WHITE PAPER 2018 www.whiskey.io - Whiskey Coin
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WHITE PAPER 2018
www.whiskey.io
DISCLAIMER OF LIABILITY
PLEASE READ THIS DISCLAIMER SECTION purchase any tokens nor shall it or any part of
CAREFULLY. it, nor the fact of its presentation, form the
Please consult with your legal, financial, tax basis of, or be relied upon in connection with,
and other professional advisors(s) before any contract or investment decision.
taking any action in connection with this
White Paper This White Paper is not intended to create a
contract for investment as you are buying the
The information set forth below may not be Whiskey Coin, which is subsequently backed
exhaustive and does not imply any elements of by fine and rare Whiskey. Each potential
a contractual relationship. While we make purchaser acknowledges that we will rely on
every effort to ensure that any material in this the legislature and regulation of the
white paper is accurate and up to date, such jurisdiction in which the member participant is
material is in no way constructed as the legally domiciled.
provision of a professional advice. Whiskey
Coin, it’s parent company, subsidiaries or IMPORTANT
affiliates, do not guarantee, and accept no
legal liability whatsoever arising from or Purchasing Whiskey Coin may have certain tax
connected to, the accuracy, reliability, implications. If you are a citizen, resident, (tax
currency, or completeness of any or otherwise) or green card holder of the
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This White Paper does not constitute an offer citizenship, residence, domicile and place of
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to those persons where and to whom they any restrictions that may be relevant thereto.
lawfully may be offered for sale. This White
Paper does not constitute an offer to subscribe Whiskey Coin will sell tokens in exchange for
for securities except to the extent permitted by United States Dollar (USD), to fund the project,
the laws of each applicable jurisdiction. businesses and operations, as outlined in this
White Paper.
This White Paper does not constitute or form
part of any opinion on any advice to sell, or any Any agreement between Whiskey Coin, It’s
solicitation of any offer by our asset-backed parent company, subsidiaries or affiliate and
token, as recognized by the Howey Analysis to you as an investor and in relation to any sale
WHITEPAPER 2018 Page 1 of 25
DISCLAIMER OF LIABILITY (CONT.)
and purchase, of tokens is a purchase of fine cautionary note on forward-looking
and rare Whiskey backing the Whiskey Coin. statements, market and industry information
and no consent of other persons, terms used,
This White Paper and its copies, whether in no advice, no further information or update,
part or whole, must not be taken or restrictions on distribution and dissemination,
transmitted to any country where distribution no offer of securities or registration and risks
or dissemination of this White Paper is and uncertainties will be entertained. While we
prohibited or restricted. No part of this White have worked diligently to insure accuracy
Paper is to be reproduced, distributed, or between documents, should any disagreement
disseminated, without including the section arise between this White Paper and other legal
entitled,” Disclaimer of Liability”. No documents, the terms and conditions shall
representations and warranties, prevail. Finally, again there is no promise of any
representations and warranties by you, returns.
WHITEPAPER 2018 Page 2 of 25
TABLE OF CONTENTS DISCLAIMER OF LIABILITY .......................................................................................................... 1 EXECUTIVE SUMMARY .................................................................................................................. 4 VISION .......................................................................................................................................... 5 VALUE PROPOSITION ................................................................................................................... 6 ADVANTAGES TO INVESTOR ........................................................................................................ 8 MARKET OVERVIEW ...................................................................................................................... 9 OUR HISTORY ............................................................................................................................... 13 ROADMAP ...................................................................................................................................... 14 THE WHISKEYCOIN PLATFORM ................................................................................................... 15 TECHNOLOGY ................................................................................................................................ 17 THE WHISKEYCOIN PLATFORM PRODUCT .................................................................................. 19 LEADERSHIP TEAM ....................................................................................................................... 20 CROWDFUNDING .......................................................................................................................... 22 DEPLOYMENT OF CONSOLIDATED TOKEN SALES PROCEEDS .................................................... 25 WHITEPAPER 2018 Page 3 of 25
EXECUTIVE SUMMARY Whiskey Coin was founded by a core group of crypto experts, whiskey sommeliers, vintners, futuristic commodity investors, fin-tech wizards and Whiskey Mavericks, seeking a legally compliant “stable coin” backed by coveted physical assets that have proven to increase in value with time. The Whiskey Coin Platform was founded in 2017. Whiskey Coin is a decentralized open code built on the Ethereum ERC20 Platform based on public blockchain technology that encompasses asset-backed investment management. The Whiskey Coin team has an extensive and well-rounded wisdom in establishing and managing commodity investment funds, as well as developing automated investment interfaces and asset management tools, while effectively complying with regulatory stipulations. Whiskey Coin offers an innovative and futuristic perspective for tokenized investment vehicles that will bridge the gap between commodity and crypto universes. The Whiskey Coin Platform focuses on all aspects of tokenized investment vehicles, from technology and commodity infrastructure investment, to legal compliance and corporate structuring. Whiskey Coin will be a unique and exclusive one-stop solution for commodity asset managers and whiskey connoisseurs to create and manage tokenized commodity funds. The attraction of investing in whiskey, as an alternative asset class, has been gaining popularity due to its propensity to provide better returns, security and investment yields compared to conventional asset classes. Based on industry tracked data, price increases of whiskey have been more than double those of gold and silver. This white paper outlines the value proposition of the Whiskey Coin Platform, the company’s business model, and the token distribution mechanics and methodologies. The Whiskey Coin token will be distributed among public contributors during the Distribution Period starting on May 20, 2018. WHITEPAPER 2018 Page 4 of 25
