Progress Report of THEKEY: From January 15th 2018 to April 15th 2018 — The First 3 Months

Dear community members!

It is great to write to you again. As you are all aware, we began the crowdsale for our Token Generation Event on January 15th 2018, which we completed with great success. Thank you for all the countless support you have given us and our project. Three months have now passed from then, and I now wish to provide an update report on the concrete measures and developments we have accomplished compared against what we had previously specified in our past announcements.

In our announcement in late January after our crowdsale, we gave our assessment of the token capital markets environment and the state of blockchain technology:

1. We believe the ICO market has grown without any control or discipline which unfortunately, has allowed the widespread proliferation of frauds and scams. The regulatory bodies throughout various jurisdictions have taken notice and have become increasingly and rightfully concerned. As a result, more regulation has been enacted to rein or curb ICOs, and we are sure more will be forthcoming, which has had, and will continue to have, a dampening effect on certain cryptocurrencies.
2. We believe blockchain technology is still in its infancy stage and has a long road ahead before it can be fully and securely commercialized with stability. It is promising that many teams and projects are working enthusiastically as we work toward getting closer to that goal.
3. We believe the ICO market will shut for certain blockchain companies with limited or weak business models. However, those with robust and resilient business models with solid revenue generating potential will survive and thrive.

What we promised

Against the background described above, we announced the following objectives:

1. To work with both world leading teams in a variety of relevant fields and Key Opinion Leaders from industry and academic institutions and to ensure our MVP is delivered on time and of the highest quality.
2. To work with world leading law firms in China, Singapore, Switzerland and the United States to ensure every action we take is in compliance with all the applicable laws and regulations in each respective jurisdiction.
3. To work with a world leading accounting firm to ensure our financial systems, controls and audit is managed and conducted in a highly transparent manner and in accordance with international standard best practices.
4. To work with a world leading public relations firm to ensure our communications and announcements to the community and the public are sent in the right form, time and manner, so we can continue to build upon the supportive community of THEKEY.

This is all brought together by my promise to the community that I will follow the highest professional and ethical standards and run the Project by the benchmarks and criteria of a publicly listed company.

What we accomplished in the past three months

We had a productive past three months as we achieved several internal milestones.

