XUM Token

June 17, 2021 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY The Securities and Exchange Commission has received information that individuals or group of persons representing XUM TOKEN, XUMCOIN, UmcUSDTbot ( now, XUM/USDT/BOT ), XUM CHAIN, XUMEX (World Crypto Asset Exchanger), XUM EXCHANGER and XUM EXCHANGE LTD. are enticing the public to invest in a digital currency called "United Masa Coin" which is now called XUM . Based on information gathered by the Commission, XUM token and XUM coin are being offered by TBCMMP MASA MART, INC., MASA MART BUSINESS CENTER OPC, MASA MART BUSINESS CENTER and MASA MART ENTERPRISE OPC referred to herein collectively as "MASA MART" or "MMBC." MASA MART together with its product cryptocurrencies, "UNITED MASA COIN (UMC)" and "XUM" became the subject of two Advisories 1 issued by the Commission. To date, the Advisories issued against MASA MART or MMBC are still IN FORCE and SUBSISTING. XUM, which stands for X cryptocurrency U nited M asa, is the rebranded UMC or "United Masa Coin." 2 According to its agents and members, XUM uses two (2) symbols, 1) XUM Token represented by the XUM Logo with black background and 2) XUMCoin represented by the XUM Logo with Blue background. What is XUM? Abstract XUMCoin is a utility and service oriented based digital currency powered by its own blockchain XUMChain. As Blockchain technology continues to emerge and develop, an influx of governments, corporations and both public and private sector influencers, continue to spread awareness and champion the practical benefits of Blockchain for efficiently and effectively solving a multitude of complex global challenges. This is a technology that cannot be ignored efficiently and effectively. XUMCoin will have a primary role to be used as gas fee or transaction fee for the whole eco-system of XUMChain. Given the speed and the volume of 200 transactions every 5 seconds per block and a cheaper gas fee of 50 XUMCoin (approx. $0.50 at its current value) to execute any transaction, or a premium fee for faster transfer and verification will surely make the demand higher. XUMCoin will have an important part of this technological revolution, responsibly engaging with, and providing solutions for, global clients, communities and businesses as they choose to adopt this new era of technological thinking. The results not only improve the operations of their businesses, but too, the lives of their clients and future partners. To transfer XUM token from XUM/USDT/BOT to the XUM Wallet/App, a member must do the following: Step 1: Download XUM Wallet in PLAYSTORE (Note: Not yet available for IOS). Step 2: On your XUMUSDTBOT Click WITHDRAW. Step 3: Click WITHDRAW XUM. Step 4: Place your XUM that you want to withdraw. (Pls. Take note for the Gas Fee Transaction) Step 5: On your XUM Apps Click XUM. Step 6: Click RECEIVE and Copy your XUM Wallet Address. Step 7: Paste your XUM WALLET from your XUM Apps. Step 8: Wait for the confirmation of XUMUSDTBOT and double check your XUM Wallet from XUM Apps before you CONFIRM it. These cryptocurrencies are being promoted online thru the following applications/website: a) UMCautobot, XUM/USDT/BOT and XUMUSDT_BOT ; b) XUM Wallet App , in turn, promoted by XUM Foundation and XUM Exchange Ltd. c) Website such as https://xumexx.info , https://app.xumexx.com , https://exchange.xumchain.com and https://xumchain.com . Agents and promoters of XUM token and XUMCoin represent that they are currently worth Php5.00 each with a promise of an increase in value up to Php50 to 70.00 by next year. Proponents also affirm that "staking" 3 XUM token or XUM Coin ( i.e. , XUM12M15 or XUM06M6) generates six (6%) or fifteen (15%) percent reward, respectively. As illustrated below: It must be emphasized that XUM Token and XUMCoin are not included among the list of the generally accepted virtual currencies posted on the World Coin Index and Coin Market Cap websites as acknowledged in its website www.xumexx.info : To date, MASA MART's XUM Token and XUMCoin are not convertible to cash unlike those cryptocurrencies traded through licensed digital asset exchanges or virtual asset service providers (VASP) regulated by the Bangko Sentral ng Pilipinas (BSP) . "XUMEX (World Crypto Asset Exchanger)" and "XUM EXCHANGER" are being hyped by Masa Mart's agents and promoters to the public as their soon-to-be-launched exchange/"exchanger" by referring their clients to the (1) https://xumexx.info (2) https://app.xumexx.com (3) https://exchange.xumchain.com and (4) https://xumchain.com websites. Based on the foregoing, XUM Token and XUMCoin partake of the nature of securities in the form of investment contracts due to its centralized nature and therefore subject to the regulatory authority of this Commission. Further, it is alarming that XUM Token and XUM Coins are being entirely minted or created by Masa Mart and its operators who control their supply and arbitrarily dictate their prices and therefore have no underlying value and have no legitimate use case. Further, applying the Howey Test , 4 the schemes presented by MASA MART as we stated in our Advisories, involve the offering for public sale of securities in the form of investment contracts as it entices unsuspecting investors to place their monies on its investment packages including, among