According to the Tokens and TT Service Provider Act (TVTG) for the public offering of the Tiamond NFTs and Tiamond TIA Token Issuer. Token Issuer according to TVTG: LCX AG
Date of the Basic Information:
June 5, 2023
The Token Issuer, according to TVTG is the company issuing the Tiamond NFTs and Tiamonds TIA Token (together the “Tiamond Tokens”) in the name and for the account of Tiamonds AG, a company incorporated in the Principality of Liechtenstein, registered with the Liechtenstein Commercial Register under registration Number FL-0002.702.154-5, with the seat and correspondence address at Immagass 4, 9490 Vaduz, Principality of Liechtenstein, accepts responsibility for the contents of this Basic Information and declares that as at the date of this Basic Information, to its knowledge, the information provided is correct and no material circumstances have been omitted. All investments, including Investment in the Tiamond Tokens, involve certain risks, including the total loss of invested funds. Potential buyers should read the contents of this Basic Information in its entirety prior to making an investment decision.
LCX AG, Herrengasse 6, 9490 Vaduz, Liechtenstein
represented by Monty C. M. Metzger, CEO
Table of Contents
This document contains Basic Information according to Art. 33 of Tokens and TT Service Provider Act (“TVTG”).
The offering of the Tiamonds Tokens, which includes Non-Fungible-Tokens (“Tiamond Non-Fungible-Tokens” or “Tiamond NFTs”) and utility tokens (“Tiamond TIA Tokens” or “TIA Tokens”) will be carried out by LCX AG (“the Issuer”) in Liechtenstein pursuant to Liechtenstein law on behalf and for the account of Tiamonds AG, a company incorporated in the Principality of Liechtenstein, registered with the Liechtenstein Commercial Register under registration Number FL-0002.702.154-5, with the seat and correspondence address at Herrengasse 6, 9490 Vaduz, Principality of Liechtenstein .
LCX AG is regulated by the Financial Market Authority of Liechtenstein under registration No. 288159 as a trusted technology service provider. LCX AG is registered as TT Exchange Service Provider, TT Token Depositary, Token Generator, TT Key Depositary, TT Price Service Provider, TT Identity Service Provider, TT Token Issuer for our own name (Article 12(2) TVTG), TT Token Issuer for third parties (Article 12(1) TVTG) under the provisions of the TVTG and as Physical Validator.
Only registered users of the LCX platform (see: https:/LCX.com) are eligible to purchase the Tokens. All buyers must read and accept the Terms of Tiamond Tokens Sale published on the purchasing platform.
Any potential buyer will be subject to all applicable KYC/AML in place at the time of the purchase through LCX AG. Failure to comply with the KYC/AML procedures and routines applicable to the purchase of Tokens shall prevent the purchase of the Tokens or the imposition of sanctions on purchasers, including the freeze of funds, mandatory cancellation or redemption of Tokens or any other measure that the Issuer may deem appropriate to meet the applicable regulatory requirements.
Whether the Token constitutes a suitable instrument must be assessed in light of each contributor’s own circumstances. Neither this Basic Information nor any marketing material relating to the Basic Information constitutes investment advice, financial advice or any other kind of advice. Contributors must make a suitability assessment regarding their contribution in the Token or consult with professional advisors. Purchase of the Token is only suitable for contributors who have sufficient experience and knowledge to participate in the token sale.
