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1 ICOrating Cryptonia Poker Rating Review ( ICO dates ( ) Web: icorating.com

2 1. Rating 3 2. General Information about the Project and ICO 4 3. Description of the Project Services 7 4. Market Review Market Analysis Competitive analysis Team Project Tokens Analysis of Factors Affecting the Future Value of the Token Investment Risk Analysis 19

3 1. Rating During the ICO, the Cryptonia Poker project assigned the position of Head of Security to Abdallah Altrabeishi, who, according to his personal statement, has never cooperated with the project. Despite our numerous requests for information on this situation, we received no response from any project representatives. Abdallah Altrabeishi was removed from the website soon after our inquiries, but he is still present in the Whitepaper and presentations. As a result of this situation, we are forced to lower the Investment Rating of Cryptonia Poker. We assign Cryptonia Poker a Negative rating. Cryptonia Poker is a decentralized platform where users can play online poker worldwide. The project seeks to solve a number of problems in thesegment of online games, in particular, to combine the traditional speed of random number generation systems with complete randomness which, according to the founders, should be provided by blockchain. Among the project s strengths, we note that the transfer of funds on the platform takes just a few seconds and smart contracts provide anonymity and security. However, during the testing of the platform, we found errors and interruptions in the work that affected the outcome of the game. At the time of writing, the platform still needed improvements. The existing analogs are also trying to solve a number of industry problems and there are more developed competitors in the decentralized online poker market which are distinguished by star teams and strong marketing. Admittedly, Cryptonia Poker is at the very beginning of its journey. This project could use ETH, BTC or other existing cryptocurrencies instead of CPC tokens, as it is inconvenient for platform users to purchase them through the exchange. The current team does not have enough specialists to successfully implement all of the announced services. After listing on the exchanges, the CPC exchange rate may significantly decrease due to the fact that Cryptonia Poker's team will receive only 5% of the total emission and the Pre-ICO stage discount for the Token Sale was 90%. The combination of all of the above facts, the conducted market analysis, the competitive environment, and the risks of both the scope and the project itself, give us every reason to assign this rating to the project.

4 2. General Information about the Project and ICO Cryptonia Poker is a project that plans to implement a decentralized platform on Ethereum blockchain where users can play online poker and participate in tournaments using the Cryptonia token (CPC) and also receive rewards for advertising the platform and attracting new players. Games and tournaments are managed using smart contracts based on the random number generation algorithm (RNG). Website Whitepaper GitHub Smart contract platform: Ethereum blockchain Contract type: ERC20 Token: Cryptonia (CPC) Accepted currency: ETH The total number of tokens issued is 1,000,000,000 CPC. 75% (75,000,000) of these are available for sale. There is no additional emission. Tokens assigned to the team are blocked until the end of the ICO. All unsold tokens will be burned. The allocation of tokens is as follows:

5 Pre-ICO: Start date: End date: Soft cap: 45,000,000 CPC Hard cap: 200,000,000 CPC Token price: 1 ETH = 11,000 CPC Minimum purchase amount: 0.1 ETH Maximum purchase amount: no limits The Pre-ICO stage is over. According to the information on the website, the project has reached the Soft cap. ICO Stage 1: Start date: End date: Soft cap: 70,000,000 CPC Hard cap: 275,000,000 CPC Token price: 1 ETH = 7,000 CPC Minimum purchase amount: 0.1 ETH Maximum purchase amount: no limits Stage 2: Start date: End date: Soft cap: 90,000,000 CPC Hard cap: 275,000,000 CPC Token price: 1 ETH = 5,800 CPC Minimum purchase amount: 0.1 ETH Maximum purchase amount: no limits At all stages of the ICO a 20% bonus is given. In the event that the Soft cap is not achieved, all money will be returned to investors. According to information from the website, at the time of writing the review, the project attracted investments worth 342,115 ETH. The funds raised in the Token Sale will be allocated as follows:

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7 3. Description of the Project Services The Cryptonia Poker project is a poker room based on blockchain technology aimed at solving the problems of online poker related to fair play and transparency. Cryptonia Poker intends to combine the traditional speed of random number generation systems with the total randomness provided by blockchain technology as follows: all pre-generated seeds from all players and the server are collected and processed in a random number generator and transferred to a smart contract. Any player has the ability to check the data on the actions of each player, seed numbers and other transactions via the smart contract. The KYC procedure is not needed to register on the platform. The KYC procedure is not required to make deposits or withdrawals either. All money transfers take just a few seconds. At the same time smart contracts provide anonymity and security. Deposits are only accepted in CPC tokens. The developers do not provide any internal exchange. Therefore, participants need to purchase tokens on the exchange before starting to play and transfer the deposit from their wallet to the wallet of the Cryptonia Poker server. A similar scheme is also provided for the withdrawal of funds with the subsequent exchange of CPC tokens for fiat being carried out by third-party exchangers and exchanges. This could be an inconvenience for the players. All games on the platform will be available 24/7. Currently, Texas Hold'em and fivecard Omaha are already available. Cryptonia Poker can bring online poker to a new level by solving the main problems inherent in the traditional format of poker rooms using blockchain technology. However, in order to be competitive, the team must provide a quality service which at the moment needs to be refined and filled with new types of services. If Cryptonia Poker can ensure the planned smooth running of the platform, it has every chance of obtaining a certain niche in the gambling market.

8 4. Market Review 4.1 Market Analysis Poker is one of the oldest intellectual card games. It has already received the status of an official sport in many countries. The traditional way of playing poker is in tournament in a casino. However, with the development of computer technology, the Internet and mobile devices, online poker is becoming increasingly popular. It is the most rapidly growing market in the world. According to Purity, poker will increasingly move into mobile applications in There will be poker rooms which will provide an opportunity to play on mobile platforms exclusively 1. Despite the great popularity of the game in the world and the love of fans, the authorities of various countries treat poker differently. A map of the legalization of poker in different countries is given below 2 : The countries where the card game is legal are marked green, countries where poker is forbidden are red, the yellow color indicates that countries have restrictions on the game, blue represents places where licenses are provided but not observed and gray means that poker is not regulated by the authorities. Poker rooms in countries where online poker is a legal game must receive a license to implement activities. Otherwise, the website is blocked. There are few countries with such close regulation. These include Austria, Belgium, Bulgaria, Great Britain, Denmark, Ireland, Latvia, Lithuania, Malta and Estonia. The countries that have restrictions include Spain, Italy, Portugal, Serbia, Finland, France and

9 India. In these countries online poker is allowed but only within your country. The game is developed in a closed system. This is done to prevent the flow of residents' money abroad. As a rule, there is an increased rake in reserves, unlike international rooms. The reason for this is taxes. There is a law establishing licensing for online poker in countries such as Albania, Bosnia and Herzegovina, Hungary, Georgia, Liechtenstein, Macedonia, Moldova, Monaco, the Netherlands, Slovakia, Slovenia, Montenegro, the Czech Republic, Croatia, Sweden and Canada, but this law is not respected due to the high cost of the license. However, the state does not pursue or limit players with operators because access to the international pool is open. The gray zone contains countries such as Azerbaijan, Armenia, Belarus, Greece, Kazakhstan, Poland, Romania, San Marino, Ukraine and New Zealand. Online poker is not regulated at a state level in those countries and there is no ban on playing abroad. In some of the states there is a discussion about the legal regulation of online poker. In Russia, Germany, Iceland, Cyprus, Luxembourg, Norway, Turkey, Switzerland, Mexico, USA, Brazil, China, Israel, South Korea, Japan and Australia online poker is completely banned at a legislative level. All poker rooms are blocked. But nevertheless, citizens from the above countries can be found in the lobby of popular rooms due to the ability to bypass the blocks. Below are the statistics of the most successful poker states with the total tournament winnings of players 3 : The leaders of the industry can be identified among the poker rooms. We will focus on the top three leaders 4. PokerStars holds a solid leading position. The average number of players online is between 50,000 and 20,000. During events such as Sunday Million or TCOOP, WCOOP and the SCOOP series their number is even greater. The number of cash players is 10,000-20,000 on average

