a white paper by axel€¦ · a white paper by axel version 2.0 the evolution of axel and the...

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A White Paper by AXEL Version 2.0 The Evolution of AXEL and the Introduction of the AXEL Global Decentralized Network

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A White Paper

by AXEL

Version 2.0

The Evolution of AXEL and the Introduction

of the AXEL Global Decentralized Network

IMPORTANT NOTICES AND LEGAL DISCLAIMER

PLEASE READ THIS SECTION CAREFULLY. SUBJECT TO REVIEW AND CHANGE.

WE RESERVE THE RIGHT TO MODIFY, EDIT, AMEND, OR ALTER THE TERMS OF THIS WHITE PAPER IN ANY MANNER. PROSPECTIVE PURCHASERS OF AXEL TOKENS SHOULD CAREFULLY CONSIDER AND EVALUATE ALL RISKS AND UNCERTAINTIES ASSOCIATED WITH: 1) A CAYMAN ISLANDS ENTITY, (THE “COMPANY”), 2) THE AXEL TOKENS THEMSELVES, 3) ANY INITIAL COIN OFFERING OF THE AXEL TOKENS ( “ICO”), 4) ALL INFORMATION SET FORTH IN THIS WHITE PAPER; AND 5) ALL INFORMATION SET FORTH IN THE ACCOMPANYING AXEL OFFERING MEMORANDUM, CONTRACT, AND TERMS OF USE PRIOR TO ANY PURCHASE OF AXEL TOKENS. IF ANY OF SUCH RISKS AND UNCERTAINTIES DEVELOPS INTO ACTUAL EVENTS, THE BUSINESS, FINANCIAL CONDITION, RESULTS OF OPERATIONS AND PROSPECTS OF COMPANY AND/OR THE OPERATIONS COMPANY (AS DEFINED BELOW) COULD BE MATERIALLY AND ADVERSELY AFFECTED. IN SUCH CASES, YOU MAY LOSE ALL OR PART OF THE VALUE OF THE AXEL TOKENS.

In order to undertake the mission and vision of the “Data Custody Solution” (as such term is defined below), the Company IS organized separately from the founders and principals of STOAMIGO INTERNATIONAL LLC (and DUVON CORPORATION (“DUVON”), an affiliated entity in Wyoming which holds key intellectual property utilized in AXEL branded software products, including the patent portfolio referenced within this White Paper; and other subsidiaries of DUVON) (collectively, STOAMIGO INTERNATIONAL LLC, DUVON, and other subsidiaries and affiliates thereof shall hereinafter be referred to as the “Operations Company”, “We”, or “StoAmigo”). The Company is separately organized as a Cayman Islands entity. All operations regarding the actual launch of the proposed ICO are further anticipated be conducted by and through the Company. However, the operation, maintenance, and continued development of the underlying technology and the Data Custody Solution (as such term is defined below) are intended to be conducted by the Operations Company. The Company anticipates entering into a comprehensive agreement for services and intellectual property licenses with the Operations Company for the use of the entirety of the branding, software, and software related intellectual properties held by DUVON, which currently power the AXEL suite of software products.

NO REPRESENTATIONS AND WARRANTIES Company does not make or purport to make, and hereby disclaims, any representation, warranty or undertaking in any form whatsoever to any entity or person, including any representation, warranty, or undertaking in relation to the truth, accuracy, and completeness of any of the information set out in this White Paper.

RISKS AND UNCERTAINTIES This White Paper and associated AXEL promotional materials contain statements that constitute “forward-looking statements”, including but not limited to (i) the financial performance and statements relating to the anticipated financial performance of the entities that are or will be undertaking the business and financing strategies further described in this White Paper and/or any of such entities’ subsidiaries or affiliates, which such business and financing strategies being generally described as: The AXEL Token, blockchain, and personal data management, personal private data transmission and file transfer solutions, the AXEL Global Distributed Network (AGDN), the integration of the InterPlanetary File System (IPFS), the incorporation and operation of Masternodes, and planned ancillary functionalities (the “Data Custody Solution”); and (ii) the offering of the AXEL Token in order to finance the foregoing Data Custody Solution which will facilitate the use of the AXEL Token as consumer payment for the services offered by and through such Data Custody Solution. While these forward-looking statements represent the Company’s judgments and expectations concerning the matters described, a number of risks, uncertainties, and other important factors could cause actual developments and results to differ materially from the Company’s expectations. These factors include, but are not limited to: (i) the degree to which the Company is successful in executing its announced strategic plans, including the anticipated exploitation of the Data Custody Solution across various channels, markets, demographics that may be detailed in this presentation (the “Channels”); (ii) developments in the regulatory landscape affecting ICO financing and fundraising measures; (iii) changes in the availability of blockchain, IPFS, and Masternode technologies to assure the Data Custody Solution is exploited by and through the Channels; (iv) changes in the Data Custody Solution’s competitive position, including whether competing companies and players will adversely affect the Company’s ability to commercially exploit the Data Custody Solution; (v) the liability to which the Company may be exposed to claims stemming from intellectual property violations and related issues regarding third party technologies that are incorporated into the Data Custody Solution, including but not limited to blockchain, IPFS, and Masternode technologies; (vi) the Company’s ability to retain and attract the personnel and employees necessary to design, implement, develop, and operate the Data Custody Solution and to realize revenues and to manage, support, and operate Data Custody Solution; (vii) changes in finance,

crypto currency regulation, securities, accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (viii) limitations on the effectiveness of the Company’s internal processes for risk management, risk control, measurement and modeling, and of models generally, especially as it pertains to blockchain, IPFS, and Masternode technology focused companies generally; (ix) whether the Company will be successful in keeping pace with competitors in exploiting and using blockchain, IPFS, and Masternode technologies; (x) the occurrence of operational failures, such as systems failures; and (xi) the effect that these or other factors or unanticipated events may have on the Data Custody Solution’s success and the additional consequences that this may have on our business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences.

Furthermore, readers of our White Paper should be aware that we anticipate that our business is subject to substantial and frequently changing regulations by international, federal, state and local authorities pertaining to personal and private data and digital assets, data storage, sales of digital assets and related software providers (collectively, the “Regulations”). Chief among these Regulations are those that deal with the privacy of data, personal identity, personally identifiable information, and related items, as well as Regulations pertaining to the protection of intellectual properties from infringement or misappropriation. Both classes of Regulations pose significant legal challenges to businesses such as ours, which may result in unanticipated financial outlays ranging from legal compliance to litigation. Violations of these Regulations could subject us to severe fines and possible exclusion from participation in the peer-to-peer/cloud data sharing, storage, and services industry. While the Company and the Operations Company have substantial experience dealing with both classes of Regulations, and will take all reasonable steps to assure that they do not run afoul of the Regulations, including through the use and sale of the AXEL Token, compliance with the Regulations cannot be absolutely certain. Moreover, the peer-to-peer/cloud data storage and services industry is a notoriously dynamic, trend driven, and rapidly evolving marketplace, where the prevailing Regulations can change fundamentally in ways that present new compliance challenges (e.g., in 2018, the EU enacted the General Data Protection Regulation, which is anticipated to continue to pose significant compliance challenges to a variety of operations including our own). Therefore, we will have to assure that our products and services continue to evolve and meet the demands of such dynamic and evolving Regulations. The foregoing does not purport to be a final nor exhaustive recitation of the risk factors that we anticipate our business will face which are more fully described in the accompanying AXEL Offering Memorandum.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this White Paper constitute forward-looking statements. When used in this White Paper, the words “may,” “will,” “should,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “expect,” “continue,” and similar expressions or the negatives thereof are generally intended to identify forward-looking statements. Such forward-looking statements, including the intended actions and performance objectives of the Company, involve known and unknown risks, uncertainties, and other important factors that could cause the actual results, performance, or achievements of the Company in its development of the Data Custody Solution to differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. No representation or warranty is made as to future performance or such forward-looking statements. All forward- looking statements in this White Paper speak only as of the date hereof. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectation with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. Prospective purchasers of the AXEL Token are not to construe this White Paper as investment, legal, tax, regulatory, financial, accounting or other advice, and this White Paper is not intended to provide the sole basis for any evaluation of an investment in an interest. Prior to acquiring an interest, a prospective investor should consult with its own legal, investment, tax, accounting, and other advisors to determine the potential benefits, burdens, and other consequences of such investment.

