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Инвестиционная оценка ICO проекта
DREAMTEAM
INVESTMENT EVALUATION
OF ICO PROJECT
dimensions.network
ICO:
24.01.2018 – 24.02.2018
Digital Rating Agency
digrate.com
AVERAGE SCORE
3,9 / 7,0
Low
Quality Rate
Investment evaluation of Dimensions Network ICO
LIMITATION OF LIABILITY
This information may be distributed in any way or in any form without prior consent of DigRate but with links to
www.digrate.com
This evaluation expresses the views of DigRate and does not constitute a statement of fact or recommendation to buy,
hold, or sell these or any other assets, or make investment decisions. DigRate assumes no responsibility for any
consequences, interpretations, conclusions, recommendations or other actions directly or indirectly related to the
evaluation performed by DigRate, or the observations and conclusions contained in the ratings report and press
releases, or the absence of any of the above. Current valuations and recommendations can only be found on the official
website www.digrate.com.
The evaluation is only a reflection of DigRate’s review of the documents and other resources available as of the time of
the publishing of this report. Any updates and/or changes to the documents following the date of the publication of this
document are not considered in the evaluation.
The DigRate team expresses its respect to all enthusiasts of the cryptocurrency world.
The legal opinion was prepared by NewLawyers.
2
Investment evaluation of Dimensions Network ICO
CONTENTS 3
OFFICIAL INFORMATION 4
INVESTMENT EVALUATION 5
RECOMMENDATIONS 7
Project Concept 9
Business Model 16
The Tech 20
Tokens 24
Legal Documentation 29
Legal Opinion 33
Media Environment 43
Team 48
Project Support 52
Investment evaluation of Dimensions Network ICO
OFFICIAL INFORMATION 4
Dimensions Network is a hybrid trading platform that offers the following products:
● Coin Pairs
● Margin
● Shorting
● Options Contracts
● Futures Contracts
The Dimensions platform is written with Erlang to ensure maximum scalability and nonstop availability. Erlang’s uses
include for telecoms, banking, e-commerce, computer telephony and instant messaging. Erlang's runtime system has
built-in support for concurrency, distribution and fault tolerance.
Dimensions plans to support traditional trading pairs, options, and futures contracts, among many other services. The
company seeks to expand its services in a decentralized network and offer users secure real-time cryptocurrency
trading.
Dimensions plans initial listings on Etherdelta, Liqui, Bittrex, Binance in the beginning of 2018.
Investment evaluation of Dimensions Network ICO
5INVESTMENT EVALUATION | Conclusion
Low development
potential, highly
speculative
investment
Dimensions Network is a multi-featured cryptocurrency trading platform, with support for national currency
deposits and withdrawals. An aggregator allows for more efficient and profitable trading. The platform
supports options and futures trading.
The concept and tools that the developers offer are necessary for the further development of the whole
crypto-exchange market. Dimensions Network has a demo version of the platform, but it is limited in
functionality. The project team also submitted a detailed roadmap and financial plan specifying targets.
The information presented in the whitepaper is insufficient for a full evaluation of the business model of the
project. It is also not specified how and when the project developers plan to start the implementation of
blockchain technologies technically, because, according to the team, there is currently no technology that can
support real-time trading. One of the advantages of the project is a detailed analysis of the competitive
environment, although information about the legal structure of the company and the experience of the team
members is not fully disclosed, which leaves some doubt as to the intentions of the founders and the team's
capabilities to implement their plans.
The project’s advisory board does not include well-known experts in the blockchain field to date, the team has
not signed any partnership agreements with any major companies, and the project has not been able to
attract major VC investors. Furthermore, the popularity of the project is low, although the team has presented
a marketing plan.
Investment evaluation of Dimensions Network ICO
QUALITY RATE 6
DISADVANTAGES
How do we evaluate the Quality Rate?
LOW
Quality RateADVANTAGES
● The project’s business model lacks information
about the need to issue additional iSTC tokens,
and their volume and price.
● Information about the team members experience is
not disclosed.
● The problems identified by the project developers
are not particularly significant.
● The demo version of the product demonstrates a
very limited part of the final functionality, and
cannot be seen as a prototype.
● The founders of the project are well-known in
professional circles.
● The team has presented a development strategy and
financial plan.
Investment evaluation of Dimensions Network ICO
● Create a prototype product with full functionality
● Make the legal side of the project more transparent
● Describe in which countries and how activities will be initiated, with whom,
and what contracts are to be signed for legal transparency of the process
● Attract investment funds and major well-known companies
● Carry out a safety audit of the crowdsale contract
● Work out a number of additional measures to protect investors from token
devaluation
● Work out possible factors of regulatory and legal risks
● Work out a deeper and more detailed business model for the project
● Attract more well-known and specialized blockchain field consultants
● Provide links to team members’ social network profiles
● Start implementing a marketing plan
7
What can
be improved?
RECOMMENDATIONS
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Conclusion 8
AVERAGE SCORE
3,9
Criteria Score
Does the problem the project plans to solve really exist? 4
Is the company’s product unique? 4
Does the team understand its competition? 6
Has the project laid out its operating business model? 4
Is there a clear roadmap and financial plan?
Is blockchain technology a solution to the market problem?
Is there already a working product that can be sold to customers?
Is the project technology safe for network members?
6
5
2
2
Is the issuance of tokens limited? 6
Is there an asset base that would protect current holders from token devaluation? 5
Do the project participants have a clear motivation for owning the tokens? 5
Is the company’s legal structure transparent? 4
Has the company taken preventive measures to avoid problems with ICO market regulators? 4
Is the project popular on social networks and in thematic communities? 3
Is the project widely discussed in blockchain news resources? 3
Does the project team have extensive experience and a strong track record? 4
Does the project have a strong advisory board? 3
Are the project’s partners large and well-known? 2
Is the project attracting large VC investors? 2
Project Concept
Investment evaluation of Dimensions Network ICO
10INVESTMENT EVALUATION | Concept
Does the problem the project plans to solve really exist?
The project developers distinguish two main problems in cryptocurrency trading:
1. Lack of opportunities for derivatives trading. To date, the bulk of crypto trading is in the purchase and sale of
basic cryptocurrencies. At the same time, not many exchanges offer users derivatives trading (except for Bitcoin
derivatives).
2. The inaccessibility of popular exchanges in periods of high price volatility. There are cases when the
exchanges have halted operations due to overloads due to rapid growth in trading volumes, which entailed delays
in the execution of orders and financial losses for users. This indicates the inability or unwillingness of even the
largest exchanges to cope with the massive demand for cryptocurrencies.
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
11INVESTMENT EVALUATION | ConceptINVESTMENT EVALUATION | Concept
Digrate experts believe the problems identified by the Dimensions Network developers are not particularly significant.
Most likely the absence of derivatives for cryptocurrencies (with the exception of Bitcoin) is explained by the lack of
significant demand. Furthermore, if demand rises, derivatives on alternative cryptocurrencies will likely appear on most
exchanges with derivatives support.
The project developers state that initially the exchange will be centralized, and then, when new blockchain technologies
are introduced they will be implemented on the basis of the already functioning exchange. However, the company is not
developing its own blockchain, and instead plans to use third-party products, which are likely to be used for the
development of other decentralized exchanges.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Concept 12
Is the company’s product unique?