VISION The Whiskey Platform is part of a professional group of investors with proven track record in the commodity linked financial asset management niche. The parent company of Newport Whiskey, Newport Capital LLC, was incorporated in Wyoming, USA and has a successful operating track record since 2015. Whiskey Coin usher’s commodity trading, investment transparency, globalization, and decentralization to the next level by implementing blockchain technology — all with a commitment to sustainable, continuous development in cooperation with financial and commodity regulators. Whiskey Coin articulately integrates ready-to-use technologies with its deep expertise in structured investment funding both internally and through our partnerships with external investment teams. Working in close tandem with the best commodity investment managers, whiskey manufacturers and brewers, and financial authorities, Whiskey Coin is establishing a monumental foundation between the blockchain universe and the classical investment world by providing a transparent and legally compliant framework for tokenized commodity fund structuring and operation. Whiskey Coin is helping to expand the boundaries of investment possibilities and to encourage regulators to recognize blockchain tools as the new reality in classical financial markets. Ultimately, Whiskey Coin aims to be the benchmark for tokenized commodity investment funds and vehicles that invest in traditional investment instruments as well as in emerging distributed economic environments. WHITEPAPER 2018 Page 5 of 25
VALUE PROPOSITION Whiskey Coin addresses the main issues of the current tokenized commodity investment vehicles, such as abeyance of diversification, non-compliance with existing and foreseen regulation, and lack of standardization. It is the ultimate aspiration of Whiskey Coin to become the bellwether and a one-stop solution in setting up commodity linked tokenized investment funds, regardless of whether such funds invest in the fiat or crypto world. Whiskey Coin will bridge the gap between these two worlds while taking advantage of both. Versatility Currently the majority of tokenized investment vehicles are either fully crypto-oriented or pegged to some orthodox and conventional tradable asset. Each of these approaches is siloed, hindering diversification. Access to fiat investment opportunities provides unprecedented diversification in terms of income sources while retaining all the benefits of the crypto universe, including decentralization, transparency, and exchangeability. Consistency Setting up an ideal commodity backed investment superstructure is a monumental endeavor. Not all tokenized funds set up a proper institutional structure, which leads to greater regulatory risk. Whiskey Coin believes this to be the right time to introduce industry standards for setting up tokenized commodity investment vehicles that can attract investments from private individuals and institutional investors of any kind. This will reduce or remove regulatory risk from investors. Sustainability The fund structure of Whiskey Coin will be reviewed and approved by our Executive team, Advisors and Legal team, to ensure they are compliant with all relevant laws. As many current investors in tokenized commodity funds have gone incognito, this eye toward operational transparency dramatically decreases legal risks for the investors. Whiskey Coin has vetted the proposed structure with several financial, commodity, and whiskey domain experts and has received an indicative approval that it will pass internal procedures, enabling funds to be transferred from and into the crypto world. By sorting out these risks initially, Whiskey Coin will improve investor confidence and provide necessary sustainability of the commodity investment process. WHITEPAPER 2018 Page 6 of 25
VALUE PROPOSITION (CONT.) Transparency Tokenization of interests in commodity funds (share in profits) provides auditability and transparency to the commodity investment process as well as to the results. This transparency means the commodity investment funds won’t be “black boxes” for the investors, with reporting full of fine print. This much-needed transparency will substantially improve efficiency of the commodity investment strategy and that of it’s portfolio managers. Scalability Using the system put in place by Whiskey Coin, any approved commodity investment portfolio manager will be able to set up and run a tokenized investment fund without having to go through the pain and effort of rebooting the IT and legal infrastructure. This will effectively eliminate the barriers for tokenized commodity fund creation, which will be an important milestone toward bringing the fiat and crypto economies into the same realm. Ushering Inclusiveness Whiskey Coin is confident that the Platform is a turnkey solution that will lead to further proliferation of the decentralized economy. Commodity and portfolio investment managers from the fiat domain will be able to easily create compliant tokenized commodity investment funds and offer their existing customers all the benefits of the blockchain. WHITEPAPER 2018 Page 7 of 25
ADVANTAGES TO INVESTOR
Over the past decade, the emergence of cryptocurrencies and blockchain technology have shown the
power of crypto-economic consensus networks to bring about the next stage in the evolution of
decentralized systems. Whiskey Coin has strategically positioned itself in this environment for the
purpose of wealth creation for its investing constituents.
Benefits to Crypto Stakeholders
Evolving opportunities to access assets from the fiat domain, without exiting the crypto
universe.