QUALIFICATIONS TO PURCHASE AXEL TOKENS Evidence of accreditation status pursuant to Section 506(c) of the Securities Act standards may be required for US Persons to purchase the AXEL Token. Additionally, purchasers will need to provide investment entity information such as address and social security number or tax ID number to pass KYC (Know Your Customer) and AML (Anti Money Laundering) checks.

02 11

Custody and Privacy 19

07 21

Table of Contents

Tackling Data Custody

Powering the Blockchain Network: Masternodes

04 The Immutable Link between Data AXEL’s Unique Innovation: A Platform Powered by Intellectual Property

The Future of Data Custody Today

Data Evolution to Revolution: How to Join us on the Journey

08 AXEL.Network 24 Who We Are

We have all given up our privacy for the convenience

of using centralized systems that require us to sign

unreadable terms- of-service agreements that

relinquish custody of our data - our digital self - for

the ability to use the service. It is only recently that

users have begun to realize these services are not

really free; in fact they come with a very high price.

- Julie Compann, Chief Strategist, Global Marketing And New Business

Introduction

Data is the new gold. It’s the new oil. It’s the new

currency. In the digital economy, data has become one of

the greatest drivers of value. The largest companies in

the world are powered by data - Apple, Google,

Facebook, Amazon, Alibaba, Tencent...the list continues.

But the creators of data have seen their control over

their own identities eroded. Sometimes openly, often

covertly. Even big companies have been left vulnerable

to a lack of transparency on how data is managed by

other companies.

Choice and control are compromised for convenience.

And many individuals and companies are left to believe

that you can only have one or the other.

AXEL has different ideas. We believe control should

always remain with the data creator and we’re creating

the tools to enable everyone to participate in the digital

economy. We call it “data custody”. In fact, we’re

redefining how data is handled.

Data Custody, n. v. adj.

1. The ability to organize, manage and protect your own

digital data and footprint on centralized and

decentralized networks;

2. The ability to protect and guard your own data without

interruption, interference, or intrusion from third

parties or network operators;

3. The act of taking back control of your personal data in

order to guard and protect it from others.

AXEL (Autonomous eXchange via Entrusted Ledger)

has and continues to set the precedent for data custody

by developing the tools and technologies to return

control of data to our users. To this end, each of AXEL’s

100+ employees are dedicated to building the

technologies necessary to provide ultimate data custody

to our millions of users.

With deep roots in building solutions to give users and

businesses data custody, AXEL is introducing the AXEL

Global Distributed Network (AGDN). The AGDN will be

one of, if not the, largest decentralized networks in the

world. It will be developed on blockchain and distributed

technology along with a range of new distributed

products for users to easily interact with the network.

AXEL is building the future of data. A future that returns

data custody to the data creator.

2 AXEL Global Distributed Network

Tackling Data Custody

The Problem: Centralized Data Custody is Broken

Control, privacy, and trust do not exist for the majority of

people in the digital economy. Ownership has been

outsourced to third parties - and they hold all the keys.

Data is breached, data is sold, data is unwittingly

collected. Those who create the data have lost control.

The $60 billion big data business powers the $6

trillion digital economy that mirrored the growth of the

internet when the earliest version of cookies was

introduced in 1994.

The internet spawned a data revolution that led to

systemized concentration and control of user data by

major platforms that we believe significantly handicap

the development of user-first platforms, erode privacy,

and create an imbalance of influence.

This environment creates huge barriers in building

genuine peer-to-peer systems that allow people to be in

control of their identity and instead have commoditized

it. With e-commerce, the Internet of Things, Artificial

Intelligence, and wearables joining mobile technology at

the heart of the digital world, more data collection is

concentrated with a few players that place user privacy

and data integrity as a low priority.

As new technologies, such as distributed computing,

emerge as competition to centralized technologies, new

questions surrounding data custody arise.

Decentralized and distributed networks have many

performance and cost-savings benefits; however, new

tools and technologies must be created to secure and

manage personal and business data on vast

decentralized networks. These tools and technologies

must be created by trusted names with experience

and a record of protecting users from the intrusion of

third parties.

In 2017 alone, 7.8 billion records were exposed from

data breaches. This is leading to an erosion of trust in

providers and creating more vulnerability for customers

and businesses.

The following is a list of high-profile data breaches in

2018, and these are just the ones we know about. Far

too often data breaches go unreported for months or

years and, sometimes, they are never reported.

When people begin looking for solutions to take back their data, they will look for companies who have been

recognized as being trustworthy and as a leader in data custody solutions. AXEL will be chosen as a preferred

solution as it has been providing proven ultimate data custody solutions for millions of users for the last 6

years.

- Rick Stiles, Senior VP, Products and IP

February 2019 | Version 2.0 3

List of Major Data Breaches in 2018 and the Method:

Facebook

Social Media: 50

million records;

poor security

Marriott

International

Hospitality: 500

million records;

hacked

MyHeritage

Genealogy: 92

million records;

unknown

Quora

Questions and

Answers: 100

million records;

hacked

Under Armour

Consumer Goods:

150 million

records; hacked

Ticketfly/

Eventbrite

Ticket Distribution:

26 million records;

hacked

Orbitz

Travel: 880,000

records; hacked

Reddit

Social Media:

unknown; hacked

Google Plus

Social Media:

500,000; poor

security.

Centers for

Medicare and

Medicaid Services

Healthcare:

75,000; hacked

These data breaches are in some of the most sensitive

areas including healthcare, finance, travel, and social

media. Worse still there is very little anyone with

knowledge of a data breach can do to regain control of

their data to protect themselves from it being used

against them.

AXEL is providing the technologies, network, and tools

to change this trend that hurts every one of us directly

or indirectly with each breach.

Market/Background

We are witnessing a shift in thinking; people are

looking to solutions that protect their data, to guard

their privacy, and to take back data custody from

centralized authorities.

As 2017 and 2018 set records for breaches and hacks

of user data, 2019 will be the year of the user beginning

to take back control of their digital footprint.

Users are beginning to realize the importance of data

custody, breaches, and portability as they become

increasingly reliant on digital services in their lives.

AXEL will provide the technologies, tools, and network

for users to regain the control that has slowly been

eroding their privacy every day with and without their

knowledge.

