Seven Trust Mongolia Project

White PaperV 0.2

１.Project Summary

Introduction Our Goal Project Structure

２. Problems and solutions in the Mongolian Economy

Industrial Structure Wealth Inequality Issues in Prices of Commodities and Currency Solutions What is an IEO?

３. Cryptocurrency Exchange (NOMAD） Overview Becoming a Member of ABCCC Characteristics of an Exchange System Marketing Strategy Roadmap

４. Introducing the Businesses

Gold Mine Development Business EC Business e-Residency Business

５. About STM Tokens

Reasons to Buy STM Tokens Information Allocation Use of Funds

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Table of Contents

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６. Board Members Bayarsaikhan Purevjanaa Badral Bold Mendbayar TS. Duchintav Khojgor Mr. Dorjpurev Dulamsuren Dori（Dolgion）- Miss Universe Mongolia 2018 Erdembileg D. Ken Tobioka Yukari Tsuji Hiromi Rumiantseva

７. Disclaimer

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Introduction How well do you understand the economic impact of FinTech on the financial and distribution industries, as well as on the world economy?

Humanity has experienced three major revolutions of our social structure in the past – The Agricultural Revolution, the Industrial Revolution, and the Information Revolution – each time bringing an explosion of economic growth. The Agricultural Revolution saw a transition from hunting and gathering to agriculture. During the Industrial Revolution, humans established manufacturing and trading industries which surpassed agriculture. The Information or Internet Revolution has brought enormous amounts of knowledge to the fingertips of humanity, connecting them all in unprecedented ways.

Just as those revolutions dramatically changed human lifestyles, cultural activities, and value systems worldwide, as well as transforming economic structures, FinTech is another innovative technology which will have an impact on the future world economy.

FinTech is a portmanteau word made up of “Finance” and “Technology”. It refers to innovative financial services that utilise Information Technology. Cryptocurrencies, a recent popular topic in the finance and distribution industries, are a form of currency created and managed by people without requiring the intervention of management entities such as the state or private enterprise. Cryptocurrencies are a typical example of new FinTech technologies.

The Seven Trust Mongolia Project aims to address various issues faced by Mongolia, by connecting a cryptocurrency exchange, established by us (NOMAD), to cryptocurrencies related to a number of Mongolian enterprises. Please imagine a world where cryptocurrencies are a perfectly natural element of your economic life, and please allow us to deepen your understanding of our project.

１. Project Summary

Our Goal The goal of our project is to create a new economic bloc utilising a cryptocurrency suited to both the cryptocurrency exchange (NOMAD) and to many different commercial potentials and applications. We hope to see an economic bloc built that promotes partnerships among domestic Mongolian businesses, bringing innovative changes to finance, distribution, and resources, while taking societal and community interests into consideration. In the future, we will eventually expand our economic bloc to neighbouring countries such as China, Korea, Russia and Japan to increase international liquidity, encouraging greater foreign capital investment in Mongolia, which will dramatically stimulate country’s economic growth.

We will issue a cryptocurrency called “STM Tokens”, which will become the mainstay for all these businesses.

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ProNOMAD

Seven Trust Mongolia Project

Project Structure Seven Trust Mongolia Project aims to establish a new economic bloc with STM tokens as the mainstay of each enterprise and a connection with that and the cryptocurrency most appropriate for that business. To be specific, the funds procured with STM Tokens will be used to found the exchange (NOMAD), and a proportion of the proceeds of both the exchange and each business will be returned as dividends. The tokens that are most suitable for each business will be issued and listed on the exchange. Those business tokens will then be distributed to the STM token holders for free through the exchange.

Cryptocurrency Exchange

Business

- Resources Development - EC Business - Payment Services Business - e-Residency Business - Entrepreneurial Support Business - Environmental Business - Beauty/Health Business 　etc.

Listing of Cryptocurrency

Funds

STM Tokens

Dividends Free Distribution of Tokens

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Industrial Structure An analysis of Mongolia’s nominal GDP shows that the mineral export industry has accounted for the largest share at 20% since 2005 and is still playing a major role in supporting the national economy. On the other hand, real GDP growth rate by industry shows that around 2015 growth of mining, which had been a leading industry, starts to slow down due to falling resource prices. In addition, trade and construction fell into negative growth as well as agriculture and manufacturing facing sagging growth rates. If the export of resources continues to fall, especially while China’s economy is slowing down, Mongolia’s economy can be seen to facing an extended period of difficulty.

