KapowChain will revolutionize the collectibles atmosphere by:

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2 VISION Kapow! The onomatopoeia from comics that evokes a sense of something exploding. KapowChain wants to blow up the current model for the collectibles industry with the power of blockchain. Imagine an efficient, trustworthy, and secured ecosystem where transactions are instantaneous from anywhere in the world; where transactions are processed without the unnecessary fees and verifications from a central authority of third parties; where all transactions can conveniently take place from your mobile device. Not very often in our lifetime does a technology so BIG that it could alter whole economies and disrupt our very lives. Blockchain is one of those technologies. KapowChain will revolutionize the collectibles atmosphere by: 1. Creating the biggest online community for collectors, ComixCrowd 2. Provide verification and security of prized collectibles, Digital Authentication PassportR (DAP) 3. Tracks products & provide transparency from production to end-user, Supply Chain Tracking Logistics (SCTL) 4. Protect publishers digital comics from piracy, DigiGuard Protocol 1

3 TABLE OF CONTENTS Summary 2 Problem 2 Solution 3 Comics Industry Background 4 Problem 8 Distributors/Publishers 8 Retailers 8 Individual 9 Solution 11 Digital Authentication Passport (DAP) 11 Supply Chain Tracking Logistics 13 ComixCrowd 15 DigiGuard Protocol 15 Revenue Streams 16 Tokens and Distribution 17 Distribution of Funds Road Map Conclusion 20 2

4 Summary Problem Distributors/Publishers Fraudulent collectibles in the market affecting consumers perceptions and resulting in lost revenue No process for tracking collectible inventory through the supply chain Absence of real-time analytics on collectible sales Lost revenue through unlawful downloads Retailers Fraudulent payments Slim margins that are reduced more and more by excessive transaction fees Lack of analytics to help determine what customers want No available fraud verification of items purchased online Lack of digital evidence of personal collection for insurance claims Excessive fees on purchased auctioned collectibles Shrinking and aging demographic of customers Chargeback Individuals No single place to buy, sell, trade, and have conversations about collectibles 3

5 Solution Protect publishers digital comics from piracy with verification through KapowCoin smart contracts Provide a secure and verified purchases with virtually no processing fees Track collectibles through the entire supply chain with blockchain Minimize/Eliminate Illegal downloads using DigiGuard protocol and a digital comics downloads platform Link physical collectibles through the Digital Authentication Passport (DAP)R Use KapowChain to get millenials excited about collecting by creating a unique experience that is lacking today Build ComixCrowd as the collectors one stop destination combining the best of Facebook and ebay platforms Build loyalty and customer retentions 4

6 Comics Industry Background It is an exciting time to be in the comics industry. Consumer interest in comic related TV shows and movies dramatically increased in 2017, breaking prior years sales records. Various Hollywood studios like Netflix, Amazon, and Hulu are acquiring rights to creators' works with the intent of producing adaptations of comic books from all genres into TV shows and movies. Consolidation and buyouts of media companies were up considerably in Some notable acquisitions include Disney buying Fox Entertainment, Netflix buying MillarWorld, and Amazon buying Skybound. All of this hype would suggest room for healthy growth and a strong appetite for the industry. However, the sales of physical comics in stores were flat to slightly lower. There are approximately 3000 brick and mortar comic stores worldwide. These numbers continually fluctuate due to new openings and closures. Since 2011, the comics industry has consistently grown at a pace of % annually, reaching $1.085B in At the current pace, 2017 sales total is projected to surpass $1.2B. Comic stores represent 55% of the total sales for the industry and are a main component of the supply chain. There are two main comic book publishers, Marvel and DC. DC Comics has been closing the gap in market share with Marvel the last several years may see DC Comics possibly match or perhaps edge out Marvel as the market leader. In contrast, the independent arena has always struggled to gain any momentum in market share. However, it has added more competitors in the past few years with creator-owned startups such as Black Mask and Aftershock. Image Comics remains the biggest independent publisher with a 10% market share. 5