The Issuer will not sell any Tokens where potential buyers are citizens or residents of restricted jurisdictions as determined by the Issuer. In particular, restricted jurisdictions are the United States of America and China, further, any US persons are prohibited from participating. The following Jurisdictions are defined as prohibited countries according to Issuers AML framework in general: Afghanistan, Angola, Bahamas, Barbados, Bangladesh, Bosnia and Herzegovina, Botswana, Burkina Faso, BVI, Cambodia, Cayman Islands, China, Colombia, Cook Islands, Crimea Region, Cuba, Ecuador, Eritrea, Ethiopia, Ghana, Guyana, Iran, Iraq, Jamaica, Kenya, Kosovo, Laos, Lebanon, Libya, Mauritius, Montserrat, Morocco, Myanmar (Burma), Nauru, Nicaragua, North Korea, Pakistan, Palestinian Territory and Gaza Strip, Panama, Papua New Guinea, Samoa, Sao Tome and Principe, Senegal, Somalia, South Sudan, Sri Lanka, Sudan, Syria, Tonga, Trinidad and Tobago, Tunisia, Uganda, Vanuatu, Venezuela, Yemen, Zimbabwe.
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA OR CHINA OR OTHERWISE THAN TO PERSONS TO WHOM IT CAN LAWFULLY BE DISTRIBUTED – THIS TOKEN OFFERING IS AVAILABLE ONLY TO ADDRESSES OUTSIDE OF THE UNITED STATES, CHINA OR OTHER RESTRICTED JURISDICTIONS.
The Issuer has not authorized the making of any offer by any offeror, and the Issuer has not consented to the use of this Basic Information by any other person in connection with any offer of the Basic Information in any jurisdiction.
Any offer made without the consent of the Issuer is unauthorized and the Issuer does not accept any responsibility or liability in relation to such offer or for the actions of the persons making any such unauthorized offer.
This summary is an overview of the subsequent Basic Information.
Potential buyers of Tiamond Tokens are urged to read the entire Basic Information.
Participation in the Token Sale involves substantial risks. Participants could lose all or part of the invested capital. Civil liability attaches only to those persons who have tabled the summary including any translation thereof, but only where the summary is misleading, inaccurate or inconsistent when read together with the other parts of the Basic Information.
LCX is a regulated, compliant, and secure blockchain company established in 2018 and headquartered in Vaduz, Liechtenstein.
LCX, LCX.com, the Liechtenstein Crypto-assets Exchange, or LCX AG (hereinafter referred to as “LCX” or “LCX AG”) is a globally focused financial technology company. LCX AG is established under the jurisdiction of Liechtenstein, with its registered address at Herrengasse 6 in Vaduz, Liechtenstein, 9490 Vaduz. Registered in the commercial register at Vaduz, Liechtenstein with register number: FL-0002.580.678-2 and Legal Entity Identifier (LEI) Number 529900SN07Z6RTX8R418.
As a Trusted Technology Service Provider that is registered under the Blockchain Laws (TVTG), LCX is required to comply with the KYC/AML/CFT standards under the Due Diligence Act and is supervised by the Financial Market Authority in Liechtenstein (“FMA”). The core activities of LCX in accordance with the scope and the definitions of the Lichtenstein Blockchain Act are to offer services as:
LCX is the Token Issuer of Tiamond Tokens and facilitates the Tiamond Token sale in Liechtenstein pursuant to Liechtenstein laws.This includes the smart contract development and creation in LCX’s role as Token Generator, investor identification in LCX’s role as TT Identity Service Providers, secure custody in LCX’s role as TT Token Depositary and TT Key Depositary, and listing Tiamond TIA Token at LCX Exchange in LCX’s role as TT Exchange Service Provider.
LCX’s token sale manager and comprehensive crypto compliance suite empowers Tiamonds to manage the Tiamond Tokens Token sale in a compliant manner. LCX’s advanced Crypto Compliance Suite comprises Know-Your-Customer (KYC), Anti-Money-Laundering (AML), and Blockchain Analytics (KYT) processes facilitate quick and automated contributor onboarding for the private sale and public sale.
The LCX ecosystem consists of LCX Exchange, a regulated centralized exchange for a variety of digital assets, Fire Salamander, a powerful DEX aggregator, Tiamonds, real-world diamonds as NFTs, and LCX Terminal, an advanced trading platform for portfolio management.