２. Problems and solutions in the Mongolian Economy

Wealth Inequality モMongolia experienced satisfactory economic growth after reforms in the early 90’s saw democratization and a more market-oriented economy, and this continued until the global financial crisis in 2008. After 1990, significant improvement was seen in areas such as average life expectancy, education, and economic performance. However, as a result of being overly dependent on the mining sector for many years and some other factors, inflation started rising after 2008. At the end of 2011, government food subsidies were discontinued and this triggered an acceleration of food inflation. Other issues then came to light, such as the inequality resulting from the bubble economy that came from an excessive reliance own resources, and the increase in poverty. The widening economic and wealth inequalities between urban and rural areas is also considered to be a problem.

Issues in Prices of Commodities and Currency In January 2013, the Mongolian government attempted to boost the national economy by lowering the policy interest rate. However, in the middle of 2013, the exchange rate of Tugrik plunged, along with a sudden decline in foreign investment, which led to import inflation. The inflation rate, which was 8% in July, dramatically increased after that reaching 14% in July 2014.And so, in July 2014, the Mongolia Central Bank turned to tighten the money supply by raising the interest rates. This policy is continuing to date.The economy management associated with such large fluctuations, increased interest rates along with the weakened Tugrik and rising inflation have all contributed to a worsening of the lives of the people.

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Solutions The aim of this project is to resolve these issues in Mongolia’s economy and promote its growth. In addition, it also aims to maximize the result of the participating members’ investment activities.

To address issues in the make-up of Mongolian industry, the economy – overly reliant on mineral exports - needs to start developing other industries, as well as bolstering the almost moribund mining industry. Specific examples of potential industry development, gold exploration (Mining Industry), cryptocurrency exchange and payment services (Finance and Insurance Industry), the e-Residency business (Information and Communication Industry), and EC businesses (Wholesale and Retailing Industry).

Raising national education standard is the first step in reducing wealth inequality, as this will start to create an environment supportive of entrepreneurs ad endow them with the necessary capabilities. Businesses supporting entrepreneurship will be developed for that purpose. It would be especially beneficial for Mongolian people to participate in this development as it will mean an increase in their income.

Regarding commodities prices and currency, the national currency Tugrik is weak and unstable in a world that is moving towards to a digital and cashless society. If a cryptocurrency can be created to replace the Tugrik, and if it can permeate each market, we could expect demand for it as a second national currency would introduce greater stability. Furthermore, a less volatile second national currency would spread to neighbouring countries bringing an anticipated stabilizing effect on the national economy.

These plans are possible with a cryptocurrency. A Cryptocurrency Exchange (NOMAD) is the place to transact the cryptocurrency. And the establishment of the exchange is the first task of this whole project.

The method we have chosen to procure funding for this task is chosen an IEO (Initial Exchange Offering).This method enables us to establish a brand-new economy bloc utilizing both existing IT technology and Blockchain technology.

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What is an IEO? An IEO is the financing arrangement that will underpin the first stage of this project. It is implemented by outsourcing of selling and distribution of tokens/cryptocurrency to a certain exchange. The specific process is, first of all this project issues the tokens.Next, the tokens are sent to the outsourcing exchange. Then, the exchange lists the received tokens and sells/distributes them to investors. Needless to say, in order for investors to participate IEO, they must create an account with the exchange. Once the IEO starts, investors are able to buy tokens directly from the exchange.

Pro

IEO Process

STM Project

IEO Exchange Investor

2.Outsource Token Selling Service

1. IEO Screening 3. Sell Tokens

4. Buy Tokens

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３. Cryptocurrency Exchange（NOMAD）

Overview Seven Trust Mongolia Project contributes to Mongolia’s economy by connecting numerous businesses to the cryptocurrency. A Cryptocurrency Exchange (NOMAD) based in Mongolia will be required as a hub for all those businesses. Establishing it will be our very first undertaking.

