05 July 2018
Official Update Plus Q&A
Good day from the Arbitrade Team.
As you can imagine, the Arbitrade teams have been extremely busy, and it’s been beyond challenging to keep up with regular updates because of how many required approvals there are for everything we have been doing.
This email is an official update date on many aspects of the company and how it's operating, so that you, as a supporter of Arbitrade and its tokens, can better understand where the company is heading and why things often take so long and why we cannot always respond quickly to inquiries.
In this email, we will get into the detail of how everything is working and our plans.
We will start from the beginning and break down the structure of the team first.
Arbitrade has several layers of management and structure, starting from the top with the Board of Directors, which has been publicly announced in the past few months, that is made up of world-renowned businessmen from Fortune 500 companies and Wall Street.
Board of Directors and Executives are as follows:
These board members make all the decisions of the company for advancing structure. The plan is to build a Fortune 50 style company over the next ten years. Some board members may change from time to time, based on experience and needs of the company, and positions may shift as the infrastructure grows. Anyone exiting the board will be replaced with an equally impressive person with similar credentials.
From here, two principal consultants work directly for the company based on contracts.
They are as follows:
Hayden Gill – Hayden is recognized as one of the world’s top cryptocurrency mining consultants. He has been aggressively negotiating deals to partner with the world’s top manufacturers of mining rigs, chips, and cards as Arbitrade wants to become a dominating leader in the cryptocurrency sector. Hayden has shown the company his tremendous skills and connections as he has been overseeing the developments in Watford and Atlanta. Besides these facilities, Hayden has also been visiting potential new locations around North America and soon overseas, as the rollout continues. Watford has 5MW of current power that can facilitate 4,000 mining rigs to start, and Arbitrade, along with Hayden’s company Coinminer, has been successfully negotiating with Hydro One and its partners to bring in up to an additional 150MW of power so that the Watford facility will be among the largest cryptocurrency mining facilities in the world. Currently, the property boasts a massive size of 100,000 square feet, but there are an additional 16 acres available that can accommodate an enormous expansion up to 1,000,000 square feet of mining space. The company, on behalf of Hayden, has been in negotiations to develop the company’s own ASIC mining rigs and GPU miners.
Troy Hogg – Troy was the visionary and original designer of everything Arbitrade. From the all-in-one merchant banking platform to the bullion-backed tokens to Arbipay and the mining structure, it was his design that has been behind what we have been aggressively building for the future. Troy has overseen the development, acquisitions, government negotiations, bullion partnership and is involved with all significant growth decisions of the overall business. His contract is based on seeing the development and growth of Arbitrade until the ICO ends and the platform officially launches. Troy made a deal with equity partners, the board and development teams that he would be compensated for his vision and efforts upon his resigning from Arbitrade to pursue improving his health and other endeavors. Troy had temporarily left the company prior, but the board and management found that he was an invaluable negotiator and could convey the vision the best, so he was asked to return as a consultant.
There are four aspects that the company is building currently. That is the operational management for Bermuda, the support teams, the compliance teams and the Board of Advisors.
Steve Braverman, who was credited with operating the trading desk at Knight Securities and other investment houses for many years, will oversee the build-out of the Bermuda operations located at Victoria Hall, which is Arbitrade’s new seven-story office tower.
The company has been speaking with many influential people globally that are interested in holding an advisory seat with the company. The response has been overwhelming, and the company has decided that it will have 100 advisors from around the world, which makes the best sense for the company's plans to move forward. These advisor positions are being filled with experts from the cryptocurrency sector, government, banking, royalty, celebrity, media, and business. The names of all the individuals will be announced before the Arbitrade ICO.
The Bermuda Head Office Location and Regulations
Bermuda is the gold standard for banking and the reinsurance industry. They have been passing the laws to make Bermuda the gold standard in an additional industry, fintech, primarily based on cryptocurrency, which they wish to refer to from here on as digital assets.
Arbitrade has been working with the government of Bermuda to help establish this new industry. Troy Hogg was one of the very first people that met with the Premier and Ministers in charge of the new fintech space. After ten visits to Bermuda, Meeting with the Premier and Ministers, the Company has been incorporated. It will soon go through the process to be able to issue its ICO and obtain a License. The Government has come passed many pieces of legislation that deals with ICO and digital assets. What they are working on is the regulation that ties in with the legislation. Bermuda is a very sophisticated Jurisdiction and they have put in place legislation and regulations to protect all parties, which includes investors, and users.