Low risk commodity base with physical asset linkage, sustained by progressive appreciation
rates over and above the conventional investible commodities like gold, silver, wine and art.
Surging market demand for whiskey will enable Whiskey Coin with a ready and steady value in
future thereby eliminating speculation and volatility.
Benefits to Fiat Stakeholders
Higher returns, risk averse, insignificant volatility and steady investment appreciation.
Exchangeability and anonymity due to the inherent mechanics of the crypto domain.
Higher net returns due to cost efficient structure of tokenized funds.
WHITEPAPER 2018 Page 8 of 25MARKET OVERVIEW
In the current scenario Whiskey is “An almost perfect bull market”. In the same vein Whiskey today is
a virtual global market. The global whiskey market is expected to reach US$ 7.4 billion by 2023,
witnessing a CAGR of 5.3% during 2018-2023*. American whiskey revenues climbed 8.1 percent to
3.4 billion, with American rye whiskey up 16.2 percent in 2017**.
Product segmentation and analysis of the global whiskey market
Scotch whisky.
US whiskey.
Canadian whisky.
Irish whiskey.
Other whiskey (Indian, National, Spanish, and Japanese whiskey)
* https://www.mordorintelligence.com/industry-reports/whisky-market
** https://www.distilledspirits.org/wp-content/uploads/2018/03/2017-Distilled-Spirits-Council-Annual-Report-Single.pdf
Global Whisky Sales
Volume to climb 31% in decade to 2020
3,700
3,600
3,500
3,400
3,300
Million Liters
3,200
3,100
3,000
2,900
2,800
2,700
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: https://www.bloomberg.com/news/articles/2017-04-19/portfolios-taking-whisky-shots-with-bets-on-booze-in-the-barrel
The main demand drivers are changing lifestyles, consumption habits of whiskey, high disposable
income, growing affordability of whiskey, and increasing demand for premium whisky. The market
has witnessed demand for premium whiskey which is on the rise especially in the region such as US
and UK which has triggered the market growth. The US has the highest per capita consumption of
whiskey globally. As per the version of Mr. Kraig R. Naasz, President and CEO of the Distilled Spirits
Council “The U.S. distilled spirits market is the second most valuable in the world”***. The Craft
Beverage Modernization and Tax Reform Act passed by US Congress in December 2017, reducing
federal excise taxes on the production of alcoholic beverages will fuel added growth in the industry.
*** https://www.distilledspirits.org/wp-content/uploads/2018/03/2017-Distilled-Spirits-Council-Annual-Report-Single.pdf
WHITEPAPER 2018 Page 9 of 25MARKET OVERVIEW (CONT.)
Unlike equities, bonds and property, whiskey has Global Whisky Consumption Pattern
been almost completely overlooked as an Others
investable asset for over 40 years. This
represents a significant divergence from those South America
7%
major investment asset classes, while compared 9%
to the millions of people who own property, Europe
equities, bonds etc. there are probably fewer 34%
than 100 people who own, as part of their
23%
investment portfolio, a serious quantity of North
America
maturing whisky.
27%
The overall rate of return has remained high Asia
enough through the years to provide profit to
both producers and their bankers — who finance Source: https://www.mordorintelligence.com/industry-reports/whisky-market
an average of nine years of stockholding.
Nevertheless, investors generally invest in financial products and avoid commercial ones, usually
because they lack the inclination and the expertise required for particular commercial investments.
Fortunately, with whisky, the commercial aspect mostly involves waiting, rather than any technically
difficult work.
Investment in whiskey is undertaken by two processes:
Buying bottles or cask via open market or at auctions.
Investment in maturing whiskey stored in bonded warehouses.
Net returns after storage costs and inflation
140%
120%
100%
80%
60%
40%
20%
0%
0 3 4 6 8 12
Years in Cask. (Single Malt)
Source: http://www.thewhiskymarketltd.com/the-market/facts-and-figures
WHITEPAPER 2018 Page 10 of 25MARKET OVERVIEW (CONT.)
Average returns on exit, 2006-2015 Motivations for Acquisition
250%
of Whiskey Stake
As an Investor
200% As a Collector
150%
43% 33%
100%
50%
24%
0%
3 4 6 8 12
Scoth Whisky (After costs) FTSE (All shares + Dividens) London Property As a Connoisseur
Source: http://www.rarewhisky101.com/application/files/411
Source: http://www.thewhiskymarketltd.com/the-market/facts-and-figures 5/1860/1629/RW101_Investment_Report_2017_Lowres.pdf
Investment Comparison 2017
102.23% 2017 36 months since Dec 2014
49.08%
30.83%
27.51% 29.51%
17.08% 17.78% 16.57%
13.59%
10.20%
5.28% 7.63%
IGS 1000 DGE LIVE - EX FW 100 FTSE 100 BRENT CRUDE $PB GOLD $/OZ
Source: http://www.rarewhisky101.com/application/files/4115/1860/1629/RW101_Investment_Report_2017_Lowres.pdf
According to the Distilled Spirits Council, the economics of whiskey is robust. During maturation it
continually improves — becoming more valuable to whisky’s brand owners as it does so — all the way
up to 18 years and beyond. This improvement is the primary economic force behind making an
investment in maturing Scotch. “The merit of investing in whisky is risk dispersion,” said Yasuo
Sugeno, senior economist at Daiwa Institute of Research+.