Becoming a Member of ABCCC ABCCC stands for “Asia Blockchain Crypto-Currency Consortium”, which is a network of exchanges in Asia and Japan. They conduct research to improve blockchain technology, as well as support the global study of cryptocurrency. NOMADEX is confirmed to become a member of ABCCC.Becoming a member of ABCCC makes it possible to secure market liquidity and customer sharing.

http://abcc.aae-itc.com

ABCCC Member Exchange

@ Hong Kong

@ Singapore@ Malta @ England @ China

@ Mongol @ Sri Lanka

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Characteristics of an Exchange System

I. Transaction in Legal Tender are Possible Since NOMAD is partnered with Mongolian banks, it can cooperate with banks. Thus, transactions in the legal tender Tugrik are available.

II. Issue of Exchange Tokens Exchange tokens that are usable at the exchange will be issued. When the exchange tokens are used at the issuing exchange, the transaction fee will be discounted. As Transaction Fee Mining also applies, the fee you paid to the exchange will return to you as exchange tokens.Since the exchange will control the exchange token price by the use of buybacks, you can expect the value of your tokens to increase.

III. Peer-to-peer lending with Cryptocurrency Peer-to-peer lending services is a platform that matches entrepreneurs who need to borrow funds with investors who want to invest their funds.While entrepreneurs can borrow money quickly in cryptocurrency at low interest rates, investors can invest with high returns.

Marketing Strategy NOMAD will be the exchange for the Seven Trust Mongolia Project and will work as a hub for it. However, at the same time, we will also aim for NOMAD to enjoy high levels of performance and usability so that it becomes a leading company in the cryptocurrency exchange industry.Our marketing strategy is as follows.

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I. To list several types of coin that are sold in Japan such as IEO and ICO→ Guide tens of thousands of users of each coin to create accounts with the exchange

II. Packaged coins - people can obtain a set of many types of coins that are to be listed among partnered exchanges all over the world

III. Development of Sales Dashboard Wallet → compatible with all the cryptocurrency traded at NOMAD

IV. Development and operation of a system that allows trading between different currencies, and an arbitrage system among partner exchanges

Roadmap

Product Development STM Token Sale

Private Sale starts for Employees etc.

IEO Start (Public Sale)

Exchange Opening(Scheduled)

2019 June

2019 July

2019 August

2019 September

2019 October

Exchange Development Start

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４. Introducing the Businesses

Gold Mine Development Business As Mongolia - a “Resource-rich Country” - used to be the seabed in ancient times, the land is very rich in mineral resources. It is said that Mongolia holds the world’s largest coal reserves and that there are thousands of viable coal beds.Also, a massive volume of gold has been created by uplift during volcanic activity at the Mongolian Plateau. The existence of hundreds of unexplored veins of gold and copper have been confirmed. Asia’s biggest “Oyu Tolgoi (gold, copper) deposits” used to be estimated to contain 30 trillion-yen worth of mine but in recent years it is presumed to contain 200 trillion-yen worth. And yet, it is also said that there is yet another deposit of a similar scale.

Gold mine owners with government-issued mining licenses have had difficulty obtaining financing for development due to the economic conditions of the past few years.Seven Trust Mongolia Project will establish a scheme to assist the gold mine owners with financing in order to revitalize small to medium sized mining businesses. This would eventually drive Mongolia’s economic growth.

Seven Trust Mongolia Project’s scheme for gold mine development is as follows.

　I. Bring gold mine owners together and form an “association” of private gold mine businesses. 　II. Along with I., establish a third-party organization to conduct a reserve estimations of gold deposits for the gold mine owners 　III. Raise funds and invest in the owners for gold mining to make a profit 　IV. Use a proportion of the profit for buybacks of STM Tokens

Regarding establishment of a third-party organization in II., estimations of gold reserves are unlikely to be reliable if produced by a local company within Mongolia because they would still be relying to a certain extent on data produced surveys conducted by the Soviet Union 40 years ago. The accuracy of reserve estimation is essential in the process of obtaining funds from overseas.However, international third-party organizations from Canada or Australia would be prohibitively expensive as they are generally used by publicly listed mining companies, so it creates something of a dilemma.In order to accelerate the fundraising process, we need to establish a low cost local third-party organization capable of producing estimates of reserves at least as accurate as an internationally regarded firm.Therefore, Seven Trust Mongolia will recruit talented people with experience in working overseas and form an organization who will then be tasked with the evaluation of small to medium sized prospects.

