You should carefully consider and evaluate each of the following risk factors and all other information contained in the Terms before deciding to participate in the 4NEW Token Generation Event (the “TGE”). To the best of 4NEW Coin Limited (United Kingdom) (the “Company”) knowledge and belief, all risk factors which are material to you in making an informed judgment to participate in the TGE have been set out below. If any of the following considerations, uncertainties or material risks develops into actual events, the business, financial position and/or results of operations of the Company and the maintenance and level of usage of the 4NEW platform and the 4NEW Coins could be materially and adversely affected. In such cases, the trading price of 4NEW Coins (in the case where they are listed on a cryptocurrency exchange) could decline due to any of these considerations, uncertainties or material risks, and you may lose all or part of your 4NEW Coins.
RISKS RELATING TO PARTICIPATION IN THE TOKEN GENERATION EVENT
There is no prior market for 4NEW Coins and the Token Generating Event (TGE) may not result in an active or liquid market for the 4NEW Coins
Prior to the TGE, there has been no public market for the 4NEW Coins. Although the Company will use reasonable endeavors to seek the approval for availability of the 4NEW Coins for trading on a cryptocurrency exchange, there is no assurance that such approval will be obtained. Furthermore, even if such approval is granted by a cryptocurrency exchange, there is no assurance that an active or liquid trading market for the 4NEW Coins will develop, or if developed, will be sustained after the 4NEW Coins have been made available for trading on such cryptocurrency exchange. There is also no assurance that the market price of the 4NEW Coins will not decline below the original purchase price (the “Purchase Price”). The Purchase Price may not be indicative of the market price of the 4NEW Coins after they have been made available for trading on a cryptocurrency exchange.
A 4NEW Coin is not a currency issued by any central bank or national, supra-national or quasi-national organization, nor is it backed by any hard assets or other credit
The Company is not responsible for, nor does it pursue, the circulation and trading of 4NEW Coins on the market. Trading of 4NEW Coins will merely depend on the consensus on its value between the relevant market participants. No one is obliged to purchase any 4NEW Coin from any holder of the 4NEW Coin, including the purchasers, nor does anyone guarantee the liquidity or market price of 4NEW Coins to any extent at any time. Accordingly, the Company cannot ensure that there will be any demand or market for 4NEW Coins, or that the Purchase Price is indicative of the market price of 4NEW Coins after they have been made available for trading on a cryptocurrency exchange.
Future sales or issuance of the 4NEW Coins could materially and adversely affect the market price of 4NEW Coins
Any future sale or issuance of the 4NEW Coins would increase the supply of 4NEW Coins in the market and this may result in a downward price pressure on the 4NEW Coin. The sale or distribution of a significant number of 4NEW Coins outside of the TGE (including but not limited to the sales of 4NEW Coins undertaken after the completion of the initial crowd sale, issuance of 4NEW Coins to persons other than purchasers for purposes of community initiatives, business development, academic research, education and market expansion and issuance of 4NEW Coins as a reward to users of the 4NEW platform), or the perception that such further sales or issuance may occur, could adversely affect the trading price of the 4NEW Coins.
Negative publicity may materially and adversely affect the price of the 4NEW Coins.
Negative publicity involving the Company, 4NEW Limited, (the 4NEW project’s operating entity organized in United Kingdom), the 4NEW platform, the 4NEW Coins or any of the key personnel of the Company or 4NEW Limited, and/or regulation of cryptocurrencies in the UK or worldwide, may materially and adversely affect the market perception or market price of the 4NEW Coins, whether or not it is justified.
We may not be able to pay any anticipated rewards in the future
There is no assurance that there will be sufficient engagement in the 4NEW COIN platform such that you will receive any rewards anticipated to be distributed to active users of the 4NEW platform. Further, even in the event there is substantial engagement and interactions among the users and the 4NEW platform, there is no assurance you personally will receive any part of the rewards. This is because the ability of the Company to pay any reward to you will depend on the future results of operations and the future business and financial condition of the Company and/or 4NEW Limited, and there is no assurance of the future results of operations and the future business and financial condition of the Company or 4NEW Limited.
