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Investment evaluation of (project name) ICO

EXPRESS INVESTMENT EVALUATION OF ICOPROJECT

https://lalaworld.io/

January, 5th 2018Digital Rating Agency

digrate.com

PROJECT LOGO

LowFraud Rate

https://lalaworld.io/

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Investment evaluation of (project name) ICOInvestment evaluation of Lala World ICO

LIMITATION OF LIABILITY

This report is the intellectual property of DigRate. The following content is intended for informational purposes only. This information may not be distributed in any way or in any form without prior consent of DigRate and links to www.digrate.com

This evaluation expresses the views of DigRate and does not constitute a statement of fact or recommendation to buy, hold, or sell these or any other assets, or make investment decisions. DigRate assumes no responsibility for any consequences, interpretations, conclusions, recommendations or other actions directly or indirectly related to the evaluation performed by DigRate, or the observations and conclusions contained in the ratings report and press releases, or the absence of any of the above. Current valuations and recommendations can only be found on the official website www.digrate.com.

The DigRate team expresses its respect to all enthusiasts of the cryptocurrency world.

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CONTENTS 3

Investment evaluation of Lala World ICO

INVESTMENT EVALUATION 4 RECOMMENDATIONS 7 GENERAL INFORMATION 9 Project Concept 10 Business Model 15

Tokens 21 Legal Documentation 25

Media Environment 28Team 33Project Support 36


INVESTMENT EVALUATION | Conclusion 4

Инвестиционная оценка ICO проектаPRIVATIX

AVERAGE SCORE

4.8

Criteria Score

Does the problem the project plans to solve really exist? 7Is the company’s product unique? 7Does the team understand its competition? 4Is blockchain technology a solution to the market problem? 6Has the project laid out its operating business model? 3Is there already a working product that can be sold to customers? 2Is there a clear roadmap and financial plan? 5Is the issuance of tokens limited? 5Is there an asset base that would protect current holders from token devaluation? 3Do the project participants have a clear motivation for owning the tokens? 5Is the company’s legal structure transparent? 7Has the company taken preventive measures to avoid problems with ICO market regulators? 5Is the project popular on social networks and in thematic communities? 4Is the project widely discussed in blockchain news resources? 4Does the project team have extensive experience and a strong track record? 7Does the project have a strong advisory board? 6Are the project’s partners large and well-known? 5Is the project attracting large VC investors? 3


FRAUD RATE 5

Advantages: ● strong team of developers, with good reputations and experience;● strong team of consultants;● partnerships with big companies;● openness with the public;● legal transparency.

Disadvantages: ● the lack of a working product available to the public (MPV is being tested);● Weak marketing strategy and limited product description in public resources;● soft cap for the ICO has not been determined.

Fraud Rate

How do we evaluate the Fraud Rate?



6

Lala World has laid out a rather ambitious plan. The project team indicates that they are interested in both the economic benefits of the project, and the idea of improving the lives of large numbers of people (migrant workers and the unbanked), which gives the project strong social significance in the eyes of public.

The participants of the project have presented a reasonable plan for platform development, as well as for each product individually. The team is concentrating on signing partnership agreements and obtaining licenses to legally operate in different countries. By the start of ICO, the team promises to have acquired at least three-quarters of the required licenses.

The team itself is competitive, with experience in their respective fields and a wealth of contacts and acquaintances, which facilitates transactions and finding potential partners. Additionally, the advisory board has outstanding experience in blockchain technology.

The team members have promised favorable conditions, with a large number of bonuses and discounts for future holders of Lala Tokens., which could potentially lead to an increase in the price of the cryptocurrency. However, we cannot say with certainty that this will be enough to ensure the circulation of the tokens.

So far, the project has not confidently substantiated the regulatory risks of holding the ICO. Additionally, the marketing campaign is weak, meaning the ICO is not the center of public attention or talked about in news resources. There is also no clear indication of signing partnership agreements, especially with banks and state institutions, or any evidence of how this might be possible.

CONCLUSION


Considerable risk exposure, high sensitivity to

market conditions. Score: 4.1-5

7RECOMMENDATIONS

What canbe improved?