Eventually, we will issue stablecoins, using the gold we obtain from Seven Trust Mongolia Project mining as security.

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EC Business We are partnered with shoppy.mn, which launched in 2016 and is now Mongolia’s biggest EC website. Utility Tokens (SHP Tokens), which can be exchanged for shoppy.mn points, will be issued and will only be listed at NOMAD.The shoppy.mn points (= SHP Tokens) can also be exchanged for legal tender at an exchange. The benefit for stakeholders is that investors can expect high returns by taking advantage of the convertibility of the points. For shoppy.mn, the use of borderless cryptocurrency enables the website to globalize. Also, the exchanges can expect to earn handling fees for token exchanges.

In the future, we will manage shoppy.mn points in databases using blockchain. Then we spread this model to other EC websites and large retail chains so that we will be able to collect retail data. We can then use the collected data to look into new business opportunities to increase returns through for example advertising.

Pro

About shoppy.mn

# In 2012, only four staff members started the business in Mongolia. In 2016, Mongolia’s pioneering EC website shoppy.mn launched. It has grown to be Mongolia’s biggest EC website and currently 30 staff work for the company. # 70 brands and 60 shops are on the website. 300,000 visitors visit per month. There are 100,000 members. # In July 2018, a Taxi system collaborating with UBCab (the UBER Group) started. # In July 2018, as part of platform business expansion, the EC website started selling concert tickets, books, music etc. # In August 2018, partnered with Mongolia’s biggest retail bank for credit card payment service. By the end of 2018, the website had grown to carry 120 brands and 100 shops, and connected with 400,000 members. # In October 2018, the company entered into payment service business to develop a payment system which only uses a phone number and a bank card in collaboration with Mongolia’s biggest communication company MOBICOM and Mongolia’s biggest bank Mongolia Trade and Development Bank. https://shoppy.mn/

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e-Residency Business e-Residency is a system that allows a foreigner to become an electronic resident of a country.

First tried in Estonia, they have built an e-Government (electronic government). They spent many years developing laws and 90% of the government administrations is carried out online. The system launched in 2014 and they started advertising e-Residency and e-Corporation.e-Residency and e-Corporation systems make it possible to do things online such as establishing a corporation, signing a document, filing tax returns etc.

Like Estonia, by gaining e-Residents and e-Corporations, a country with a small population is able to increase its population without any of the burdens associated with immigration, environmental impacts and waste disposal. Therefore, the country can expect an increase in tax revenue from collection of registration fees, annual access taxes, sales tax etc. Moreover, those e-Residents overseas can make the best use of e-Residency system by using cryptocurrency or electronic money which are optimized by blockchain technology.

Mongolia has four special economic zones (two zones each on the borders with Russia and China), however they have not been well utilized so far. Seven Trust Mongolia Project has a business plan which brings enormous benefits to both e-Residents overseas and to Mongolia by utilizing those special economic zones and e-Residency systems in combination.

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５. About STM Tokens

Reasons to Buy STM Tokens Cryptocurrencies have become a very popular topic in financial markets lately. It is said that there are more than 1500 cryptocurrencies currently in circulation worldwide. The number would rise to a few million if ICO, which are not on market, are included.If so, why should we choose STM Tokens out of all the other cryptocurrencies?

I. “IEO”, not “ICO” As stated earlier, IEO is a financing arrangement which outsources the services of selling and distributing tokens to an operating exchange. Seven Trust Mongolia Project employs IEO instead of ICO for financing.

The Benefits of IEO - Because we can easily reach out to the users of the outsourcing exchanges, marketing cost will be reduced (it also allows us to focus on core tasks). - Outsourcing exchanges screen the project before the contract so it would add credibility to the content of the project. - The exchanges stand as intermediaries between the project and investors. This structure helps prevent embezzlement. - After the IEO, the tokens will be listed on the outsourcing exchange.

II. Right to Claim Dividends STM Token holders receive a proportion of Seven Trust Mongolia’s profit as dividends, the same as corporate shares. Dividends are returned in legal currency-pegged tokens which can be traded at NOMAD, and they can also be converted into coins to use within NOMAD or into a legal currency.