The Whiskey Coin management has strategized to structure and design the product portfolio in a
manner that the stock is secured and annual returns to the investors are maximized by its commodity
whiskey stockholding tokens.
WHITEPAPER 2018 Page 11 of 25MARKET OVERVIEW (CONT.)
The IDC
Behavioral
Drinker Model
-Quality
DC DC
Investor/Drinker Drinker/Collector
IDC
Sweet Spot
Investor Collector
-Limited Editions -Single Distillery
DC
-Quality Collector/ -Bottle from ever Distillery
-Single Casks Investor
-Vintage - Birth Year
-Iconic Distillery -Catch - All Collectors
-Quality
Source: https://www.rarewhisky101.com/insight/dci-model
There are strong rationales which are prime drivers for attracting investment in this niche:
Whiskey is a commodity which through time gets both better, scarce and tends to become
more valuable.
The historical data shows that the average net annual return on 8-year-old malt whisky
bought from new and sold in the period 2005-2014 was 9.5% p.a.
The major independent whisky research analysts forecast continued steady demand growth.
Global consumption will grow at around 2% per annum for the medium term.
Whiskey has a wider international customer base and its fortunes are not closely correlated to
any one national market.
Whiskey is a capital intensive and a gestation-oriented business niche which makes it an
attractive proposition for low risk commodity investors.
Taxes on bottled whiskey are inordinately high compared to those in barrels.
Investment efficiency is higher for whiskey in barrels compared to bottled whiskey.
Investing in whisky barrels is a methodology of storing wealth in a commodity which, being
100% physical, operates independently of the financial markets.
Investing in whiskey diversifies the dependence of investment portfolio from the financial
system to a consumption-oriented investment.
Purchase of Whiskey is regulated under commercial law rather than complex financial law.
In the event of the investment going bad an investor can pay the tax and enjoy his investment.
WHITEPAPER 2018 Page 12 of 25OUR HISTORY There were a few defining moments that led us to create Whiskey Coin. It was the innovative conception and brain child of Michael Smith, President and C.E.O. of Newport Capital LLC. Michael Smith says “It was the Fall 2017 issue of Whisky Advocate Magazine that led to the creation of Whiskey Coin. It was like this issue had the blueprint for Whisky Coin.” The issue included articles on collecting fine whisky and regaled the tale of when “Whisky Was Too Big to Fail” and articles on investing in fine and rare whisky. Knowing that “stable coins” were going to be the wave of the future and the fact that Newport Capital’s team had already been knee deep in developing blockchain related solutions - it was a natural fit. Michael and his team are seasoned professionals with over 80 years of combined operational experience. The team at Newport Capital LLC consists of thinkers, idea makers, software engineers, UX designers, business analysts, and yes an organizational counselor. The zeal and enthusiasm of the team led to the operational conception and implementation resulting in the creation of the Whiskey Coin platform which is to be the first asset-backed token of its kind in the United States. Whiskey Coin will be an institution which will be United States SEC Compliant and fully legal. Whiskey Coin will be an investment mechanism and economy for Whiskey, cryptocurrency, blockchain enthusiasts and savvy investors alike. WHITEPAPER 2018 Page 13 of 25
ROADMAP
2017
Genesis of Whiskey Coin
The idea came to Michael when he got the Fall 2017 issue of Whiskey
Advocate Magazine, where he regails that it was like a business plan laid
out for anyone to see. From the article “When Whiskey Was Too Big to Fail”
to “Is It Too Late to Collect Whisky?”, He states, “I just saw it, Whiskey +
Blockchain, from there my mind wouldn’t stop thinking of how a Whiskey
based economy would work.” From there Michael began work with his team
to define the initial roadmap, tokenomics and identify the team to build this
2018
revolutionary idea.
November 2017-December 2017
Coin Development
Whiskey Coin development begin in Jan. 2018. From flights to Washington
DC for meetings with securities lawyers, to flights to Arizona to meet with
ICO development teams, the Whiskey Coin team began dozens of sleepless
The Whiskey Coin ICO begins and will be divided into 3 phases for coin nights. During this time, the WSKY Coin was established on the ERC20
allocations. Pre ICO, ICO Phase 1, and ICO Phase 2. As the ICO progresses, Ethereum smart contract technology. Development was also completed on
we will begin procuring assets through a registered broker house and begin the investor administration panel and WSKY Coin trading desk.
initial planning of the storage facility in Scotland for casks and the planning
of the WSKY Library, to be located in Las Vegas, pending planning and January 2018-April 2018
regulatory compliance. Regardless of the final location, the WSKY Library
may store the rare bottle portion of the Whisky Coin assets. During this
time, we will also begin planning phase of the asset tracking blockchain
technology that will allow you to trade your Whiskey Coin for physical rare
2019
whiskey and casks.