There is no assurance of any success of 4NEW Platform or any Future Business Line
The value of, and demand for, the 4NEW Coins hinges heavily on the performance of the 4NEW platform and the continuous active engagement of its users and success of its contemplated business lines. There is no assurance that the 4NEW platform will gain traction after its launch and achieve any commercial success. Furthermore, there is no assurance that any of the business lines contemplated by 4NEW, Limited. will be launched and generate sufficient consumer traction. Such contemplated business lines currently include but are not limited to: (a) create an immutable ledger for all waste to energy related industry data via 4NEW Coin, (b) offer payment for waste to energy industry related services and supplies through 4NEW Coins, (c) organize and unite waste to energy efforts globally through 4NEW Coin, and (e) bring standardization of licensing, lab testing, transactions, supply chain and ID verification through apps built on 4NEW Platform. Although, 4NEW Limited has performed several market studies testing the demand for the 4NEW platform with relatively positive results, the 4NEW platform has not been fully developed and finalized and is subject to further changes, updates, and adjustments prior to its launch. Such changes may result in unexpected and unforeseen effects on its projected appeal to users, possibly due to the failure to meet users’ preconceived expectations based on the beta version, and hence, impact its success. While the Company has made every effort to provide a realistic estimate, there is also no assurance that the cryptocurrencies raised in the TGE will be sufficient for the development of the 4NEW platform and/or for the proper structuring and licensing of the anticipated 4NEW future anticipated business lines. For the foregoing or any other reason, the development of the 4NEW platform and launch of the anticipated 4NEW future business lines may not be completed and there is no assurance that it will be launched at all. As such, distributed 4NEW Coins may hold little worth or value.
The funds raised in the Coin Generation Event are exposed to risks of theft
The Company will make every effort to ensure that the funds received from the TGE will be securely held in an escrow wallet, which is a multi-signature address with access thereto by private keys held by reputable and trusted parties. Further, upon receipt of the funds from the Company, 4NEW Limited. will make every effort to ensure that the funds received by it from the Company will be securely held through the implementation of security measures. Notwithstanding such security measures, there is no assurance that there will be no theft of the cryptocurrencies as a result of hacks, sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on the TGE website, in the smart contract(s) on which the escrow wallet and the TGE relies, on the Ethereum or any other blockchain, or otherwise.
Such events may include, for example, laws in programming or source code leading to exploitation or abuse thereof. In such event, even if the TGE is completed, the Company or 4NEW Limited may not be able to receive the cryptocurrencies raised and 4NEW Limited may not be able to use such funds for the development of the 4NEW platform and/or for launching any future business line, including but not limited to the structuring and licensing of the 4NEW future business lines. In such case, the launch of the 4NEW platform and the structuring and licensing of the 4NEW future business lines might be temporarily or permanently curtailed. As such, distributed 4NEW Coins may hold little worth or value.
RISKS RELATING TO THE ESCROW WALLET
The private keys to the escrow wallet may be compromised and the cryptocurrencies
may not be able to be disbursed
The escrow wallet is designed to be secure. Each of the holders of the three (3) private keys to the escrow wallet will use all reasonable efforts to safeguard their respective keys, but in the unlikely event that any two (2) of the three (3) keys to the escrow wallet are, for any reason whatsoever, lost, destroyed or otherwise compromised, the funds held by the escrow wallet may not be able to be retrieved and disbursed, and may be permanently unrecoverable. In such event, even if the TGE is successful, the Company will not be able to receive the funds raised and 4NEW Limited will not be able to use such funds for the development of the 4NEW platform and the structuring and licensing of the 4NEW future business lines. As such, distributed 4NEW Coins may hold little worth or value.
RISKS RELATING TO 4NEW LIMITED.