Today, most people who want to participate in crypto trading face the difficult task of choosing a crypto exchange. There
is a wide range of crypto exchanges and one of the main criteria when choosing an exchange is the user's preference
for the structure - centralized or decentralized. Both structures have advantages and disadvantages. Centralized
exchanges are characterized by high transaction speeds, high liquidity and the ability to process a large number of
transactions at once. Decentralized exchanges guarantee users a high level of fund security, while centralized
exchanges have repeatedly been subject to hacker attacks, and users have lost their funds.
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
At the initial stage, the Dimensions Network project plans to launch a centralized exchange, and then, with the
development of the blockchain technology, proposes introducing a blockchain system based on the already functioning
exchange. Thus, within the same platform, the user will have a choice regarding exchange structure. The team also
plans for the exchange to offer derivatives for cryptocurrencies in addition to currency pairs. In today's market, only a few
exchanges offer these trading tools, and, combined with the hybrid structure of the exchange, the project could
potentially interest users.
However, the solutions proposed by the project team are likely to be used by other exchanges as demand for
cryptocurrency derivatives and the development of blockchain technology increases. Thus, it will be difficult for the
project to compete with the top exchanges and the likelihood of high demand is questionable.
INVESTMENT EVALUATION | Concept 13
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Concept
Does the company understand its competition?
The project developers have provided an in-depth analysis of the competitive environment. The Deribit and LedgerX
exchanges have been identified as direct competitors that also offer users derivatives trading. The developers analyzed
the strengths and weaknesses of the competition. The team notes that Deribit can only trade derivatives for Bitcoin, and
LedgerX only serves US citizens and focuses on institutional investors. Both platforms are centralized and do not plan to
introduce a decentralized structure, which carries additional risk. The developers note that at the moment, several new
projects are under development, which include exchange platforms and derivatives trading. Most of them are focused on
building decentralized networks based on underdeveloped technologies, which will require considerable time for
development and will not be sufficiently effective.
14
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
The project team states that their main advantage is the creation of a centralized platform through which they can build
an efficient exchange and attract as many users possible, as quickly as possible. With the development of blockchain
technology, they will be able to choose a progressive and optimal technology to introduce to an already functioning
business, with a sufficient number of users, thereby increasing security for users.
INVESTMENT EVALUATION | Concept 15
Business Model
Investment evaluation of Dimensions Network ICO
Based on the whitepaper, the main source of income for the project will be commission fees of 0.2%. However, the
developers claim they will adjust commissions to maintain competitiveness and focus on the commissions of the popular
Kraken exchange. The following categories of users have been identified as the target audience: traders and investors,
miners, banks, hedge funds, and independent users. Additionally, within the framework of introducing a decentralized
structure, the developers are planning to issue an additional currency, which the team says will be called iSTC. The
currency is to be released no sooner than the blockchain technology that will be able to support real-time cryptocurrency
trading. However, the developers do not plan to independently develop this kind of blockchain.
INVESTMENT EVALUATION | Business Model 17
Has the project laid out its operating business model?
7 6 5 4 3 2 1
Strongly
Agree
Agree Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
The iSTC tokens are to be issued free of charge to STC holders in proportion to STC volumes. The STC and iSTC
tokens are to be completely independent of each other. However, the mechanism for determining the initial price of
iSTC tokens and the output volume is unclear. The concept of implementing two independent tokens for single project
is questionable.
The team also introduced the concept of a liquidity aggregator. According to the developers, the key to attracting
institutional clients to the platform will be the availability of better liquidity. To this end, the team plans to create an
aggregator that will connect the platform with all large exchanges through their APIs, and add their liquidity to the
Dimensions Network platform.
The information provided in the whitepaper is insufficient for a full evaluation of the business model.
INVESTMENT EVALUATION | Business Model 18
Investment evaluation of Dimensions Network ICO
The team has provided a detailed development plan, divided into separate categories: development of a centralized
platform, obtaining banking licenses, developing a mobile app, developing and implementing a decentralized platform
structure, and developing new tokens and a real-time trading mechanism. The financial plan is presented in the budget
allocation scheme for the ICO. Additionally, the developers have presented expected compensation rates for token
holders from 2018 to 2023. The team presents five different scenarios, depending on the platform scaling speed. The
developers base their calculations on statistical indicators from the top 10 crypto exchanges.
INVESTMENT EVALUATION | Business Model
Is there a clear roadmap and financial plan?
19
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
The Tech
Investment evaluation of Dimensions Network ICO
The need for the use of blockchain technology for the Dimensions Network crypto exchange is justified by the goal that
the developers of the project set themselves, namely, the creation of a hybrid-structure crypto exchange, where users
can choose exactly how they want to interact with the platform. The team has justified its decision to use this structure
and outlined the main advantages of the hybrid structure of the platform. At the same time, the project developers state
that modern blockchain technologies are insufficient to support large-scale turnover, provide sufficient liquidity and
provide high transaction speeds. They note that the introduction of blockchain technologies on the basis of a centralized
exchange will occur when these technologies are available, which is a vague timeframe and raises doubt about the full
implementation of the project.
INVESTMENT EVALUATION | Business Model 21
Is blockchain technology a solution to the market problem?
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
The project team has presented a demo version of the exchange, available for testing on the Dimensions Networks
website. However, the software demonstrates very limited functionality. DigRate experts believe that version of the
exchange submitted should not be seen as a prototype.
A smart contract code for selling tokens, the protocol, and a smart contract for the platform are absent.
INVESTMENT EVALUATION | Business Model
Is there already a working product that can be sold to customers?
22
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | The Tech
As of December 13, 2017, a smart contract for the token sale was under development, so it was not possible to audit its
safety.
The centralized structure of the platform is insufficiently secure and, from the experiences of other platforms, could be
vulnerable to hacker attacks, with subsequent losses of funds.
Is the project technology safe for network members?
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
23
Tokens
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Tokens
Is the issuance of tokens limited?
The project team plans to issue 240 million STC tokens (ERC20 protocol), with a base price of 0.00125 ETH per STC,
which will be distributed as follows: 60% is to be sold during crowdsale and pre-sale, 20% is to be allocated to advisory
board members and project partners, 10% is to be distributed amongst the project founders (founders’ tokens are to be
frozen for two years) and 10% is to be allocated to other employees. All unsold tokens are to be destroyed. Only ETH
can be used to buy STC. The team has not provided a soft cap, which shows that the team cannot determine the
minimum amount of funds needed to initiate the project. The developers state that they may revise this decision closer
to the ICO start date.
25
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
The hard cap is 150,000 ETH, or $64 million (as of December 10, 2012) and, according to DigRate experts, is
overvalued.
INVESTMENT EVALUATION | Tokens 26
Investment evaluation of Dimensions Network ICO
The project team provides a number of measures to maintain the token exchange rate and protect it from devaluation:
● The release of the token is strictly limited (all unsold tokens are to be destroyed)
● The founders’ tokens are to be frozen for two years
● There is a mechanism of rewards payment to tokens holders, so it is profitable for investors to store them to
obtain passive income
Other mechanisms to preserve the token value are not envisaged by the developers.
INVESTMENT EVALUATION | Tokens
Is there an asset base that would protect current holders from token devaluation?
27
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
Unlike most ICOs, the Dimensions Networks project tokens are not intended to be the internal currency of the platform.
As a reward, token holders will be given a 15% share of all commissions generated by the platform. During the first
stage, the rewards are to be distributed every three months in the Etherium tokens to all owners of STC tokens at the
date of the rewards allocation. The duration between the issuance of rewards is to decrease as the amount of rewards
increases. The project developers have also presented a financial plan describing the rate of growth for rewards going
forward. Thus, if the team's plans are implemented and the platform develops, it will be profitable for token holders to
hold STC.