III. Free Distribution of Business Tokens As shown in “4. Introducing the Businesses”, appropriately designed tokens will be issued for each business in Seven Trust Mongolia Project. They will be sold at the exchanges (NOMAD etc.) but some of them will also be distributed to STM Token holders for free.

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Pro

Market Making Idea

$0.0

$10.0

$20.0

$30.0

Continuous support by buybacks with business profitIEO Listing

IV. Free Distribution of STMW Tokens With STM Tokens, earnings can be expected from dividends, but they will not be listed on the exchange. Instead, Seven Trust Mongolia Project issues STMW Tokens which can be traded on the market. STM Token holders will receive STMW Tokens for free, which means that purchasing STM allows the holder to expect not only the earning of dividends but also the enjoyment of capital gain.

With existing ICO, the following situation are not unusual; “The price of tokens is increasing but they cannot be cashed in because they are not listed on the exchange”, “It is now listed but the exchange rate of the coins has fallen lower than the purchase price”. On the other hand, STMW Tokens will be listed on both exchanges; the NOMAD exchange which this project will establish, and the exchanges to which work will be outsourced by the IEO. Furthermore, regarding concerns about the price falling, it will be controlled to maintain continuous increase through buybacks (market making) using a proportion of the profit from the exchange and the businesses.

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Information

Standard Ethereum ERC20

Token Name StmToken

Token Symbol STM

Number Issued 45,000,000 token

Total Sales 10,000,000 USD

IEO Price 1 STM = 5 USD

Allocation

Distribution20%

Founder20%

Reserve20%

Advisor10%

Project30%

Legal10%

Liquidity20%

Product Development20%

Marketing40%

Operations10%

Use of Funds

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６. Board Members

Bayarsaikhan Purevjanaa Born in Zavkhan, Mongolia, July 1977, and formerly worked as a professional Mongolian traditional musician. Graduating from the Mongolian National University as a travel & sightseeing manager. In 2005 he launched a business, and is now focusing on foreign trade, particularly between Mongolia and Japan. Established Mongolian company, Seven Trust Mongolia LLC in 2018, in Ulaanbaatar.

Badral Bold Born 1972, studied finance and tax at Mongolian National University, and worked in the Mongolian Tax Administration for more than 20 years. He was entrusted as the head of the unit, division and department of the General Department of Taxation. He was engaged as team member in 2007 and 2018 tax legislative reform, new revisions of the Mongolian Value Added Tax law in 2016. He specializes in tax administration, tax planning and international tax issues, has extensive experience as a project leader.

Mendbayar TS. Born in 1981, and acquired experiences in a range of fields such as building, finance, and communication ( IT ) over more than 10 years. Has worked both with Mongolia and on overseas projects, and has conducted business in the United States of America. He established shoppy.mn in 2016, and is still pushing forward with developments and updates.

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Duchintav Khojgor Graduating from Vladimir Polytechnic Institute in 1985 with a bachelor’s degree in Mechanical Engineering specialized inprecision equipment. In 1996, he graduated from the Export Academy at Baden-Wurttemberg with a certificate of Advancement and Professional Training. He has over 25 years of business experience in various sectors such as pharmaceutical, banking, airline, construction and mining. In 1990, he started his career at Mon Mar LLC as Vice Director and later started his own pharmaceutical company in 1997 and eventually transitioned to commercial banking in 2003 as a shareholder and board member and has been a major shareholders of Aero Mongolia since 2007. In 2008, he focused on mining industry due to Mongolia’s economic boom and invested in many mining projects for further development and partnered with both local and foreign investors.

Mr. Dorjpurev Dulamsuren A Graduate of the University of Finance and Economics, Dorjpurev has professional experience in the fields of finance and energy. He started his career as a financial analyst at the Investment andTechnology Renovation Bank of Mongolia, later founded B&G Finance non-banking financial institution.During government privatization project an investment firm under his leadership acquired Sharyn Gol coal mine and DarkhanSelenge Electric Distribution System where he served as chairman. From 2012 to 2015, he served as the Vice Minister for Energy and later became the Advisor to the Minister for Energy. Currently serving as the non-executive president of companies he founded, he is also president of the Alumni Association of University of Finance and Economics.