Tiamonds is a project by LCX with the goal to showcase the opportunities of tokenized assets, to educate consumers about tokenization by gamification and to create a community driven token economy
The Tiamonds project includes two key elements: Tokenized Diamonds called Tiamonds and a deflationary Cryptocurrency called TIA Token.
Tiamonds are non-fungible tokens (NFT) representing the ownership rights of real-world Diamonds. Each Tiamond NFT is receiving TIA Tokens as rewards over time through the “Own to Earn Model”.
TIA Token is a utility and governance token for the Tiamonds platform. TIA Tokens are a deflationary cryptocurrency with three simple functions which occur during every transaction: Reflection, Rebalancing, and Burn.
Tiamonds official white paper can be accessed here: https://Tiamonds.com
Tiamond NFTs are offered at Tiamonds.com for sale in auctions and fixed price sales.
Tiamonds TIA Token are not offered in a public token sale. The Tiamonds TIA Token are distributed in accordance with the ‘Own to Earn Model’ for Tiamonds NFTs holders. Tiamond TIA Token may be also purchased on secondary markets and trading venues.
Tiamonds may mint additional tokens in the future in accordance with the white paper and the community governance decisions.
Also known as an English auction, the Tiamond NFTs will be sold to the highest bidder.
Within all auctions, attendees may purchase Tiamond NFTs using LCX tokens exclusively. Each Tiamond token will have a starting price (‘opening bid’).
The bidding process is managed on a fully decentralized platform at Tiamonds.com. All bids are on-chain transactions where the number of tokens for the bid will be blocked on-chain during the auction bidding process and then used to execute the purchase if this was the winning bid. Settlement and custody of tokens along with compliance will be performed directly by the Placer.
Important Note: Any bids made in the last 10 minutes of an auction will extend each auction by 10 more minutes. Popular auctions are often extended by new bids offered in the last 10 minutes.
This continues until no one is willing to increase the bid any further, at which point the auction is closed and the final bidder receives the item at his bid price.
All purchases of Tiamond NFTs within the auctions are final. Respective purchases are non-refundable. By winning the auction, the winner acknowledges that the Token Issuer and Placer are not required to provide a refund for any reason besides the ones stated by Liechtenstein law. The proceeds from this Token Offering via Auction will be used in accordance with these Terms and the white paper.
Tiamond NFTs also offers a fixed price on Tiamonds.com. The fixed price sale consists of two steps:
Each Tiamond NFTs fixed price sale shows these two parameters on the platform. Depending on the rarity of the Tiamond NFT, the amount which needs to be staked to access the fixed price sale and the purchase price vary.
The Tiamond NFTs offered for fixed price sale are sold on a first-come, first serve basis. The fixed price sale including the staking process, is managed on a fully decentralized platform at Tiamonds.com. All sales are on-chain transactions where the amount of tokens for the bid will be on-chain for the auction purchase.
All purchases of Tiamond NFTs within the fixed price sale are final. Respective purchases are non-refundable. The buyer acknowledges that the Token Issuer is not required to provide a refund for any reason besides the ones stated by Liechtenstein law. The proceeds from this Token Offering via Auction will be used in accordance with these Terms and the white paper.
Tokenization is an emerging and rapidly evolving area in the blockchain industry. As the market of Blockchain technology matures, the impact of cryptocurrencies, digital assets and tokenized assets on financial markets increases. However, the average consumer doesn’t understand what tokenization is or why it matters, let alone how the technology works or why the legal framework matters.
As a result, the growth of the tokenization is limited while the large opportunities and long-term economic growth implications remain.
Tiamonds will make tokenization known and accessible through three main tactics:
Tiamonds is a project by LCX with the goal to showcase the opportunities of tokenized assets, to educate consumers about tokenization by gamification and to create a community driven token economy. LCX is a regulated fintech company, registered as a compliant trusted technology service provider, and is conducting the token offering in accordance with the innovative Liechtenstein blockchain laws.