INVESTMENT EVALUATION | Tokens
Do the project participants have clear motivation for owning the tokens?
28
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Legal Documentation
Investment evaluation of Dimensions Network ICO
Basic legal information about the company can be found on the Singapore website bizfile.gov.sg. Dmns Networks PTE
LTD is registered in Singapore under the number 201731460N, at 15 Flora Road # 07-06 Avila Gardens, Singapore
509734. Legal documents for the legal entity and on the structure of the company, shareholders, directors, and
authorized capital have not been published on official company sources.
The project team has decided against using an escrow account, which carries additional risks for investors. The project
founders state that the use of escrow is unsafe, citing the loss of money associated with multi-signatures in the
Polkadot project.
INVESTMENT EVALUATION | Legal Documentation
Is the company’s legal structure transparent?
30
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
Terms & Conditions and Privacy Policy are present. The team published a list of three countries (the United States,
Singapore, and China) whose citizens are prohibited from purchasing tokens. The IP addresses of these countries are to
be automatically blocked when attempting to buy STC. Project tokens are not a settlement facility on the platform, and
exclusively serve to reward holders. The Howey Test has not been conducted by an independent party, but it is likely
that in most jurisdictions the token will be defined as a security. This may potentially create obstacles for the project,
especially considering the tightening of securities market requirements and ICO market regulators in relation to
cryptocurrencies in different countries.
INVESTMENT EVALUATION | Legal Documentation
Has the company taken preventive measures to avoid problems with ICO market regulators?
31
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Documentation 32
The issue of adapting to new regulatory conditions for the cryptocurrency industry has not been analyzed by the
developers. Additionally, the issue of compliance with KYC and AML requirements is insufficiently worked out. However,
the project team claims they are negotiating with outside organizations to cooperate in this field and will publish the
results of the negotiations and the final choice of partners for KYC procedures.
To date, operations with fiat funds (input and output) are one of the main problems in cryptocurrency trading. However,
the team claims the company intends to obtain banking licenses, which will allow Dimensions Network to accept dollars,
euros and other major world currencies. Furthermore, according to the team, the system will offer users to possibility to
freely send fiat directly to their bank accounts.
Legal Opinion
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion 34
SUBJECT
● This report analyzes the Strike Coin or STC token issued for the Dimensions Network (Project) ICO.
● The results of this analysis can be used taking into account the limitations at the end of the report.
DOCUMENTATION
● The main marketing material for the tokens is the whitepaper.
● The whitepaper is also accompanied by a document describing the key conditions for the acquisition of tokens
(T&C). The peculiarity of the document is that it does not contain an indication of the token seller.
● In general, the the Dimensions Network website provides the same information as the whitepaper, with additional
information about the project team.
● In addition to the T&C, the Privacy Policy is also available on the website.
● The whitepaper, T&C, and Privacy Policy are hereinafter referred to as “The Documents”.
● The last access to The Documents was on December 8, 2017.
● Information about any law firms cooperating with the project could not be found.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion 35
TOKEN
Rights granted to token holders
● The team claims the token will provide the owner a wide range of opportunities. However, in fact, it all boils down
to the fact that in exchange for token acquisition, holders receive the right to part of the commissions from the
implementation of transactions by third parties using the platform for trading options, futures and other derivatives.
● It is assumed that payments will be carried out quarterly, with a subsequent increase in the frequency of up to one
day.
● The T&C do not contain any information about the capabilities of token. There is a possibility that buyers who
have not read the T&C will get an erroneous idea of the rights they have acquired.
Token Issuer
● The team uses the following token placement structure:
○ With some degree of probability, it can be argued the token issue is carried out by Dimensions Network
Pte. Ltd.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion 36
○ Token sales are carried out by the distributor, which "may be an affiliate", Dimensions Network Pte. Ltd.
Funds from the sale will be transferred to this company by the distributor.
● What Dimensions Network Pte. Ltd. is and in what jurisdiction it is registered is not specified in either the
whitepaper or the T&C. Furthermore, it is unclear what should be understood by “distributor”.
● Thus, it is impossible to say with whom the T&C is concluded, and who has an obligation to token holders. As a
consequence, the ability of the team to really bear responsibility to token holders is questionable.
Know Your Client
The Documents do not contain information about what KYC procedures are planned to be used by the team and
whether they are indeed planned at all.
Terms of Tokens sale
● The token sale is based on the T&C. In general, the level of elaboration of this document is not high.
● At the same time, significant efforts were made in the T&C to limit liability to token holders.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion 37
In essence, the T&C are limited to describing cases, circumstances and mechanisms to comprehensively limit the
issuer's liability, as well as the seller’s (whoever that is).
● There is no other significant information in the T&C.
MANAGING THE RISK OF TOKENS QUALIFYING AS SECURITIES
● The team believes that the token is not a security. This idea is traced in all the documents and, in particular, is
shown by the relevant provisions in the T&C and the assurances of token buyers, "confirming" this fact with the
agreement.
● However, there is no justification for this position. In particular, it was not clear whether the team consulted
lawyers, whether it tried to independently assess the "value" of the token, including with the Howey Test.
● Meanwhile, the risk of the token qualifying as a security seems quite realistic due to the structure of token and the
opportunities provided to its owners. The fact that the documents repeatedly state the opposite does not lead to a
reduction in risk of the corresponding qualification.
● At the same time, most likely in order to avoid the risk the token qualifying as a security, the team takes a number
of measures to prohibit the acquisition of tokens by citizens of the United States and Singapore.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion 38
● Chinese citizens are also forbidden to purchase tokens. There are no other jurisdictions that could potentially
have a negative impact on the token sale in The Documents.
● How the team intends to verify compliance with these prohibitions is unclear, especially given the uncertainty
about KYC plans.
● The only mechanism that, according to whitepaper, the team plans to use is the restriction of access to token
purchases based on IP addresses.
USE OF RAISED FUNDS FROM THE TOKEN SALE
● The whitepaper specifies the purposes for which funds from the token sale will be used. The funds will be sent
from the distributor to Dimensions Network Pte. Ltd
HOLDING STRUCTURE
● There is no clarity about the holding structure of the project.
● In The Documents, only Dimensions Network Pte. Ltd is mentioned. The jurisdiction of the company is not
specified anywhere; however, it is most likely Singapore. Information about the company on specialized websites
in Singapore could not be found.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion 39
OPERATING STRUCTURE
● The Documents provide information on the individuals who are members of the team. In this case, more detailed
information is available for the CEO, Head of Operations (COO) and CTO, which, judging by the whitepaper,
perform specified functions in Dimensions Network Pte. Ltd.
● Based on the individuals’ profiles on LinkedIn, they are based in Singapore, Malaysia and India. However, there
are no links to the profiles of the other team members. Other team members also could not be found on LinkedIn.
● A number of issues related to the operational model of the project are unclear, in particular:
○ In which jurisdiction the team is located,
○ Where the team will carry out operational activities,
○ The extent to which tax risk is associated with obtaining income from sources in Singapore is worked out.
● The team plans to organize trading in options, futures and other derivatives, within the framework of the project. It
is unclear to what extent this will require obtaining licenses in different jurisdictions, in particular, in the jurisdiction
of the implementation of operational activities.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion
INTELLECTUAL PROPERTY
● The Documents do not contain information about the intellectual property of Dimensions Network. The team does
not declare any such objects and does not require the rights of Dimensions Network to be respected on them.
