GEMXX AMMOLITE TOKEN (AMML) GENERATION EVENT (TGE) Risk Factors

It is imperative that all risk factors identified below along with all the information contained in the Terms of Use before deciding to participate in the GEMXX Ammolite (AMML) Token Generation Event (the TGE). To the best of GEMXX Corporation (“The Company”, “us”, or “we”) and of Core State Holdings, Corp. (“Service Provider”, “us”, or “we”) knowledge and belief, all material risk factors that can influence your informed judgment to participate in the TGE have been outlined below. If any of the following considerations, uncertainties or material risks develops into actual events, the business, financial position and/or results of operations of the Company and the maintenance and level of usage of the GEMXX Wallet and AMML Tokens could be materially and adversely affected. In such cases, the price or market value of AMML Tokens (in the case where they are listed on a cryptocurrency exchange or a crypto-to-FIAT exchange) may decline due to any of these considerations, uncertainties or material risks, and you may lose all or part of your AMML Tokens.

Definitions

The “AMML Token” refers to a general-purpose cryptocurrency, implemented on the public Ethereum blockchain (the “Ethereum Platform”) as an ERC20 token. AMML Tokens are intended to be used at the currently existing GEMXX Wallet platform and for all transactions within the GEMXX Wallet and partnered ecosystems that can be developed and partnered with in the future.

Risks Relating to Participation in the TGE

  • AMML Token is not a currency issued by any national, supra-national or central bank or organization.
  • AMML Token is backed by physical Ammolite held by the Company. The Token is also tied to and supported by the Company to the price of Ammolite at a minimum with 1/13th of a Carat of Ammolite representing the initial release price of one (1) AMML Token. The price of Ammolite may fluctuate, which may decrease or increase the minimum supported price of the AMML Token. However, the potential upside price of the token will be determined by market demand.
  • There is no prior market for AMML Token and TGE and possible future developed exchanges may not result in either an active or liquid market for the AMML Tokens.
  • AMML will be priced according to the cost of 1/13th of a Carat of Ammolite at the time of purchase. The price of AMML will be mostly defined by the value of Ammolite, and external factors and market forces that are outside the control and purview of the Company. It is possible that due to possible demand, or a lack of demand, the price of the AMML Token may increase or decrease past the cost of 1/13th of a Carat of Ammolite.
  • No assurance is given for approval of AMML trading on a cryptocurrency and FIAT exchange.
  • No assurance is given that, during the TGE, AMML will be tradeable for other crypto pairs.
  • In case an approval for AMML Token, trading is granted by a cryptocurrency exchange, there is no assurance that an active or liquid market for AMML Tokens will develop, or if developed, be sustained after the AMML Tokens are available for trading on a cryptocurrency exchange.
  • Trading of AMML Tokens will depend on the consensus of its value between market participants, but is planned to not be lower than market price range for 1/13th of a Carat of Ammolite.
  • No one is obligated to purchase any AMML Token from any holder of AMML Token.
  • There is no guarantee of liquidity or market price of AMML Token at any extent at any time.
  • At any given time in transacting in AMML, there may be limited or no liquidity in the ability to buy and/or sell AMML to effectuate transactions. The Company bears no responsibility for this lack of liquidity in AMML nor in maintaining a support (floor) and resistance (ceiling) price for AMML at any time. Liquidity refers to the extent to which a market allows assets to be bought and sold at stable prices. Lower liquidity tends to result in a more volatile market (especially when large orders are placed), and it causes prices to change more drastically; whereas higher liquidity creates a less volatile market, and prices do not fluctuate as significantly.
  • There is no assurance that the market price of AMML Token will not decline below its original purchase price (Purchase Price).
  • The purchase price is not indicative of the market price of AMML Tokens after they have been made available for trading on a cryptocurrency exchange.