The Tiamonds project includes two key elements: Tokenized Diamonds called Tiamonds and a deflationary cryptocurrency called TIA Token.
Safely add diamonds to your investment portfolio via blockchain technology. Tiamonds are Non-Fungingle-Tokens (NFTs) to represent ownership of individual and real-world diamonds. Tiamonds NFTs are based on the Ethereum Blockchain and backed one on one by an individual diamond.
Tiamonds NFTs are enabled by LCX‘s regulatory framework and LCX’s advanced blockchain infrastructure. LCX is showcasing the functionality to connect the physical with the digital world.
Diamonds were formed billions of years ago, they are the hardest material on the planet and are often used by investors to diversify with a hard asset portfolio. Diamonds are available in many sizes, are portable and easy to store.
Due to the lack of fungibility diamonds are rarely used for asset diversification. Diamonds are non-fungible as they are always unique. There are several diamond grading systems that allow diamonds to be measured on specific metrics, e.g. color, clarity, carat, and cut-quality. Nevertheless each diamond will never be fully identical as there are attributes which are not standardizable .
Lack of fungibility is one of the main reasons why diamonds have a complex, illiquid and in-transparent marketplace. Diamond marketplaces are fragmented and include many middle men.
An asset backed token based on the Ethereum blockchain which represents a real-world individual diamond. The token is a 1-1 digital representative of the individual diamond. The digital token has been developed as a non-fungible token with the ERC-721 token standard in combination features known from the Liechtenstein Protocol technical white paper token standard developed and published by LCX.
Tiamonds issues tokenized Diamonds as NFTs called Tiamonds. Each NFT represents the ownership rights of one real-world Diamond.
Tiamonds AG is a company incorporated in Liechtenstein and operating the web3 blockchain platform at Tiamonds.com
Tiamonds are non-fungible tokens (NFT) representing the ownership rights of real-world Diamonds. Each Tiamond NFT is receiving TIA Tokens as rewards over time through the “Own to Earn Model”. TIA Token is a utility and governance token for the Tiamonds platform.
Tiamond NFTs and Tiamond TIA Token qualify as a token pursuant to Liechtenstein’s Act on Token and Trustworthy Technology Service Providers (TVTG).
Tiamond NFTs are intended to constitute a digital representation of the ownership rights of a real-world diamond while each token will be backed one on one by an individual diamond safely stored in a vault in the Principality of Liechtenstein. The Tokens might be classified pursuant to a non-official, alternative classification as a so-called ownership token. Pursuant to this token category, respective tokens include cases in which the token provides smart contract based ownership rights in assets. The purpose of such tokens is the transfer of rights of associated assets by transferring the token. Besides formal rights, the token may as well contain material objects. Ownership tokens do not provide any claims or relative rights against a counterparty. Rather, such tokens carry absolute rights in the form of property rights of the associated asset. The Tokens are a digital representation of ownership rights of real-world diamonds. The ownership of such NFT will be rewarded with TIA Token during a defined time period in an “Own to Earn Model”.
Tiamond TIA Tokens constitute utility tokens, while Tiamond TIA Tokens do not constitute any absolute or relative right at all. The utility of such tokens stands in its function to vote for project aspects as well as to pay for certain services offered within the platform. In total therefore, the Token does not unfold any obligations to other parties rather than feature the ecosystem-powering utility.
Tiamond Tokens do not constitute any absolute or relative rights at all. Tiamond tokens grant absolutely no promise of share in revenue, earnings or any other form of income. This token’s purpose is to act specifically as a utility with voucher-like functions and to facilitate the governance of the Tiamonds ecosystem.
Launched on the Ethereum Blockchain, Tiamond NFTs are an ERC721 compliant Smart Contract and Tiamond TIA Tokens are an ERC20 compliant Smart Contract. The smart contracts have been created and developed by LCX as the registered Token Generator in accordance with the Liechtenstein Blockchain Laws.
