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What is FARAD?
FARAD is a unique cryptocurrency which captures two of the latest technological innovations: ultra-capacitor and blockchain, combining two of the most potent industries; energy storage and Internet & telecommunications. FARAD sets itself apart from other cryptocurrencies, as it is backed by real economic activity and cash flow through the manufacturing of high-end ultra-capacitors within actual factory settings. The energy storage innovation, which FARAD represents is in the invention, manufacturing, and delivery of these ultra-capacitors, while the blockchain is based on Ethereum ERC-20 smart contract.
— FARAD Management Team
The pre-sale began on August 25, 2017 at 13:00 GMT and will run until September 14, 2017 at 23:59 GMT.
The price per FARAD token (FRD) is set at 0.0005921 ETH or 0.0000559 BTC for the pre-sale. The FRD token is an ERC-20 token. There are 640,000,000 FRD tokens available during the pre-sale. If this number is reached the pre-sale will end automatically and the crowdsale will begin.
The crowdsale will begin on September 15, 2017 at 00:00 GMT and run until September 30, 2017 at 23:59 GMT. The price per FARAD token (FRD) is set at 0.0006579 ETH and 0.0000621 BTC for the crowdsale. The FRD token is an ERC-20 token.
There is a hard cap of 640,000,000 FRD tokens, plus whatever tokens are not sold during the pre-sale. If this hard cap is reached during the crowdsale, the ICO will end.
Token Distribution Information
Tokens will be distributed within seven days of the close of the crowdsale. They will be distributed to an Ethereum wallet
There will be 1,600,000,000 total FRD tokens created. 1,280,000,000 will be available across the pre-sale and crowdsale in an even amount of 640,000,000 FRD tokens per sale.
Every quarter, there will be availability for 133,333,333 FRD to be sold back to the FARAD team at the price of $0.145 per FRD token. This quarterly buyback structure will last for 36 months, with the first date for buyback being March 20, 2018 and the last date for buyback being December 20, 2020.
For every 100 FRD sold during the ICO, an additional 25 FRD will be issued by the project for sponsors, team members, partners and advisors, up to the total amount issued of 1,600,000,000 FRD tokens.
Use of Crowdsale Proceeds
The crowdsale proceeds received by the FARAD team will be used for the following:
— 25%: This portion of the proceeds will be used to acquire specialized machineries necessary for the FARAD project. This will be conducted over a three month period once the crowdsale has ended.
— 25%: This portion of the proceeds will be used to purchase and stockpile the metal oxides material needed for production process.
— 15%: This portion of the proceeds will be used to fund further intellectual property protection (patents), industrial development, and collaboration. This will occur over a period of 24 months from the issuance date of FRD tokens.
— 10%: This portion of the proceeds will be used to fund blockchain development associated with the manufacturing process, supply chain, and value chain management of the ultra-capacitor on the Ethereum blockchain.
— 25%: This portion of the proceeds will be used to cover the costs of the ICO, including international marketing, financial costs, community initiatives, business development, education, and market expansion. This will occur over a six month period from the issuance date of FRD tokens.
Dr. Wan M. Hasni – Chief Executive Officer, FARAD Program
Wan Hasni has been among the pioneers in financial economics for more than 25 years. He founded, developed, and managed various organizations in Asia and the Middle East that held a multi-billion dollar worth of assets under management. Dr. Hasni holds a PhD in finance from the University of Iowa and is the chairman and CEO of Virtue Fintech FZ LLC, a blockchain application company.
Andras Kristof — Chief Technology Supervisor, FARAD Program
Andras is an entrepreneur and cryptocurrency technology expert. He has 20+ years of IT experience and started working with blockchains in 2013 with Bitcoin, then Ripple, and most recently with Ethereum. After a successful exit from viki.com, he founded Tembusu Systems in late 2013. He is a fellow of SIM University, Singapore.
Rashdan Ibrahim — Financial Advisor, FARAD Program
Rashdan Ibrahim has served in various high level positions with some of the most well-known names in banking, asset management, and the real estate industry over the past 23 years. In 2016, he launched his own Sharia compliant peer-to-peer lending platform in Indonesia. He is a financial advisor for Virtue Fintech FZ LLC.
Richard Imran Ding — Legal Advisor, FARAD Program
Richard Imran Ding has over 22 years of experience specializing in mergers and acquisitions, joint ventures, and corporate and commercial transactions, primarily in South East Asia, the Middle East, and Europe. He advises numerous technology companies and is licensed to practice law in England and Malaysia. He is the legal advisor of Virtue Fintech FZ LLC.
Nong You Hua — Ultra-capacitor Technology Advisor, FARAD Program
Mr. Nong has a wealth of operational and professional management experience. He has served as director in various Guangxi, China local government, emergency and mobile communications bureaus. He is also a member of the Chinese Academy of Sciences. Mr. Nong has a master’s degree from the University of Science and Technology of China. He is the chairman and CEO of Guangxi Aerospace Beidou New Technology Co. Ltd.