4 AXEL Global Distributed Network

The Immutable Link between Data Custody and Privacy

This imbalanced control of data hampers innovation and

commerce in the digital economy. Who controls the data

controls the money. People have been seduced with the

benefit of convenience.

Content creators, for example, have third-party

platforms control every aspect of their data and take a

ransom in order to utilize the platform, leaving the

creators with pennies on the dollar.

Users’ personal data is monetized without their

consent while exposing personal details. It costs

money for many users to actually access, move, or

remove their personal data. Publishers pay money,

users pay with data.

But the market is shifting. From legislation, public

hearings, and pressure from advocates, companies are

starting to wake up to individuals and businesses

demanding more transparency in how data is handled.

Privacy isn’t respected and how companies treat data is

as clear as mud. AXEL’s goal is to help the technology

industry clean up its act with how it handles data.

AXEL’s Involvement in Data Custody and

Overview of History

Since AXEL started in 2012, our mission has been

about giving people full control over their digital lives - in

a world that’s increasingly cavalier about taking it away.

The first iteration of our vision was the CloudLocker®, a

physical, private cloud storage device that delivered all

the power of the cloud without the need to upload

anything onto any public servers. It allowed absolute file

control and cut third-party services out of involvement in

deciding what happens with your data.

We wanted to go further. To not just give people a way

to control all their files, but to do it in a way that was so

simple and accessible that anyone could do it.

Over the last 12 months, we laid out goals for the

monetization of files with AXEL Pay and our file and

content marketplace with AXEL Exchange (axel.

exchange) that empowers users to have greater control

over their files and content.

As AXEL’s Chief Technology Officer, I ensure the strong vision of providing ultimate data custody to users with

innovative technologies. Giving users control over their data is what motivates us and is the basis for what

drives us to perfect our ideas, technologies, and products.

- Ben Ow, President and Chief Technology Officer

February 2019 | Version 2.0 5

The result was a new type of patented technology that is

the key to everything we’re doing today. We call it

TackApp®. It lets users unify the files they own by linking

the storages of every compatible device they have.

The mobile revolution resulted in users adding more and

more devices into their digital lives. Their files were

dispersed among these devices and the only way to

previously access files across multiple devices was to

use a centralized storage system such as the cloud.

TackApp was designed as a way to unify these devices

without the need for a centralized storage system.

TackApp allows for all of a user’s files on all their devices

to become accessible from anywhere in the world,

instantly. No uploading. No intermediaries. Fullcontrol.

With the recently deployed Virtual Drive, the powerful

new feature that allows people to access and manage

their entire ecosystem directly from their computer,

AXEL is building the future of data custody. AXEL’s

Virtual Drive allows users to access and work on any file

stored on any device connected to the ecosystem

including third-party platforms such as Google Drive,

Dropbox, and OneDrive.

It’s creating a new ecosystem to access, manage, and

secure data simply and efficiently. These technologies

have formed the core of the AXEL ecosystem. We have

proven ourselves year after year of being an ever-

vigilant guardian of our users’ data by returning control

of their data back to them.

AXEL has been moving at a breakneck pace to deliver

on our ambitious plans to create innovative

decentralized technologies and solutions. One of those

solutions was to integrate tokenization into our

ecosystem to help us power great privacy and data

custody features with great immutability.

AXEL’s Virtual Drive

6 AXEL Global Distributed Network

The AXEL ecosystem continues to grow, adding millions

of new users and supporters in 2018. In Q3 2018 AXEL

released its utility token to 50,000+ users who believe in

AXEL’s vision of data custody. For 2019 we set more

ambitious goals to not only give users the tools to

control their data, but the network from which they can

securely manage all of their data.

We’re building great technology and we not only hit

several key milestones laid out in the previous year, but

are jumping ahead on the development timetable to

bring in distributed systems. We’re also adding some

completely new technologies to our ecosystem powered

by blockchain technology.

This White Paper is an extension of our commitment to

build one-of-a-kind technologies that will be a revolution

in data custody. AXEL is the data technology of

tomorrow tackling the problems of today.

The AXEL Network will return ultimate data custody to

our current and future users. We continue to innovate,

build, and deploy technology that will transform how

we manage data.

Device Software

CloudLocker

Collaboration

Authentication

February 2019 | Version 2.0 7

The AXEL Global Decentralized Network is the realization of a vision

created over a half decade ago - to not only provide the technologies and

tools necessary to protect and manage user data, but to also build the

world’s largest network for our users to process, store, secure and manage

their data. This vision is now a reality.

- Tony Tan, CEO and Chairman

The Future of Data Custody Today

AXEL’s goal has always been, and will continue to be, to provide ultimate data custody solutions in order to earn the

trust of millions of people using our technology daily to protect and manage their personal and/or business data. To

do this, we have set forth on an ambitious endeavor to build a network worthy of our reputation and the respect of

our current and future users.

As blockchain technology has evolved alongside distributed technologies it was inevitable that their paths would

cross. Blockchain provides for both secured public and private transactions and immutable record keeping with the

benefits of decentralized control. Distributed networks provide faster and cheaper processing and storage of data

that returns control to the data creators.

8 AXEL Global Distributed Network

AXEL.NETWORK A Decentralized and Distributed Platform

AXEL will continue to update the network diagram as new nodes come online

February 2019 | Version 2.0 9

With millions of users of our app and over 50 million

tokens distributed, we know our supporters share our

vision that blockchain technology should be used to

restore data custody to users worldwide. It is now time to

move away from the limitations of the Ethereum Network

to our own blockchain built on a proven codebase with a

strong reputation for privacy along with AXEL’s

proprietary clean data technologies.

AXEL is combining the revolutionary power of blockchain

technology with the evolutionary power of distributed

networks to create the AXEL Global Decentralized

Network (AGDN). The AGDN and AXEL Blockchain were

scheduled to be delivered in Q3 of 2020.

Realizing the growing need to secure user data as

breaches are continually unveiled in the exploding new

distributed and sharing economy, AXEL prioritized the

development of the AGDN and corresponding

technologies and tools.

The AGDN will now launch in Q1 of 2019, bringing these

data custody technologies and tools to our users almost

18 months sooner because these products are essential

to providing users the full benefits of our ecosystem.

AXEL Client

Unified Network AXEL Global Decentralized

Network (AGDN)

TackApp

Running on all Devices

AXEL Integration

and Authentication

• AXEL Dapps

• IPFS Public Gateway

• AXEL Multifactor Authentication

February 2019 | Version 2.0 11

Powering the Blockchain Network: Masternodes

The AGDN will bring about a powerful new ecosystem

that creates a fusion of distributed systems and

emerging technologies. This network will be at the

epicenter of a distributed future.

A Masternode network will power this ecosystem and

enable fast and efficient transactions, while creating

sustainability in our distributed systems.

Masternode Network Topography

The AXEL Blockchain will support Masternode network

architecture. A Masternode is classified as a full node

that contains a complete copy of the blockchain

network. By hosting a full copy of the blockchain ledger,

a Masternode can enable instant and private

transactions as well as engage other administrative and

messaging features within the AXEL Blockchain.

Masternodes require staking by the node operator in the

form of staking AXEL Tokens. Working in conjunction

with the Masternodes, AXEL will support the deployment

of common nodes. These nodes will work directly with

the Masternodes to facilitate user transactions and be

eligible for compensation for their participation in the

AXEL Network.

