Interviewer (I): The both of you have an extensive history as entrepreneurs and at such a young age. Let’s start with a little bit about your backgrounds.

Nate (N): Thank you for having us. My first entry into entrepreneurship was in 2012. I started a company called Phone ResQ, devoted to cell phone repair. I was the CEO of Phone ResQ for over 5 years and through this experience had the pleasure of getting to know Anant. I think we bonded over our shared business Acumen and passion for technology. I made my way into cryptocurrency and digital asset trading from my experience with, FOREX, stocks equities. In total I have over 2 years experience in trading. The possibilities of blockchain technology and what it has done for us as society in such a short period really began to drive my passion for the space. Last year I decided to enter the realm of cryptocurrency and helped create a blockchain based, decentralized casino called Decent.Bet where we had a very successful ICO and launch. I was the VP of Operations at Decent.Bet for just over a year. Right now I am working diligently to reign in a new era for securities trading through Mandala and with my co-founder, Anant. With that, it is your turn Anant (exchange of laughter)

Anant (A): Thanks, Nate! I have been a serial entrepreneur for most of my life. I’ve owned, operated, invested and advised several start-ups and refined my business intelligence over the past 15 years. I’ve been fortunate enough to have had some great mentors and am quick to learn, grow and adapt within the business landscape. I could go more in depth on my earlier days of business creation but I will start where our paths intersected (points at Nate). I had the pleasure of getting to know Nate and his work ethic through the wireless repair space. Nate owned repair shops in northern Florida and I am the founder of ReVamp Electronics, a wireless repair parts and accessories distributor based in Chicago. ReVamp first started as an online phone repair depot, similar to PhoneResQ, and has since evolved into an industry leader in the wireless space doing north of $100M in revenue in the past decade. Four years ago, I Co-Founded ReVamp Capital Inc. which provides engaged incubation and investment to help startup companies become successful. I entered the blockchain space as an investor and advisor for BitWatch, a digital asset tracking & news app. After intense conceptualization with Nate, we both agreed that it is time to change the stigmatism associated with cryptocurrency exchanges and help bring about blockchain mass adoption through a compliant vehicle, Mandala.

I: It sounds to me like you both have laid the foundation throughout your careers to take on such an ambitious project. On that note, one of the more ambitious components of Mandala is your desire to be 100% SEC compliant. Mandala has a very robust roadmap, but starting a digital asset exchange that is fully SEC compliant is an innovation in itself. Lets focus on compliance and start with the basics.

I: Where is Mandala headquarters ?

A: We currently have a registered business license in the Cayman Islands which allows us to seek international investments and we are also registered with the State of Delaware.

I: Can you help our readers understand how you intend to be compliant by elaborating on which exemptions you are filing for?

A: Absolutely. Our business license with the Cayman Islands allows us to maintain SEC compliance during our crowdfunding campaign by utilizing a regulation S exemption. This exemption permits solicitation of investments from non-U.S. countries. To remain in perfect adherence with the law, countries that have banned blockchain based crowdfunding cannot participate. But reg S allows MDX to be repatriated to the U.S. following acceptance of our Regulation A+ filing. More information regarding our business registration and compliance can be found at mandalaex.com/compliance.

I: That brings up an interesting predicament, what happens if Mandala’s regulation A+ filing is rejected by the SEC?

A: I am glad you asked. The SEC does not say “No” outright. They offer advice on how to amend the filing so that it will meet the necessary criteria. In its current state, if they say no and we start the amending process this would mean we would keep our entity and business in the Cayman Islands for now. This process will only be affect US citizens and not other countries or their citizens. We have a fantastic legal team at Reiben & Velvis, LLP that is working closely to facilitate this process.

I: It sounds like a lot of work is being done to ensure that Mandala meets SEC compliance. So will Americans be able to trade on this platform?

A: Definitely, however, other licenses are required to be registered as a national securities exchange. This includes broker dealer, money transmitter and an alternative trading system licenses. Since this entire process can take up to 9 months we will first launch internationally.

I: It almost seems easier to do what the other major exchanges have done, why not go that route?

A: This is a very popular question. The reasoning is simple, although this process may seem difficult initially, having to retroactively meet SEC compliance standards would be extremely difficult and creates new risks. Part of this process requires full, independent financial audits, not to mention the standards set forth by the SEC for listing digital asset securities is still evolving. To remain lawful many of the current exchanges may be required to unlist certain currencies. We are already seeing the impact regulatory bodies are having on existing cryptocurrency exchanges and it is just the beginning. Generally speaking, growing with current and future regulations will bring blockchain security assets closer to mass adoption in the global financial space.

I: Thanks for clarifying why Mandala will stand out. I would like to shift gears just a bit. Let’s talk crowdfunding and tokenomics.

I: How did you two go about acquiring the seed money necessary to put the crowdsale and marketing campaign in motion? Was there a private sale or private funding used to get this project moving?

N: No, Anant and I bootstrapped the project prior to presale launch. We didn’t accept outsider funding. Mandala was started from our own pockets as we believe it is only fair that founders have as much at stake as our investor’s.

I: I am sure your commitment to this project is very much appreciated. As some may know, the SEC is considering most ICOs to be a security offering. I keep hearing more about security token offerings and how they may be the future mechanism used for crowdfunding. Do you mind explaining how the MDX token meets SEC security standards and why investors should consider buying MDX?

N: Great question, MDX is considered a security by meeting the standards of the SEC’s Howey test. The Howey test looks at four criteria: is there an investment of assets, is a ROI expected, is business receiving investments a common enterprise, and lastly how much control do investors have in making their investment profitable. MDX has various functionalities within the Mandala micro-economy such as access to advanced analytics, signals, trading bots, strategies, community platform, tax reports and more. Because of these features, MDX has a utility function, but because users can use MDX to reduce trading fees the SEC views this as ROI and considers it a security. As far as investment is concerned, when I consider investing in a startup company I decide whether the project is something I believe in and if there is a good chance for success. I strongly encourage potential investors to do their own research on Mandala. Read the white paper and vet the team members. Consider if the function of MDX within the Mandala micro-economy is of value to you. For instance, would the extra security of a hardware wallet that syncs with the exchange benefit you as a trader?