The smart contract has been audited by Certik and the smart contract audit has been published online.
Tiamond Tokens are programmed to interact with any ERC721 and ERC20 compliant wallet or application. Running on Ethereum makes this token simple to send and store.
Subject of this Token Offering will be the transfer of a unique, cryptographically secured ownership rights of a certain physical diamond (hereinafter ‘Tiamond Non-Fungible-Token’ or ‘Tiamond NFT‘) in the form of a ERC-721 standard token. Subject of this Token Offering also includes the transfer of additional utility tokens (hereinafter ‘Tiamond TIA Token’ or ‘TIA Token’) in the form of an ERC-20 token on the Ethereum Blockchain. Tiamond NFT and Tiamond TIA Token shall hereinafter be referred to as ‘Tiamond Token‘ or ‘Tiamond Tokens‘. The digital ownership rights will be transferred to a wallet defined by the Token Holder (hereinafter ‘Token Holder‘ or ‘Token Recipient‘). Token Issuer and Token Recipient shall hereinafter be referred to as ‘Parties‘.
Tiamonds AG (“Issuing Party” or “Token Issuer”) is offering (hereinafter the ‘Offering‘, “Issuance”, or ‘Token Offering‘) Tiamond NFTs and Tiamond TIA Token through LCX AG (“Placing Party” or “Token Placer”) who places the Tiamond Tokens in Liechtenstein as a regulated VASP without a firm commitment basis (the “Placement”) on a reasonable effort’s basis. Each Tiamond NFT will be either sold at a fixed price or within an auction. Each Tiamond NFT holder will be entitled to receive TIA Token as rewards over a defined period of time.
Tiamond NFTs are offered at Tiamonds.com for sale in auctions and fixed price sales.
Tiamonds TIA Token are not offered in a public token sale. The Tiamonds TIA Token are distributed in accordance with the ‘Own to Earn Model’ for Tiamonds NFTs holders. Tiamond TIA Token may be also purchased on secondary markets and trading venues.
The Placing Party performs all services regulated under the Liechtenstein TVTG on behalf and for the account of the Issuing Party.
Tiamond NFTs may be put up for sale at a fixed price or offered for auction.
The issue date of the Tiamonds Tokens will be June 6, 2023.
The Issuer is not obliged to provide Token holders with a refund for any reason and Token holders cannot request an exchange or redemption of the monetary value vis-à-vis LCX AG or vis-à-vis Tiamonds AG.
Tokens will be provided on an “as is” basis. The Issuer and each of their respective directors, officers, employees, equity holders, and affiliates make no representations or warranties of any kind. Digital assets are part of a new and rapidly evolving industry, and the value of Tiamond Tokens depends on the development and acceptance of this industry.
Extreme volatility in the future could have a material adverse effect on the value of Tiamond Tokens and Tiamond Tokens could lose all or substantially all of its value.
Digital asset networks are dependent upon the internet. A disruption of the internet or a digital asset network, such as the Ethereum Network, would affect the ability to transfer digital assets, including ETH, and, consequently, their value.
Many digital asset networks face significant scaling challenges and are being upgraded with various features to increase the speed and throughput of digital asset transactions. These attempts to increase the volume of transactions may not be effective.
Banks may not provide banking services, or may cut off banking services, to businesses that provide digital asset-related services or that accept digital assets as payment, which could dampen liquidity in the market and damage the public perception of digital assets generally or any one digital asset in particular, such as Bitcoin, and their or its utility as a payment system, which could decrease the price of digital assets generally or individually.
In addition, the Ethereum blockchain rests on open-source software, and accordingly there is the risk that the Token smart contract may contain intentional or unintentional bugs or weaknesses which may negatively affect Tokens or result in the loss or theft of Tokens or the loss of ability to access or control Tokens. In the event of such a software bug or weakness, there may be no remedy and Tokens holders are not guaranteed any remedy, refund or compensation.