VS

12 AXEL Global Distributed Network

AXEL Masternode Structure

The network is set up with a tiered system of Masternodes that will encourage partners and supporters at various levels to power it.

TIER 1 Nodes –

Partner Level

The AGDN allows up to 50 TIER 1

Nodes.

Each Tier 1 Node Features:

• Public and Private Distributed

Storage based on the

InterPlanetary File System

(IPFS) storage system and

model

• Distributed Database System

• AXEL Masternode Proof-of-

Stake Utility Token

• AXEL IPFS Public Gateway

• AXEL-Exchange

• AXEL-DSuite

• AXEL Web Wallet

TIER 2 Nodes –

Micro-Data Centers

The AGDN allows up to 1500

TIER 2 Nodes.

Each Tier 2 Node Features:

• Public and Private Distributed

Storage based on the

InterPlanetary File System

(IPFS) storage system and

model

• Distributed Database System

• AXEL Masternode Proof-of-

Stake Utility Token

• AXEL IPFS Public Gateway

• AXEL-DSuite

TIER 3 Nodes – Individuals

and Small Enterprise Support

The AGDN allows up to 4000

TIER 3 Nodes.

Each Tier 3 Node Features:

• Public and Private Distributed

Storage based on the

InterPlanetary File System

(IPFS) storage system and

model

• AXEL Masternode Proof-of-

Stake Utility Token

• AXEL IPFS Public Gateway

February 2019 | Version 2.0 13

The Importance of IPFS

The InterPlanetary File System (IPFS) is an important

development in computing and the next stage in the

development of the Internet.

The IPFS protocol is designed to create a peer-to-peer

method of storing and sharing digital content in a

decentralized and distributed file system. Functionally, the

IPFS works very much like a distributed torrent-type

network where files are assigned a unique hash and then

stored on network devices that are geographically close

to you. Once stored, the content is available through the

use of the unique hash created during storage.

Unlike typical HTTP-type storage platforms where all

files are stored in a single server location, the IPFS

distributes those files across the network, ensuring

file availability even when one or more network nodes

are offline.

AXEL is not only building the IPFS into the very fabric of

our ecosystem, we are providing the technologies and

tools to allow users to upload, manage, and share data

on the distributed web. Our tools like the AXEL IPFS

Pinning Facility allow users to have complete control

over their data being stored on the IPFS including the

ability to add metadata such as keywords, ZIP

Compression, and multiple types of encryption.

AXEL’s IPFS User Interface

14 AXEL Global Distributed Network

Technologies and Tools to Manage

Decentralized and Distributed Data

AXEL-DSuite™ - Advanced Distributed Data

Management and Data Custody Tools for Individuals

and Enterprises

AXEL-DSuite is the most advanced distributed data

management tool available for use on the AGDN and on

centralized systems or with other blockchains.

• AXEL IPFS Pinning, Encryption, Listing, Sharing

Facility

This facility allows users to store, manage, and share

data on the IPFS.

• AXEL IPFS Archive

This facility allows users to backup and restore data

to and from the IPFS. Files, directories, entire drives

and databases can be backed-up and restored.

• AXEL IPFS Private Share

This facility allows users to share private and/or public

content in a peer-to-peer manner using encryption to

ensure the private sending and receipt of data.

• AXEL IPFS Public Share

This facility is a worldwide public search engine for

the IPFS and other distributed networks including

blockchains and blockchain-based ledgers. All

AXEL IPFS services allow for the direct publication

to the AXEL IPFS Public Share.

• AXEL IPFS Public Share Listing Service

This facility allows users to list on the IPFS and

other distributed data for listing on the AXEL IPFS

Public Share Listing Service.

• AXEL IPFS Private Net

This facility is a private distributed storage facility

based on the IPFS for the storage of data on

AXEL’s private network.

AXEL-Exchange™- Advanced Peer-to-Peer

Distributed Exchange for Digital Content and

tangible goods & services

AXEL-Exchange is a decentralized and distributed

exchange for digital content and for real goods and

services. The AXEL-Exchange is building upon the

need for people to monetize their content without

third-party interference and enabling users to buy, sell,

trade, and move content with confidence on a

distributed network. The exchange will provide ease

and simplicity with search and discovery of available

content and files on the market.

February 2019 | Version 2.0 15

AXEL IPFS Search - Advanced Comprehensive Search Engine for

Public/Private IPFS Networks

AXEL IPFS Search is the most advanced and comprehensive search engine

available for the public IPFS. AXEL IPFS Search will bring a similar experience

of web search engines to the IPFS. Over time, AXEL IPFS Search will become

the leading search engine for the entire public IPFS infrastructure.

AXEL IPFS Search can also be used by individuals and organizations deploying

private IPFS networks to categorize and organize data stored on their private

IPFS network.

AXEL-Web and Desktop Wallets for the AXEL Utility Token

AXEL Desktop and Web Wallets will allow users to send and receive the AXEL Utility Token.

Advanced features including Zerocoin for private transactions, SwiftX for instant transactions, staking,

community staking, linked-transaction hashes to rich data, Masternode monitoring, advanced address

books, and more.

AXEL IPFS Public Gateways

Each and every TIER 1, TIER 2, and TIER 3 Node will run a completely independent public IPFS

gateway. The public gateways will support the AGDN and support the entire IPFS ecosystem.

When fully deployed, the AGDN will be one of the largest gateways to the IPFS ecosystem.

DDBaaS - AXEL Distributed Database as a Service

Available in the second half of 2019, AXEL’s Distributed Database as a Service (DDBaaS) will

allow projects to migrate their current MySQL or PostgreSQL Databases to a Distributed

Database system supported by the entire AGDN.

The AXEL IPFS Open-Source Development Fund

Recognizing the importance of the IPFS to not only AXEL but the entire global community as the

next evolution of connectivity, AXEL has set up the AXEL Open-Source Development Fund. This

fund has been specifically created to support open-source projects developing and maintaining

the IPFS core functionality to ensure it remains a leading and supported open-source project.

16 AXEL Global Distributed Network

AXEL AGDN and DSuite Architecture

AXEL Architecture

The fundamental principle of data ownership is the driving force behind AXEL. With our AXEL Global Decentralized

Network, combined with AXEL’s blockchain development, we deliver a complete end-to-end decentralized and

distributed computing solution that is both unified and puts user privacy first. With AXEL’s patented unification and

security protocols, combined with advanced file and content storage, streaming, database, content-management,

P2P sharing, P2P exchange, and transfer tools; AXEL users have absolute power and control over the next

evolution of computing as we make the shift from a centralized to decentralized/distributed paradigm.

Since the launch of our very first product (CloudLocker) in 2013, the AXEL development team has been focused on

delivering off-cloud decentralized storage and streaming capability with advanced anywhere-availability and

powerful file and media management tools. Today, AXEL has a global ecosystem boasting millions of users and

decentralized storage and distributed processing capabilities that unify client devices enabling them to create their

own cloud-type storage without ever uploading anything to a public server.

