This Whitepaper does not constitute a prospectus or offer document of any sort, and is not intended to constitute an offer of securities or a solicitation for investments in securities in any jurisdiction. The contents of this Whitepaper are not a financial promotion. Therefore, none of the contents of this Whitepaper serves as an invitation or inducement to engage in any sort of investment activity. This whitepaper constitutes a technical description of the functionality of the FriendsFingers Smart Contracts and the creation and issuance of Shaka Tokens. No regulatory authority has examined or approved any of the information set out in this Whitepaper. The publication, distribution or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements, or rules have been complied. Contributors are advised to read this document carefully in full, and perform due diligence.
FriendsFingers is an open-source Decentralized Application (DApp) built on Smart
Contracts running on Ethereum Blockchain.
FriendsFingers will help startups and small businesses to start a trustworthy Crowdsale based on Ethereum with no setup costs and zero lines of code required.
Furthermore, Shaka (HAK), an ERC20 Token issued by FriendsFingers, will give holders rights to be active part on platform key decisions like in a Decentralized Autonomous Organization (DAO).
A lot of people may have already ideas that they want to develop but they need help and some
funds to bring them to life.
But who would lend money to someone they don’t trust?
A solution may be starting a classical crowdfunding or an IPO, but they require a lot of paperwork to fill out and many other complications to be covered.
Blockchain will solve many of these problems allowing everyone to build their crypto-based crowdsale.
The public ledger is the strength everyone can use to ensure investors not to be fraud.
Using FriendsFingers, people can easily deploy a Smart Contract that will hold contributor's
money until any given date or goal is reached. Depending on the outcome, the funds will
either be released to the project owners or safely returned back to the contributors.
All of this is possible without requiring a centralized arbitrator, clearing house or having to trust anyone.
People can even use the token they create to keep track of the distribution of rewards.
Discover how to bring it to life with FriendsFingers.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.
These apps run on a custom built blockchain, an enormously powerful shared global
infrastructure that can move value around and represent the ownership of property.
This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
On traditional server architectures, every application has to set up its own servers that run their own code in isolated silos, making sharing of data hard. If a single app is compromised or goes offline, many users and other apps are affected.
On a blockchain, anyone can set up a node that replicates the necessary data for all nodes to reach an agreement and be compensated by users and app developers. This allows user data to remain private and apps to be decentralized like the Internet was supposed to work.
ICOs can be compared to IPOs and crowdfunding. However, while IPOs deal with investors, ICOs
deal with supporters that are keen to invest in a new project much like a crowdfunding
event. But ICOs are different from crowdfunding in that the supporters of the former are
motivated by a prospective return in their investments, while the funds raised in the latter
campaign are basically donations. For these reasons, ICOs are referred to as crowdsales.
Although there are successful ICO transactions on record and ICOs are emerging successfully within the digital era, investors are cautioned to be wary as some ICO or crowdsale campaigns are actually fraudulent. Because these fund-raising operatives are not regulated by financial authorities such as the Securities Exchange Commission (SEC), funds that are lost due to fraudulent initiatives may never be recovered.
Crowdfunding is the use of small amounts of capital from a large number of individuals to
finance a new business venture.
Crowdfunding has created the opportunity for entrepreneurs to raise hundreds of thousands or millions of dollars from anyone with money to invest. Crowdfunding websites such as Kickstarter and Indiegogo attract thousands of people hoping to invest in the next big thing. Many crowdfunding projects are rewards-based; investors may get to participate in the launch of a new product or receive a gift for their investment.
There are many limitations beyond every new IPO. First, traditional crowdfunding platforms
do not accept projects from countries where they have no presence. Second, they charge high
commissions (15-20%), as do the payment systems people must use to contribute with. Third,
they are overwhelmed with "failed" projects that let down the backers and the platform
itself. Fourth, the larger crowdfunding platforms became all about big companies with strong
marketing, rather than about creators with bright ideas, but no marketing budget.
Launching a crowdfunding campaign or an IPO requires a resident to be present in one of the countries of official work, and there is also a lot of paperwork to fill out. As a result, many creators have no access to large crowdfunding platforms, limiting their fundraising opportunities, and narrowing the reach and diversity of the platforms.