7 2017 Market shares by Major publishers: The comics investment market has experienced record prices in the past few years. First appearances of superheroes such as Superman, Batman, Spiderman, Wonder Woman, Captain America, and other characters featured in movies and TV shows have helped spur this demand. Here are some examples of recent prices for character first appearances in near mint condition: Action Comics #1 (Superman) ~ $4.5M Detective #27 (Batman) ~ $3M All Star Comics #8 (Wonder Woman) ~ $1M Daredevil #1 (Daredevil) ~ $15K Amazing Fantasy #15 (Spiderman) ~ $1M The existence of various e-commerce and social media platforms in combination with low print runs of comics today have created exploding price movements in the secondary markets for new comics. Many characters first appearances such as Deadpool and Harley Quinn have surged above the $1,000 mark. More and more 6

8 comic books, new and vintage, are reaching record prices. Without a doubt, movies and TV shows have brought the genre to the forefront of mainstream pop culture, no longer reserved for the stereotypical nerd. 7

9 Problem Distributors/Publishers Currently there is not a clear, easy, and real-time method for distributors and publishers to know how well a specific comic sells. Today they rely on stores to participate and provide numbers of sales for comics. Typically distributors and publishers don t know how well a product is doing until several months down the road when orders from stores are either up or down. Having real-time data could inform both distributors and publishers of the success or failure of a particular comic. Coupled with the lack of analytics, is a lack of visibility to where all the comics or collectibles have gone. Yes, they have been sold to the comic book store, but are the comics and collectibles selling to customers? As with any manufacturer, piracy and counterfeit products are of paramount concern. These can affect not only perception of the company, but also lost revenue. We ve all heard horror stories of someone buying something online to only receive a knockoff product, or not receive the product at all. This can make it harder for manufacturers to lure new customers and distinguish their products from the fakes. Retailers Comic book stores operate on slim margins. These margins are reduced further with excessive transaction fees that can be upwards of 3% of a sale. That s huge, especially as people move more away from using cash. Stores, like publishers and distributors, are also guessing which comics will be popular among their customers. This lack of analytics to help determine what customers want can add extra costs to the store. And, stores can be left with unsold inventory of comics that nobody wants. Then the only way to disposition this inventory is to reduce the price, resulting in lost profit. 8

10 Stolen credit cards and counterfeit bills can cause stores massive problems. They are out the money, or lack thereof, that they were paid. Again, this underscores the thin margin that the stores already operate with. All of these issues are compounded by the fact that the demographic of customers for collectibles is shrinking and aging. In this digital age, more and more millenials are either not interested in buying physical copies of comics, or they just get them digitally not caring about the possibility of increasing value of a physical comic. What they do care about is technology. If only there were a way for stores to adapt to their customers. Individual For an individual interested in collecting comics it can be somewhat overwhelming. How do I start collecting? What should I collect? Where should I get my collectibles? There is no single place to buy, sell, trade, and have conversations about collectibles. This means that a collector must spend extra time going to different locations physical and digital, potentially losing out on the items they are looking for or causing them to abandon their quest all together. A collector can purchase their items of interest from comic book stores, publishers, online retail sites like Amazon, or from other collectors. If collectors buy from other collectors online, they most likely use ebay. In using auction sites for collectibles there are usually fees for both the buyer and seller, of which they can be substantial. These fees are not only annoying, but they also take away from funds for future purchases of collectibles. 9

11 Another risk for collectors is fraudulent items. There is no way for sites like ebay and Amazon to prevent all fraudulent sales. The best they can do is to ban accounts of sellers that sell fraudulent items. A collector won t realize that an item purchased is fake until they receive the item. At that point, there is little that can be done to recoup lost funds. In case of a catastrophic event, such as a home fire, some collectors keep detailed records of their collectables for insurance purposes. But, how does the collector legitimately show that they owned a copy of The Walking Dead #1 graded at a 9.8? Without jumping through hoops with the grading company and no physical proof that you still owned the comic, the collector may be out of luck. Finally, the issue of transparency. There are unscrupulous suppliers that make false claims that a limited supply of a variant exists; when in fact 3-5 times the quantities are floating in the market. This can lead to collectors unknowingly overpay for items. Again, taking away funds that could be allocated towards other purchases. 10