AXEL.Network

WWW

• AXEL Online Wallet

• AXEL DesktopWallet

• AXEL AndroidWallet

• AXEL iOS Wallet

AXEL-WALLET

• IPFS Pinning Facility

• AXEL-Big Data

• AXEL-Archive

• AXEL-Integrity

AXEL-IPFS

• Web-browser plug-in

InterPlanetary File

System (IPFS)

Distributed

Database

• API: DDB Connect

• API: Wallet Connect

• API: IPFS Connect

• API: DMarket Connect

Consumer &

Professional

AXEL-Browse AXEL-DConnect

Business &

Enterprise

• AXEL Marketplace

• AXEL DCE (Digital

• Content Exchange)

Masternode Secured Network

• AXEL-DDBaaS

• AXEL-Unify

AXEL-DMarket WWW

AXEL-DDBaas

AXEL-CORE

• AXELapp

• DTA/ATA/iOSTA

• Virtual Drive

• LSM

• A

XELapp

• DTA/ATA/iOS

February 2019 | Version 2.0 17

AXEL-Archive

AXEL-ArchiveForever-termTM

archiving and storage of data

and digital information.

AXEL-Integrity

Monitoring Service for pinned

IPFS data and information.

AXEL-Big-Data

Share and analyze large data

sets with team members

worldwide faster and cheaper

than ever before.

AXEL-Unify

Enterprise solutions for

Distributed Database

processing and file storage

Distributed SQL Database

The AXEL Global

Decentralized Network features

a highly-scalable and fast

Distributed Database (DDB).

Integration of AGDN with AXEL-Core Products

AXEL-CORE: Delivering Data Custody Solutions

Founded on the principles of privacy and giving control

of content and files to users, AXEL has been building

unique and groundbreaking solutions to solve the issues

of custody, portability, and privacy.

The AGDN will become the engine that powers the

patent-protected AXEL Core product and ecosystem

offering already being used by millions of users.

AXEL is a blockchain technology that provides a

decentralized and distributed network that incorporates

the Interplanetary File System (IPFS) with the existing

AXEL storage, sharing, and streaming services to

deliver enhanced file protection and data custody

capabilities for services that require robust privacy and

security. By integrating the IPFS with AXEL’s existing

decentralized “off-cloud” file management platform and

our patent-pending blockchain technology, AXEL

provides unparalleled access, security, and control over

your digital assets.

AXEL’s Embedded Architecture

The fundamental principle of data ownership is the

driving force behind AXEL. Our core technology was

built as a framework that integrates with devices,

networks and systems to create a decentralized storage

and file management system that bypassed the cloud.

With our decentralized global network, combined with

AXEL’s Blockchain, we deliver a complete end-to-end

storage solution that is both unified and puts user

privacy first. AXEL’s patented unification and security

protocols, combined with advanced file and content

storage, streaming, and transfer provides users with

absolute power and control over their digital world.

18 AXEL Global Distributed Network

Client Device Unification

AXEL provides a patented unification technology (TackApp) that allows users to connect all of their device’s

storage repositories and enable them to act as a single contiguous storage. TackApp allows the files on all of your

compatible devices to be presented in a single, easy-to-use interface that doesn’t require any files to be moved.

This means no cloud uploads (unless you choose to) and no multiple copies.

TackApp allows a user to engage any of their digital content on any compatible device with the AXEL Network for

the purpose of storing, sharing, streaming, or transferring the digital content between users. By unifying the client

storage across their personal devices, the AXEL Network can be accessed from any user device and enables

easy drag-and-drop file management between storage repositories.

In addition to the AXEL IPFS Integration, TackApp also allows anywhere-access to your files stored on Google

Drive, Dropbox, or OneDrive from the same user interface as the files hosted on your home PC, work PC,

smartphones, and tablets.

Digital Certification Analyzer (DCA)

The privacy and security factor within any networking environment is paramount to ensuring user data and digital

assets remain private. AXEL’s patented DCA technology is a multi-function tool that authenticates all users

engaging the AXEL Network to conduct peer-to-peer transactions.

Unlike current multifactor authentication algorithms, the DCA (working in conjunction with the TackApp software)

creates an additional layer at both ends of the transaction to validate recipients. That addressing information is

stored within AXEL along with the user account information to provide a validation and authentication capability that

ensures the users are both vetted and trusted within the network.

AXEL Pay

Other key elements of the AXEL Blockchain include the

introduction of the AXEL Pay function and the

development of the AXEL-Exchange. The Exchange

enables participants to sell digital goods and services

as well as providing a vehicle to market and sell

user-created content such as songs, videos, pictures,

and other digital art.

AXEL Pay will enable users to utilize their AXEL file

ecosystem as a platform to request payment for goods

and services provided within the AXEL Blockchain.

The evolution plans for AXEL Pay include the

introduction and engagement of third-party financial

institutions and exchanges to enable the immediate

transfer of virtual and fiat currency.

AXEL Pay

February 2019 | Version 2.0 19

AXEL’s Unique Innovation: A Platform Powered by Intellectual Property

AXEL has introduced dozens of unique features,

functions, and technical advancements focused on

positioning our network as the leader in data custody

and digital content management. Our product

development and legal teams are committed to

protecting these valuable technical assets.

AXEL has been awarded multiple patents on a variety of

unique technology advancements and has many more

pending. Some of our current patent applications

include:

• Network and infrastructure features and functions

• Software and application licensing

• Mobile device integration

• Over 100 unique claims for AXEL and supporting

AXEL apps.

AXEL’s unique technology is currently covered by

9 U.S. Patents, granted since May 2015, and 10

other pending patent applications in the U.S.,

Europe, and China. Patents issued to date include:

U.S. Patent No. 9,027,050,

U.S. Patent No. 9,363,563,

U.S. Patent No. 9,419,965,

U.S. Patent No.9,565,184,

U.S. Patent No. 9,723,090,

U.S. Patent No. 9,792,452,

U.S. Patent No. 10,078,757,

U.S. Patent No. 14/097,102, (deemed allowable)

U.S. Patent No. 13/900,753 (deemed allowable)

Published Patent Applications Include:

U.S. Patent Publication Nos. 2014/0195976,

2014/0165176, 2015/0237400, 2017/0359353,

2016/0248936 and 2017/0235490

WIPO International Publication No. 2014/089353

European Patent Publication Nos. 2 802 118 and 2

996 026

Chinese Patent Publication Nos. 104903900 and

105426115.

20 AXEL Global Distributed Network

Delivering a Distributed Future

AXEL delivered big in 2018 by providing new technolog y and innovations to our platform. Going forward we have big

ambitions with our technology that will be realized over the next 12 months.

• AXEL Network Launch

• Swap AXEL Tokens

• AXEL IPFS Pinning Facility

• AXEL Desktop/Web Wallet

• AXEL Exchange

• AXEL Block Explorer

• AXEL iOS/Android Wallet

• AXEL Private Share

• AXEL IPFS Archive

• AXEL Auto Pay

• AXEL.Network

Masternodes

• AXEL Globai iPFS Search

• AXEL Masternode

Monitoring

• AXEL DDBaaS

• AXEL- Core Integration

- Virtual Drive

- TackApp

- LMS (LetMeSee)

February 2019 | Version 2.0 21

Data Evolution to Revolution: How to join us on the journey

Powered by People

The AXEL Network will be powered by a Masternode

community working to secure and authenticate the

network. Collaboration and participation in the network

will be a key pillar to building out our platform and

ecosystem of distributed systems.

AXEL is being developed to be a collaborative platform,

truly distributed and decentralized with the support of

partners and a community dedicated to ultimate data

custody for users. This presents exciting opportunities

to be an active stakeholder in building out the largest

distributed network in the world that will power the next

century of data custody.