Dr. Hung Yen Liu — Ultra-capacitor Manufacturing Advisor, FARAD Program
Dr. Liu has over 30 years of experience in electrical engineering and has worked for various technology, electronics, computer, and communications companies in Taiwan and China. Mr. Liu has received excellence awards from the Institute for Information Industry, Taiwan and the Ministry of Education, Taiwan for his work in this field. He is the general manager of Guangxi Aerospace Beidou New Technology Co. Ltd.
Satriya Suetoh — Ultra-capacitor Program Advisor, FARAD Program
Mr. Satriya is an American trained civil engineer who has worked in various capacities in business development and sales in large multinational companies such as ABB, Cerner, Microsoft, Remote Medical International, and Telstra. He has covered markets in the U.S., Australia, Asia, and the Middle East throughout his professional career. He is the general manager of HK Aerospace Beidou New Technology Co. Ltd.
ICO Alert: For those that are not familiar, what is an ultra-capacitor? Does the FARAD team have experience in producing ultra-capacitors in the past or is this an entirely new venture?
FARAD Management Team: An ultra-capacitor is a high energy and power density energy storage device. It is not a battery but rather behaves as a capacitor. The FARAD ultra-capacitor represents a family of breakthrough devices based on proprietary electrochemical technology that bridges the performance gap between batteries and capacitors. Its product line has been designed to enable technology companies to solve many of their most challenging power management problems.
The concept of high power, and yet high energy density capacitor, was conceived back in 2001 when FARAD’s partner in Taiwan (UTC) embarked on utilizing extremely high surface area electronically conductive ceramics as the electrode material for capacitor.
For the past 16 years, this special branch of technology — the FARAD ultra-capacitor, has evolved from a laboratory curiosity research stage to development, advanced development, went on to product development, and finally arrived at commercial production. The FARAD Ultracapacitor is a high-power energy storage device that supplies hundreds times the power level attainable from batteries and stores hundreds times more energy for a given volume than conventional capacitors.
Benefits of FARAD Ultracapacitor:
1. FARAD Ultracapacitor is commonly used in conjunction with a battery in a hybrid system. Using a FARAD Ultracapacitor together with a battery allows the FARAD Ultracapacitor to “load level” the system. In this way, the battery can be sized to meet only the average power while the FARAD Ultracapacitor supplies the needed peak power.
2. The FARAD Ultracapacitor also has other useful qualities that make it superior to a battery in certain applications. For example, battery cycle lives are usually measured in 100s or, at best, 1,000s. However, cycle life for a FARAD Ultracapacitor typically exceeds 5,000,000 with little or no decrease in performance. Recharging a FARAD Ultracapacitor takes less than a second, even after standing discharged for years and voltages as high as 100 volts are readily attainable.
3. FARAD utilizes a true bi-polar configuration enabling greater miniaturization and higher energy and power densities. This patented packaging system allows the FARAD Ultracapacitor to be shock resistant to 50,000 gs capable of withstanding demanding thermal environments and manufactured in extraordinarily small sizes.
ICO Alert: What is the function of the FARAD token within the Farad ecosystem?
FARAD: Each FARAD represents a right to the forward production of ultra-capacitor cells (“UCC“) defined by the millifarad (“mF”) of the UCCs.
A total of 1.6 billion mF will be produced over a period of 36 months.
Funds raised from the ICO exercise will be used for purchasing of equipment, procure stock for raw material (metal oxides and carbon based materials), fund further intellectual property protections (patents), and blockchain development of the manufacturing process to cover marketing costs for the ultra-capacitor business, as well as the marketing and promotion for the ICO.
ICO Alert: Could you explain how the FARAD buyback program works? Will you be buying tokens on the open market via exchanges or simply allowing FRD holders to sell back their tokens to the team?
FARAD: FARAD does not pay a dividend, however, token holders who want periodic profit may elect to sell back their FRD to FARAD SPC under the FARAD Swap-Back Program option. The swap-back price is, of course, higher than the initial purchased price of FRD.
The FARAD Swap-Back Program is optional to the FRD holders, those who do not elect to exercise the quarterly buy-back option may hold on to their FRDs and sell it in the open market. At every quarterly buy-back period, FARAD SPC will make an offer to repurchase 133,333,333 FRD from the FRD holders. The amount not taken up during this particular buy-back offer period will not be re-offered and, hence, will not be brought forward to future buy-back periods.
The monthly proceeds received from GAB/HKAB under the off-take portion of the agreement will be kept in an escrow account under FARAD SPC before buy-back payments are made, however, in the event that FRD holders do not elect to exercise the buy-back option for any particular quarter, the funds will continue to be kept in the escrow account. However, buy-back schedule will change based on the table shown below:
At the end of Month 36, any funds remaining in the escrow account will be converted into ETH, or other stable and liquid cryptocurrencies. At the end of month 120, any remaining ETH and other liquid cryptocurrencies will be distributed to remaining FRD holders on pro-rata basis.
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(1) FARAD Website, FARAD, (2017)
(2) FARAD Whitepaper, FARAD, (2017)
(3) FARAD Overview Paper, FARAD, (2017)