12 Solution Rest easy good friends, KapowChain is here to the rescue. By being solely focused on the collectibles industry KapowChain is the premier collectibles solution provider. KapowChain has the holy grail ; a custom tailored, proprietary, ecosystem of solutions for the entire collectibles supply chain. Digital Authentication PassportR (DAP) Supply Chain Tracking Logistics (SCTL) ComixCrowd DigiGuard Digital Authentication Passport (DAP) One of the hottest trends in the collectibles industry is encapsulation of comics, cards, and toys. In order to preserve collectibles for an extended life and maximize investment value, encapsulations are often necessary. Therefore, it is extremely important to have those investments tracked and verified as they exchange hands. Currently, the industry lacks the ability to verify the authenticity of these rare collectibles as they flow through the supply chain from one owner to another. The Digital Authentication Passport (DAP) will provide added verification of authenticity of collectibles. For Phase I, KapowChain will rollout DAP first with encapsulated collectibles, partnering with reputable companies like Certified Guarantee Company (CGC), Comic Book Certification Service (CBCS), Professional Sports Authentication(PSA), Action Figure Authority (AFA), Professional Coin Grading Service (PCGS), Numismatic Guaranty Corporation (NGC), and more. KapowChain s proprietary DAP label will be applied to the encapsulated collectibles. Then the unique DAP ID will be uploaded to the blockchain as part of a 11

13 smart contract. From there the collectible can be sold or traded in the blockchain, maintaining its origin and history throughout the remainder of its life. Owners will be able to identify an item as in their collection or stolen. That way if any other user attempts to sell a stolen item using KapowChain, it will be identified and the transaction will be stopped. Not only will DAP prevent stolen items from being sold to collectors, it will also prevent fraudulent items marketed to collectors. By only allowing items with the DAP ID to be sold via KapowChain and with KapowCoin, collectors can rest assured that a scam has not taken place. Thus building a trustworthy marketplace for all collectors. When life happens and your collection is destroyed, proving ownership of collectibles is paramount. Insurance companies will require evidence that you owned 12

14 valuable collectibles. Thanks to DAP now you can. KapowChain stores the complete history of all its nodes, leaving a trail that identifies ownership. With this added assurance, collectors can remain confident that KapowChain has their back. Supply Chain Tracking Logistics After earning the trust of collectors, validating the proof of concept of DAP with encapsulated collectibles, KapowChain will expand to working with publishers, distributors, and retailers. Known as Supply Chain Tracking Logistics (SCTL), Phase II of KapowChain s rollout will bring visibility of the entire supply chain. Starting with independent publishers, KapowChain will incorporate the DAP ID to all printed books. The DAP ID will then be loaded into KapowChain with smart contracts when the publisher sells the books to distributors. Then, the distributor will transfer the books to the retailers. Retailers will in turn sell the books to customers. Customers will transfer books to graders or sell to other customers. For the first time providing a complete picture of how comics move through the world. A complete transparency of available supply that will forever change the collecting habits in a positive way. A sample process flow can be seen on the following page. This process is designed to eliminate fraudulent books from entering the market by tracking books from the source. What this process also does is give complete visibility to the entire supply chain eliminating false claims about a limited supply of certain collectible items. Information from SCTL will identify areas that are experiencing waste, such as books lost in transit. SCTL will also highlight where comics are selling better, leading publishing companies to ask why. These learnings will be shared across the network to improve distribution and sales. Once SCTL has been proven for independent publishers, KapowChain will approach the likes of DC and Marvel to help facilitate the transformation of their supply chain as well. SCTL is 13

15 designed to be a transparent customer-centric system, used to capture customer insights to shape products, solutions, and the buying/selling experience as a whole. 14