May 2018 - December 2018 WSKY Library Planning
Final plans will be made for the WSKY Library and released to the
community. This will include the finalized location and other details that will
include special events, perks, and limited availability based on the total
amount of WSKY Coins you hold. Imagine a scenario like this; It’s Friday
night and from 7pm to 12am - you must own 1,000 WSKY Coins to enter the
room. Now you are networking and rubbing shoulders with a select group of
Asset Tracking Development people enjoying vintages that you simply can’t get anywhere else.
We recognize that investors will want to know where their assets are
located and what the valuation is of those assets that can be dynamically
January 2019 - February 2019
verified by a third party. These are just some of the benefits of developing
an blockchain asset tracking system. During this time, we will begin active
development of the Whisky Coin blockchain asset tracking platform. More
details will be released to the community as this development continues.
February 2019 - May 2019 Post ICO Audit of Funds
After the successful completion of the Whiskey Coin ICO (Estimated May of
2019), Whiskey Coin will have a 3rd party Audit and generate reporting for
the status and/or allocation of all funds received as a part of any of our ICO
campaigns. This financial auditing statement will be made available to all
ICO investors.
Public Offering May 2019 - June 2019
This is where we get to reward those who invested into the ICO with shares
of a U.S. based blockchain whiskey company (Newport Whiskey LLC). We
plan to take the company public and distribute a portion of the shares to all
of our WSKY coin holders who purchased during the ICO. During this time,
we will prepare all SEC documents to conduct a reverse merger with all U.S. Whiskey Available for Public Sale
regulatory requirements completed. Final implementation and completion of our WSKY Exchange that will
include the ability for us to trade a select portion of our rare Whiskey and
June 2019 - September 2019
Whisky may be available for exchange for WSKY Coin, in accordance with
all state and government laws. Both from an online store (ecommerce), to
trading WSKY Coins in the physical location of the official WSKY Library.
October 2019 - December 2019
WHITEPAPER 2018 Page 14 of 25THE WHISKEY COIN PLATFORM
English whiskey writer Michael Jackson, in his book “Whiskey: The Definitive World Guide”, explains
that a family of physicians, the MacVeys (a.k.a. the Beatons), translated medical texts from the Arab
world whose secrets of distillation resulted in the first whiskey creations. As doctors, the MacVeys/-
Beatons served both Ireland and Scotland, which is why whiskey's exact origins remains obscured.
Whiskey made in Scotland following a standard manufacturing format is called Scotch Whiskey. It
has five variants namely: single malt, single grain, blended malt, blended grain and blended Scotch
Whiskey. Irish Whiskey too has a standard manufacturing format. Bourbon, the American Whiskey
variant, as well has a pre-established manufacturing process. Tennessee whiskey is bourbon made
with the Lincoln County Process in the state of Tennessee. Blended American whiskey is a mix of
20% American whiskey and 80% neutral spirit*. Whiskey in today’s context has numerous global
variants.
Whisky is influenced by the environment inside the barrel, compounds in the wood, especially where
it has been charred on the interior and even the environment where the barrel is stored. Over time,
these factors make a significant impact on a whisky’s color, flavors, mouth feel and ultimately its
price in the final analysis**. Whiskey always matures in a cask, which is vital to its flavor.
302 - 350 159 - 210 286 - 350 350 - 455 381 - 455
120 - 140 142 - 175
LPA LPA LPA LPA LPA
LPA LPA
29 - 35
LPA
Barrel Hogshead Butt Quarter Cask Barrique Puncheon Port Pipe Madeira drum
Source: http://www.whiskyinvestdirect.com/about-whisky/scotch-whisky-casks-and-barrels
The main objective of investing in real assets is to preserve purchasing power or a hedge in times of
severe economic disruption. It also serves as an insurance against inflation. The assumptions
underlying this investment proposition are:
The value of the content of the cask is lower today than in the future, i.e. the commitment of
money to the content of the cask today may result in an increase in value through time.
For this to be true, at some future date, there must be a market for the contents of the cask.
The price obtained from selling the contents in the future is likely to be higher than today.
