State of Tokens by William Mougayar - April 2018

1. Status of the Token Market William Mougayar Investor, Advisor, Board Member Author, The Business Blockchain Founder, The Token Summit and WMX @wmougayar wmougayar@gmail.com

2. Disclosures and Market Activities •  Book (10 languages) •  Token Summit •  Blogging •  WMX Blockchain Index •  Tech Accelerators & VC relationships •  Knowledge websites •  Strategic Advisory •  Boards & Foundations •  Startups Investments •  ICOs participation •  Cryptocurrency •  Regulatory interactions © 2018 William Mougayar @wmougayar

3. Blockchain Ecosystem Startups Researchers Scientists Crypto Capitalists Meetups Hackathons Infrastructure Stakeholders Developers Enterprises © 2018 William Mougayar @wmougayar DRUMMERSDREAMERS DOERS

4. Staying True to Blockchain Fundamentals Is EXTREMELY Important, but Often Forgotten •  Replacing intermediaries •  New (digital) Value liquidity •  Proofs of X •  Automatically enacting consequences •  P2P infrastructures •  Decentralized models •  New protocols © 2018 William Mougayar @wmougayar

13. What is a token? A unit of value that an organization creates to self-govern its business model, and empower its users to interact with its products, while facilitating the distribution and sharing of rewards and benefits to all its stakeholders. © 2017 William Mougayar @wmougayar

15. The killer app for the blockchain is not tokens, but it is the creation of private economies, new protocols or development ecosystems. Tokens are just enablers to that. © 2017 William Mougayar @wmougayar

17. On Token Economic Models 1.  Theory is always perfect, there is no skin in the game yet 2.  Token functionality is being abused 3.  We don’t know what we don’t know © 2017 William Mougayar @wmougayar

18. If you are thinking “Tokens” 1.  A token is not a carrot 2.  Token must be native to the blockchain/App for maximum leverage 3.  If not, proving the Token-to- Market Fit will be more difficult © 2017 William Mougayar @wmougayar

24. What needs to work •  Standards •  Scalability •  Interoperability •  New exchanges / clearing houses •  Native assets (creative, finance, physical) •  Token types •  Economic models © 2018 William Mougayar @wmougayar

26. What won’t work •  Boil the ocean approaches •  Head-on disruption •  Leading with just white papers •  Dressed-up websites •  Cool ideas •  Advisors that are not •  No accountability to investors © 2018 William Mougayar @wmougayar

29. What Should Regulators Do? 1.  Apply existing regulations 2.  Update existing regulations 3.  Allow Self-Regulation 4.  Create new regulations 5.  Freeze regulation with Safe Harbors 6.  Recognize a new asset class 7.  Harmonize global regulation © 2018 William Mougayar @wmougayar ü  Innovative ü  More Difficult ü  Easiest * * for regulators

30. Current Regulation Landscape 1.  4 spheres: Asia, NA, Europe, Alternative jurisdictions (Liechtenstein, Gibraltar, Malta, Cayman, etc.) 2.  Balkanization of regulation is already here 3.  Competition vs. Harmonization 4.  Classification of tokens will be difficult © 2018 William Mougayar @wmougayar

31. More Trends 1.  Separation of TGE’s between Public ICOs and PPO’s 2.  Fiat liquidity jam due to cross-over friction 3.  Token exchange rights as an equity roll- over 4.  New types of sub-tokens and token stability 5.  Build it before they come mandatory for creating the utility © 2018 William Mougayar @wmougayar

33. Selling the Vision Build-out Installation Deployment Acceleration Vision Realization 2018-2020 2013-2015 2015-2016 2021+ 2016-2018 2019-2021 Blockchain: The Evolution We are here © 2017 William Mougayar @wmougayar

34. My wish list for the Blockchain Economy •  Easy APIs •  Standards + their implementation •  More consumer applications •  More (traditional) governance è More blockchain, less tokens © 2018 William Mougayar @wmougayar

35. THANK YOU William Mougayar Investor, Advisor, Board Member Author, The Business Blockchain Founder, The Token Summit and WMX @wmougayar wmougayar@gmail.com http://startupmanagement.org/blog