  • AMML Tokens may not be resold to any jurisdiction where the purchase/sale of AMML Tokens may be in violation of applicable laws (including but not limited to laws regulating controlled substances such as cannabis, alcohol, and other narcotics, and securities regulations).
  • The Company cannot ensure that there will be any demand or market for AMML Tokens, or that the Purchase Price is indicative of the market price of Ammolite, and AMML Tokens, after they have been made available for trading on a cryptocurrency or crypto-to-FIAT exchange.
  • Future sales of the AMML Tokens, and the demand for future competing Tokens, could materially and adversely affect the market price of AMML Tokens.
  • Any future sale or issuance of the AMML Tokens would increase the supply of AMML Tokens in the market and this may result in downward price pressure on the AMML Token.
  • The sale or distribution of a significant number of AMML Tokens outside of the TGE (including but not limited to the sales of AMML Tokens undertaken after the completion of the initial crowdsale, issuance of AMML Tokens to persons other than purchasers for purposes of community initiatives, business development, academic research, education and market expansion and issuance of AMML Tokens as a reward to users of the GEMXX Wallet platform), or the perception that such further sales or issuance may occur, could adversely affect the trading price of the AMML Tokens.
  • Negative publicity or unfavorable press or media coverage may materially and adversely affect the price of the AMML Tokens.
  • Negative publicity involving the Company, the GEMXX Wallet, GEMXX Corporation, or Ammolitetoken.com website or any of the key personnel of the Company or GEMXX Corporation
  • Regulation of cryptocurrencies in the US or worldwide may materially and adversely affect the market perception or market price of the AMML Tokens, whether or not it is justified.
  • We may not be able to credit customer accounts for loyalty points generated and/or reward programs in the future.
  • There is no assurance that there will be sufficient engagement in the GEMXX Wallet such that you will receive any rewards anticipated to be distributed to active users of the GEMXX Wallet.
  • Further, even in the event there is substantial engagement and interactions among the users and the GEMXX Wallet, profits generated through the GEMXX Wallet will not in any way, directly or indirectly, be allocated to users.
  • There is no assurance of any success of GEMXX Wallet or any future business line. The value of, and demand for, the AMML Tokens relies on the market demand for Ammolite, and also materially relies on the continuous and active engagement of its users in influencing and independently establishing the value of the tokens.
  • There is no assurance that the GEMXX Wallet will gain traction after its launch and achieve any commercial success.
  • There is no assurance that any of the future business lines contemplated by GEMXX Corporation will be launched and generate sufficient customer traction.
  • For the foregoing or any other reason, any further development of the GEMXX Wallet (including the creation of new modules) and other future business lines may not be completed and there is no assurance that it will be launched at all. As such, distributed AMML Tokens will be used only at the currently existing platform which may adversely impact the value of the tokens.
  • Notwithstanding implemented and to-be implemented security measures, there is no assurance that there will be no theft of the cryptocurrencies as a result of hacks, sophisticated cyber-attacks, distributed denials of service or errors, vulnerabilities or defects on the TGE website, in the smart contract(s), on the Ethereum or any other blockchain, on the GEMXX Wallet, or otherwise. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. In such event, even if the TGE is completed, the GEMXX Corporation may not be able to receive the cryptocurrencies raised and GEMXX Corporation and/or Service Provider may not be able to use such funds for the further development of the GEMXX Wallet and/or for launching any Future Business Line. In such case, it may be possible for the distributed AMML Tokens may hold little worth or value.
  • You are purchasing tokens to use them at the currently existing platform and/or for GEMXX Wallet Future Business Lines.