* http://www.bbc.com/travel/story/20110318-travelwise-a-guide-to-the-lingo-and-history-of-whiskey
** https://www.popsci.com/what-happens-in-whiskey-barrel-over-half-century
WHITEPAPER 2018 Page 15 of 25THE WHISKEY COIN PLATFORM (CONT.) Scarcity is a crucial element in physical asset investing and in principle a good condition for investors. Counterparty risk is the main risk element when investing in the Whiskey niche. This implies that the whiskey dealer is trustworthy, knowledgeable, experienced and honest. It should also be ensured by the investor that the cask being bought duly exists physically and that they have irrefutable legal ownership rights on the same. Finally, any investment is only as good as its liquidity. The liquidity of this investment will depend on the availability of buyers at some future date***. Whiskey Coin’s business mantra is based on the principles of rarity, lineage, antiquity, reputation and authenticity, which are the cornerstones of an ideal whiskey asset. To this effect, Whiskey Coin has identified and shortlisted such classical brands lying with its distillers and in bonded warehouses, which it is targeting to acquire to bolster its asset base. The Whiskey Coin asset portfolio will comprise one of the largest curated collections of whiskey, which will be sourced from across a broad spectrum of Whiskey markets from across the globe. The primary strategy of Whiskey Coin is to provide width, depth and quality on the shelf. The curated Whiskey will include both coveted bottles, casks and rare and aging whiskey with growth opportunity. The asset backing, which is proposed to the investors of Whiskey Coin, will indeed be a matter of great pride and accomplishment. It will also be ensured that the asset base is duly positioned and balanced to give exponential returns within a reasonable period. In order to reinforce the brand image and ensure value, the channels of distribution will be owned and operated by Whiskey Coin itself. For this purpose, it has identified cities and outlets in the United States where it proposes to establish high end Whiskey environments, or libraries if you will, for purchasing any in-stock whiskey from its brokerage. The Whiskey Coin management will operate in the best interest of its investors with the intent of corpus value maximization, as well as acting in a constant advisory role regarding their asset base. Tokenization of Whiskey Coin will transpire via smart contract, using the ERC20 protocol on a fully decentralized and auditable Ethereum blockchain. *** https://vloeibaargoud.nl/wp-content/uploads/2014/05/White-Paper-Buying-Single-Malt-Single-Cask-Whisky-Hype-or-Investment-Opportunity.pdf WHITEPAPER 2018 Page 16 of 25
TECHNOLOGY
The Whiskey Coin Platform applies blockchain technology to create, manage, and govern tokenized
commodity investment vehicles and the platform itself. The platform operates on Ethereum-based
ERC20 smart-contracts standards.
OVERVIEW OF THE SMART CONTRACTS
Whiskey Coin Platform technology has a two-level infrastructure:
Token Tool
Whiskey Coin tokens to receive Asset Proxy
income from the platform itself. Exchange
Composite Commodity tokens that Asset Interface
relate to the investment vehicles of the target
commodities. Others
This combination of tokens and tools allows the investment process to remain flexible to
accommodate the wide diversity of the funds with various commodity investment mandates and
structures that are available on the Whiskey Coin Platform.
WHISKEY COIN PLATFORM BASE CONTRACT
The Whiskey Coin Platform base contract covers base roles (Contract Owner, Team member, Advisor,
Holder) and interfaces to Asset Proxies, Exchanges, WSKY token and Fund Tokens.
The platform contract holds the deposit wallets’ logic based on Asset Proxies. Each Asset Proxy is an
ERC20–compatible contract and implements an interface between the depository Platform Wallet
with income, and external addresses such as exchanges or ETH wallets.
WSKY TOKENS
WSKY tokens are implemented as token-as-a-currency instruments and receive proceeds from the
Whiskey Coin Platform by asset class sales and/or appreciation. WSKY tokens are connected to the
platform via the platform Asset and Asset Proxy interfaces. Whiskey Coin will mint WSKY tokens as a
one-off activity during the Distribution process. All coins that remain unsold at the conclusion of the
ICO campaigns will be burned at that time.
WHITEPAPER 2018 Page 17 of 25TECHNOLOGY (CONT.)
FUND TOKENS CONTRACT
The Fund Tokens contract is made up of specific contracts that govern the fund structure, fees, and
assets. It is implemented as a token–as–a–currency instrument and receives distributions from the
corresponding commodity’s value appreciation. Each contract connects and interacts with the
platform via the asset interface.
Roles Brokerage: Twice on purchase and sales
Contract Owner (WSKY Owner), holder, Curation fee: Annually on % basis or pro-rata
advisor. on exit.
Holder's fees Advisor's income
Asset Sourcing fee: once Performance/success fee: Yearly based on
WSKY Platform FT related policy.
WHITEPAPER 2018 Page 18 of 25THE WHISKEY COIN PLATFORM PRODUCT
Whiskey Coin Platform will offer a single product universe, aimed toward two types of users. The
Fund Issuer Administrative Tool is designed for commodity investment advisors and asset managers;
and the Token Holder’s Analytical Interface is designed for fund investors.
TOKEN HOLDER’S ANALYTICAL AND FUND ISSUER ADMINISTRATIVE TOOL
MANAGEMENT INTERFACE This tool is the comprehensive fund
The Whiskey Coin Investment Interface management system that acts as a one-stop
provides tools for investment portfolio solution. It covers all the aspects of running
structuring and management as well as a the tokenized commodity investment vehicle
holistic view of the available commodity and provides the commodity investment
investment opportunities and the assets advisor or asset manager with access to the
historical and current investment Whiskey Coin IT and legal infrastructure. This
performance. The interface allows the system enables the commodity investment
investor to: manager to:
Structure the investment portfolio and Identify, conduct due diligence,
allocate capital to desired assets classes. acquisition/rejection of the asset class,
Track the portfolio and asset class including the associated accoutrements of the
performance. investment vehicle and more.