● The Whois service does not identify the entity with whom the website is registered.
● According to The Madrid Monitor, for holders with elements in the name that coincide with the dimensions
network, objects are not registered.
PERSONAL DATA
● The issues of obtaining, processing, storing and transferring personal data are disclosed, mainly, in the Privacy
Policy. This document, in general, resembles documents of this kind.
● In general, users agree to the usage of almost all personal data. It is unclear to whom this agreement is given.
Formally, this is "Dimensions Network", but the meaning of this term in relation to the Privacy Policy is unclear.
● Where personal data is processed and stored is not indicated.
40
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion 41
COUNTERACTION TO THE LAUNDERING OF PROCEEDS FROM CRIME AND FINANCING OF TERRORISM
The Documents do not contain information on measures to combat money laundering and financing of terrorism that the
team plans to undertake.
DISCLAIMER
● The analysis presented in this report is intended for informational purposes only, is based only on publicly
available information and is not a legal opinion of NewLawyers on the laws of any government. In the analysis, we
used only freely available information that can be obtained by any interested person, without financial investment.
● The only purpose of our research is to form a general idea of ​​the degree of elaboration of the legal aspects of the
project by the team. The purpose of this study has never been, is not and will not be, among other things, an
assessment of the legal correctness of the ICO, the correctness of any of the team's legal positions, the quality
and/or adequacy and/or sufficiency of The Documents used, the ability of the team to fulfill obligations for the
project, the confirmation (or refutation) of facts, the implementation of legal advice, etc.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Legal Opinion 42
● The conclusions cannot under any circumstances be used or interpreted as a recommendation for the
commission of any transaction using the tokens or other investment decisions related to the tokens. Our
interpretation of The Documents may differ from the team’s interpretation and/or its individual members and/or
any other persons.
● Despite the fact that we have taken all reasonable measures to exclude mistakes in our analysis, mistakes may
be present. We are not responsible for any mistake, misprint, inaccuracy, ambiguity, or discrepancy in the
interpretation of The Documents (including if our interpretation is incorrect). Contact your lawyer for professional
legal and other advice in the context of your particular situation. The first person who reads the "Disclaimer"
section to the end and reports it to NewLawyers will be given a 50% discount for any NewLawyers legal services
related to the implementation of a blockchain project in 2018, and the next 10%.
Media Environment
Investment evaluation of Dimensions Network ICO
Despite the fact that the project team actively communicates with its community, responds quickly to questions and
regularly publishes news about the project on social networks, the project’s popularity is minimal. The project team has
submitted a marketing plan, with a marketing campaign scheduled for January 2018.
INVESTMENT EVALUATION | Media Environment
Is the project popular on social networks and in thematic communities?
44
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Media Environment 45
Project subscribers on popular social networks:
148
Subscribers
814
Subscribers
4,260 Views
442 Members in
three channels
3
Subscribers
27
Readers
Investment evaluation of Dimensions Network ICO
The project’s popularity in blockchain news resources, as well as on social networks, is low. Most likely this is due to an
inadequate marketing campaign conducted by the project developers. However, the ICO is still a month away, and the
developers claim that they are currently hiring staff to carry out a marketing campaign to increase the project’s
popularity.
INVESTMENT EVALUATION | Media Environment
Is the project widely discussed in blockchain news resources?
46
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Media Environment 47
News resources that have published articles about the project:
Team
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Team 49
Dimensions Network project CEO and CTO are quite competent experts in their fields, their profiles are quite popular,
their work experience is extensive, and their knowledge and skills are confirmed by independent network members. It is
difficult to get an impression of other team members’ level of competence, because their social network profiles are not
available on the company's website and have not been disclosed by the founders. The founders justify the refusal to
provide links to team members’ profiles by stating that there is an internal non-disclosure agreement between the
members of the Dimensions Network team on information about employees, excluding the information on the company's
website.
Does the project team have extensive experience and a strong track record?
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Team 50
Stephen Mullens
CEO
Corporate Manager from the Energy
Sector. Expert on Corporate Governance,
Risk Management, Research and Remote
Operations. C, Java Script, Visual Basic,
Python, PHP, SQL, HTML.
Rin Chwe Me
Head of Operations
Entrepreneur. Director at Snovits.
Manu Datta
CTO
Technologist, Project Manager and
Senior Developer for Major
International Banks; Including
Standard Chartered, Barclays,
Morgan Stanley, CLSA and
Lehman Brothers.
Navneet Kumar
Core Developer
Former Senior Business Analyst.
Erlang / OTP, Python, Google App
Engine, Google NoSQL Datastore,
Google Cloud SQL.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Team 51
Jensen Ng Kian Sheng
Developer
Java, C++.
Tan Wee Ching
Developer
C, C++, Java, Visual Basic .NET, SQL.
Suba Shiniie
Developer
UI / UX. HTML, AngulaJS, Angula2, PHP,
Java, Java Script, Knockout, Laravel.
Project Support
Investment evaluation of Dimensions Network ICO
53
On the official Dimensions Network website, there are four members of the advisory board, two of whom are
anonymous. The profile of one of the advisers on LinkedIn (Danny Oh) is uninformative and does not provide a sufficient
picture of the competencies of the member. The LinkedIn profile of Glenn Farrow is more complete, his skills have been
confirmed, but he is not a popular expert in the blockchain community.
INVESTMENT EVALUATION | Project Support
Does the project have a strong advisory board?
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
54INVESTMENT EVALUATION | Project Support
Anonymous
Regulatory Advisor
Extensive experience in Capital Markets
Regulation within Asia, including
exchange-specific regulation, market
supervision, monitoring, policy setting,
compliance and audit.
Glynn Farrow
Blockchain Advisor
Software Consultant and Blockchain
Developer with industry experience and
ties to numerous blockchain
developments.
Denny Oh
Corporate Investment Advisor
Investment Analyst with close
connections to Private Capital in both
the FIAT and Cryptocurrency Markets.
Anonymous
Exchange Operations Advisor
Veteran Operations Manager, with a
long track record of developing
Exchange businesses in Asia. Strong
focus on compliance, data and trade
analysis, and complex financial
instruments.
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Project Support 55
There is no information in public sources about major well-known companies that have signed partnership agreements
with the project. The founders of Dimensions Network confirm the fact that they have so far failed to sign partnership
agreements with large companies.
Are the project’s partners large and well-known?
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
INVESTMENT EVALUATION | Project Support 56
There is no information on large investors who have shown interest in the project. The founders note that they cannot
provide preferential conditions to investors of this kind who might be interested in the project.
Is the project attracting large VC investors?
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
DIsagree
Disagree Strongly
Agree
Investment evaluation of Dimensions Network ICO
57
Very high
High probability of investment return,
low sensitivity to market conditions.
Score: 6.1-7
RATING SCALE OF INVESTMENT ATTRACTIVENESS
High
Medium-to-high probability of investment
return, considerable sensitivity to market
environment.
Score: 5.1-6
Satisfactory
Considerable risk exposure, high sensitivity
to market conditions.
Score: 4.1-5
Low
Low development potential, highly
speculative investment.
Score: 2.1-4
Very low
High default risk in the short term.