10 The second place is occupied by IDN Network. This is the union of Asian rooms which are the most popular in their region. On average IDNPoker collects 3,600 cash players per day with a peak value of 5,500 which is one third more than in 888Poker. Third place went to the 888Poker poker room. It is played by about 1,500 cash players and the average daily peak can approach 3,000 players. The leading big poker rooms include PartyPoker, MPN and ipoker networks, PokerDom Winning, Winamax, Good Game Network, Unibet and Chico. Despite its popularity, online poker has a number of critical problems associated with the withdrawal of funds, bots and hacked random number generators. The solution to these problems is found in the introduction of blockchain technology into the poker industry. It allows poker to become a game that fully meets the requirements of honesty and transparency.

11 4.2 Competitive analysis There are thousands of classic poker rooms worldwide. Furthermore, new poker rooms continue to appear. Competing with the industry giants whose rating we mentioned above is practically impossible and meaningless. Only the websites capable of bringing the card game to a new level have a chance to occupy a certain niche in the online poker industry. We are talking about decentralized poker websites built on blockchain technology. Currently, there are a lot of projects offering such solutions. We will consider the main projects, which are direct competitors of Cryptonia Poker. Virtue Poker 5 is a poker room created by ConsenSys founded by Jozev Lubin. Jozev is also one of the founders of Ethereum. The Virtue Poker team includes such star players as Dan Coleman, Brian Rust and Phil Ivey. The project is currently at the ICO stage, after which the team expects to achieve a moderate Hard cap of $12.5m. During the Token Sale, the developers were already conducting various actions when buying a certain number of tokens, for example, packages of $13,000 for the WSOP Main Event 2018 and others. Currently, the alpha version of the platform is at the stage of closed testing. Therefore, we were not able to test it. Open beta version will be available in the third quarter of CoinPoker 6 is a functioning poker room with gambling for cryptocurrency. This project team is also an advantage with representatives such as former PokerStars PRO Isabel Mercier, former PokerStars top manager Michael Hosem, Tony G, owner of TonyBet, a poker room that hosts bitcoin, high roller Matt Kirk as a PRO-player and other high-level representatives from 888, Playtech and partypoker. The CoinPoker gaming platform was launched in the first quarter of 2018 and it is rapidly gaining players. The poker room is actively advertised on PokerNews 7 (which recently belonged to PokerStars). CoinPoker is the main competitor of Cryptonia Poker. They are planning to provide the same game formats as Cryptonia Poker, including Lottery, All-in, shootout, Sit & Go, popular versions of Hold'em, Chinese poker OFC Pineapple (with the possible transition to 2-7 Pineapple), mixed games and five-card Omaha. In addition to the above games

12 Cryptonia Poker, is also planning to provide games for Live Tournaments and backgammon. But it is not a competitive advantage, since both poker rooms have most of the above services under development and only Texas Hold'em and five-card Omaha are operating. As for the advantages of Cryptonia Poker, we would like to note the proposed rake of 3% versus 5% for CoinPoker and a 35% rake against 25%+ offered by CoinPoker. At this stage (the stage of development and formation) players of both projects are freed from the rake. Having tested both sites, it is worth noting that CoinPoker has a number of advantages over Cryptonia Poker: The number of players in CoinPoker is many times greater than the number of players in Cryptonia Poker. The average number of participants in their freeroll tournaments is 400+ compared to for Cryptonia. Unlike Cryptonia Poker there are paid tournaments in CoinPoker, in addition to freeroll tournaments. More than 30 active tables are open on the CoinPoker site in the "cash game" category. In Cryptonia Poker there are only two. The interface of the CoinPoker poker room is more convenient, informative and simpler. It can work via application while the Cryptonia Poker room is only available in the browser which is less convenient (more details in the "Product Services" chapter). All these projects, like Cryptonia Poker, are determined to solve the main problems of online poker. Currently, CoinPoker is the most developed and competitive in the market of decentralized online poker. CoinPoker is also distinguished by a star team and strong marketing. Cryptonia Poker is at the very beginning of its journey. The Cryptonia Poker team needs to push themselves to ensure a constant influx of new players, to popularize their platform and meet the expectations of their customers.