The 4NEW platform is developed, operated, and maintained by 4NEW Limited. Any events or circumstances which adversely affect 4NEW Limited or any of its successor operating entities (collectively referred to herein as “4NEW Limited”) may have a corresponding adverse effect on the 4NEW platform and any future business line, including but not limited to structuring and launch of the 4NEW future business lines. Such adverse effects would correspondingly have an impact on the utility, liquidity, and the trading price of the 4NEW Coins.
4NEW Limited may be materially and adversely affected if it fails to effectively manage its operations as its business develops and evolves, which would have a direct impact on its ability to maintain the 4NEW platform and/or launch any future business lines
The financial technology and cryptocurrency industries and the waste to energy markets in which 4NEW Limited competes have grown rapidly over the past twenty years and continue to evolve in response to new technological advances, environmental policies, changing business models, shifting regulations and other factors. As a result of this constantly changing environment, 4NEW Limited. may face operational difficulties in adjusting to the changes, and the sustainability of 4NEW Limited will depend on its ability to manage its operations, ensure that it hires qualified and competent employees, and provides proper training for its personnel. As its business evolves, 4NEW Limited must also expand and adapt its operational infrastructure. 4NEW Coin’s business relies on its blockchain-based software systems, cryptocurrency wallets or other related Coin storage mechanisms, blockchain technology and smart contract technology, and efficient real estate management. All of these systems, tools, and skill sets represent complex, costly, and rapidly changing technical infrastructure. In order to demonstrate continued ability to effectively manage technical support infrastructure for the 4NEW platform, 4NEW Limited will need to continue to upgrade and improve its data systems and other operational systems, procedures, and controls. These upgrades and improvements will require a dedication of resources and are likely to be complex and increasingly rely on hosted computer services from third parties that 4NEW Limited does not control. If 4NEW Limited is unable to adapt its systems and organization in a timely, efficient, and cost-effective manner to accommodate changing circumstances, its business, financial condition and results of operations may be adversely affected. If the third parties whom 4NEW Limited relies on are subject to a security breach or otherwise suffer disruptions that impact the services 4NEW Limited uses, the integrity and availability of its internal information could be compromised, which may consequently cause the loss of confidential or proprietary information and economic loss. The loss of financial, labor or other resources, and any other adverse effect on 4NEW Limited business, financial condition and operations, would have a direct adverse effect on 4NEW Limited’s ability to maintain the 4NEW platform and/or to structure and license the anticipated 4NEW future business lines. Any adverse effects affecting 4NEW Limited business or technology are likely to also adversely impact the utility, liquidity, and trading price of the 4NEW Coins.
4NEW Limited may experience system failures, unplanned interruptions in its network or services, hardware or software defects, security breaches or other causes that could adversely affect 4NEW Limited’s infrastructure network, and/ or the 4NEW platform
4NEW Limited is not able to anticipate when there would be occurrences of hacks, cyber-attacks, distributed denials of service or errors, vulnerabilities or de- fects in the 4NEW platform, the smart contracts on which the Company, 4NEW Limited, or the 4NEW platform relies or on the Ethereum or any other blockchain. Such events may include, for example, laws in programming or source code leading to exploitation or abuse thereof. 4NEW Limited may not be able to detect such hacks, cyber-attacks, distributed denials of service errors vulnerabilities or defects in a timely manner, and may not have sufficient resources to efficiently cope with multiple service incidents happening simultaneously or in rapid succession.
4NEW Limited’s network or services, which would include the 4NEW platform and, if successfully structured, licensed, and launched, the 4NEW future business lines, could be disrupted by numerous events, including natural disasters, equipment breakdown, network connectivity downtime, power losses, or even intentional disruptions of its services, such as disruptions caused by software viruses or attacks by unauthorized users, some of which are beyond 4NEW Limited’s control. Although 4NEW Limited has taken steps against malicious attacks on its appliances or its infrastructure, which are critical for the maintenance of the 4NEW platform, there can be no assurance that cyber-attacks, such as distributed denials of service, will not be attempted in the future, that 4NEW Limited’s enhanced security measures will be effective. 4NEW Limited may be prone to attacks on its infrastructure intended to steal information about its technology, financial data or user information or take other actions that would be damaging to 4NEW Limited and/or holders of the 4NEW Coins. Any significant breach of 4NEW Coin’s security measures or other disruptions resulting in a compromise of the usability, stability, and security of the 4NEW platform may adversely affect the utility, liquidity and/or trading price of the 4NEW Coins.