We are very optimistic that we will have the license in hand soon. Until than we will keep you comprised of the progress. Before commencing business, the company must receive the official operating licenses. This requires the laws that have been passed by the government to be sworn into law. This process requires several steps to be completed before Arbitrade can be given the official license to operate and announce the company’s ICO. Three and possibly four laws make up the full legislation for the digital asset sector in the fintech industry for Bermuda. Each must be sworn into law before any company can officially operate from Bermuda in this sector or launch an ICO. Arbitrade will oversee the build-out and upgrades to Victoria Hall while the company awaits the licenses for operations. After a recent lengthy visit by all the board members, management and consultants, the company was informed that the licenses might take as long as September. The company may have misjudged the process period for these licenses but is confident it will happen sooner than later.
Due to the delay in the licenses to host an ICO and the license to operate, Arbitrade has decided to use this time on building the management teams, the board of advisors, and introduce the Arbitrade platform to new countries which was a focus the company had to achieve anyways. Management is looking at this as a positive in the light of anticipation.
Currently, Arbitrade has been in talks with many countries that could potentially be a subsidiary location for Arbitrade. The teams that have been in these talks will solidify these negotiations between now and September.
The idea of doing this is for several reasons, and they are:
It is Arbitrade’s desire to have a license to operate in the United States, Canada, Australia, and the United Kingdom before hosting their ICO. Actions have been taken to advance this in short order. The company will be releasing details of the ICO shortly after Bermuda passes the ICO bill into law, which is expected within the next two weeks
The Dignity Smart Contract Correction and Swap of UNY/UNI for DIG
This seems to be one of the two hottest topics the Arbitrade Support desk has been receiving, and for good reason.
Today the contracts will be launched on the Ethereum network, and then, in short order, the adoption to the two exchanges (Livecoin/CCEX) will occur. Once these are on the exchanges, they will be immediately swapped for people holding their tokens on the trade exchanges. Once that is completed the company will do an open transfer for tokens being held in off-exchange wallets. Instructions for this will be released Thursday and all transfers will occur as fast as people receive the messages. People that lost a large amount of DIG due to the gas issue will be compensated for the transfers. Then the same style open transfer will be done for the remaining UNY/UNI tokens. We expect all transfers and corrections to take less than 5 days. This will be up to the people holding DIG/UNY/UNI as to the speed of completion.
Upon completion of the transfer and/or swap of DIG/UNY/UNI tokens, the “GIFT” tokens will be airdropped and immediately added to Livecoin.net. Instructions for the airdrop of the gift tokens will come after the DIG transfer is complete.
The remaining tokens that are listed or to be listed will be updated and transferred. We expected this all to occur over the next 6 days.
The Bullion Deal
This is the second most popular topic.
Arbitrade Ltd. has made a definitive deal with Sion Trading FZE Dubai to acquire $10,000,000,000 in gold bullion. The bullion will be held at Brinks’ vault at the Dubai Gold Exchange. Arbitrade will have the title certificate, which is called an SKR, in hand in the next two weeks. The company will have the bullion audited by a major accounting firm that operates in both Bermuda, Dubai and the United States before the end of September or as the accounting firm’s schedule permits. The audit is not an important factor and is only being done to satisfy U.S. Regulators.
There has been a large amount of confusion as to why Arbitrade negotiated the initial deal for all gold, and there is a simple answer. The bullion vaults primarily hold gold for these types of transactions. As Arbitrade pays off the gold bullion debt to Sion, the gold can be traded for the appropriate metals backing each token before being shipped to the vault in Bermuda, where it will be audited once a year, again, as the reserves build up.
The amount of gold bullion backing each token is as follows:
Dignity (DIG) – $3 Billion in Gold Bullion ($1 worth of Gold Bullion for every token issued.)
Namaste (NAM) – $2 Billion in Gold Bullion to be traded for Silver Bullion upon each payment. ($2 worth of Silver Bullion for every token issued.)
Orectic (ORE) – $1 Billion in Gold Bullion to be traded for Platinum Bullion upon each payment. ($3 worth of Platinum Bullion for every token issued.)
Honor (HNR) – $500 million in Gold Bullion to be traded for Palladium Bullion upon each payment. ($4 worth of Palladium Bullion for every token issued.)
Arbitrade ICO Token - $3.5 Billion in Gold Bullion. ($14 worth of Gold Bullion for every token issued.)
The gold floor value will be priced at time of transfer of title certificate next week in Dubai, and that will be the hard value against each token. The new website will reflect the actual value of each token based against the daily price of the bullion as they trade globally. This has not been achieved in this sector to date and, for all our supporters, Arbitrade is happy to have been the first.
Questions and Answers
The Company has had a lot of support questions come in, so we decided to end this email update with a Q and A directly from the questions that have been sent in.
Q1. We were told that the exchange would launch months ago. Wouldn’t Arbitrade have known about the regulatory issues, so why did they tell us this?
A1. No, we could not have known, and the company had been misinformed regarding the regulatory issues as this is all new territory for the company, Bermuda, and the lawyers involved.
Q2. The websites have been temporary sites all year. Why haven't the websites been updated?