The recent diffusion of cryptocurrencies may change this situation, making fundraising easy and potentially accessible everyone. Decentralization, crypto-currency, and smart contracts are the new solutions for a project to raise funds. Obviously according any applicable laws, regulatory requirements, or rules in your residence country.
So Smart Contracts can solve all of these problems but, to deploy a Smart Contract, it requires a lot of technical competencies or to pay (lot of Bitcoins) in advance to a company to do it for you.
Many people or startups already have ideas that they want to develop on Ethereum or simply they need to raise funds for their projects. Who would send money to someone they don’t trust?
Sometimes a good idea takes a lot of funds and collective effort. You could ask for donations, but donors prefer to give to projects they are more certain will get traction and proper funding.
FriendsFingers helps you to start a crowdfunding that would be ideal for investors: you set
up a goal and a deadline for reaching it. If you miss your goal, the donations are returned,
reducing the risk for donors. Since the code is open and auditable, there is no need for a
centralized, trusted platform. Therefore, the only fees paid will be the Gas fees.
You don't need to have any technical skill or to pay nothing in advance.
By using Ethereum, you can create a contract that will hold a contributor's money until any
given date or goal is reached. Depending on the outcome, the funds will either be released
to the project owners or safely returned back to the contributors. That is all possible
without requiring a centralized arbitrator, clearing house or having to trust anyone.
You can even use the token you created earlier to keep track of the distribution of rewards.
Rewards in crowdfundings are usually handled by a central unchangeable database that keeps
track of all donors: anyone who missed the deadline for the campaign cannot get in anymore.
Instead we are going to do this the decentralized way and just create a token to keep track
of rewards, anyone who contributes gets a token that they can trade, sell or keep for later.
Donors get to keep their tokens, even if the project doesn't achieve its goals, as a souvenir.
The crowdsales started on FriendsFingers and the corresponding tokens creation processes will be organized around Smart Contracts running on Ethereum Network. All the source code of both Smart Contracts and platform will be verified on Etherscan and published on GitHub, where you can read and analyze any line of the code you will use. Our platform itself will be a DApp (Decentralized Application) hosted on GitHub pages. We have no servers and no databases, we don’t store any datas in places you can’t see them. All will be public on the Blockchain and open-sourced on GitHub to have a strong and trustworthy crowdsale.
Furthermore, Shaka (HAK), our token, will give holders rights to be active part on platform key decisions like in a Decentralized Autonomous Organization (DAO).
If you trust us, your investors will trust you the same way. We want to give you the better solution to make your crowdfund trustworthy and disruptive.
Users that want to start a crowdsale on FriendsFingers must only fill a form with all
informations needed to start it like the project name, the crowdsale goal and target, the
crowdsale deadlines, the name of the token to issue, the tokens rate per ETH, the Ethereum
wallet address where funds will be collected and some others informations regarding
crowdsale official links and Whitepaper.
They can also choose an amount of tokens to be issued for crowdsale creators at the beginning of the crowdsale.
After the crowdsale end no more tokens can be issued.
The unique requirement users must have to start their crowdsale is an Ethereum wallet address with a small ETH balance to pay the Gas fee (Note that Gas fee, as explained in our FAQ section, is not for FriendsFingers but it serves only to pay miners that will include your transaction in the blockchain) .
After the creation process creators will receive a public link for their crowdsale so they can share it on their promotion channels.
In order to avoid any fraudulent attempt, our team reserves the right to review both already started crowdsales content and crowdsales team members, eventually stopping the crowdsale. The right to approve or disapprove crowdsales which show an unclear project or team will be also exercised by our token holders within the near future. Stopped campaigns might be restarted if team members of those will present a reasonable documentation supporting the genuinity of their project, which will be always evaluated by our team and our tokens holders.
To enter the crowdsale, investors should go in previous generated page where they will find any informations regarding the project as inserted before.
Participants willing to support crowdsale can do so by sending Ether currency through FriendsFingers platform or by sending Ether to the designated address using their preferred Ethereum wallet. By doing so, they will receive crowdsale's token at the rate creator has chosen before which are sent instantly to their wallet.
Token will be transferable only when the crowdsale is over to avoid to see them on secondary market before than crowdsale end.