Score: 0-2
Default
In default, with little-to-no prospect for
recovery
Investment evaluation of Dimensions Network ICO
CONTACTS 58
Investment evaluation of Dimensions Network ICO
+7 (495) 175-1024 (Russia)
+41 21 588 02 23 (Switzerland)
info@digrate.com
digrate.com

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Dimensions Network – investment attractiveness report (Digital Rating Agency)

  • 1. Инвестиционная оценка ICO проекта DREAMTEAM INVESTMENT EVALUATION OF ICO PROJECT dimensions.network ICO: 24.01.2018 – 24.02.2018 Digital Rating Agency digrate.com AVERAGE SCORE 3,9 / 7,0 Low Quality Rate
  • 2. Investment evaluation of Dimensions Network ICO LIMITATION OF LIABILITY This information may be distributed in any way or in any form without prior consent of DigRate but with links to www.digrate.com This evaluation expresses the views of DigRate and does not constitute a statement of fact or recommendation to buy, hold, or sell these or any other assets, or make investment decisions. DigRate assumes no responsibility for any consequences, interpretations, conclusions, recommendations or other actions directly or indirectly related to the evaluation performed by DigRate, or the observations and conclusions contained in the ratings report and press releases, or the absence of any of the above. Current valuations and recommendations can only be found on the official website www.digrate.com. The evaluation is only a reflection of DigRate’s review of the documents and other resources available as of the time of the publishing of this report. Any updates and/or changes to the documents following the date of the publication of this document are not considered in the evaluation. The DigRate team expresses its respect to all enthusiasts of the cryptocurrency world. The legal opinion was prepared by NewLawyers. 2
  • 3. Investment evaluation of Dimensions Network ICO CONTENTS 3 OFFICIAL INFORMATION 4 INVESTMENT EVALUATION 5 RECOMMENDATIONS 7 Project Concept 9 Business Model 16 The Tech 20 Tokens 24 Legal Documentation 29 Legal Opinion 33 Media Environment 43 Team 48 Project Support 52
  • 4. Investment evaluation of Dimensions Network ICO OFFICIAL INFORMATION 4 Dimensions Network is a hybrid trading platform that offers the following products: ● Coin Pairs ● Margin ● Shorting ● Options Contracts ● Futures Contracts The Dimensions platform is written with Erlang to ensure maximum scalability and nonstop availability. Erlang’s uses include for telecoms, banking, e-commerce, computer telephony and instant messaging. Erlang's runtime system has built-in support for concurrency, distribution and fault tolerance. Dimensions plans to support traditional trading pairs, options, and futures contracts, among many other services. The company seeks to expand its services in a decentralized network and offer users secure real-time cryptocurrency trading. Dimensions plans initial listings on Etherdelta, Liqui, Bittrex, Binance in the beginning of 2018.
  • 5. Investment evaluation of Dimensions Network ICO 5INVESTMENT EVALUATION | Conclusion Low development potential, highly speculative investment Dimensions Network is a multi-featured cryptocurrency trading platform, with support for national currency deposits and withdrawals. An aggregator allows for more efficient and profitable trading. The platform supports options and futures trading. The concept and tools that the developers offer are necessary for the further development of the whole crypto-exchange market. Dimensions Network has a demo version of the platform, but it is limited in functionality. The project team also submitted a detailed roadmap and financial plan specifying targets. The information presented in the whitepaper is insufficient for a full evaluation of the business model of the project. It is also not specified how and when the project developers plan to start the implementation of blockchain technologies technically, because, according to the team, there is currently no technology that can support real-time trading. One of the advantages of the project is a detailed analysis of the competitive environment, although information about the legal structure of the company and the experience of the team members is not fully disclosed, which leaves some doubt as to the intentions of the founders and the team's capabilities to implement their plans. The project’s advisory board does not include well-known experts in the blockchain field to date, the team has not signed any partnership agreements with any major companies, and the project has not been able to attract major VC investors. Furthermore, the popularity of the project is low, although the team has presented a marketing plan.
  • 6. Investment evaluation of Dimensions Network ICO QUALITY RATE 6 DISADVANTAGES How do we evaluate the Quality Rate? LOW Quality RateADVANTAGES ● The project’s business model lacks information about the need to issue additional iSTC tokens, and their volume and price. ● Information about the team members experience is not disclosed. ● The problems identified by the project developers are not particularly significant. ● The demo version of the product demonstrates a very limited part of the final functionality, and cannot be seen as a prototype. ● The founders of the project are well-known in professional circles. ● The team has presented a development strategy and financial plan.
  • 7. Investment evaluation of Dimensions Network ICO ● Create a prototype product with full functionality ● Make the legal side of the project more transparent ● Describe in which countries and how activities will be initiated, with whom, and what contracts are to be signed for legal transparency of the process ● Attract investment funds and major well-known companies ● Carry out a safety audit of the crowdsale contract ● Work out a number of additional measures to protect investors from token devaluation ● Work out possible factors of regulatory and legal risks ● Work out a deeper and more detailed business model for the project ● Attract more well-known and specialized blockchain field consultants ● Provide links to team members’ social network profiles ● Start implementing a marketing plan 7 What can be improved? RECOMMENDATIONS
  • 8. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Conclusion 8 AVERAGE SCORE 3,9 Criteria Score Does the problem the project plans to solve really exist? 4 Is the company’s product unique? 4 Does the team understand its competition? 6 Has the project laid out its operating business model? 4 Is there a clear roadmap and financial plan? Is blockchain technology a solution to the market problem? Is there already a working product that can be sold to customers? Is the project technology safe for network members? 6 5 2 2 Is the issuance of tokens limited? 6 Is there an asset base that would protect current holders from token devaluation? 5 Do the project participants have a clear motivation for owning the tokens? 5 Is the company’s legal structure transparent? 4 Has the company taken preventive measures to avoid problems with ICO market regulators? 4 Is the project popular on social networks and in thematic communities? 3 Is the project widely discussed in blockchain news resources? 3 Does the project team have extensive experience and a strong track record? 4 Does the project have a strong advisory board? 3 Are the project’s partners large and well-known? 2 Is the project attracting large VC investors? 2
  • 10. Investment evaluation of Dimensions Network ICO 10INVESTMENT EVALUATION | Concept Does the problem the project plans to solve really exist? The project developers distinguish two main problems in cryptocurrency trading: 1. Lack of opportunities for derivatives trading. To date, the bulk of crypto trading is in the purchase and sale of basic cryptocurrencies. At the same time, not many exchanges offer users derivatives trading (except for Bitcoin derivatives). 2. The inaccessibility of popular exchanges in periods of high price volatility. There are cases when the exchanges have halted operations due to overloads due to rapid growth in trading volumes, which entailed delays in the execution of orders and financial losses for users. This indicates the inability or unwillingness of even the largest exchanges to cope with the massive demand for cryptocurrencies. 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 11. Investment evaluation of Dimensions Network ICO 11INVESTMENT EVALUATION | ConceptINVESTMENT EVALUATION | Concept Digrate experts believe the problems identified by the Dimensions Network developers are not particularly significant. Most likely the absence of derivatives for cryptocurrencies (with the exception of Bitcoin) is explained by the lack of significant demand. Furthermore, if demand rises, derivatives on alternative cryptocurrencies will likely appear on most exchanges with derivatives support. The project developers state that initially the exchange will be centralized, and then, when new blockchain technologies are introduced they will be implemented on the basis of the already functioning exchange. However, the company is not developing its own blockchain, and instead plans to use third-party products, which are likely to be used for the development of other decentralized exchanges.