1. Provide compliance measures for ICO regulator requirements and elaborate on this in the white paper;

2. Launch a strong marketing campaign to increase the company’s presence and popularity on news websites and social networks;

3. Provide a detailed plan to maintain the exchange rate for tokens at a stable level;

4. Announce the list of major investors interested in participating in the project;

5. Provide a more detailed description of the functions of the advisory board members.

6. Determine a soft cap to enhance the project’s credibility.

7. Prove the existence of agreements with banks and government institutions.


GENERAL INFORMATION

Lala World is a Singaporean start-up, founded in April 2016. By September 2016 the company had opened its India office. In 2017, the company opened offices in Dubai and Malaysia and found partners in The Middle East and Africa.

The founders of Lala World are developing a new ecosystem based on ERC20 that would provide financial services and technology to people who currently do not have any access to banking products and services. The core of the system is an e-wallet, the Lala Wallet. By creating a new peer-to-peer system, the developers of Lala World are seeking to revolutionize the way people get loans, buy insurance, and make cross-border and domestic transactions using blockchain technology. The company is attempting to make these and other financial products more accessible to individuals, small businesses, migrants and their families.

The developers claim the platform will bridge the gap between cash, digital and crypto currencies, as well as provide a streamlined method for obtaining financial products and services, and transferring money.

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Project Concept

PROJECT LOGO


INVESTMENT EVALUATION | Concept 10

Does the problem the project plans to solve really exist?

Lala World is planning to solve several major problems. Firstly, it seeks to provide more than 2bn individuals who lack bank accounts, with access to microfinance, and cheap global services for money transfers. Secondly, it plans to provide a fast, cheap and easy way for migrant workers to send money home and support their families. Thirdly, it hopes to help tourists traveling to other countries use any currency anywhere in the world and avoid high exchange fees. And lastly, it hopes to distribute additional capital to developing countries.

7 6 5 4 3 2 1

Strongly Agree

AgreeSlightly Agree

Neutral Slightly Disagree

Disagree Strongly Disagree




Is the company’s product unique?

According to The World Bank, about 2bn people do not have access to banking services and financial instruments. These people are the project’s target audience. To solve the main issues, the developers are planning to simplify transaction methods, lower transaction costs and settlement times, and cut out intermediaries. As the penetration of mobile devices is nearly 50% even in low-income countries, the platform and its products are potentially marketable and affordable for many people in theses countries. Additionally, many users who already have access to banking services are interested in facilitating transactions and lowering costs.

7 6 5 4 3 2 1

AgreeSlightly Agree

NeutralSlightly Disagree


Strongly Agree




Does the company understand its competition?

The team has presented a list of its key competitors and conducted a comparative analysis of the proposed services, target audiences, cost of services, etc. Using these indicators, the project is clearly superior to its competitors. However, it is surprising the team did not consider Change Bank (CAG) its main competitor, as it offers users a similar range of financial services and has a similar concept. However, the developers claim they are following the activities and development of the project, among others with similar concepts, such as Humaniq, Wala, and Cashaa.

7 6 5 4 3 2 1

Strongly Agree

Agree Slightly Agree





INVESTMENT EVALUATION | Concept 13Does the company understand its competition?


Business Model

PROJECT LOGO


Based on the tasks, blockchain technology is undoubtedly a key element for the functioning of the Lala World platform. Blockchain technology supports smart contracts, bilateral and multilateral transactions, as well as transactions with multiple asset classes. The platform will provide users with access to banking services, global capital markets and all types of transfers. The speed of transactions and low transactional costs, as well as the opportunity to use financial services without reference to a bank account – all this makes the blockchain technology the key to the solution of the problems set by the project team.

INVESTMENT EVALUATION | Business Model 15

Is blockchain technology a solution to the market problem?

7 6 5 4 3 2 1

AgreeSlightly Agree



Strongly Agree




Has the project laid out its operating business model?