A2. The company believes it shouldn’t put the cart before the horse. Arbitrade is doing everything permitted by law. This means we need licenses to operate and approvals before we can legally announce everything officially. Releasing detailed information on the actions of the company would break agreements we have with our partners and the countries we have been in negotiations with, including Bermuda.
Q3. Why haven't new whitepapers been released?
A3. This is the same response as the question above about the websites.
Q4. Why is the smart contract issue taking so long to rectify and when will it be fixed?
A4. Previously, the company had been dealing with developers that they hired full-time, based on their past resume. It now appears that they did not know as much about Smart Contract Tokens as they claimed and, as such, there were issues with the contracts. The company has since retained a new world-renowned company to take over the redevelopment of the tokens. Unfortunately, because of the popularity of this particular firm, Arbitrade had to get in line behind customers that had retained them previously. Fortunately, as you can read in the update above, the token deployment is occurring now.
Q5. Why has everything on the airdrop gone silent with no updates? Many have moved their coins off-exchange for this and have not received recent updates.
A5. Arbitrade had stated that this is a gift from the company to DIG holders. It was also stated that it would be deployed and given after the new token contracts were in place. If we had given the gift tokens prior to the new token contracts both tokens would have been dysfunctional which would have created a larger headache for everyone.
Q6. We were told that DIG and the other tokens would be listed on 14 exchanges. So far this hasn't happened. When will the tokens be on the additional exchanges?
A6. This should be an obvious answer as the company has released previous statements regarding this. The token contracts must all be in place and operating correctly before the tokens will be issued to the new partnering exchanges. As soon as all tokens are fixed/swapped and the gift token is shared, the tokens will begin being listed on the other exchanges. Only DIG, NAM, ORE, HNR and the Arbitrade ICO tokens will be listed on the new exchanges.
Q7. Why can't Arbitrade map out a roadmap with milestones that are realistic and transparent like every other token project tries to do?
A7. If you look at other tokens’ roadmap from one year ago, you'll find most benchmarks and milestones have been missed. The company never planned on doing things in the traditional sense like "other tokens" and exchanges. The company had planned to build everything first and then launch but since analysts jumped early, we felt obligated to start sharing news before originally planned. Once we release the latest whitepapers, website, and ICO details, there will be a realistic timeline for the future developments and plans.
Q8. Why doesn’t the company provide more frequent updates and, at the very least, provide updates when dates are missed and/or expected to be missed with explanation?
A8. We apologize for this. The company’s partnerships and agreements require approvals from all partners and the government before we can release anything. Our Press Conference was rushed because of the available time allotted that day and again we, the company, apologize for this. The process of approvals going through every legal firm and government takes a considerable amount of time. It’s unfortunate, but it is the nature of this beast. As being supporters of DIG, Arbitrade, and our vision, we hope you can understand why we want these approvals and why we are doing everything by the law as its available to proceed further. A vast number of companies in the space that jumped early to host ICO’s or launch their platforms in an unregulated manner, at the time, are now dealing with investigations and regulatory issues, in many cases, and Arbitrade doesn’t want these headaches. We prefer to take the higher road to achieve the gold standard in everything we are doing. This email was written to cover these questions for everyone, and we hope it clarifies a lot of the missing details.
Q9. Why doesn’t Arbitrade show up in the lists of registered businesses in Bermuda?
A9. It should show up on the registry as Arbitrade Ltd., now. If it doesn’t, it will soon.
Q10. Why haven’t more board members publicly acknowledged their involvement with Arbitrade?
A10. The Board has allowed for the official press releases to go out. As you can see from our recent visit in Bermuda, our first official board meeting in the country of Bermuda has the entire board in attendance as seen in this impromptu picture. The other photos were taken at an event after the board meeting.
Q11. The outside perception of the token holders from Arbitrade looks bad, why don't you keep the people updated regularly?
A11. Please see question #8 for this answer.
The company is very aggressive and has a large plan that we feel would be more beneficial for our supporters if we didn’t share every aspect of the plans until the benchmarks are achieved, and so it doesn’t allow for copycats in the sector.
We believe in what we are doing will benefit the entire world in many ways and we look forward to hosting Arbitrade conferences all over the entire world so that we can meet all our supporters face to face and shake hands. Arbitrade was established to be the best of the best, and we will not stop until that is achieved for all our supporters. It is our job to over deliver.
With the negative aspects that social media stirs we have chosen to deliver updates once a week in a Q and A format from here on in. Please feel free to post your questions on Twitter, Telegram or by email on one of the Arbitrade websites. Please use the hashtag #ArbitradeHelp, and we will try to answer every question, every week from here on in. Email is the best method to have your questions answered publicly. We are sure everyone that’s thinking logically understands why we must be cautious and take our time to receive approvals from all partnering parties involved.