Cryptocurrencies Are Terribly Inflationary
When they are going down, cryptocurrencies are inflationary—a 10% inflationary decline in value over a day or two is like Zimbabwe or Venezuela. This causes erosion of savings.
Because the FreeMark is stable, an owner can make funds with it if commodity prices in general increase. But the FreeMark also provides a means of gaining more of them, rather than a price increase of each.
Risk and Reward
Practically every attempt to gain a reward entails a risk, which is generally proportionate to the potential reward. Every-day risks such as driving to the grocery store entail risk of life and property through accident, and commonly other normal tasks entail risks to property and person. Financial risks are an unavoidable, daily fact of life for everyone, regardless how prudent an investment or a transaction may seem.
The FreeMark cryptocurrency, because it is a newly developing one, has a higher risk than exchanging your currency for a Euro or a Swiss Franc, for example.
For this reason, the FreeMark digital currency has been engineered to deliver a substantial reward to earlier buyers.
Engineered for Reward
The FreeMark has been engineered to provide a substantial reward as an incentive to utilise the FreeMark as a medium of exchange. That this potential reward has purposely been made available does not make the FreeMark a security, just a different and better type of currency.
To develop and test the system software, Worldfree first must raise the capital to create the distributed currency and its unique economic benefits. Letting early buyers share in the rewards makes sense, but it should not be the only reason people help us create the better global FreeMark business environment.
Digital Currency
The FreeMark is a digital currency that Worldfree’s team has endeavoured to engineer to be the very best medium of exchange. The FreeMark is automatically stable in order to:
- reduce the risk when trading volatile assets such as financial securities, currencies or crypto-assets
- facilitate international trade of goods and services between different currencies by lowing hedging and transaction costs and time requirements
- provide inflation and deflation resistance through automatic pegging to a basket of 20 commodities, selected and weighted according to low volatility based upon 12-month moving averages.
Asset-backed & Pegged
The FreeMark has been designed to be more legitimate than government currencies because it is asset-backed, and more stable than government currencies because it is automatically pegged to a basket of 20 commodities.
Less Wealthy Buyers
It is important to note that less wealthy people have a higher marginal utility for higher reward investments, which necessarily are higher risk (this means that high rewards, like 10Xs ROI, are more important for small investors than for wealthier people, because the latter are already wealthy). Low reward investments have very low utility for poorer people, because they take too much time to evaluate for too little reward—they are paid too little for their time.
Early-stage investments are one of the few rational ways poorer people can substantially change their financial and social status.
When governments try to regulate less-wealthy people from taking high risks, they are really regulating them from earning high rewards, undermining social mobility. That’s not right, and less wealthy people should be upset. They are free to buy lottery tickets, in which success is completely out of their control. But selecting which ventures might succeed is something they can learn to do, and do consistently.
Governments by their unjust laws against risky investments are also interfering with new investors’ right to fail and to learn from experience, thus stunting their growth in competence as investors.
Today, everyone has the opportunity to acquire the knowledge that sophisticated investors have, by reading investor forums, studying venture firm’s investment criteria, attending angel investor seminars, and studying various kinds of research that are widely available. Importantly, they need to have a source of low-value investments that they can make to experiment with investing.
What, therefore, is the point in assuming that the normal person cannot decide to become an investor, read up on it, and take their chances? It’s their money, and there is now no rational justification for limiting their economic liberty.
SEC Protects Wealthy Investors
But there is a reason: by limiting 99% of the people from investing in high reward investments, many governments, such as the US through the SEC, are protecting wealthy investors. With less investment chasing offers, the valuation of companies declines, reducing the amount of capital that entrepreneurs can raise, and decreasing the ownership equity that they can retain.
Accredited investors, by the US definition, must have made more than $200,000 in the last two years. That is about 0.3% of the planet, by some estimates. That means more than 99% of people on Earth are not allowed to enjoy the high rewards possible for high-risk investments. It only holds for US persons, but the US often presumes its actions are more reasonable and should be used as a standard, which is simply untrue.
Wealthy investors get better returns with these irrational, unfair laws, however. Less wealthy people and entrepreneurs are penalised to provide greater returns for the investors who don’t benefit from better returns as much in comparison, a completely unacceptable situation.
The end result is less money for investment in new businesses, and therefore fewer jobs created, less social mobility, and slower economies.
Buying a FreeMark
A purchase of FreeMarks includes only the currency units purchased. Any additional promotional bonus is not to be included in the purchase price, but to be considered as a free item as a gift from Worldfree, without significant commercial value.