The company has introduced the concept and development plan for each of its seven products, starting with its core, the Lala Wallet. The wallet is given the most attention in the white paper, as the entire platform is based on it. Lala Wallet is the first product to be launched and it is planned to be complete in early November, with testing in Malaysia and India. However, the team has yet to present a working business model. We would like to see more analytics, figures and numbers from the team, rather than subjective discourse and reasoning. However, the white paper is being updated regularly, and it is still two months before the ICO starts. We hope the team will provide more detailed reports and statistical information after launching its e-wallet.

7 6 5 4 3 2 1

Strongly Agree






INVESTMENT EVALUATION | Business Model 17Has the project laid out its operating business model?


LALA Wallet is to provide single-point access for all financial services in the LALA World ecosystem. Users are to have multiple top-up and cash-out options, hold fiat and crypto currencies, with a host of financial services like money transfers, lending, bill payments, cards and other traditional banking products.

Central to the wallet platform are LALA Tokens, which are to allow seamless transfers and payments for various transactions and services. LALA Wallet also includes an API for third-party developers so they can interact with the wallet, access balances, send transactions and invoices, and build third-party applications on top, which should further enhance LALA Wallet uptake and usage.

Users can conveniently convert a wide range of Blockchain assets such as LALA, BTC, ETH, LTC and DASH by using their LALA Wallets, which have an inbuilt exchange mechanism. If users are not crypto-savvy, they can also choose to store the currency in local fiat currencies and avoid using cryptocurrencies. The more customers use their LALA Wallets, the more they are rewarded economically, both through cheaper transactions, and via LALA Tokens for activities like sending new remittances, topping up balances of new users, giving cash in exchange for crypto to those users who need it at that certain time.

There are to be several top-up and cash-out options. However, it is unclear how exactly some of them (for example, balance top-up via a bank) will be available to users, taking into consideration current legal regulations and restrictions on the use of cryptocurrencies. Funds are to be secured in multi-signature escrow accounts.



Is there already a working product that can be sold to customers?

The company plans to introduce its first product in early November (two months before the beginning of the ICO), first in Malaysia and India, and then in the UAE, the Philippines and Bangladesh. The e-wallet functionality is to be limited at first. One of the main barriers to launching the product is the need for legal regulation of the platform. As the company plans to deploy an extensive financial services network, it must be overseen by governments, banks and other major players. At this point, the team is conducting negotiations, signing partnership agreements, and preparing licenses for the legalization of their activities. Team members promise that by the start of the ICO, three-quarters of the necessary agreements will have been obtained. However, we do not see any evidence supporting that statement, with no published papers or articles about partnership agreements on the Internet so far. We therefore have some doubt about this promise. Unfortunately, in the current legislative environment, signing these agreements seems either difficult, or impossible. Lala Wallet’s MVP is already being tested in Malaysia and India, and can be downloaded from Google Play.

7 6 5 4 3 2 1

AgreeSlightly Agree



Strongly Agree




Is there a clear roadmap and financial plan?

While the team has presented only a basic roadmap, all the key steps have been taken into consideration. The direction of the company’s international expansion and product launch plan is evident. The team claims the platform, with all its products, will be available by Q1 2019. As of now, we have not seen a detailed financial plan, although there is information about the distribution of investments and expected quarterly revenues.

7 6 5 4 3 2 1

Strongly Agree


Neutral Slightly DIsagree

Disagree Strongly Agree


Tokens

PROJECT LOGO


INVESTMENT EVALUATION | Tokens 21

Is the issuance of tokens limited?

LALA is releasing a total of 250mn LALA Tokens, which are to be distributed as follows:• 60% of the total tokens created are to be distributed in the ICO crowdsale.• 15% of the total tokens created during the ICO are to be allocated to the LALA founders, early investors, technology teams, and existing and future employee. The token pool is to be locked in a pro-rata smart contract for a minimum of 12 months.• 10% of the total tokens created during the ICO are to be granted to advisors, consultants, community developers and are to be locked in a pro-rata smart contract for six months, unless otherwise agreed beforehand.• 15% of the LALA supply is to be credited to a reserve, but not issued, and is to be available via an additional token sale mechanism, but might not ever be issued, depending on future circumstances (the developers do not specify the circumstances, so we assume this 15% will hang over the market). The hard cap is 150,000 ETH, with no soft cap listed as of today.