AXEL Partners

We are seeking partners and participants at all levels

that will contribute to our growing network. AXEL is

presenting a range of ways to support the project,

providing multiple layers of engagement in our

ecosystem.

Participation in AXEL is participation in the future of the

internet as we know it, by taking part in fundamental

shift in data, digital identity, and our digital interactions.

Decentralized networks powered by distributed

technologies are the future and will power the growing

$6 trillion digital economy.

22 AXEL Global Distributed Network

Getting Involved

We are committed to building this network, but in order to do it so that it aligns with

our vision of a distributed system, we’re opening up our network to partners and

participants.

Become an AXEL Masternode Holder

Operating a Masternode is a trusted and valuable part

of our network and something we are opening up to a

limited number of participants.

The structure of our Masternode network follows three

tiers providing multiple layers of operability and support

to the network.

• Tier 1 Masternodes will initially be operated by

AXEL to guarantee the integrity and sustainability of

the network and are not open to public participation.

• Tier 2 Masternodes will run the Masternode wallet to

confirm transactions, operate the public IPFS

gateways, and support the private IPFS, Dapps, and

the AXEL Blockchain.

• Tier 3 Masternodes will run the Masternode wallet to

confirm transactions, operate the public IPFS

gateway, and support the AXEL Blockchain.

• We’re providing two opportunities to operate a

Masternode and help AXEL build the future of the

distributed web through our tiered system of nodes.

Tier 2 and Tier 3 Masternodes will be open to public

and partner participation and is an exciting

opportunity to be at the heart of the AXEL project. To

find more information on participation please visit

axel.network.

February 2019 | Version 2.0 23

Wallet Staking

To continue to secure transactions on the AXEL

Network we’re enabling ‘wallet staking’, allowing users

to support the project just by maintaining a live wallet.

Wallet staking provides a similar function as

Masternodes, by keeping a copy of the chain, but

requires little technical commitment beyond ensuring

the wallet remains live.

Wallet staking requires virtually no effort but will provide

additional security to the network and users will have

the potential to receive rewards.

AXEL Developer Program

Not only are we working towards building the world’s

biggest distributed network, we want to build the most

comprehensive ecosystem of decentralized applications

dedicated to data custody with real world utility.

Creating an open ecosystem, while dedicated to quality,

the AXEL Developer Program will invest and innovate

new ideas that will enable new decentralized

applications to be built on our blockchain network for the

distributed digital economy.

AXEL will develop an active developer community and

take a hands-on approach to working with partners in

innovating new applications and solutions with the

program.

The program will consist of:

• The AXEL Development Fund to financially incentivize

and support projects.

• The AXEL Innovation Support Community to foster

collaboration and engagement with the developer

community.

• Transition programs to support migration for existing

applications to move to our distributed network and

set up a decentralized application.

• Integrations and APIs to allow access to the network

tools and products.

• Educational resources and content to expand

understanding and adoption of the technology.

AXEL Ambassador Program

We have a robust community built up around AXEL that

continues to grow with people passionate about our

project. Our community is a vital part of fostering

adoption and support for the platform and participation

is an important part of supporting our project.

For our most passionate advocates we’re developing an

Ambassador Program that will be supported by

resources, provided exclusive access to information and

insights, and backed by the AXEL team.

Ambassadors act as spokespersons for the AXEL

Network and Blockchain, promote the benefits of

distributed and decentralized computing, and share our

vision for ultimate data custody in the digital economy.

Join Us

AXEL is dedicated to building something special that is

more than an idea. We’ve built one-of-a-kind patented

technology, delivered products with 1 million+ user

adoption, and continue to innovate solutions that

provide ultimate data custody to users.

We’re committed to building the biggest distributed

network in the world. To help us get there we want

partners, participants, users, and a community full of

passionate advocates. We’re opening up opportunities

for people to be involved at various levels. We’re making

it easy to join us.

We know we have the technology to change the future.

We want you to join us on a journey to provide ultimate

data custody and change the digital economy.

24 AXEL Global Distributed Network

Who We Are

AXEL: A Company and Brand on the Move

AXEL, at its core, is driven to innovate new technologies

and solutions to make a lasting impact on the world. We

believe in more than just relying on hype and buzz to

carry our company forward. We want to build a

company for the long-term, balancing exciting vision

with business sustainability.

As a company, we’ve been operating since 2012 and,

moving forward with a solid foundation, we’ll continue to

develop and grow as a business and brand.

We have developed great technologies over the last 7

years and we had our busiest year yet with a brand

overhaul, new UX/UI, new products, new technologies,

new patents, and one of the fastest growing

communities in the industry.

The last 12 months brought exciting and huge

milestones to AXEL, including:

• Passed the 1,000,000 user mark on the AXEL

platform in Q1 2018

• Released AXEL Pay, allowing users to monetize their

files

• Released AXEL 2.0, with a new user experience and

interface

• Awarded 4 new patents

• Filed 3 new patents on our blockchain technology

• Released the biggest unification feature since

TackApp with Virtual Drive

• Released AXEL Blockchain White Paper V.1

• Completed first round of token distribution for our project

• Delivered several presentations on data custody and

received awards on our ideas

• Grew our social audience and community past

100,000

And this is just the beginning….

Team

AXEL built a comprehensive team to create

revolutionary technologies and a sustainable business.

Entrepreneurs, technologists, marketers, investors,

innovators, and creators - our team has a track record of

delivering success.

Our founders have been at the forefront of the

technology revolution, having founded one of the first

private label ISPs and developing award-winning

technologies and intellectual properties. We pride

ourselves on both our pedigree and our ability to evolve

in the rapidly changing environment of technology.

We are a team of more than 100 professionals, over 80

of which are technical experts, Python developers, or

blockchain specialists. We’re always adding new talent

to help build the future of data ownership.

February 2019 | Version 2.0 25

AXEL Executive Team

Tony Tan, CEO and Chairman

A visionary and philanthropist with a long string of entrepreneurial

successes, Tony founded and ran ZCorum, America.net, and ISP Alliance. He built one of the first

wholesale Internet Service Providers (ISPs) in the United

States, and has a track record of rapidly transforming tiny startups

into large, multi-million dollar businesses. Tony held global management positions at First Chicago Bank (now JP Morgan

Chase), Securities Counsel, and the YMCA. He’s also an avid

investor and his investments in cryptocurrency predates the Bitcoin boom by many years.

Tony recognized that blockchain will be the next paradigm shift in technology long before many of

his contemporaries. Tony carries an MBA in Finance and Marketing from the University of Chicago, an

MA in Economics with honors from Western Michigan University,

and a CFP certification.

Ben Ow, CTO and President

Ben has a strong history of leading the creation of stunning, industry-shaking technologies. He started

and cultivated a one-man operation into a powerhouse computing

company that represented brands like Panasonic, Fujitsu, and Acer.

He’s co-founded several successful businesses, held executive

leadership positions in more, and is the mastermind behind ViaCube, the winner of CES’s 2006 Best Of Innovation Award. He is named on

multiple blockchain-specific pending patents. He also completed all

course work for the PHD program in Artificial Intelligence at

Northwestern University.