16 ComixCrowd ComixCrowd is a complete social and commercial marketplace. ComixCrowd will initially capture a significant collectibles market from ebay and Amazon by cutting exorbitant transaction fees. As a platform to create mass adoption of KapowChain, individual collectors can talk about all the comics, cards, figurines, and other collectibles that they love so much. But wait, there s more. Collectors will also be able to buy, sell, and trade collectibles. All of these transactions will be smart contracts on the blockchain, powered by KapowCoin. Users of ComixCrowd will be able to earn additional KapowCoin by providing content, adding comments and other interactions that promote positive experience for the community. ComixCrowd will also provide comprehensive analytics for stores, distributors, and publishers as to what consumers are really wanting. This will drive informed innovation and decision making for the industry. What better way to understand to voice of the customer than hearing directly from them. By understanding their customers better, the industry will be able to move quicker and adjust to the ever changing preferences of their consumers. DigiGuard Protocol In the final phase of the collectibles industry revolution, KapowChain will release DigiGuard for digital downloads. DigiGuard is a blockchain cryptography verification protocol to prevent unlawful digital downloads through a process of verifying attribution of the user s Proof of Purchase (PoP). We are developing a decentralized 15

17 platform to store digital comics and will work closely with publishers to identify procedures to offer and integrate digital comics into a our proprietary platform. Revenue Streams KapowChain is like a normal company in one respect, it will need to be financially viable and make money. In order to do that KapowChain has come up with a scalable revenue stream approach based on the services described above. KapowChain will sell the added authentication of DAP to collectors SCTL will be a service that industry companies can subscribe to ComixCrowd will sell advertising to industry companies Analytics from KapowChain s suite of solutions will be a service that industry companies can subscribe to DigiGuard will facilitate digital downloads of comics 16

18 Tokens and Distribution KapowChain will not have unlimited KapowCoins. There will only ever be 500 million KapowCoins. Token Distribution Details Pre-sale and ICO - 275M tokens (55%) Team - 75M tokens (15%) - LOCKED Bootstrap/Incentives - 50M tokens (10%) Reserves for future development - 50M tokens (10%) Charitable funds - 25M tokens (5%) Exchange distribution - 25M tokens (5%) Presale/ICO Bonuses Presale (100M) 1ETH ~ 10,000 tokens + 40% ICO - 1st Wave (100M) 1ETH ~ 10,000 tokens + 25% ICO - 2nd Wave (75M) 1ETH ~ 10,000 tokens + 10% $0.10/token 0.03ETH - 50ETH $1.5M Soft Cap $15M Hard Cap 17

19 The goal of KapowChain is to apply the fundamental concepts of supply and demand economics by creating great products to encourage utility and demands for our limited supply of tokens. The majority of the funds raised through our ICO will be used toward recruitment of development team. The success of our projects depends on the timely releases of our planned projects and continuous maintenance and upgrades. Marketing will be an integral part of our business model to encourage mass adoption among the collectors. To effectively promote our marketing programs, customer-centric focus must be present throughout our operations. 18

20 Road Map 2017/02/01 Concepts/Planning 2018/01/15 KapowChain, LLC Launch 2018/04/01 PR Launch 2018/04/01 Whitelist/KYC Registration 2018/05/01 Token Presale 2018/05/15 Kapow (KPOW) Token ICO 2018/07/01 Digital Authentication Passport (DAP) Schematic Release 2018/09/01 DAP Initial Trial 2018/11/01 DAP Integration 2018/12/01 Kapow Wallet Release 2019/01/01 ComixCrowd Release Beta 2019/01/02 Reward System Launch 2019/02/01 Mobile DAP Release 2019/04/01 Develop DigiGuard Protocol 2019/08/01 Develop Dispute Resolution Procedures 2019/11/01 Beta Release of DigiGuard 19

21 Conclusion A billion dollar idea does not come along every day. KapowChain has laid the groundwork with a suite of services to cover the entire supply chain in an effort achieve that billion dollar goal. By focussing solely on the collectibles supply chain, KapowChain will have a laser sharp focus in attaining the set forth solutions and solving the full spectrum of issues facing this industry. This focus will lead to KapowChain to be recognized the premier authentication service for the collectibles industry, building the most robust community of collectors, and a facilitator of all transactions in the ecosystem. We at KapowChain look forward to helping you protect your investments and enjoy your hobbies. Join the Crowd! 20