13 5. Team The Cryptonia Poker team is made up from 11 core members and 5 advisors. Information about the key members of the team is given below: Lakshay Anand - CEO & Founder Lakshay has worked at Cryptonia Poker since December According to his LinkedIn profile, he has been playing poker professionally since January Education: Amity Education Group - MBA, International Business. Vivek Jain - Co-Founder Vivek has worked at Cryptonia Poker since January 2018 as a financial advisor. Education: Chaudhary Charan Singh University Bachelor of Commerce. Higher School of Economics - Bachelor, Marketing. Paul Danilov - Professional Poker Player Paul has worked at Cryptonia Poker since April 2018 as an advisor. Education: Higher School of Economics - Bachelor, Marketing. Anastasia Naymushina - CMO She is responsible for Community Relations. Education: Lobachevsky State University- Faculty of International Relations. Alexandr Palamarchuk - Bounty Team Lead According to information from the website he is responsible for the development of an international bounty team. Education: Modern Humanitarian Academy - Bachelor, Information Technology. Sharad Kant - Lead Interface & Product Designer Sharad has worked at Cryptonia Poker since March Education: Delhi Technological University Bachelor of Technology. Opeyemi Francis Oni - Smart contract developer Opeyemi has worked at Cryptonia Poker since March Education: Ladoke Akintola University of Technology Bachelor of Technology. Shivani Ahuja - Writer & Editor

14 Shivani has been in charge of Social Media management since April Education: National Institute of Fashion Technology Master of Fashion Management. As for Advisory Board, we would like to note the following members: Daniil Morozov Advisor to Deep Aero Drones, the winner of the "100 best products of Russia", "Financial Russia 2007", "Financial Russia Vadim Ivanenko Member of the Advisory Board at Optherium Labs. Filip Poutintsev Cryptocurrency & Blockchain Expert. Currently, an ICO Advisor for nine start-up projects. The team of Cryptonia Poker consists of entrepreneurs trying to create a platform for online poker gamers. However, we note that only Opeyemi Francis Oni has the key skills in the development of smart contracts, which implies the need to increase the number of relevant specialists in the team. In order to maintain the stable operation of RNG algorithms, it is also necessary to have several specialists in the team with the appropriate education and experience in implementing such mathematical apparatus.

15 6. Project Tokens Product development is conducted on GitHub in the Open source mode. At the time of writing, the smart contract code of CPC token was publicly available 8 : Token name Cryptonia Token Symbol CPC Decimals 2 8

16 At the time of writing, ETH had carried out 84 transactions from 57 addresses, which resulted in the sale of 41,707,608,83 CPC tokens. The largest transactions were in the amount of 31 million CPCs and 10.2 million CPCs and were made from two addresses, which currently hold 74.3% and 24.56% of the tokens sold for ETH: The CPC token is a standard ERC20 Ethereum blockchain utility token. The CPC token is used exclusively within the platform as a game currency. The main role of CPC tokens: Payment for entry to participate in tournaments. Formation of prize funds of tournaments held on the platform. Rewards for participants for referrals. Rewards for players - leaders and regular players. After the completion of the ICO, CPC tokens will be available on the exchanges. Online poker will certainly require the introduction of blockchain technology to ensure fast transactions, honesty, transparency and access to new markets. However, not every poker room using this technology needs to create its own cryptocurrency. A typical example is Cryptonia Poker where ETH, BTC and other existing cryptocurrencies could be used, and be converted into a game currency, as easily as classic poker rooms use Fiat and cryptocurrency.