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Dolgion DelgerjavBachelor's degree in human resource and marketing manager major. Values the relation of peace between Japan and Mongolia. Organizes humanitarian charity works often and works hard to dedicate herself for the Mongolian community and social works. She works as an owner of many international competition and events’ rights through her own Non-Governmental Organization. She trains and prepares Mongolian national participants for international competition to represent her country. Crowned as the first winner of Miss Universe Mongolia. She currently works as an Executive Director of Mongolia’s National Designer’s Association.

Erdembileg D. Professional Artist, and Designer, born in 1961. Graduated from the University of Industry and Design of Moscow. Awards :The State Honored Artist-2010, 2010 Grand Prize of the World Intellectual Property The last products (2006) :One of the 9 Wonders of Mongolia -the 40 meter Chinggis Khaan State on Horseback in Tsonjinboldog Current projects :The “Morin Khuur” Tower, since 2009. The Grand Maitreya Complex, since 2010. The “Green Horse” Project, since 2012.

Ken Tobioka

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Born in 1944 in Tokyo. Completed a doctoral degree in Engineering at The University of Tokyo in 1973. Involved in the launch of The University of Tokyo’s artificial satellite. Researched in Interdisciplinary study which goes across the areas of Philosophy, Sociology, Economics, and Biology. In 1975, Dr Tobioka established Institute of Modern Human Science to meet the needs of a new era. Aims to integrate Humanities and Natural Science by studyingcommodities, markets, consumers, scientific technology from the viewpoint of future technology. Contributed to a number of contracted research projects for the government and local governments. Travels all over Japan to give talks. Reputable for his viewpoint with foresight. He has published a number of books and frequently appears on TV and radio. Currently a director of the Institute of Modern Human Science and Institute of Future and Management.

Yukari Tsuji

Born in Kurashiki, Okayama Pref. Graduated from Kobe College. Gives talks on Beauty and Health traveling all over Japan. Yukari is a career woman who directs her own business called Y’s Cheer Company Ltd.In 2006, Yukari came across Mongolian children at their concert in Japan. She was deeply touched by them and decided to participate in support activities for them. In 2008, Yukari started supporting activities of her own towards the Orphanage “Taiyo no Kodomo tachi”. She also sponsors their charity concerts. Around the same time, Yukari established a General Incorporated Association called Beruna Child Support and started supporting 24-hour childcares and facilities for disabled children. Later she established a system called the “Monthly Supporter System” to transfer funds directly from Beruna. Yukari currently resides in Tokyo.

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Hiromi RumiantsevaWent to England alone at the age of 18 and visited thousands of cities, towns and villages around the world. She is a ragtime opera singer of 44 years of music experience, a multi-lingual translator, a highly qualified specialist for international commercial transactions and a director of beauty association. She is now involved in 100 different business consulting services and web marketing solutions.

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７. Disclaimer

1. At the purchase of STM Tokens (hereinafter referred to as the “Tokens”), please carefully access the risks and disadvantages of the purchase. We are not responsible for any losses including indirect losses, incidental losses, and an illegal act that was caused to the buyer by accepting or trusting all or part of the whole White Paper.

2. The Tokens are stored in an ERC20 standard wallet. Access may be totally denied when password or PRIVATE KEY are lost by the user. Mishandling of passwords and PRIVATE KEYs can lead to a loss of Tokens. We take no responsibility for the losses.

3. Please be aware that once a purchase of the Tokens is made it is definite, thus no refund can be made.

4. Although we do our best to follow our Roadmap, there are possibilities that may delay the official release of new services.

5. We hold the right to revise or update the White Paper and Terms and Conditions anytime when necessary.Purchase of the tokens will be taken to mean that the buyer accepts all the conditions.

Buyer’s expression and understanding

a. The buyer understands that once a purchase of the Tokens is made it is definite, thus no refund can be made.

b. The buyer understands that the value of Tokens is subject to significant change the same as other cryptocurrencies.

c. The buyer understands that they do not hold any right or influence on our organization and its policy after obtaining the Tokens.

d. The buyer agrees and understands that the Tokens are not any form of securities in their jurisdiction.

e. The buyer understands that it is considered that they have understood all the contents when all or part of the White Paper was read by them. They are considered to be purchasing the Tokens upon that understanding.