Risks Relating to GEMXX Corporation

  • The GEMXX Wallet is developed and maintained by Service Provider, but is operated by GEMXX Corporation Any events or circumstances which adversely affect Service Provider and/or GEMXX Corporation or any of their successor operating entities may have a corresponding adverse effect on the GEMXX Wallet and any Future Business Line. Such adverse effects would correspondingly have an impact on the utility, liquidity, and the trading price of the AMML Tokens.
  • The financial technology, precious and industrial metals, and cryptocurrency industries, in which GEMXX Corporation and Service Provider compete in have grown rapidly over the past ten years and continue to evolve in response to new technological advances, changing business models, shifting regulations and other factors. As a result of this constantly changing environment, GEMXX Corporation and Service Provider may face operational difficulties in adjusting to the changes, and the sustainability of either business will depend on its ability to manage its operations, and ensure that it hires qualified and competent employees, and provides proper training for its personnel.
  • As its business evolves, GEMXX Corporation and Service Provider must also expand and adapt their operational infrastructure. Service Provider business relies on its blockchain-based software systems, cloud network, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology, and efficient real estate management. GEMXX Corporation business relies on its distribution processes, the production and supply of precious and base metals, its production capabilities, its sales network, and its mining technology. All of these systems, tools, and skillsets represent complex, costly, and rapidly changing technical infrastructure. In order to demonstrate continued ability to effectively manage technical support infrastructure for the GEMXX Wallet, Service Provider will continue to upgrade and improve its data systems, technical knowledge, and other operational systems, procedures and controls, and might increasingly rely on hosted computer services from third parties that Service Provider may not control. In order to demonstrate continued innovation for the production, supply, and sale of precious and base metals, GEMXX Corporation will need to continue to upgrade and improve its operations, mining equipment, its geographic expertise, and other systems, procedures and controls. These upgrades and improvements will require a dedication of resources, and are likely to be complex. If either Company is unable to adapt its systems and organization in a timely, efficient and cost-effective manner to accommodate changing circumstances, its business, financial condition and results of operations may be adversely affected.
  • If the third parties whom GEMXX Corporation and/or Service Provider relies on are subject to a security breach or otherwise suffer disruptions that impact the services GEMXX Corporation and/or Service Provider uses, the integrity and availability of its internal information could be compromised, which may consequently cause the loss of confidential or proprietary information, and economic loss. The loss of financial, labor or other resources, and any other adverse effect on GEMXX Corporation and/or Service Provider business, financial condition and operations, would have a direct adverse effect on GEMXX Corporation and/or Service Provider’s ability to maintain the GEMXX Wallet and/or to structure and license the anticipated GEMXX Wallet future business lines. Any adverse effects affecting GEMXX Corporation and/or Service Provider’s business or technology are likely to also adversely impact the utility, liquidity, and trading price of the AMML Tokens.
  • The GEMXX Wallet platform, Ammolitetoken.com website, and/or Service Provider may experience system failures, unplanned interruptions in its network or services, hardware or software defects, security breaches or other causes that could adversely affect GEMXX Corporation and/or Service Provider infrastructure network, and/or the GEMXX Wallet.
  • GEMXX Corporation and Service Provider are not able to anticipate when there would be occurrences of hacks, cyberattacks, distributed denials of service or errors, vulnerabilities or defects in the GEMXX Wallet, the smart contracts on which the Companies, GEMXX Corporation and Service Provider, or the GEMXX Wallet relies or on the Ethereum or any other blockchain. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. GEMXX Corporation and Service Provider may not be able to detect such hacks, cyber-attacks, distributed denials of service errors vulnerabilities or defects in a timely manner, and may not have sufficient resources to efficiently cope with multiple service incidents happening simultaneously or in rapid succession.
  • Service Provider’s network or services, which would include the GEMXX Wallet and, if successfully structured, licensed, and launched, the GEMXX Wallet Future Business Lines (such as modules), could be disrupted by numerous events, including natural disasters, equipment breakdown, network connectivity downtime, power losses, or even intentional disruptions of its services, such as disruptions caused by software viruses or attacks by unauthorized users, some of which are beyond Service Provider’s control.
  • Service Provider has taken steps against malicious attacks on its servers/nodes or its infrastructure, which are critical for the maintenance of the GEMXX Wallet, there can be no assurance that cyber-attacks, such as distributed denials of service, will not be attempted in the future, and that Service Provider enhanced security measures will be effective.
  • GEMXX Corporation and/or Service Provider may be prone to attacks on its infrastructure intended to steal information about its technology, financial data or user information or take other actions that would be damaging to GEMXX Corporation and/or Service Provider and/or holders of the AMML Tokens. Any significant breach of GEMXX Corporation and/or Service Provider’s security measures or other disruptions resulting in a compromise of the usability, stability and security of the GEMXX Wallet may adversely affect the utility, liquidity and/or trading price of the AMML Tokens.