  • 12. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Concept 12 Is the company’s product unique? Today, most people who want to participate in crypto trading face the difficult task of choosing a crypto exchange. There is a wide range of crypto exchanges and one of the main criteria when choosing an exchange is the user's preference for the structure - centralized or decentralized. Both structures have advantages and disadvantages. Centralized exchanges are characterized by high transaction speeds, high liquidity and the ability to process a large number of transactions at once. Decentralized exchanges guarantee users a high level of fund security, while centralized exchanges have repeatedly been subject to hacker attacks, and users have lost their funds. 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 13. Investment evaluation of Dimensions Network ICO At the initial stage, the Dimensions Network project plans to launch a centralized exchange, and then, with the development of the blockchain technology, proposes introducing a blockchain system based on the already functioning exchange. Thus, within the same platform, the user will have a choice regarding exchange structure. The team also plans for the exchange to offer derivatives for cryptocurrencies in addition to currency pairs. In today's market, only a few exchanges offer these trading tools, and, combined with the hybrid structure of the exchange, the project could potentially interest users. However, the solutions proposed by the project team are likely to be used by other exchanges as demand for cryptocurrency derivatives and the development of blockchain technology increases. Thus, it will be difficult for the project to compete with the top exchanges and the likelihood of high demand is questionable. INVESTMENT EVALUATION | Concept 13
  • 14. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Concept Does the company understand its competition? The project developers have provided an in-depth analysis of the competitive environment. The Deribit and LedgerX exchanges have been identified as direct competitors that also offer users derivatives trading. The developers analyzed the strengths and weaknesses of the competition. The team notes that Deribit can only trade derivatives for Bitcoin, and LedgerX only serves US citizens and focuses on institutional investors. Both platforms are centralized and do not plan to introduce a decentralized structure, which carries additional risk. The developers note that at the moment, several new projects are under development, which include exchange platforms and derivatives trading. Most of them are focused on building decentralized networks based on underdeveloped technologies, which will require considerable time for development and will not be sufficiently effective. 14 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 15. Investment evaluation of Dimensions Network ICO The project team states that their main advantage is the creation of a centralized platform through which they can build an efficient exchange and attract as many users possible, as quickly as possible. With the development of blockchain technology, they will be able to choose a progressive and optimal technology to introduce to an already functioning business, with a sufficient number of users, thereby increasing security for users. INVESTMENT EVALUATION | Concept 15
  • 17. Investment evaluation of Dimensions Network ICO Based on the whitepaper, the main source of income for the project will be commission fees of 0.2%. However, the developers claim they will adjust commissions to maintain competitiveness and focus on the commissions of the popular Kraken exchange. The following categories of users have been identified as the target audience: traders and investors, miners, banks, hedge funds, and independent users. Additionally, within the framework of introducing a decentralized structure, the developers are planning to issue an additional currency, which the team says will be called iSTC. The currency is to be released no sooner than the blockchain technology that will be able to support real-time cryptocurrency trading. However, the developers do not plan to independently develop this kind of blockchain. INVESTMENT EVALUATION | Business Model 17 Has the project laid out its operating business model? 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 18. Investment evaluation of Dimensions Network ICO The iSTC tokens are to be issued free of charge to STC holders in proportion to STC volumes. The STC and iSTC tokens are to be completely independent of each other. However, the mechanism for determining the initial price of iSTC tokens and the output volume is unclear. The concept of implementing two independent tokens for single project is questionable. The team also introduced the concept of a liquidity aggregator. According to the developers, the key to attracting institutional clients to the platform will be the availability of better liquidity. To this end, the team plans to create an aggregator that will connect the platform with all large exchanges through their APIs, and add their liquidity to the Dimensions Network platform. The information provided in the whitepaper is insufficient for a full evaluation of the business model. INVESTMENT EVALUATION | Business Model 18
  • 19. Investment evaluation of Dimensions Network ICO The team has provided a detailed development plan, divided into separate categories: development of a centralized platform, obtaining banking licenses, developing a mobile app, developing and implementing a decentralized platform structure, and developing new tokens and a real-time trading mechanism. The financial plan is presented in the budget allocation scheme for the ICO. Additionally, the developers have presented expected compensation rates for token holders from 2018 to 2023. The team presents five different scenarios, depending on the platform scaling speed. The developers base their calculations on statistical indicators from the top 10 crypto exchanges. INVESTMENT EVALUATION | Business Model Is there a clear roadmap and financial plan? 19 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 21. Investment evaluation of Dimensions Network ICO The need for the use of blockchain technology for the Dimensions Network crypto exchange is justified by the goal that the developers of the project set themselves, namely, the creation of a hybrid-structure crypto exchange, where users can choose exactly how they want to interact with the platform. The team has justified its decision to use this structure and outlined the main advantages of the hybrid structure of the platform. At the same time, the project developers state that modern blockchain technologies are insufficient to support large-scale turnover, provide sufficient liquidity and provide high transaction speeds. They note that the introduction of blockchain technologies on the basis of a centralized exchange will occur when these technologies are available, which is a vague timeframe and raises doubt about the full implementation of the project. INVESTMENT EVALUATION | Business Model 21 Is blockchain technology a solution to the market problem? 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 22. Investment evaluation of Dimensions Network ICO The project team has presented a demo version of the exchange, available for testing on the Dimensions Networks website. However, the software demonstrates very limited functionality. DigRate experts believe that version of the exchange submitted should not be seen as a prototype. A smart contract code for selling tokens, the protocol, and a smart contract for the platform are absent. INVESTMENT EVALUATION | Business Model Is there already a working product that can be sold to customers? 22 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 23. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | The Tech As of December 13, 2017, a smart contract for the token sale was under development, so it was not possible to audit its safety. The centralized structure of the platform is insufficiently secure and, from the experiences of other platforms, could be vulnerable to hacker attacks, with subsequent losses of funds. Is the project technology safe for network members? 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree 23
  • 25. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Tokens Is the issuance of tokens limited? The project team plans to issue 240 million STC tokens (ERC20 protocol), with a base price of 0.00125 ETH per STC, which will be distributed as follows: 60% is to be sold during crowdsale and pre-sale, 20% is to be allocated to advisory board members and project partners, 10% is to be distributed amongst the project founders (founders’ tokens are to be frozen for two years) and 10% is to be allocated to other employees. All unsold tokens are to be destroyed. Only ETH can be used to buy STC. The team has not provided a soft cap, which shows that the team cannot determine the minimum amount of funds needed to initiate the project. The developers state that they may revise this decision closer to the ICO start date. 25 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 26. Investment evaluation of Dimensions Network ICO The hard cap is 150,000 ETH, or $64 million (as of December 10, 2012) and, according to DigRate experts, is overvalued. INVESTMENT EVALUATION | Tokens 26
  • 27. Investment evaluation of Dimensions Network ICO The project team provides a number of measures to maintain the token exchange rate and protect it from devaluation: ● The release of the token is strictly limited (all unsold tokens are to be destroyed) ● The founders’ tokens are to be frozen for two years ● There is a mechanism of rewards payment to tokens holders, so it is profitable for investors to store them to obtain passive income Other mechanisms to preserve the token value are not envisaged by the developers. INVESTMENT EVALUATION | Tokens Is there an asset base that would protect current holders from token devaluation? 27 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 28. Investment evaluation of Dimensions Network ICO Unlike most ICOs, the Dimensions Networks project tokens are not intended to be the internal currency of the platform. As a reward, token holders will be given a 15% share of all commissions generated by the platform. During the first stage, the rewards are to be distributed every three months in the Etherium tokens to all owners of STC tokens at the date of the rewards allocation. The duration between the issuance of rewards is to decrease as the amount of rewards increases. The project developers have also presented a financial plan describing the rate of growth for rewards going forward. Thus, if the team's plans are implemented and the platform develops, it will be profitable for token holders to hold STC. INVESTMENT EVALUATION | Tokens Do the project participants have clear motivation for owning the tokens? 28 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 30. Investment evaluation of Dimensions Network ICO Basic legal information about the company can be found on the Singapore website bizfile.gov.sg. Dmns Networks PTE LTD is registered in Singapore under the number 201731460N, at 15 Flora Road # 07-06 Avila Gardens, Singapore 509734. Legal documents for the legal entity and on the structure of the company, shareholders, directors, and authorized capital have not been published on official company sources. The project team has decided against using an escrow account, which carries additional risks for investors. The project founders state that the use of escrow is unsafe, citing the loss of money associated with multi-signatures in the Polkadot project. INVESTMENT EVALUATION | Legal Documentation Is the company’s legal structure transparent? 30 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 31. Investment evaluation of Dimensions Network ICO Terms & Conditions and Privacy Policy are present. The team published a list of three countries (the United States, Singapore, and China) whose citizens are prohibited from purchasing tokens. The IP addresses of these countries are to be automatically blocked when attempting to buy STC. Project tokens are not a settlement facility on the platform, and exclusively serve to reward holders. The Howey Test has not been conducted by an independent party, but it is likely that in most jurisdictions the token will be defined as a security. This may potentially create obstacles for the project, especially considering the tightening of securities market requirements and ICO market regulators in relation to cryptocurrencies in different countries. INVESTMENT EVALUATION | Legal Documentation Has the company taken preventive measures to avoid problems with ICO market regulators? 31 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 32. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Documentation 32 The issue of adapting to new regulatory conditions for the cryptocurrency industry has not been analyzed by the developers. Additionally, the issue of compliance with KYC and AML requirements is insufficiently worked out. However, the project team claims they are negotiating with outside organizations to cooperate in this field and will publish the results of the negotiations and the final choice of partners for KYC procedures. To date, operations with fiat funds (input and output) are one of the main problems in cryptocurrency trading. However, the team claims the company intends to obtain banking licenses, which will allow Dimensions Network to accept dollars, euros and other major world currencies. Furthermore, according to the team, the system will offer users to possibility to freely send fiat directly to their bank accounts.