We are dependent in part on the location and data center facilities of third parties
4NEW Limited’s current infrastructure network is in part established through servers which it owns and houses at the location facilities of third parties, and servers that it rents at data center facilities of third parties. If 4NEW Limited is unable to renew its data facility lease on commercially reasonable terms or at all, 4NEW Coin. may be required to transfer its servers to a new data center facility, and may incur significant costs and possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication failures. Additionally, the third-party providers of such facilities may suffer a breach of security as a result of third-party action, employee error, malfeasance or otherwise, and a third party may obtain unauthorized access to the data in such servers. Inc. and the providers of such facilities may be unable to anticipate these techniques or to implement adequate preventive measures.
General global market and economic conditions may have an adverse impact on 4NEW Limited operating performance, results of operations, and cash flows
4NEW Limited has been and could continue to be affected by general global economic and market conditions. Challenging economic conditions worldwide have from time to time, contributed, and may continue to contribute, to slowdowns in the information technology industry at large. Weakness in the economy could have a negative effect on 4NEW Limited’s business, operations and financial condition, including decreases in revenue and operating cash flows, and inability to attract future equity and/or debt financing on commercially reasonable terms. Additionally, in a down-cycle economic environment, 4NEW Limited may experience the negative effects of a slowdown in trading and usage of the 4NEW platform and may delay or cancel the structuring, licensing, and launch of the anticipated 4NEW future business lines. Suppliers on which 4NEW Limited relies for servers, bandwidth, location and other services could also be negatively impacted by economic conditions that, in turn, could have a negative impact on 4NEW Limited’s operations or expenses. There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant, adverse impact on 4NEW Limited’s business, financial condition and results of operations, and hence, the 4NEW platform and/or ability to structure, license, and launch the 4NEW future business lines. Any such circumstances would then correspondingly negatively impact the utility, liquidity, and/or trading price of the 4NEW Coins.
The Company, 4NEW Limited, or the 4NEW Coins may be affected by newly implemented regulations
Cryptocurrency trading is generally unregulated worldwide, but numerous regulatory authorities across jurisdictions have been outspoken about considering the implementation of regulatory regimes which govern cryptocurrency or cryptocurrency markets. The Company or the 4NEW Coins may be affected by newly implemented regulations relating to cryptocurrencies or cryptocurrency markets, and/or waste to energy industry, including having to take measures to comply with such regulations, or having to deal with queries, notices, requests or enforcement actions by regulatory authorities, which may come at a substantial cost and may also require substantial modifications to the 4NEW platform and/or the anticipated 4NEW future business lines. This may impact the appeal of the 4NEW Coin platform and the anticipated 4NEW future business lines for users and result in decreased usage of the 4NEW platform and the 4NEW Coins. Further, should the costs ( financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the 4NEW platform and structuring, licensing, and launching the 4NEW future business lines may no longer be commercially viable, and the Company or 4NEW Limited may opt to discontinue the 4NEW platform, the anticipated 4NEW future business lines, and/or the 4NEW Coins. Further, it is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the 4NEW platform, the anticipated 4NEW future business lines and the 4NEW Coins.
The Company or 4NEW Limited may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the utility, liquidity, and/or trading price of 4NEW Coins will be adversely affected or 4NEW Coins may cease to be traded.
There may be unanticipated risks arising from the 4NEW Coins
Cryptographic Coins such as the 4NEW Coins are a relatively new and dynamic technology. In addition to the risks included in the above discussion of risk factors, there are other risks associated with your purchase, holding, and use of the 4NEW Coins, including those that the Company and 4NEW Limited cannot anticipate. Such risks may further appear as unanticipated variations or combinations of the risks discussed above.