Drill down to get the decomposition and Establish the structure of the smart
verify the investment results. contract for the associated token, including
Submit tokens for buyback to participate income distribution and redemption methods.
in the distribution of the assets income. Perform the distribution of the Fund
Buy asset class for personal consumption. tokens.
Download reports and export necessary Track and report investment results.
analytical data. Distribute income between the token
This investment interface will be based on the holders.
institutional grade commodity investment Upload necessary documents, reports,
interfaces created by Whiskey Coin. and other related data.
This tool allows commodity investment
advisors and asset managers to focus on
managing the investment for the value
maximization of the token holder’s corpus.
OTHER PRODUCTS
The Fund Issuer Administrative Tool and the Token Holder’s Analytical Interface is only a part of the
greater canvas visible to the end users. Behind the scenes lies the vast environment of distributed
ledger technology and smart contracts, API integrations with brokerages, financial institutions,
warehouses, brewers, blenders, logistics, clearing operations, reporting, and intensive work on the
legal track.
WHITEPAPER 2018 Page 19 of 25LEADERSHIP TEAM
The Whiskey Coin Group is a marketing and technology centric online automated liquor domain
commodity investing Services Company in the crypto investment niche. It was the innovative
conception and brain child of Michael Smith, President & C.E.O. of Newport Capital LLC.
Michael Smith is the President & C.E.O. of Newport Capital LLC and the
Founder of Newport Whiskey, LLC. Michael has been in the tech industry for
over 18 years. He is the visionary and motivator behind numerous internet
marketing, crypto-currency and fintech projects. He is a leader and pioneer in
commodity and distributed ledger blockchain technology. Michael founded
Whiskey Coin and the concepts and support vehicles. He has been
instrumental in assimilating a dedicated team of die hard core coders and has
been conducting intensive pre-operational beta testing since January 2018, having intent to be
embedded in the commodity linked financial investment technology platform for real time
monitoring, tracking, analyzing, and availing of the exponential investment growth in the fast and
evolving crypto market investment and trading environments.
Andrea Haymon is the CIO of parent company, Newport Capital LLC, and is a
Co-Founder of Newport Whiskey LLC. For 17 years Andrea has lead the charge
from behind the scenes of many major companies. With an education in
Organizational Psychology and extensive experience in the Tech Industry she
is focused on building a solid foundation for each company. She has made it
her mission to define structure, vision, passion and strong leadership. At
Whiskey Coin she continues to use her vast knowledge and experience to
structure this company, giving Whiskey Coin the ability to attain a bellwether status in the whiskey
commodity investment niche.
Destiny Aigbe is the Legal Counsel for the Whiskey Coin Group. Destiny is
based in Washington D.C. He is considered to be an expert counsel in
regulatory compliance and broad financial law as well as significant
experience in ICOs. He has been actively involved with Whiskey Coin for its
adherence to all legal requirements of the US Security and Exchange
Commission framework enabling business risk mitigation.
WHITEPAPER 2018 Page 20 of 25LEADERSHIP TEAM (CONT.)
The Team
Cesar Oliva CleverFoxMedia
UX Designer ICO Development
Advisors
Jeremy Smith is on the Advisory Team for Whiskey Coin. With over 20 years
in Operations Management for one of the world’s largest businesses, Jeremy
brings deep experience to our Whiskey Procurement operations. He has been
named one of the top operations managers at Wal-Mart and is a Market
Manger, Director for the company. As an experienced investor and early
adopter of some today’s most lucrative investments, he brings experience
from a different perspective than most advisors. Jeremy has served on Non-
profit Board of Directors and has mentored executives for years.
Strategic Advisors
Andy Simpson David Robertson Christopher Cooper
Strategic Advisor Strategic Advisor Strategic Advisor
RareWhisky101.com RareWhisky101.com
WHITEPAPER 2018 Page 21 of 25CROWDFUNDING
WHISKEY COIN DISTRIBUTION PROCESS
The Whiskey Coin creation process is organized around smart contracts running on Ethereum.
The Whiskey Coin Distribution will be completed according to the schedule outlined on page 24.
Instructions on how potential investors can participate in one of our ICO Phases will be made
available closer to the ICO Launch date.
Pre-ICO and ICO campaigns will be funded by exchanging BTC, LTC or ETH for Whiskey Coins
(WSKY). For questions or clarification, or should you wish to invest in Whiskey via USD, please email
us at hello@whiskey.io
Potential investors are requesting to receive Whiskey Coin tokens at the price as stated in the
crowd-funding section below.
The Pre-ICO Distribution Period will run until the 1,350,000-token cap is reached, or 12 months
from Pre-ICO launch, whichever comes first.
The Phase 1 ICO Distribution Period will remain open until the 3,150,000-token cap is reached,
or 12 months from Pre-ICO launch, whichever comes first.
The Phase 2 ICO Distribution Period will remain open until the 4,140,000-token cap is reached,
or 12 months from Pre-ICO launch, whichever comes first.
Founders & Team Coins in the amount of 960,000 tokens, will be distributed according to the
Whiskey Coin cliff schedule, outlined in the Founders, Advisors and Team agreements and PPM
documents.