  • 34. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion 34 SUBJECT ● This report analyzes the Strike Coin or STC token issued for the Dimensions Network (Project) ICO. ● The results of this analysis can be used taking into account the limitations at the end of the report. DOCUMENTATION ● The main marketing material for the tokens is the whitepaper. ● The whitepaper is also accompanied by a document describing the key conditions for the acquisition of tokens (T&C). The peculiarity of the document is that it does not contain an indication of the token seller. ● In general, the the Dimensions Network website provides the same information as the whitepaper, with additional information about the project team. ● In addition to the T&C, the Privacy Policy is also available on the website. ● The whitepaper, T&C, and Privacy Policy are hereinafter referred to as “The Documents”. ● The last access to The Documents was on December 8, 2017. ● Information about any law firms cooperating with the project could not be found.
  • 35. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion 35 TOKEN Rights granted to token holders ● The team claims the token will provide the owner a wide range of opportunities. However, in fact, it all boils down to the fact that in exchange for token acquisition, holders receive the right to part of the commissions from the implementation of transactions by third parties using the platform for trading options, futures and other derivatives. ● It is assumed that payments will be carried out quarterly, with a subsequent increase in the frequency of up to one day. ● The T&C do not contain any information about the capabilities of token. There is a possibility that buyers who have not read the T&C will get an erroneous idea of the rights they have acquired. Token Issuer ● The team uses the following token placement structure: ○ With some degree of probability, it can be argued the token issue is carried out by Dimensions Network Pte. Ltd.
  • 36. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion 36 ○ Token sales are carried out by the distributor, which "may be an affiliate", Dimensions Network Pte. Ltd. Funds from the sale will be transferred to this company by the distributor. ● What Dimensions Network Pte. Ltd. is and in what jurisdiction it is registered is not specified in either the whitepaper or the T&C. Furthermore, it is unclear what should be understood by “distributor”. ● Thus, it is impossible to say with whom the T&C is concluded, and who has an obligation to token holders. As a consequence, the ability of the team to really bear responsibility to token holders is questionable. Know Your Client The Documents do not contain information about what KYC procedures are planned to be used by the team and whether they are indeed planned at all. Terms of Tokens sale ● The token sale is based on the T&C. In general, the level of elaboration of this document is not high. ● At the same time, significant efforts were made in the T&C to limit liability to token holders.
  • 37. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion 37 In essence, the T&C are limited to describing cases, circumstances and mechanisms to comprehensively limit the issuer's liability, as well as the seller’s (whoever that is). ● There is no other significant information in the T&C. MANAGING THE RISK OF TOKENS QUALIFYING AS SECURITIES ● The team believes that the token is not a security. This idea is traced in all the documents and, in particular, is shown by the relevant provisions in the T&C and the assurances of token buyers, "confirming" this fact with the agreement. ● However, there is no justification for this position. In particular, it was not clear whether the team consulted lawyers, whether it tried to independently assess the "value" of the token, including with the Howey Test. ● Meanwhile, the risk of the token qualifying as a security seems quite realistic due to the structure of token and the opportunities provided to its owners. The fact that the documents repeatedly state the opposite does not lead to a reduction in risk of the corresponding qualification. ● At the same time, most likely in order to avoid the risk the token qualifying as a security, the team takes a number of measures to prohibit the acquisition of tokens by citizens of the United States and Singapore.
  • 38. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion 38 ● Chinese citizens are also forbidden to purchase tokens. There are no other jurisdictions that could potentially have a negative impact on the token sale in The Documents. ● How the team intends to verify compliance with these prohibitions is unclear, especially given the uncertainty about KYC plans. ● The only mechanism that, according to whitepaper, the team plans to use is the restriction of access to token purchases based on IP addresses. USE OF RAISED FUNDS FROM THE TOKEN SALE ● The whitepaper specifies the purposes for which funds from the token sale will be used. The funds will be sent from the distributor to Dimensions Network Pte. Ltd HOLDING STRUCTURE ● There is no clarity about the holding structure of the project. ● In The Documents, only Dimensions Network Pte. Ltd is mentioned. The jurisdiction of the company is not specified anywhere; however, it is most likely Singapore. Information about the company on specialized websites in Singapore could not be found.
  • 39. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion 39 OPERATING STRUCTURE ● The Documents provide information on the individuals who are members of the team. In this case, more detailed information is available for the CEO, Head of Operations (COO) and CTO, which, judging by the whitepaper, perform specified functions in Dimensions Network Pte. Ltd. ● Based on the individuals’ profiles on LinkedIn, they are based in Singapore, Malaysia and India. However, there are no links to the profiles of the other team members. Other team members also could not be found on LinkedIn. ● A number of issues related to the operational model of the project are unclear, in particular: ○ In which jurisdiction the team is located, ○ Where the team will carry out operational activities, ○ The extent to which tax risk is associated with obtaining income from sources in Singapore is worked out. ● The team plans to organize trading in options, futures and other derivatives, within the framework of the project. It is unclear to what extent this will require obtaining licenses in different jurisdictions, in particular, in the jurisdiction of the implementation of operational activities.