7 6 5 4 3 2 1

Strongly Agree






We do not see any asset base that would support the value of the tokens. However, from a conversation with the project’s CEO and other team members, we discovered that they are conducting negotiations with several potential partners (one of which is Bancor) on the issue of the permanent liquidity pool. Regarding the token value, the team members have stated their determination to hold their tokens for a long time, ensuring they will keep significant reserves to prevent devaluation.


Is there an asset base that would protect current holders from token devaluation?

7 6 5 4 3 2 1

Strongly Agree







The Lala platform provides bonuses for all kinds of Lala token holders. The bonus system works for short-term investors long-term investors, and ordinary users. Users are encouraged at literally every step, starting from the moment of registration, and any time they make transactions using Lala tokens. However, the opportunity to use fiat currencies and other cryptocurrencies is likely to become a barrier to the growth of Lala tokens. The company intends to use 20% of net profits from transaction fees to buy back Lala tokens from the market. These tokens are to be used to reward users and investors, and distributed for the development of the project and community. However, the question arises whether these incentives will be sufficient to ensure token demand and price growth.

Do the project participants have clear motivation for owning the tokens?

7 6 5 4 3 2 1

Strongly Agree





Legal Documentation

PROJECT LOGO


INVESTMENT EVALUATION | Legal Documentation 25

COMMENT:The company’s legal structure is sufficiently transparent; the information can be found in the public domain (the official Singaporean government website bizfile.gov.sg). The developers also share this information openly and answer all questions regarding legal structure.

Is the company’s legal structure transparent?

7 6 5 4 3 2 1




Strongly Agree



INVESTMENT EVALUATION | Legal Documentation 26

The project involves a gradual expansion to different countries, starting with India, Malaysia, the UAE and Bangladesh. At the moment the project team is working to obtain licenses and sign the necessary agreements. The white paper states that US residents, US Green Card holders and residents of Singapore are not permitted to purchase tokens,. There are no appropriate warnings for Chinese or South Korean citizens. However, the developers claim that compliance with AML and KYC rules is critical to the integrity of the project. To comply with AML, the company is collaborating with Coinfirm, a blockchain platform that ensures compliance with AML rules and eliminates associated risks. To adhere to KYC criteria, the company is to cooperate with domestic agencies in individual countries as the project expands due to differing regulations in each country.

Has the company taken preventive measures to avoid problems with ICO market regulators?

7 6 5 4 3 2 1

Strongly Agree

AgreeSlightly Agree




Media Environment


INVESTMENT EVALUATION | Media Environment 28

The project is known on many social networks, but not particularly popular. According to the team, they plan to conduct a more active marketing campaign once the product is launched (in early November). However, we can already see growing interest from the public. For example, over the past week, the number of subscribers to the Telegram channel has nearly doubled. However, the company should still focus on marketing to increase its popularity on major social networks.

Is the project popular on social networks and in thematic communities?

7 6 5 4 3 2 1

Strongly Agree






8,439subscribers

1,600subscribers

265 followers

Project subscribers on popular social networks:

248 members


34 followers

500+ followers

https://www.facebook.com/bitclave

https://twitter.com/bitclave

https://t.me/BitClaveCommunity



It would be a stretch to say that the project is widely discussed, but it is at least covered in some way on many platforms. Again, this problem may be linked to the lack of an active marketing campaign, which detracts from its promotion in the general public.

Is the project widely discussed in blockchain news resources?

7 6 5 4 3 2 1




Strongly Agree



News resources that have published articles about the project:


https://www.coindesk.com/ex-lg-security-officer-targets-ad-privacy-blockchain-search-engine/

Team

PROJECT LOGO


INVESTMENT EVALUATION | Team 33

The project team certainly deserves attention, as they are people with extensive experience in their fields, representatives or former employees of transnational banks and companies. Some of them are founders of other successful startups. Technical project support is also strong. The project's CEO is a former vice president at Deutsche Bank, which says a lot about his strong financial background and influence in certain social circles. It is also worth noting that the team is confident answering questions, has great communication with its audience via its Telegram Channel, is polite in its communications, and has strong speaking skills. More information about the team members is presented in the white paper. All team members are willing to get in touch, answer questions in a timely manner and consistently communicate with the public. Most of our questions were answered by the project’s CEO or COO.

