of the IDON Token should anticipate that the Issuer may be compelled to disclose such personal data collected to competent authorities, because of national or international official or statutory measures.
In a first phase, the IDON Token is intended to be used solely on the IDON ecosystem and the Issuer does not support or otherwise facilitate any secondary trading or external valuation of it. This restricts the contemplated avenues for using the IDON Token to obtain services or access the Idoneus platform, and could therefore create illiquidity risk for the IDON Token holders. When secondary trading of the IDON Token is facilitated by third party exchanges, such exchanges may be relatively new and subject to little or no regulatory oversight, making them more susceptible to market-related risks.
Furthermore, to the extent that third-parties do ascribe an external exchange value to the IDON Token, such value may be extremely volatile (as evidenced by price fluctuations in other crypto assets) and diminish to zero. It also possible that no secondary exchange develops for the IDON Token or that the terms of exchange turn out to be extremely negative for the IDON Token holders. Then, the trading of the IDON Token or their exchange into national currencies (fiat) may be subject to limitations. Finally, unlike bank accounts or accounts at some other financial institutions, the IDON Token is uninsured unless the holder specifically obtains private insurance to insure it. Thus, in the event of loss or loss of utility value, there is no public or private insurance arranged by Issuer, to offer recourse to the holder.
TECHNOLOGICAL / SECURITY RISKS
The token purchaser bears the entire responsibility regarding the secure storage of the private key (necessary to access and use the IDON Token). The loss or theft of the private key means loss of the IDON Token. The distributed ledger or blockchain technology that underpins the token is still largely untested. There may be flaws in the code or programs that are used to create, transfer or store the tokens. Token purchasers may not be able to access or control their tokens, or the tokens may be stolen, e.g., in case of a hack. More generally, the technology may not function quickly and securely, e.g. during peaks of activity.
Because the IDON Token and the Idoneus platform are based on the Ethereum blockchain, any malfunction, breakdown or abandonment of the Ethereum blockchain may have a material adverse effect on the Idoneus platform or the IDON token. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the IDON Token and the Idoneus platform, including the utility of the token for obtaining services, by rendering ineffective the cryptographic consensus mechanism that underpins the Ethereum blockchain. However, the token purchaser understands and accepts that smart contract technology is still in an early development stage and its application of experimental nature which carries significant operational, technological, financial, regulatory and reputation risks. Accordingly, the token purchaser understands and accepts that the audit does not amount to any form of warranty, including direct or indirect warranties that the smart contract system is fit for a particular purpose or does not contain any weaknesses, vulnerabilities or bugs which could cause, inter alia, the complete loss of tokens.
As with other decentralized cryptographic tokens based on the Ethereum blockchain, the IDON Token are susceptible to attacks by miners during validating token transactions on the Ethereum blockchain, including, but not limited, to double-spend attacks, majority mining power attacks, and selfish-mining attacks. Hackers or other malicious groups or organizations may attempt to interfere with the Idoneus platform or IDON Token in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Any successful attacks present a risk to the Idoneus platform and the IDON Token, including, but not limited to accurate execution and recording of transactions involving the token.
It is possible that alternative platforms could be established that utilize the same open source code and protocol underlying the Idoneus platform and attempt to facilitate services that are materially similar to the services. The Idoneus platform may compete with these alternative platforms, which could negatively impact the Idoneus platform and the IDON Token, including the tokenʼs utility for obtaining services.
The Idoneus platform is still under development and may undergo significant changes over time. Issuer may have to make changes to the specifications of the IDON Token or the Idoneus platform for any number of legitimate reasons. This could create the risk that the IDON Token or the Idoneus platform, as further developed and maintained, may not meet your expectations at the time of acquiring the IDON Token. Furthermore, despite our good faith efforts to develop and maintain the Idoneus platform, it is still possible that the Idoneus platform will experience malfunctions or otherwise fail to be adequately developed or maintained, which may negatively impact the Idoneus platform and the potential utility of the IDON Token, including its utility for obtaining services.
The tax characterization of tokens is under development in different jurisdictions and may vary even within jurisdiction. Token purchasers and token holders must seek their own tax advice in the relevant jurisdictions in connection with acquiring tokens, which may result in adverse tax consequences, including withholding taxes, income taxes and tax reporting requirements.
The possibility should not be excluded therefore that transactions with cryptocurrencies and utility tokens both with the Issuer and with buyers lead to tax burdens that put a strain on the operational activities of the Issuer or the usability or intrinsic value of purchased token until they become useless or worthless.
Because the token confers no governance rights of any kind with respect to the Idoneus platform, all decisions involving the Idoneus platform will be made by the Issuer at its sole discretion, including, but not limited to, decisions to discontinue the Idoneus platform, to offer more tokens for use in the Idoneus platform, or to liquidate the Issuer. These decisions could adversely affect the Idoneus platform and the usability of the token, including the tokenʼs usability as a means of payment for obtaining services.
Each of the risks represented can have lasting negative effects on the usability and intrinsic value of the token in its own right. The possibility is not excluded of several risks simultaneously materializing, mutually triggering or reinforcing each other and thus further increasing the lasting negative effects. Both the materialization of individual risks and the materialisation of cumulative risks can lead to the complete uselessness or worthlessness of the token.