others, XUM TOKEN, XUMCOIN, UmcUSDTbot now XUM/USDT/BOT, XUM CHAIN, XUMEX (World Crypto Asset Exchanger), XUM EXCHANGER and XUM EXCHANGE LTD. , in lieu of passive income. That assuming XUM Token and XUMCoin are classified as cryptocurrencies notwithstanding their unique characteristics, the SEC ADVISORY on Initial Coin Offerings and Virtual Currency posted 08 January 2018 specified that some virtual currencies, based on the facts and circumstances surrounding their issuance, follow the nature of a security as defined by Section 3.1 of the Securities Regulation Code (SRC) . In the "facts and circumstances" doctrine enunciated by the US SEC in its investigative report in "The DAO" case, 5 it ruled that "securities law may apply to various activities, including distributed ledger technology, depending on particular facts and circumstances, without regard to the form of the organization or technology used to effectuate a particular offer or sale." Hence, Section 8 of the SRC requires that the said offer and sale of such securities must be duly registered with the Commission and the concerned corporation and/or its agents must have appropriate registration and/or license to sell such securities to the public. However, per records of the Commission, MASA MART FOREX GENERAL TRADING, MASA FOREX GENERAL TRADING LLC., MASA MART FOREX GENERAL TRADING LLC-UAE referred to herein as "MASA FOREX," XUM EXCHANGE LTD. and XUM FOUNDATION , are NOT REGISTERED as a corporation or partnership with the Commission and have NO SECONDARY LICENSE to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC) . Likewise, XUMEX (World Crypto Asset Exchanger), XUM EXCHANGER, XUM EXCHANGE LTD. , and its operator, MASA MART FOREX GENERAL TRADING LLC, XUM EXCHANGE LTD. and XUM FOUNDATION , are not registered as Virtual Asset Service Providers (VASP) with the Bangko Sentral ng Pilipinas under Circular No. 1108, series of 2021 or the Guidelines for Virtual Asset Service Providers . Moreover, as stated, UMC/XUM is NOT TRADED in recognized cryptocurrency exchanges and NOT INCLUDED among the list of the generally-accepted virtual currencies as posted on the World Coin Index and Coin Market Cap websites. As no open exchange allow the trading of XUM TOKEN and XUMCOIN , their operators seemingly manage their own digital exchange platform contrary to Section 32 of the SRC on the " Prohibition on Use of Unregistered Exchange ." Nevertheless, XUM TOKEN and XUMCOIN investors utilize social media websites in offering and selling their UMC and/or XUM due to lack of trading options, leading MASA MART to organize online merchant stores and incorporate other entities that accept UMC and/or XUM as a mode of payment for any transactions. Thus, the public is advised NOT TO INVEST or STOP INVESTING in any scheme offered by any entities operating under TBCMMP MASA MART, INC. ("TBCMMP"), MASA MART BUSINESS CENTER OPC, MASA MART ENTERPRISE OPC ("MME OPC"), MASA MART BUSINESS CENTER, MASA MART FOREX GENERAL TRADING, MASA FOREX GENERAL TRADING LLC, MASA MART FOREX GENERAL TRADING LLC-UAE and XUM FOUNDATION and such other entities engaged in similar activities or initial coin offerings and digital asset trading which are not compliant with the BSP and the Commission. The public must be wary that any promise of ridiculous rates of return with little or no risks is an indication of a Ponzi Scheme where monies from new investors are used in paying fake "profits" to earlier investors. Also, any promise that defies the normal financial logic is surely unreliable and sketchy. The public is again WARNED that those who act as salesmen, brokers, dealers or agents of such unauthorized entities in selling or convincing people to invest in their investment scheme offered including solicitations and recruitment through the internet may likewise be criminally prosecuted and penalized with a maximum fine of Five Million pesos (P5,000,000.00) or a penalty of Twenty-one (21) years of imprisonment or both pursuant to Sections 28 and 73 of the SRC. Further, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014). The names of all those involved will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed. Should you have any information regarding any investment-solicitation activity by any individual or group of individuals representing any entities operating under TBCMMP MASA MART, INC. ("TBCMMP"), MASA MART BUSINESS CENTER OPC, MASA MART ENTERPRISE OPC ("MME OPC"), MASA MART BUSINESS CENTER, MASA MART FOREX GENERAL TRADING, MASA FOREX GENERAL TRADING LLC, MASA MART FOREX GENERAL TRADING LLC-UAE and XUM FOUNDATION and all other entities operating under the umbrella of the brand MASA MART , please send your report to the EIPD at [emailprotected]. For the guidance of the public. Pasay City, June 17, 2021. Footnotes 1. TBCMMP SEC Advisory dated 14 February 2019 and MMBC SEC Advisory dated 12 January 2020. 2. The coin promoted by TBCMMP thru MASA MART FOREX GENERAL TRADING, MASA FOREX GENERAL TRADING LLC, and/or MASA MART FOREX GENERAL TRADING LLC-UAE. 3. The act of locking cryptocurrencies to receive rewards. 4. Power Homes Unlimited vs. SEC (G.R. No. 164182, February 26, 2008). 5. Release No. 81207; July 25, 2017, re: Report of Investigation pursuant to Section 21 (a) of the Securities Exchange Act of 1934: The DAO.