17 7. Analysis of Factors Affecting the Future Value of the Token Given that the CPC token is a game currency on the Cryptonia Poker platform, it is obvious that its attractiveness depends on its turnover between the active participants. The number of active players on the platform determines the popularity, recognition and relevance of the platform. The popularity of the platform depends entirely on quality marketing, to which Cryptonia Poker pays special attention: The poker room has an active presence on all popular social media and forums. Collaborates with influential players such as Scotty Nguyen to implement an advertising campaign in the form of word of mouth. Articles in various news channels such as Poker News, Highstakesdb, PokerVIP, ICObench, CCN, PokerTube, ICObazaar, TrackICO and Cointelegraph. Participation in conferences and exhibitions in Munich, India and Dubai. Cryptonia Poker is planning to host a major tournament in July 2018 to commemorate its launch. However, no details about it have been given yet. The recognition and relevance of the platform largely depends on the quality and range of services provided. Cryptonia Poker is planning to complete the platform and implement all the planned stages of the roadmap in the third quarter of If the team can bring its platform to a competitive level and make it popular by providing quality marketing, the CPC token will be in demand in the long-term. The price of the CPC token will increase as the number of active players increases. In turn, the increase in the value of the token can bring to the fact that the platform will use a smaller number of tokens with the same number of players, as players will match the size of the bet to fiat funds. At the same time, when replenishing the ecosystem with new players, they will have to buy CPC tokens at market price which will ultimately have a positive impact on its attractiveness. As for the short-term prospects, the value of the CPC token may be reduced after listing on the exchanges due to the fact that investors participating in the ICO in speculative purposes can put pressure on quotes. The probability of the presence of speculators is great due to the large discount, which was 40% on the Pre-ICO stage, with an additional 20% bonus. These conditions were offered by almost a third of the tokens from the total amount allocated for sale. Another third of the tokens allocated to the first stage of the ICO are currently offered at a 20% discount and a 20% bonus. 10% of tokens are allocated to the team. When these tokens will be unlocked, the token price will not be adversely affected, since the amount allocated to the team is very small relative to the number of tokens being issued.

18 Summing up, we note that speculators may have a negative impact on the investment attractiveness of CPC tokens. However, the medium and long-term market value of the CPC token will largely depend on the number of players on the platform.

19 8. Investment Risk Analysis Assessing the risks of this project, we should note that there are a lot of similar projects in the decentralized online poker market, which predetermines a highly competitive environment for the future operation of Cryptonia Poker. Its ability to keep its share in this segment of online games in the future will depend on how quickly and to what extent the team will be able to implement all the declared gaming services and attract the first customers after the ICO. We also note that obtaining the appropriate licenses for poker rooms in some countries of the world may be achieved over a period of time, thereby slowing the attraction of new players to the platform. We consider these as the main risks to the project. Deposits in the poker room are only accepted in CPC tokens, i.e. before starting to play it is necessary to purchase tokens on the exchange and transfer them from the user s wallet to the wallet of the server. We consider such a scheme extremely inconvenient and significantly limits the potential base of players. A similar scheme is also planned for the withdrawal of funds with the subsequent exchange of CPC tokens to fiat carried out by third-party exchangers or exchanges. The founders announced the introduction of random number generation algorithms on the platform which have a number of advantages with respect to PRNG algorithms. It is necessary to have the appropriate specialists in the team in order to support the stable operation of these algorithms on the platform. Currently, Cryptonia Poker is dependent on the partner company called On Grid Systems which work for them on the RNG. As a result, there may be a number of problems with the implementation of RNG algorithms which we note as a risk. The Cryptonia Opening Tournament is scheduled for July 2018, while the introduction of decentralized solutions for generating random numbers will occur no earlier than August 2018, according to the Whitepaper. In this regard, we should expect unpredictable effects from the pseudo-random generation of numbers during this tournament, we also note this as a risk. According to the information provided in the Whitepaper, all funds received during the ICO will be stored only in ETH which, against the background of the high volatility of cryptocurrency, keeps the exchange rate risk at a high level. We also consider it important to note that the fluctuation of price changes in cryptocurrencies cannot be modeled by any diffusion models of evolution studied earlier, which are based on speculative differential equations 9 that are widely used to model the behavior of classical financial assets. This circumstance, in our opinion, substantially complicates a fair assessment of the above-mentioned exchange rate risk at any time. 10% of the total token emission is allocated to the team. In our opinion, such a share is not enough for the further motivation of the team to support the work of the project and develop it. The blocking of the team s tokens is valid only until the completion of the ICO. 9 matical_finance

20 We did not find any other significant risks that could adversely affect the attractiveness of the Cryptonia Poker project. The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICORating Team, based on data from open access and information that developers provided to the team through Skype, or other means of communication. Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud. We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.