WHISKY TOKEN (WHY)

WHISKY TOKEN combines the unlimited growth potential of a cryptocurrency with the security of real whisky value. This way, we aim to solve the volatility and downside risk of other cryptocurrencies as well as the flaws of alternative investment funds, like enormous costs for intermediaries and expensive entry barriers.

Whitepaper

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What is WHISKY TOKEN

WHY INVEST IN WHISKY TOKEN (WHY)

The whisky market is the fastest growing sector of all spirits worldwide. The value of Scotch whisky exports in 2010 was approximately EUR 3.9 billion. This export volume has already risen to about EUR 4.5 billion by 2016, which corresponds to an increase of an estimated 15%. In addition to the increased demand for whisky, the value of the product itself also surged: last year, the RW APEX 1000 Index, which reflects the development of the thousand most sought-after bottlings on the secondary market (so-called high-end whiskies), rose by more than 25%.

To benefit from this development, a fund with whisky as an alternative investment opportunity was set up in 2014. The fund and its investors benefit from the strong performance of the whisky market and achieve high returns. However, the general conditions of investment funds are difficult: firstly, high minimum investment sums exist, for instance USD 250,000 in the above example, and secondly, funds of this type have several fees and costs that reduce the return for investors. In addition to front-end fees (premium), administration and management fees, investors' returns are depressed by horrendous performance fees, thus inflating the proportion of total profits paid to fund managers.

In order to cut the share of middlemen to total profits, blockchain technology is the best solution. In general, the market for cryptocurrencies is still generating significantly higher growth rates than the whisky market, but it is justifiably regarded as very volatile. The head of the German Federal Financial Supervisory Authority (BaFin) commented on cryptocurrencies as follows: ‘These are highly speculative transactions with the possibility of total loss.’

In total, there are three major problems:

WHISKY TOKEN (WHY) stands for the creation of new values. WHISKY TOKEN is the first whisky-covered crypto token based on Ethereum. It combines the unlimited growth potential of a cryptocurrency with the security of the real whisky value. This prevents the currency from losing value.

Asset-backed mechanism: To minimize the risk of loss for WHISKY TOKEN (WHY) owners, WHYTOKEN GmbH implements a sophisticated security mechanism. This asset-backed mechanism covers the WHY stock market price based on the current value of the high-end whisky portfolio. It is ensured that the value of the total WHY market capitalization does not fall below 90% of the portfolio value (hereinafter referred to as "asset-backed value").

This mechanism is scheduled to be implemented three years after a successful ICO. If the market capitalization is subsequently below the asset-backed value for a period of one-month, WHISKY TOKEN is repurchased by the WHYTOKEN GmbH until the market capitalization is above the asset-backed value again (buy-back). For this purpose, a portion of the high-end whisky portfolio corresponding to the buy-back will be liquidated initially. From this revenue, purchase orders are placed on the stock exchanges, resulting in an increase in market capitalization. The tokens acquired in this way are destroyed in order to guarantee a deflation and thus a sustainable increase in value.

ICO: 28,100,000 tokens are initially created. A maximum of 25,250,000 tokens are sold via crowdsale (ICO - token main sale). A minimum and maximum revenue target is defined (soft and hard cap). The soft cap amounts to EUR 2 million, the hard cap amounts to EUR 25 million. All unsold tokens in the token main sale will be burned after the end of the event.

Business model: The WHYTOKEN GmbH will only charge a transaction fee of 1.5%. This will cover our operating costs first, and all additional income will be reinvested in the high-end whisky portfolio. All operational tasks (logistics, portfolio management, etc.) are performed by WHYTOKEN GmbH.

Corporate mission: Our mission is that all WHISKY TOKEN (WHY) owners participate in the highyield cryptomarket while being covered by a high-end whisky portfolio, regardless of financial investment opportunities. The owners of WHY should thus be able to profit from the high returns of the crypto market with a limited downside risk. The WHYTOKEN GmbH offers the foundation for this through WHISKY TOKEN, the asset-backed mechanism and the high-end whisky portfolio.

WHY combines crypto technology with real asset values. The quality of the portfolio is consistently guaranteed by the highest security standards in Germany by WHYTOKEN GmbH.

In 2019, the focus will be on intelligently building up the high-end whisky portfolio and WHY listings on selected stock exchanges. For this purpose, we are in constant dialogue with our strategic partners to guarantee the most cost-efficient business model possible.

WHYTOKEN GmbH aims to sustainably increase the value of WHISKY TOKEN (WHY). We are convinced that WHY will meet this aim and exceed the expectations of its owners.