Daniel Lindsay, Chief Financial Officer

Daniel is a veteran in the financial

profession with experience in

consumer lending, retail banking,

treasury services, and ultra-high net

worth wealth management. He

graduated with a degree in finance

from Michigan State University and

then went on to manage a financial

institution in Las Vegas while

concurrently earning his MBA from

University of Nevada, Las Vegas.

Immediately following graduate

school, Dan worked for a large

regional bank providing financial

consulting services before pursuing

a law degree from Western

Michigan University where he not

only completed his JD, but also an

LLM in taxation. After law school,

Daniel was instrumental in the

formation of a successful Registered

Investment Advisor firm where he

played a key role for several years.

Daniel holds multiple FINRA

licenses and a CFP designation.

26 AXEL Global Distributed Network

Dr. Yoowan Kim, Chief Information Officer

Dr. Kim received his Ph.D. degree from Case Western Reserve University in 2003 in

the area of network security (DDoS attack mitigation). His research expertise includes

secure network design, unmanned aircraft systems (UAS) communications, and cyber-

physical system (CPS) security. He has published over 90 papers in peer-reviewed

journals and conferences, and has six patents granted or pending. His research has

been sponsored by Microsoft Research, the US Air Force, the Naval Air Warfare

Center, Oak Ridge National Laboratory, National Security Technologies, and the

National Science Foundation. His research on DDoS attacks has established a

foundation for Rate-Based Intrusion Prevention Systems. Dr. Kim also serves as an

Associate Professor in the Department of Computer Science at the University of

Nevada Las Vegas. He established the first higher-education course curriculum on

blockchain at UNLV and is active in the blockchain initiative in the State of Nevada.

Dave Kaplan, VP General Counsel

A proven attorney who focuses on the intersection of business, technology, and law.

Dave has played a leading role in high-stakes litigation in a broad array of forums,

including in many patent matters. He has represented clients such as Volkswagen,

Sony, Lenovo, Olympus, Toyota, and GE Healthcare, but has also successfully

represented clients against adversaries with much deeper pockets. Dave carries a

B.S.E. from the University of Michigan College of Engineering and a law degree

from Rutgers University.

Julianne Compann, Chief Strategist, Global Marketing and New Business

Julianne is an outstanding entrepreneur, technology marketing innovator and global-partnership strategist who has a history of winning in this radical new world. She leads early start-up ventures who own “change the game” technologies across the chasm from unknown to fiscal success. Her specialty is branding, positioning and clever partnering, thus growing the base from early technology adopters to world-wide sales success. Among some of Julianne’s accolade are Top 40 Technology Company Award, Fast Tech 50 Award for annual revenue five years in a row, Product of the Year Award and five Business of Excellence Awards. Additionally, Julianne has received five GLOBE Awards from the state’s Department of Economic Development for creating and implementing successful global partnerships across five continents and two prestigious Diamond Awards from Broadband Technology Report for her patented cloud-based broadband diagnostics products.

Rick Stiles, Senior VP, Products and IP

A communications technology veteran with decades of experience, Rick has

spearheaded the development of many innovative communications technologies,

some of which are commonly used today. He’s served as Vice-President of major

telecom companies like HyperEdge and NA Communications and led product

development at others. Rick is named in several significant U.S. patents including

Four current blockchain-specific pending patents.

February 2019 | Version 2.0 27

Roberta Tsang, Chief Communications Officer

A seasoned generalist with a plethora of experience in public relations and marketing communications, Roberta has extensive knowledge on corporate identity, consumer and lifestyle brands, B2B and B2C marketing, fintech, cryptocurrency, as well as blockchain technology. Starting out in a corporate environment, she transitioned to a boutique agency where her creative yet strategic results-driven approach gained her much success in managing some high-profile clients including Amazon.com, Showtime Networks, the Academy of Motion Picture Arts & Sciences and many more. In 2005, Roberta launched her own consulting firm, RTPR, where she built an impressive clientele across North America, Europe, and Asia. For over a decade, she provided strategic counsel and PR support for brands including the Toyota Mobility Foundation, Suite 420 Solutions, Monster Products, Chargebee, Altimetrik, Gibraltar Business Capital and LinkedIn. Roberta has a B.A. in Communications from New York University.

.

Diane Zhang, VP Finance

With an excellent undergraduate academic record, Diane was offered a research

assistantship to pursue graduate studies at The University of Cincinnati. She

graduated with an MA in Economics and then pursued her passion for accounting

and finance. A Certified Public Account (CPA) since 2006, Diane has accumulated

years of hands-on experience in finance and accounting through working for public

and private companies across a variety of different industries.

Darr Kadlubowski, Director, Social Media Marketing

Darr co-founded two startups during his time at Cornell University, where he earned

a Bachelor’s of Science degree in Industrial and Labor Relations. An experienced

marketer and entrepreneur, Darr is passionate about bringing content, such as

informative and entertaining articles, to users that adds real value to their social

media experience, and as a seasoned videographer and graphic designer, Darr

brings a creative edge to AXEL’s marketing and social media presence across all of

AXEL’s platforms.

28 AXEL Global Distributed Network

Dmytro Ashkinazi,

Executive Director European Operations

Veteran entrepreneur and software specialist. Dmytro founded, built, and sold

Dneper and iDom, two European tech companies. He’s spent years in IT consulting,

helping businesses develop incredible technologies. He brings with him a strong

business skill set and vast technical acumen that are borne of his experience

working in some of the world’s best-known tech giants. Dmytro holds a Master’s

degree from Dnipropetrovsk National University in Software Development.

David Deng,

Executive Director Asian Operations

David has extensive experience in the high-tech industry in China, working at

companies such as The Southwest Institute of Physics, Neusoft Group, and

Vanceinfo – rising through the ranks with each position. A master at building teams

that work cohesively to meet their objective, David also brings with him years of

engineering, technical and operations experience. David has a Bachelor’s degree

from Sichuan University in Science and Technology of Electronics.

February 2019 | Version 2.0 29

Building the Brand - What We’ve Been Up To:

Over the last 12 months we’ve kept busy not only

building out our distinct and innovative technology, but

also building a brand and community that will help AXEL

stand out in the market. The people outside AXEL are

as important as the people inside and we continue to

grow our community and reach out to new audiences.

We will keep growing, but we will also continuously

engage in proactive dialogue with our existing

community to truly build AXEL into something we’re all

proud of. Here’s a little of what we’ve been up to and

what we’re planning on doing to grow the AXEL brand.

Our User Community

Stimulating the AXEL app’s steadily growing user base

through engagement, activation, and retention initiatives

has been a critical component of AXEL’s strategy for

growth and expansion.

Through communication and education with our users,

we saw a 444% increase in conversions per user with

file transfers, a 301% increase in conversions with user

shares and we’ve also seen a record number of different

features used on our platform. The best part is that we

haven’t even begun to scratch the surface!

Though our efforts to activate, engage, and retain users

have been successful to this point, they’ve only been

stepping stones to greater levels of expansion and

monetization for our platform. With the exciting new

features and products to highlight to our users, like

Virtual Drive and AXEL Pro, we’re expecting significant

growth in user monetization, number of users, and how

much activity they’ll perform.

The Wider AXEL Community

AXEL has one of the strongest social media and

community followings in the blockchain world. The

numbers speak for themselves:

• Twitter: 43,000 followers

• Facebook: 141,000 page likes

• Reddit: 44,596 subscribers

• Telegram: 99,372 members

These numbers are not merely vanity metrics as our

social media channels have strong levels of engagement

including shares, retweets, mentions, and comments

across the board.