If a private key is lost, destroyed or otherwise compromised and no backup of the private key is accessible, Token holders will not be able to access the blockchain asset associated with the corresponding address, and the Issuer will not be able to restore the private key.
Transactions involving Tokens that have been verified, and thus recorded as a block on the blockchain, generally cannot be undone and are final. Even if the transaction turns out to have been in error, or due to theft of a user’s Tokens, the transaction is not reversible. Consequently, the issuer is unable to replace missing Tokens or seek reimbursement for any erroneous transfer or theft of Tokens.
The Tokens are held by the buyer in wallets with encoded access. If the contributor loses this access, there is no way to get to the Token. They will be lost. In particular, the Issuer is neither actually nor legally able to regenerate and issue the Tokens. The same risk exists if a third party succeeds in gaining unauthorized access to the wallet. Also, in this case, where a third-party succeeds in removing and transferring the Tokens from the wallet, the Issuer is not able to issue new Tokens to the contributor.
Prospective Token holders must seek their own tax advice in the relevant jurisdictions in connection with acquiring Tokens, which may result in adverse tax consequences, including withholding taxes, income taxes and tax reporting requirements.
LCX is solely acting as a trusted technology service provider for this token sale and is not responsible and not liable for any business activity of Tiamonds AG. Monty Metzger is a director at LCX AG and Tiamonds AG.
The Token Issuer will not sell any Tokens where potential buyers are citizens or residents of restricted jurisdictions as determined by the Token Issuer and Placer and disclosed on their platforms.
The Token Issuer and Placer has the right to amend the lists of non-restricted countries at any time and at its sole discretion. Depending on the Token Recipient’s country of residence, the legal assessment of the Tiamond Token may be changed fundamentally upon respective amendments of domestic legislation. It is up to the Token Holder to keep track of such changes. The Token Issuer and Placer are not liable for any changes in the legal assessment of the Token arising from any developments in domestic legislations within the countries of the above-mentioned list. Placing Party is handling all regulated virtual asset services and is operating its services on the basis of non-direct solicitation, similar to many global FinTech providers, which means that they do not specifically target customers in any particular country, but are able to passively accept customers who find them online and decide to register. Because they do not have any physical presence, offices, or local activities in any country outside of Liechtenstein, as a result, the performance of contractual rights and duties and their activities are always considered to be based in Liechtenstein.
The Token Recipient shall not participate in the Token Offering if there are applicable legal restrictions in his country of residence or domicile. It is their sole responsibility to ensure that participation in the Token Offering is not prohibited under the applicable legal restrictions in their country of residence or domicile.
Contacts:
For LCX AG as the issuer pursuant to Art 12 para 1 TVTG,
Herrengasse 6
9490 Vaduz
Liechtenstein
Monty C. M. Metzger, CEO and Member of the Board
For Tiamonds AG,
Herrengasse 6
9490 Vaduz
Liechtenstein
Monty C. M. Metzger, Founder and Director
This Basic Information and the rights and obligations of the participants and the Issuer are governed by the laws of Liechtenstein excluding the application of International Private Law and the UN Sales Convention and the exclusive place of jurisdiction for all disputes arising out of or in connection with the public offering pursuant to this Basic Information shall be the jurisdiction of the Liechtenstein courts, unless this conflicts with mandatory provisions of the jurisdiction in which you have your principal residence.
Should any provisions of this Basic Information, be or become invalid or unenforceable as a whole or in part, the remaining provisions shall remain in force. Any legally ineffective or unenforceable provisions shall be replaced by legally effective and enforceable provisions in accordance with the meaning and purpose of this Basic Information and the Token description, which in their economic effects come as close as legally possible to the legally ineffective or unenforceable provisions.
LCX AG is a company founded in 2018 and registered in Liechtenstein No. FL-0002.580.678-2. LCX AG is regulated by the Financial Market Authority of Liechtenstein under the registration No. 288159 as a trusted technology service provider.