1. We entered into a consortium agreement on February 12th, 2018 with China Unicom and Tsinghua Unigroup for the commercialization and application of government data. China Unicom (http://www.chinaunicom.com.cn/) is a world leading telecommunications firm, which has extensive working experience on data processing and the application and security of large scale management information systems. China Unicom also has numerous subscribers countrywide and therefore has the enormous capability of end user access and management. Our other consortium member, Tsinghua Unigroup (http://www.unigroup.com.cn/), is a world leading computer chip and hardware manufacturer as well as a leading cloud computation and service provider. It is currently the largest integrated circuit enterprise in China and the third largest mobile chip enterprise in the world. Being able to work with two fantastic world leading organizations will greatly improve THEKEY’s capability and proficiency in a variety of fields, including data processing, storage, security, cloud computing, operations and, most importantly, its ability to achieve its commercial objectives. Currently, under the official support of China’s Ministry of Human Resources and Social Security, the consortium has initiated a pilot project in the commercialization and application of government data in Kaifeng, Jiaxing and Heilongjiang province in China. It is also working on expanding its work into other geographies around the world.
2. We entered into a formal engagement on January 11th, 2018 with Pinsent Masons MPillay LLP (Pinsent) (www.pinsentmasons.com), which is a world leading law firm with 24 offices across Africa, Asia Pacific, Europe and the Middle East. Pinsent is advising THEKEY on any issues related to legal structure and global compliance and regulation. In addition, Pinsent is working with one of our other partners, PricewaterhouseCoopers (see below) on the development of a Code of Conduct. Previously, Pinsent worked with THEKEY to draft policies and guidelines covering corporate governance, investor relations, anti-corruption, technology risk management, and compliance — all of which serve as the standard our employees follow daily.
3. We are entering into a formal engagement with PricewaterhouseCoopers (PwC) (www.pwc.com), one of the top four accounting firms in the world, which provides professional audit and assurance, consulting and tax services. In 2017, PwC provided services to 419 companies in the Fortune Global 500 and to more than 100,000 entrepreneurial and private businesses. PwC will work with THEKEY to develop our financial compliance framework, which will include the relevant rules and regulations to safeguard against and flag suspicious actions caused by fraud or any other illegal activity. Additionally, as mentioned above, PwC will work in conjunction with Pinsent to draft a business Code of Conduct, which will clarify our mission, values and principles and link with our standards of professional conduct for all staff of THEKEY to follow.
4. We entered into a formal engagement on January 8th, 2018 with MRI Moores Rowland LLP (MRI) (http://www.mooresrowland.com.cn/en/), a leading international business consulting firm specializing in assurance, advisory and compliance services as well as internal audit, risk management, and corporate governance. MRI will conduct end to end audits (from token to fiat) regularly and issue an audit report each fiscal year comparing against the budget and the financial compliance framework published. It will also be charged with ascertaining the correct rate and making the appropriate calculations related to the TKY token and all exchange rates. MRI issued the final audit report for our token generation event on January 15th, 2018, which can be found on our website.
5. We issued a Request for Proposal on March 5th, 2018 to Ogilvy & Mather and Burson-Marsteller and have received positive responses from both of them. We are now evaluating the responses and will enter negotiations on the terms and conditions. I am confident that a formal engagement will be signed soon with one of these world leading public relations firms. The remit of the selected firm is to help THEKEY on the development and implementation of its overall public relations strategy globally.
6. We entered in an advisory and consulting engagement with The Argon Group (Argon) (www.argongroup.com), a world leading boutique investment bank focused exclusively on digital finance and the token-based capital markets. Argon will conduct a full audit of our token generation event to ensure our sale has been compliant and has met investor requirements.

Lastly, I want to touch briefly upon our MVP development. Three months is insufficient for me to provide a detailed and concrete progress report responsibly. However, I am thrilled by the progress made by my technical team, and I am quite confident we are on the right track to complete a high quality MVP on schedule.

Conclusion

I am very happy with the progress of THEKEY in the past three months. What we assessed has proven to be correct and what we promised has been achieved. This has served as a solid foundation for the rapid, healthy and sustainable development of the Project. And now, I am more confident than ever THEKEY will accomplish what it has set out to achieve in an ever changing and complex market.

As I mentioned in my announcement on April 8th, 2018, I will host a global “Ask Me Anything” (AMA) session on our official Reddit forum (https://www.reddit.com/r/THEKEYOFFICIAL/) at 8:00 p.m. Beijing Time (8:00 a.m. EST, 12:00 p.m. GMT) on April 20th, 2018 to maintain and continue full transparency with our community. We welcome your questions, comments and suggestions.

I reiterate my thanks for your continuous support of THEKEY.

THEKEY, which you can always trust and rely on.

I wish you all the best, and I am,

Yours most truly,

Catherine Li,
Chairwoman and CEO

Disclaimer

The participants acknowledge and understand that as digital assets, TKY token, NEO Blockchain and other technologies are new, untested and are inherently risky. THEKEY Project team is not and will not be responsible for any non-performance resulting from adverse changes in market forces or technology.

About The Key:

THEKEY is a blockchain based identity verification technology (IDV) being developed to create secure digital identities for the future. Built on a decentralized ecosystem, THEKEY uses blockchain based dynamic multidimensional identification (BDMI) to store big data. Headed by Catherine Li, voted the most Outstanding Woman Entrepreneur in China, the technology handles Personally Identifiable Information (PII) which has been exclusively authorized by government authorities.

For more information of THEKEY, please visit the following links:

Website: www.thekey.vip
Telegram: https://t.me/THEKEYOFFICIAL
Twitter: https://twitter.com/thekeyvip?lang=en
Reddit: https://www.reddit.com/r/THEKEYOFFICIAL/
News and Updates: https://t.me/THEKEYVIP