Does the project team have extensive experience and a strong track record?

7 6 5 4 3 2 1

Strongly Agree






INVESTMENT EVALUATION | Team 34


https://www.linkedin.com/in/sankalpshangari/

An ex-banker from Deutsche Bank & JP Morgan, having worked in the US, London and Singapore. He is an entrepreneur, an author, an investor and a prolific speaker on blockchain and cryptocurrencies. His charismatic personality and experience in dealing with governments, banks and financial corporations has been significant in bringing talent from around the globe to this project.

https://www.linkedin.com/in/ngchengwei/

A alumnus of Singapore Management University, Director of CorpZap Pte Ltd (legal services for start-ups). Lawyer and entrepreneur, with vast experience, who enjoys a strong reputation withing Singapore’s legal community.

https://www.linkedin.com/in/prakashsomo/

Vice Chairman of ACE (Action Community for Entrepreneurship), board member of SCAPE, responsible for youth and entrepreneurship. He is also a co-founder of Fintech Consortium of Singapore. He has tremendous experience and talent to build and sell the business.

https://www.linkedin.com/in/juri-kop%C3%B5tko-4536198/

An expert in JAVA and senior Blockchain Developer, Juri is the CTO for the project. He is the chief architect behind integrating the project to blockchain technology and ensuring the security of the project. An experienced professional from Elisa, Nordea, Symantec and MoneyZen.

https://www.linkedin.com/in/sankalpshangari/

https://www.linkedin.com/in/ngchengwei/

https://www.linkedin.com/in/prakashsomo/

https://www.linkedin.com/in/juri-kop%C3%B5tko-4536198/

Project Support

PROJECT LOGO


36

The project consultants hold major positions in big international corporations. The list includes: Ari Paul, one of the founders of BlackTower Capital; Luke Sully, a legendary expert in the blockchain field; David Drake, an LDJ Capital Group board member; Thomas McAllister, the founder of Bankcoin Reserve Australia; and Ajay Bhatia, a Learning Wings Largest Remittance Network board member. Although, the role and functionality of the consultants is not disclosed, their participation in the project has been confirmed.

Does the project have a strong advisory board?

INVESTMENT EVALUATION | Project Support

7 6 5 4 3 2 1




Strongly Agree



37

The project has partnerships with the following companies: Hiving Technology (partnered with Lala ID and the company’s patented technologies), First Mobile Wallet (a partner in the UAE and CIS for local and international remittances), The Cambridge School (a partner for Lala World’s educational programs), Block Gemini (a partner in optimizing blockchain business processes), Redhill Asia, Dether, Tass Tech, LDJ Capital, The Soho Loft Media Group, and Bestinnet, the biggest platform for migrants in Malaysia, where all workers must be registered. The Bestinnet partnership is essential for Lala World, as each year the number of registered migrants increases. According to the partnership agreement, all migrants are to use Lala Wallet, which is to be launched in early November. Thus, it is evident that even before the start of the ICO, the project already has real clients.

Are the project’s partners large and well-known?


7 6 5 4 3 2 1




Strongly Agree



38

At the moment the team members are discussing conditions with some major investors before pre sales, although specific names are unknown at present. This information was obtained directly from the CEO.

Is the project attracting large VC investors?


7 6 5 4 3 2 1

Strongly Agree





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High

High probability of investment return, low sensitivity to market conditions.

Score: 6.1-7

RATING SCALE OF INVESTMENT ATTRACTIVENESS

Satisfactory

Medium-to-high probability of investment return, considerable sensitivity to market environment.

Score: 5.1-6

Satisfactory

Considerable risk exposure, high sensitivity to market conditions.

Score: 4.1-5

Low

Low development potential, highly speculative investment. Score: 2.1-4

Low

High default risk in the short term.Score: 0-2

Low

In default, with little-to-no prospect for recovery



CONTACTS

+7 (495) 175-1024 (Russia)

+41 21 588 02 23 (Switzerland)

[email protected]

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