Everyone can even verify his transaction and see the received tokens exploring the blockchain (for instance using Etherscan) or through FriendsFingers platform itself.
At the end of the crowdsale, creators can choose to restart another round with lower rate per ETH for a max of 5 times, or they can decide to close the crowdsale.
The later rounds will have a goal of 0 (zero) ETH because of we suppose that they reached their goal in the first round and they are only issuing other tokens at a lower rate (they can't set a rate greater than previous rounds as written in the Smart Contract).
When creators close the crowdsale the token ownership will be transferred to them, so they will have any rights to make actions on it.
When each round of the crowdsale ends, if it reaches the goal, funds will be immediately transferred to the creator designed wallet except a little fee of the raised amount which will go to FriendsFingers wallet. FriendsFingers will also take a percent of each round max token supply to help creators with token distribution. Starting fee is 5% and it should be only decreased in time according to the Smart Contract. Creators can also receive discount on fees as expressed below in Shaka Token description.
If crowdsale doesn’t reach the goal, investors can easily claim their funds back and creators don’t have to pay any fee to FriendsFingers. Creators can't be able to restart a crowdsale if it ended under the goal.
According to the Smart Contract, if some investors don’t claim their refunds a year after the crowdsale end, these can be transferred to FriendsFingers wallet and used for platform development or for any other purpose decided by a public vote as expressed below in Token description.
Technically the token creators are issuing is a "mintable", "burnable" ERC20 token and at the end of the crowdsale the finish minting function will be called by the Smart Contract by blocking the total circulating supply. It means that tokens can be created only during the crowdsale and nobody can create an additional amount of tokens after the crowdsale end. This increases the confidence of investors ensuring them that creators can't be malicious or undervalue token price by generating more tokens than they have declared before.
We also provide ICO list service and the ability to use our DApp to interact with third-party Contracts.
In these cases you won't find the FF Deployed badge but the 3rd Party Deployed instead.
It means that these contracts could not work as ours and we cannot guarantee that all will work as described in our Whitepaper. You are enforced to read thier Whitepaper, documents and any type of informations before invest in any type of project.
Anycase, we do not accept contract with no public and verified code on Etherscan and this is labelled by the Verified Contract badge. You can check 3rd Party contracts' code on Etherscan.
Remember that FriendsFingers does not offer solicitations for investments in any jurisdiction. Contributors are advised to read this document carefully in full, and perform due diligence.
Each token offers the following rights to its holder:
We may always add rights for token holders, in that case we will communicate them on our official channels.
The purchase of tokens involves a high degree of risk. Before acquiring tokens, it is recommended that each participant carefully weighs all the information and risks detailed in this Whitepaper, and, specifically, the following risk factors.
Assumptions with respect to the foregoing involve, among other things, judgments about the future economic, competitive and market conditions and business decisions, most of which are beyond the control of the FriendsFingers team and therefore difficult or impossible to accurately predict. Although the FriendsFingers team believes that its assumptions underlying its forward-looking statements are reasonable, any of these may prove to be inaccurate. As a result, the FriendsFingers team can offer no assurances that the forward-looking statements contained in this Whitepaper will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements contained herein, the inclusion of such information may not be interpreted as a warranty on the part of FriendsFingers or any other entity that the objectives and plans of the FriendsFingers project will be successfully achieved. Please note that the FriendsFingers project may be subject to other risks not foreseen by its team at this time.
The Shaka token does not have the legal qualification of a security, since it does not give any rights to dividends or interests. The sale of Shaka tokens is final and non-refundable.
Shaka tokens are not shares and do not give any rights excluding what indicated in the Token section of this Whitepaper. Shaka tokens cannot have a performance or a particular value outside the FriendsFingers Platform. Shaka tokens shall therefore not be used or purchased for speculative or investment purposes. The purchaser of Shaka tokens is aware that national securities laws, which ensure that investors are sold investments that include all the proper disclosures and are subject to regulatory scrutiny for the investors' protection, are not applicable.
Anyone purchasing Shaka tokens expressly acknowledges and represents that she/he has carefully reviewed this Whitepaper and fully understands the risks, costs and benefits associated with the purchase of Shaka.