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The Hero Capital Market Platform

The Hero Capital Market Platform will utilize blockchain and smart contract technology which will enable a network of financial service marketplaces comprised of a series of interdependent and mutually reinforcing projects in the Southeast Asian market focused primarily on promoting financial inclusion, transparency, and efficiency by enabling the efficient, frictionless, legally enforceable, and profitable transfer of digital currency to/from local fiat currency in order to provide capital for individuals and businesses in markets that are currently excluded from transparent and efficient access to financial services.Blockchain technology can liberate many financial services from the confines of old institutions, fostering competition and innovation to provide better, faster, and cheaper financial services to those who are outside or heavily burdened by their local and formal financial systems.

Blockchain Benefits

Blockchain could be the solution. First, this technology represents a powerful new tool for improving financial inclusion, potentially disrupting many financial institutions and enhancing the performance of banks in the global economy. By disinter-mediating traditional lending institutions and radically simplifying processes, blockchain can finally enable instant, frictionless loans, so that people don’t wait in line for an hour or more, travel great distances, or risk life and limb venturing into dangerous neighborhoods at night just to get a loan.

Second, it will improve administrative accountability. If micro-loans are recorded to the blockchain and everyone can access them, then they can hold those more accountable for bad behavior. Blockchain as a technology, has the potential to address all these innate intricacies of the lending process. With the inherent concept of open ledger, decentralized platform, smart contracts and integrated central database, blockchain achieves transparency, cost effectiveness, regulatory compliance and risk analysis in the lending process.

Hero Token

This document provides a comprehensive overview of Hero, its applications and benefits, the team involved in the project, the upcoming Hero fundraiser (sometimes loosely called “ICO” or “crowdsale”), the Corporation and the goals the Hero hopes to achieve. A Token Sale is an event in which a new cryptocurrency project sells part of its cryptocurrency tokens to early adopters and enthusiasts in exchange for funding. For the party offering the tokens for sale, this has become a well-documented and well-respected way to raise funds to upscale an existing product or service.

Why a token sale?

Even though PawnHero already has a central bank license, a working product and thousands of customers, taking PawnHero to the next level requires more capital to scale their impact. They need to continue to develop the product, enter new markets and hire talented people to help build the business. The proceeds will allow us accelerate the building of their collateralized and uncollateralized lending algorithms which needs a higher volume of loans than they are able to support at the moment. Offering a token instead of a traditional venture capital round enables the community to participate in PawnHero’s success story, rather than limiting it to a small, selected number of traditional venture capital funds. By issuing Hero tokens, tokenholder will benefit from PawnHero’s future success. A token sale is fast, transparent and efficient for exactly this purpose.

Use of Proceeds from the Token Sale

The PawnHero team has been hard at work since early 2014. Their first product, the pawning-platform (Magnus Opus) has been developed, tested and is operating. The first loan was released in February 2015, since then they reviewed 100,000+ applications and released more than 1m USD. If the fund raising in connection with the Hero token sale reaches the equivalent of 10M USD, PawnHero services will soon after roll out nationwide in the Philippines. Currently PawnHero is only able to tap a very small percentage of the potential customer base since they are only available within Metro Manila catering to a relatively small portion of the whole county (12.8m population vs 100+m only) and a very limited part of the community.

Moreover, funding at this level would enable us to fund:

  • Development.    PawnHero’s unique lending platform and credit algorithm is vital for its success and thus is a primary expense in the near future. Development includes the Magnus operating platform to optimize for operations at scale across the Philippines on a multi-platform support (WebApp, Android and iOS).
  • Marketing.    PawnHero has pre-approved 100,000+ loan applications (14% CMGR YTD 2017). While they have received great media support, all marketing efforts have been mainly online and press. In order to reach a broader audience, proceeds will be utilized in online marketing and traditional media to reach the base of the pyramid in the Philippines to build Hero as the next great consumer-facing brand in the Philippines.
  • Operating Expenses.    Parts of the proceeds will be used to fund overhead and day-to-day operating expenses.
  • Funding Funding of loan book.     Proceeds will be utilized to support the growth of the loan book. As required by the applicable regulations, PawnHero will fund 50% of its loan book through a $10 Million USD receivables debt financing facility with a Philippine investment bank and the remaining 50% of the loan book with internally generated cash and equity financing.

 

If you want more information, visit the WEBSITE and read the WHITEPAPER.

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