Additionally, our Telegram channel was one of the fastest

growing in the history of the platform and it continues to

be one of the most popular and active channels. These

numbers are a reflection of the enthusiasm and interest

in AXEL and our blockchain project.

AXEL’s social media made its mark in the arena of data

privacy and data custody. We are one of the thought

leaders in this sphere and our social media community

is comprised of CEO’s, influencers, venture capitalists,

and even celebrities.

30 AXEL Global Distributed Network

Media and Outreach

AXEL Media Relations

Since its inception in 2012, AXEL has made media

relations and communications a key component of

day-to-day business. At AXEL, we recognize the

importance of conveying company news, product

releases, and developing partnerships both in the

community and business sectors.

AXEL’s communications staff are among the most

experienced and well-respected professionals in the

media relations, journalism, and marketing fields. With

staff located in both Las Vegas and New York, AXEL is

always well-positioned to distribute information from

coast to coast, and across the globe.

Our communications and marketing employees have

spent years developing positive relationships with the

media and earning the trust and respect of journalists

representing major publications in the technology and

finance industries.

As a result of those relationships, AXEL has been

featured in Forbes, Business Insider, TechBullion,

Popular Mechanics, and PCMag Network. AXEL has

also been featured in numerous technologies, blockchain

and cryptocurrency publications and podcasts.

Education and Outreach

AXEL TV

As part of AXEL’s communications initiative, the

company’s YouTube channel plays a vital role in

announcing new products, company updates for both

internal and external use, product education content for

customers, and sharing news concerning privacy and

data custody.

AXEL’s YouTube channel has well over one million

views, dozens of professional grade videos and

animations, and a subscriber list that is rapidly growing

by the day.

AXEL is one of the few technology companies in the

world that feature an in-house veteran television anchor

and experienced voice-over artist. This in-house

creative and production resource is a vital part of our

ability to inform our users and community.

A large part of AXEL’s education and content plan is taking

on technically complex subjects such as blockchain,

Masternodes, and decentralization and turning it into

content that is understandable to average consumers.

AXEL releases videos on a regular basis and uses a

variety of creative techniques to educate consumers

and announce important company related information

and product releases.

February 2019 | Version 2.0 31

Partnerships

AXEL is building a range of strategic partnerships with data centers, IP providers, universities, and in the blockchain

community to support the development of the node network and technology. AXEL’s goal with these partnerships is

to provide strategic support to help AXEL scale, support the community, and build innovative new products that will

build the future of data custody.

AXEL: The Evolution of Data Custody

The world of data is evolving. The revolution of big

data is giving way to the evolution of data custody.

We’re creating data on an unprecedented scale

and losing control because solutions aren’t

geared towards the data creator.

AXEL has taken a different approach to many tech

companies that give the ultimatum of control or

convenience. We’ve built solutions that provide

ultimate data custody without compromising

convenience.

And we’re not done yet.

We have a big vision to ensure the future of data

custody remains with the data creators by building

powerful decentralized solutions powered by

distributed networks.

With a fusion of our patented technology, the

IPFS, distributed databases, and blockchain

solutions we’re creating solutions that provide

ultimate data custody. With a long track-record,

patented technology, and a world-class team,

AXEL is the evolution of data.

Appendix A – AXEL Pay and AXEL Exchange Excerpt from

AXEL White Paper 1.0

NOTE: The following are excerpts that relate to developments laid out in the AXEL White Paper 1.0 covering

the core functionality of AXEL Pay and AXEL Exchange which have been developed in conjunction with the

timelines expressed.

AXEL Pay was delivered as specified. The AXEL Exchange has been delivered as intended, however, it has

been developed as a distributed platform bringing forward its functionality by over 12 months.

32 AXEL Global Distributed Network

From Solution to Evolution: AXEL Pay

The AXEL App provides the easiest way for users to

access, share, and transfer their files. We’re also

building the easiest way for them to sell their files.

Pictures. Documents. Videos. Music. Anything.

With the AXEL Pay technology, users will be able to

sell, buy, or trade their files and digital assets directly,

one-on-one with no external interference or

involvement. It’s the same technology used every day

by AXEL users, with the addition of simple transactional

layers that allow people to securely sell their files in

seconds. It also builds trust between users to create a

more robust commerce environment.

No third parties will be creating the rules or imposing

disproportionate costs. Our technology will allow anyone

to create an AXEL Pay link for any file with a few clicks.

The user sets the price they want and they receive

nearly every penny. All that with virtually no transaction

fees. This created link can then be put on social media,

chat apps, or forums. This allows users to instantly

create their own storefront without handing over control

of their files to someone else.

While other commerce systems focus on the platform,

AXEL Pay focuses on the user by eliminating major

barriers to selling – time, access, costs, and ownership.

By removing these resistances, hundreds of millions of

people will suddenly have the opportunity to become

entrepreneurs with ease.

We strongly believe AXEL Pay will be the better, easier,

and safer way to monetize people’s files. It will come

with all of the benefits of e-commerce but without any of

the restrictions. AXEL Pay will initially utilize PayPal as

the payment mechanism.

Our existing platform is already being used by millions

who will shortly have access to AXEL Pay. But our

vision is to not only remove barriers to entry for digital

commerce – but to change how it is done.

February 2019 | Version 2.0 33

A Better Place to Sell: AXEL Exchange

We want to create a better place for people to sell - not just a better way for them to do it. That’s why our vision is to

create the AXEL Exchange, a true peer-to-peer e-commerce platform that will feature a vibrant community of buyers

and sellers.

With billions of people already buying and selling online, and another billion set to be added to the digital economy

by 2020, we expect the AXEL Exchange to be a key facilitator in the commerce of digital products and services.

Combined with AXEL Pay, this will provide the opportunity for anyone with an Internet connection to sell their

content without current costs or restrictions.

Better for Sellers

Sellers will be able to

participate in a popular online

portal with an audience ready

to buy their content. Utilizing

the AXEL App, they would be

able to sell any file on the AXEL

Exchange in seconds. The

AXEL Exchange will provide

both peer-to-peer selling and

the advantages of a platform

with a huge reach. It’s the best

of both worlds - allowing sellers

to promote their content in a

global ecosystem optimized to

deliver it to the people most

likely to buy it, with added

optional privacy.

Best of all, there will be no

startup costs for using the

AXEL Exchange.

Better for Buyers

Buyers will get access to an

ocean of unique content,

unlocked by the non-existent

barriers to entry that AXEL Pay

provides. We expect there to be

content available on the AXEL

Exchange that just won’t be

found anywhere else. Powerful

search capabilities will allow

visitors to find exactly what

they’re looking for.

The AXEL Exchange will

provide easy payment options

and will let users view, watch,

or listen to their purchases in

seconds. We expect that the

AXEL Exchange will be one of

the easiest, safest, and most

comprehensive ways to buy

digital content, all in one place.

Unified & Decentralized

The AXEL Exchange will

facilitate peer-to-peer

transactions. As has always

been the case with AXEL, the

user chooses where the

content is kept. We plan to

deliver the advantages of

existing e-commerce sites such

as Amazon, eBay, and Alibaba

and content channels such as

YouTube and Twitch – but not

all the costs, rules, and

restrictions that come with

them.