Volatility Kills the Crypto-economy
Cryptocoins go up and down, sometimes 20% in a couple of hours. This massive volatility keeps most people from using cryptocurrencies as a practical medium of exchange—it’s too risky.
When the Bitcoin is going up (deflation), fewer owners want to spend it. When it’s going down (inflation), fewer buyers want to accept it.
Risk Factors
An investment in the FreeMark cryptocurrency offered hereby involves a high degree of risk and should only be made by persons who can afford a total loss of their investment.
The sale price is not to be considered a representation that the FreeMark currently has a market value equal to such sale price or that it could be resold at such price. Worldfree expects to have the FreeMark trading on its distributed exchange by the 4th quarter of 2018, with automatic pegging of the price to a basket of commodities at that time, perhaps sooner, depending upon the outcome of the FreeMark Pre-sale and ICO.
From the time of the ICO onward, the FreeMark will enjoy an automatic pegging of its price to a basket of commodities. In evaluating an investment in the FreeMark digital currency, prospective buyers should consider carefully the following risk factors:
Future or Forward-looking Statements
Firstly, any statement about the future can be neither true nor false until the time arrives. Worldfree (the “Company”) management can only explain our premises and assumptions and the conclusions we have reached about future affairs. It is the responsibility of each investor to accept or reject the validity of Worldfree’s forward-looking statements. No one can predict the future consistently, there are just too many variables.
Secondly, Worldfree understands that investors only invest in the future. No reasonable person would expect to give someone $100 today, and at the same instant expect someone to give them $110 back, thus what happens in the future is critical for investors to be successful.
Thus, because they invest only for future returns, investors want someone to tell them the truth about the future. But they cannot get that—there isn’t any yet.
Investors are therefore advised to rely upon their own judgement about the future for their investment decisions. Forward-looking statements provided by Worldfree are done so on a best-efforts basis.
Worldfree’s management has attempted to identify, in context, certain of the factors that it currently believes may cause actual future experience and results to differ from the Company’s current expectations. The differences may be caused by a variety of factors, including, but not limited to, adverse economic conditions, intense competition, including entry of new competitors, adverse government regulation, inadequate capital, unexpected costs, lower revenues and net income than forecast, price increases for supplies, failure to obtain new buyers, the risk of litigation and administrative proceedings involving the Company and its employees, the possible fluctuation and volatility of the Company’s operating results and financial condition, adverse publicity and new coverage, inability to carry out market and sales plans, loss of key executives, changes in interest rates, inflationary factors, and other specific risks that may be alluded to in this or other documents issued by the Company.
Worldfree’s management cannot not predict the future, only endeavour to identify and understand past trends, emerging opportunities, and fundamental needs of the markets we seek to serve. We present our conclusions and the evidence in support of them and hope you join us in our earnest efforts to bring our unique and better vision of a rational financial and monetary world to reality.
Current State of the Venture
Worldfree is a young company that must raise capital in order to achieve its goals and become a long-term, sustainable venture.
The FreeMark is a new cryptocurrency that is under developed and must gain market acceptance and use before becoming a long-term, successful medium of exchange.
These are accurate representations of the present state of Worldfree and the FreeMark. Readers are urged to read and understand the other information contained in the two Worldfree White Papers, and information conveyed elsewhere on the Worldfree website.
Worldfree may as a result of changing market conditions and technologies alter its planned fund allocation, change the composition and compensation of the team, or alter the technologies Worldfree has invented to solve important problems that Worldfree’s team have identified.
Thus, Worldfree will execute on our plans on a best-efforts basis, using our best understandings, responding to always changing market conditions and future opportunities as we pursue creating the FreeMark, which Worldfree’s team hopes will be in existence for hundreds of years—a goal you as a FreeMark buyer can help achieve.
Limited Operating History
There can be no assurance that Worldfree will be able to achieve profitable operations in the future. The Company’s management anticipates that the Company will incur losses from its operations until the FreeMark is fully marketed. Results of operations in the future will be influenced by numerous factors, including, among others, the ability of the Company to complete development of its product line and successfully and profitably manufacture and distribute its anticipated products in commercial quantities; market acceptance of the Company’s products; the Company’s ability to develop and market or commercialise new products; the ability of the Company to manage its growth and maintain the quality of its products and the ability of the Company to effectively implement its business plan.
The Company has only recently commenced operations, therefore the Company does not have historical audited statements.