  • GEMXX Corporation and/or Service Provider are dependent in part on the location and data center facilities of third parties. Service Provider’s current infrastructure network is in part established through servers which it owns and houses at the location facilities of third parties, and servers that it rents at data center facilities of third parties. If GEMXX Corporation and/or Service Provider is unable to renew its data facility lease on commercially reasonable terms or at all, GEMXX Corporation and/or Service Provider may be required to transfer its servers to a new data center facility, and may incur significant costs and possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication failures. Additionally, the third-party providers of such facilities may suffer a breach of security as a result of third party action, employee error, malfeasance or otherwise, and a third party may obtain unauthorized access to the data in such servers. As techniques used to obtain unauthorized access to, or to sabotage systems change frequently and generally are not recognized until launched against a target, GEMXX Corporation and/or Service Provider and the providers of such facilities may be unable to anticipate these techniques or to implement adequate preventive measures. Any such security breaches or damages which occur which impact upon GEMXX Corporation and/or Service Provider’s infrastructure network and/or the GEMXX Wallet may adversely impact the utility, liquidity, and/or trading price of the AMML Tokens.
  • General global market, market prices of Ammolite, and economic conditions may have an adverse impact on AMML Tokens price and possible on GEMXX Wallet’s operating performance. General weaknesses in the economy may have a negative effect on GEMXX Corporation and/or Service Provider business, operations and financial condition, including decreases in revenue and operating cash flows, and inability to attract future equity and/or debt financing on commercially reasonable terms. Additionally, in a down-cycle economic environment, AMML may experience the negative effects of a slowdown in trading and usage of the GEMXX Wallet and may delay or cancel the structuring, licensing, and launch of the anticipated GEMXX Wallet Future Business Lines.
  • Suppliers on which GEMXX Corporation and/or Service Provider rely for servers, bandwidth, location and other services could also be negatively impacted by economic conditions that, in turn, could have a negative impact on GEMXX Corporation and/or Service Provider operations or expenses. There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant adverse impact on GEMXX Corporation and/or Service Provider’s business, financial condition and results of operations and hence the GEMXX Wallet and/or ability to structure, license and launch the GEMXX Wallet Future Business Lines. Any such circumstances would then correspondingly negatively impact the utility, liquidity, and/or trading price of the AMML Tokens. GEMXX Corporation, or Service Provider, or the AMML Tokens may be affected by newly implemented regulations.
  • Cryptocurrency trading (especially a currency tied to the price of a carat of Ammolite) is generally unregulated worldwide and highly uncertain, while numerous regulatory authorities across jurisdictions have considered implementing regulatory regimes which govern cryptocurrency or cryptocurrency markets. Any such regulations could then negatively impact the security, utilization, liquidity, and/or trading price of the AMML Tokens. GEMXX Corporation, Service Provider, or the AMML Tokens may be affected by newly implemented regulations.
  • GEMXX Corporation, Service Provider, or the AMML Tokens may be affected by newly implemented regulations relating to the crypto industry, including having to take measures to comply with such regulations, or having to deal with queries, notices, requests or enforcement actions by regulatory authorities, which may come at a substantial cost and may also require substantial modifications to the GEMXX Wallet and/or the anticipated GEMXX Wallet Future Business Lines. This may impact the appeal of the GEMXX Wallet and the anticipated GEMXX Wallet Future Business Lines for users and may result in decreased usage of the GEMXX Wallet and the AMML Tokens.
  • Should the costs (financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the GEMXX Wallet and structuring, licensing, and launching the GEMXX Wallet Future Business Lines may no longer be commercially viable and GEMXX Corporation and/or Service Provider may opt to discontinue the GEMXX Wallet, the anticipated Future Business Lines and/or the AMML Tokens.
  • It is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the GEMXX Wallet, the anticipated GEMXX Corp. Future Business Lines and the AMML Tokens. GEMXX Corporation and/or Service Provider may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the utility, liquidity, and/or trading price of AMML Tokens will be adversely affected or AMML Tokens may cease to be traded.
  • There may be unanticipated risks arising from the AMML Cryptographic tokens such as the AMML Tokens are a relatively new and dynamic technology. In addition to the risks included in the above discussion of Risk Factors, there are other risks associated with your purchase, holding and use of the AMML Tokens, including those that the GEMXX Corporation and/or Service Provider cannot anticipate. Such risks may further appear as unanticipated variations or combinations of the risks discussed above.
  • Risks relating to the US federal and state laws affecting the legal crypto industry and certain activities involving cryptocurrencies remaining illegal under certain US state laws. Such activities include but are not limited to: (a) transferring of cryptocurrencies to minors, (b) using cryptocurrencies for the purchase of certain substances such as tobacco and alcohol, (c) sending large sums of cryptocurrency abroad, and (d) other criminal activity or violence associated with the sale/sending and purchasing/receival of cryptocurrencies. To the extent GEMXX Corporation and/or Service Provider may not prevent certain of its users from using AMML Tokens in violation of U.S. federal law, it  may  subject GEMXX Corporation and/or Service Provider to civil and/or criminal liability and the utility, liquidity, and/or trading price of AMML Tokens will be adversely affected or AMML Tokens may cease to be traded.