  • 40. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion INTELLECTUAL PROPERTY ● The Documents do not contain information about the intellectual property of Dimensions Network. The team does not declare any such objects and does not require the rights of Dimensions Network to be respected on them. ● The Whois service does not identify the entity with whom the website is registered. ● According to The Madrid Monitor, for holders with elements in the name that coincide with the dimensions network, objects are not registered. PERSONAL DATA ● The issues of obtaining, processing, storing and transferring personal data are disclosed, mainly, in the Privacy Policy. This document, in general, resembles documents of this kind. ● In general, users agree to the usage of almost all personal data. It is unclear to whom this agreement is given. Formally, this is "Dimensions Network", but the meaning of this term in relation to the Privacy Policy is unclear. ● Where personal data is processed and stored is not indicated. 40
  • 41. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion 41 COUNTERACTION TO THE LAUNDERING OF PROCEEDS FROM CRIME AND FINANCING OF TERRORISM The Documents do not contain information on measures to combat money laundering and financing of terrorism that the team plans to undertake. DISCLAIMER ● The analysis presented in this report is intended for informational purposes only, is based only on publicly available information and is not a legal opinion of NewLawyers on the laws of any government. In the analysis, we used only freely available information that can be obtained by any interested person, without financial investment. ● The only purpose of our research is to form a general idea of ​​the degree of elaboration of the legal aspects of the project by the team. The purpose of this study has never been, is not and will not be, among other things, an assessment of the legal correctness of the ICO, the correctness of any of the team's legal positions, the quality and/or adequacy and/or sufficiency of The Documents used, the ability of the team to fulfill obligations for the project, the confirmation (or refutation) of facts, the implementation of legal advice, etc.
  • 42. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Legal Opinion 42 ● The conclusions cannot under any circumstances be used or interpreted as a recommendation for the commission of any transaction using the tokens or other investment decisions related to the tokens. Our interpretation of The Documents may differ from the team’s interpretation and/or its individual members and/or any other persons. ● Despite the fact that we have taken all reasonable measures to exclude mistakes in our analysis, mistakes may be present. We are not responsible for any mistake, misprint, inaccuracy, ambiguity, or discrepancy in the interpretation of The Documents (including if our interpretation is incorrect). Contact your lawyer for professional legal and other advice in the context of your particular situation. The first person who reads the "Disclaimer" section to the end and reports it to NewLawyers will be given a 50% discount for any NewLawyers legal services related to the implementation of a blockchain project in 2018, and the next 10%.
  • 44. Investment evaluation of Dimensions Network ICO Despite the fact that the project team actively communicates with its community, responds quickly to questions and regularly publishes news about the project on social networks, the project’s popularity is minimal. The project team has submitted a marketing plan, with a marketing campaign scheduled for January 2018. INVESTMENT EVALUATION | Media Environment Is the project popular on social networks and in thematic communities? 44 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 45. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Media Environment 45 Project subscribers on popular social networks: 148 Subscribers 814 Subscribers 4,260 Views 442 Members in three channels 3 Subscribers 27 Readers
  • 46. Investment evaluation of Dimensions Network ICO The project’s popularity in blockchain news resources, as well as on social networks, is low. Most likely this is due to an inadequate marketing campaign conducted by the project developers. However, the ICO is still a month away, and the developers claim that they are currently hiring staff to carry out a marketing campaign to increase the project’s popularity. INVESTMENT EVALUATION | Media Environment Is the project widely discussed in blockchain news resources? 46 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 47. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Media Environment 47 News resources that have published articles about the project:
  • 48. Team
  • 49. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Team 49 Dimensions Network project CEO and CTO are quite competent experts in their fields, their profiles are quite popular, their work experience is extensive, and their knowledge and skills are confirmed by independent network members. It is difficult to get an impression of other team members’ level of competence, because their social network profiles are not available on the company's website and have not been disclosed by the founders. The founders justify the refusal to provide links to team members’ profiles by stating that there is an internal non-disclosure agreement between the members of the Dimensions Network team on information about employees, excluding the information on the company's website. Does the project team have extensive experience and a strong track record? 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 50. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Team 50 Stephen Mullens CEO Corporate Manager from the Energy Sector. Expert on Corporate Governance, Risk Management, Research and Remote Operations. C, Java Script, Visual Basic, Python, PHP, SQL, HTML. Rin Chwe Me Head of Operations Entrepreneur. Director at Snovits. Manu Datta CTO Technologist, Project Manager and Senior Developer for Major International Banks; Including Standard Chartered, Barclays, Morgan Stanley, CLSA and Lehman Brothers. Navneet Kumar Core Developer Former Senior Business Analyst. Erlang / OTP, Python, Google App Engine, Google NoSQL Datastore, Google Cloud SQL.
  • 51. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Team 51 Jensen Ng Kian Sheng Developer Java, C++. Tan Wee Ching Developer C, C++, Java, Visual Basic .NET, SQL. Suba Shiniie Developer UI / UX. HTML, AngulaJS, Angula2, PHP, Java, Java Script, Knockout, Laravel.
  • 53. Investment evaluation of Dimensions Network ICO 53 On the official Dimensions Network website, there are four members of the advisory board, two of whom are anonymous. The profile of one of the advisers on LinkedIn (Danny Oh) is uninformative and does not provide a sufficient picture of the competencies of the member. The LinkedIn profile of Glenn Farrow is more complete, his skills have been confirmed, but he is not a popular expert in the blockchain community. INVESTMENT EVALUATION | Project Support Does the project have a strong advisory board? 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 54. Investment evaluation of Dimensions Network ICO 54INVESTMENT EVALUATION | Project Support Anonymous Regulatory Advisor Extensive experience in Capital Markets Regulation within Asia, including exchange-specific regulation, market supervision, monitoring, policy setting, compliance and audit. Glynn Farrow Blockchain Advisor Software Consultant and Blockchain Developer with industry experience and ties to numerous blockchain developments. Denny Oh Corporate Investment Advisor Investment Analyst with close connections to Private Capital in both the FIAT and Cryptocurrency Markets. Anonymous Exchange Operations Advisor Veteran Operations Manager, with a long track record of developing Exchange businesses in Asia. Strong focus on compliance, data and trade analysis, and complex financial instruments.
  • 55. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Project Support 55 There is no information in public sources about major well-known companies that have signed partnership agreements with the project. The founders of Dimensions Network confirm the fact that they have so far failed to sign partnership agreements with large companies. Are the project’s partners large and well-known? 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 56. Investment evaluation of Dimensions Network ICO INVESTMENT EVALUATION | Project Support 56 There is no information on large investors who have shown interest in the project. The founders note that they cannot provide preferential conditions to investors of this kind who might be interested in the project. Is the project attracting large VC investors? 7 6 5 4 3 2 1 Strongly Agree Agree Slightly Agree Neutral Slightly DIsagree Disagree Strongly Agree
  • 57. Investment evaluation of Dimensions Network ICO 57 Very high High probability of investment return, low sensitivity to market conditions. Score: 6.1-7 RATING SCALE OF INVESTMENT ATTRACTIVENESS High Medium-to-high probability of investment return, considerable sensitivity to market environment. Score: 5.1-6 Satisfactory Considerable risk exposure, high sensitivity to market conditions. Score: 4.1-5 Low Low development potential, highly speculative investment. Score: 2.1-4 Very low High default risk in the short term. Score: 0-2 Default In default, with little-to-no prospect for recovery
  • 58. Investment evaluation of Dimensions Network ICO CONTACTS 58 Investment evaluation of Dimensions Network ICO +7 (495) 175-1024 (Russia) +41 21 588 02 23 (Switzerland) info@digrate.com digrate.com