The Company’s capital requirements depend on numerous factors, including: the rate of market acceptance of the Company’s proposed products and services, the Company’s ability to maintain and expand its customer base, the level of resources required to expand the Company’s market and sales organisation, research and development activities, the pricing and timing of acquisitions and other factors. The timing and amount of such capital requirements cannot be accurately predicted.
If capital requirements vary materially from those currently planned, or if the Company is unable to sell the entire amount of the Offering at the proposed pricing, the Company may require additional financing sooner than anticipated. The Company has no assurance that additional such commitments can be obtained on favourable terms, if at all.
Uncertainty of Market Acceptance
The Company has begun to sell FreeMarks, yet it is impossible to predict the level of market acceptance of the FreeMark. There can be no assurance that sufficient sales of the FreeMark will sustain the ongoing operations of the Company.
Best Efforts Offering
The FreeMark will be sold in this Presale of $fm6 million on a “best efforts” basis. Thus, there can be no assurance that all of the FreeMarks offered hereby will be sold. There is no minimum-offering amount that is required to be sold before the Company may use the proceeds of the Offering.
Thirty-five percent (35%) of the Funds tendered by prospective purchasers will not be placed in escrow, but will be available for use by the Company immediately upon acceptance, for the purposes and in the amounts as estimated under “Use of Proceeds.”
Sixty-five percent (65%) of the funds tendered by purchasers of the FreeMark will be placed in an audited account, to be held as asset-backing, and returned in the event that the Company cannot continue operations at some future date. These funds will be invested in no less than investment-grade securities or interest-bearing accounts, the proceeds of which will provide operating capital for Worldfree to continue its funds raising as necessary.
With successful performance in the Presale and ICO, the 65% funds will be transferred to The FreeMark Reserve Endowment Trust (the “FMR Endowment Trust”), a regulated, audited and professionally-managed Bermuda Trust fund that will be legally tied to providing only the liquidity needs of owners of the FreeMark, and invested in order to provide inflation and deflation resistance. Management fees of 20% on performance, and 2% of the FMR Endowment Trust will be charged on an annual basis to compensate the management of the FMR Endowment Trust. The stated Goal of the FMR Endowment Trust will be to deliver a 4-8% annual real return to the FMR Endowment Trust after fees, on an average basis.
If the Company sells less than the full amount sought in this Presale, it may not be able to accomplish its goals and may be required to seek additional financing, which may or may not be available, or on favourable terms.
Other Risks
The FreeMark venture has other risks, namely:
- Dependence on Key Personnel—Worldfree is highly dependent on the technical and managerial skills of its key employees, including technical, marketing, advisors, and executive personnel, and on its ability to identify, hire and retain additional personnel. Competition for key personnel, particularly persons having technical expertise, is intense, and there can be no assurance that the Company will be able to retain existing personnel or to identify or hire additional personnel. In particular, the Company is highly dependent on the continued services of its senior manager: Kevin AP Kirchman.
- Risks of Technological Change—The markets for cryptocurrency software applications are characterised by rapid technological developments, frequent new product introductions and evolving industry standards. The emerging nature of these products and their rapid evolution will require that the Company continually improve the performance, features and reliability of its FreeMark applications, particularly in response to competitive offerings. There can be no assurance that the Company will be successful in responding quickly, cost effectively and sufficiently to these developments. There may be a time-limited market opportunity for the Company’s software systems, and there can be no assurance that the Company will be successful in achieving widespread acceptance of its products before competitors offer products with performance similar to or greater than the Company’s current offerings.
- Initial Lack of Liquidity—There is currently no established trading market for the FreeMark, although the Companies plan is to establish a distributed exchange for its use in purchasing goods, services, financial securities, as well as its exchange for other cryptocurrencies and currencies in general. As a result, owners of FreeMark must bear the risk as they await the Companies accomplishment of the establishment of that exchange. The FreeMark should only be purchased by persons who have no need for liquidity in their investment.
- Risk of Product Defects—Software products as complex as those to be offered by the Company may contain undetected errors or “bugs” when introduced or when new versions are released. No assurances can be given that, despite testing by the Company, errors will not be found in new products or releases after commencement of commercial operations, resulting in loss of market share or failure to achieve market acceptance. Any such occurrence could have a material adverse effect upon the FreeMark’s marketing, business model, financial condition and results of operations.
There may be additional risks not listed above that any buyer of FreeMarks may be interested in learning more about before making a purchase.
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