Whiskey Coin Tokens purchased as a part of the Pre-ICO or ICO campaigns, will be transferrable
upon completion of the ICO campaigns, via the WSKY blockchain.
Newport Whiskey LLC, (The “Company”) controls the contract and the address to which the
gathered ether will be sent (implemented as a multi signature address).
To ensure you receive current updates on Whiskey Coin, please contact us at:
Email : hello@whiskey.io
WHITEPAPER 2018 Page 22 of 25CROWDFUNDING (CONT.)
WHISKEY COIN TOKEN ALLOCATION
All immediately available Whiskey Coin will be
sold during the Pre–ICO and ICO Campaigns.
This will be a multi-phase operation. The total
number of Whiskey Coin Tokens (WSKY to be
issued will be outlined as per the ICO release
schedule.
Pre-ICO Phase (8.37%) subscribers during the promotion campaign.
Of Whiskey Coins to be allocated and sold by The hard cap of this pool will be US $28.98
invite only, via a Pre-ICO sale. The hard cap of million.
this pool will be US $4.725 million.
Founders & Advisors (10%, 960,000 tokens)
ICO Phase 1 (25.91%) Early investors, founders and advisors of the
Of Whiskey Coin Tokens will be allocated to Whiskey Coin project for their contribution to
the public subscribers via an ICO Phase 1 the development and pre-operational
sale who engaged in the Distribution process activities. This vesting and cliff arrangements
including bonuses/incentives provided to schedule will be outlined as part of the PPM
subscribers during the promotion campaign. document.
The hard cap of this pool will be US$ 14.175
million. Unsold Coins
The burning of unsold coins, if applicable, will
ICO Phase 2 (55.73%) occur upon closure of the ICO Campaigns.
Of the Whiskey Coin Tokens will be allocated
to the public subscribers via an ICO Phase 2
sale who engaged in the Distribution process
including bonuses/incentives provided to
WHITEPAPER 2018 Page 23 of 25CROWDFUNDING (CONT.)
WHISKEY COIN TOKEN PRICE
Whiskey Coin (WSKY) price is valued at US $7 each. Discounted pricing will be available during Pre-
ICO and ICO Phase 1 Token pools as outlined below.
The Whiskey Coin Pre-ICO, will launch on June 15th, 2018. 1,350,000 WSKY will be sold at
$3.50 USD during this phase. The Pre-ICO Hard Cap has been set for $4.725M USD.
ICO Phase 1 will launch immediately upon Pre-ICO completion. 3,150,000 WSKY will be sold at
$4.50 USD during this phase. The Phase 1 hard cap is $14.175M USD.
ICO Phase 2 will launch immediately upon Phase 1 completion. 4,140,000 WSKY will be sold at
$7 USD during this phase. The Phase 2 ICO campaign will conclude upon successful funding of the
$28.98M USD hard cap, or the ICO Campaign is closed on June 15th, 2019.
Unsold coins will be burned at the time of ICO closure.
CAP ON FUNDRAISING
The Pre-ICO and ICO fund raising hard cap of Whiskey Coin Tokens (WSKY) is US$ 47,880,000.
A maximum number of 9.6 Million Whiskey Coin Tokens (WSKY) are being produced.
A maximum of 8,640,000 Whiskey Coin will be offered for sale through the ICO campaigns.
An express provision is enacted that all unsubscribed and unsold tokens will be burned.
PRE-ORDERS
Early Investors and Adopters in Whiskey Coin will be able to place pre-orders for Whiskey Coin to
secure the right to participate in the token distribution.
Pre-Orders will be included in the Pre-ICO Hard Cap of 1 Million coins.
Note: Pre-Order sale will be compliant to a SAFT (Simple Agreement for Future Tokens) offering
or through Company Approved Affiliates.
For information on how to gain your exclusive place in our Pre-ICO, please email us at
hello@whiskey.io
WHITEPAPER 2018 Page 24 of 25DEPLOYMENT OF CONSOLIDATED TOKEN SALES PROCEEDS
It is estimated that the total cost of the Whiskey Coin Platform development to be about $44 million
USD over the next two years. This amount will be covered by the proceeds from the Distribution of
Whiskey Coin Tokens.
The diagram shown below shows the application of funds received from the token sale of Whiskey
Coin Platform.
Deployment of Consolidated Token Sales Proceeds
Expense Head PRE-ICO ICO Phase 1 ICO Phase 2 Total Percentage
Proceeds Proceeds Proceeds
Fine & Rare Whiskey Stock 3,780,000 11,340,000 23,184,000 38,304,000 80
Storage, Insurance, Whiskey Library 611,450 1,834,245 3,750,012 6,195,672 12.94
Operations, Legal & Administration 185,629.50 557,077.50 1,138,914 1,1881,684 3.93
Technology Upgrades 83,160 249,480 510,048 842,688 1.76
Corporate Reorganization Expenses 64,732.50 194,197.50 397,026 655,956 1.37
Total 4,725,00 14,175,000 28,980,000 47,880,000 100
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