<SEC-DOCUMENT>0001554795-18-000157.txt : 20181206
<SEC-HEADER>0001554795-18-000157.hdr.sgml : 20181206
<ACCEPTANCE-DATETIME>20180606162048
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001554795-18-000157
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20180606

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TimefireVR Inc.
		CENTRAL INDEX KEY:			0000748268
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				880490034
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		7150 E. CAMELBACK ROAD
		STREET 2:		SUITE 444
		CITY:			SCOTTSDALE
		STATE:			AZ
		ZIP:			85251
		BUSINESS PHONE:		602-617-888

	MAIL ADDRESS:	
		STREET 1:		7150 E. CAMELBACK ROAD
		STREET 2:		SUITE 444
		CITY:			SCOTTSDALE
		STATE:			AZ
		ZIP:			85251

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EnergyTEK Corp.
		DATE OF NAME CHANGE:	20140723

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BROADLEAF CAPITAL PARTNERS INC
		DATE OF NAME CHANGE:	20040928

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BROADLEAF CAPITAL PARTNERS  INC
		DATE OF NAME CHANGE:	20020503
</SEC-HEADER>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TimefireVR Inc.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>7150 E. Camelback Rd.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Suite 444</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Scottsdale AZ, 85251</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">June 6, 2018</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><U>Via EDGAR </U></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">United States Securities and Exchange Commission</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Division of Corporation Finance</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">100 F Street, NE</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Washington, DC 20549</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="background-color: white">Attention:
Folake Ayoola</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>Re: TimefireVR Inc.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>Preliminary Proxy Statement on Schedule 14A</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>Filed March 5, 2018</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>File No. 000-31587</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">Dear Mr. Ayoola:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following responses
address the comments of the Staff (the &ldquo;Staff&rdquo;) as set forth in its letter dated March 26, 2018 (the &ldquo;Comment
Letter&rdquo;) relating to TimefireVR Inc. (the &ldquo;Company&rdquo;)&rsquo;s Preliminary Schedule 14A (the &ldquo;Proxy&rdquo;)
filed on March 5, 2018. The Company is simultaneously filing an Amended Schedule 14A to the Proxy (the &ldquo;Amendment&rdquo;)
which includes additional shareholder proposals to be voted on at an annual meeting of the Company&rsquo;s shareholders with this
response letter.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For your convenience, each
of the Staff&rsquo;s comments have been restated below in their entirety, with the Company&rsquo;s response set forth immediately
beneath such comment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The numbers of the responses
in this letter correspond to the numbers of the Staff&rsquo;s comments as set forth in the Comment Letter.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><U>What is the beneficial ownership of the Company?</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&#9;1. Please revise the beneficial ownership
table to include the ownership percentages and &#9;the total shares outstanding for the most recent date practicable.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: left; text-indent: 0in">Response: The Amendment
contains an updated beneficial ownership table calculated as of June 4, 2018.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><U>Proposal 1: Approval of Articles of Amendment
to our Articles of Incorporation to Change the</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><U>Company&rsquo;s Name to Teraforge Ventures
Inc.</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left"><U>Reasons for the Amendment</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9;2. You state that you are principally engaged
in the acquisition and sale of &#9;cryptocurrencies and businesses in the blockchain industry.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">a. Please describe the factors you
considered in determining to transition into the cryptocurrency and blockchain industry. In doing so, please discuss the material
aspects of your business plan, the funding you will require to implement your business plan and the risks you face in implementing
it.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: As discussed in Proposal
4 of the Amendment, the Company was unable to continue its virtual reality business and sold its subsidiary, Timefire LLC (&ldquo;TLLC&rdquo;)
in order to enter a new line of business. After reviewing the price of Bitcoin and other cryptocurrencies at the end of fiscal
year 2017, the Company determined that the cryptocurrency business had the potential to produce future business opportunities and
value for the Company&rsquo;s shareholders. The risks we face in implementing our current business plan are detailed in the Risk
Factors which are part of Item 7 to the Company&rsquo;s annual report on Form 10-K for the year ended December 31, 2017 (the &ldquo;Form
10-K&rdquo;) filed with the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) on April 9, 2018. The Risk Factors
were voluntarily included in order to alert investors as to the high degree of risk.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">The Company is engaged in cryptocurrency
mining and plans to evaluate and enter into other cryptocurrency opportunities subject to the Company&rsquo;s ability to continue
to raise capital. In order to enter into the cryptocurrency business, the Company&rsquo;s Form 10-K, wherein the Company consolidated
previously issued preferred stock, convertible notes, and warrants into a new series of preferred stock (the &ldquo;Series E&rdquo;),
sold new convertible notes and warrants and extended the due date of remaining Convertible Notes, as disclosed in the Form 10-K.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">The Company has hired an Advisor which
is providing the Company with insight into opportunities in the cryptocurrency industry and providing a part-time software engineer
to spearhead the Company&rsquo;s bitcoin mining. The Advisor has extensive experience and personal contacts in the cryptocurrency
and blockchain businesses which we believe will assist us in entering into new business. The Company&rsquo;s agreement with the
Advisor is described in further detail on page four of the Form 10-K under the section entitled &ldquo;Summary of Recent Developments.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">b. Please provide a description of
your business strategy with respect to the blockchain business and discuss the challenges related to implementing your business
strategy.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: As publicly announced, in
April the Company purchased bitcoin mining equipment which upon delivery was installed in a mining facility in Brooklyn, NY. Upon
delivery, the Company commenced mining of bitcoins. More recently, the Company purchased additional computer servers which will
permit the Company to diversity its mining opportunities and expects to be mining by June 15th with new mining equipment. Based
upon its initial experience, the Company is exploring moving its mining operations to a location where its costs including power
are less.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Meanwhile, the very low price of the
Company stock price has been an obstacle to the Company acquiring any other businesses since its capital stock is its primary currency.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">The challenges faced by the Company
are detailed in the Risk Factors of our Form 10-K and the last sentence of the above paragraph.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">c. We refer to your press release
dated March 7, 2018, where you announced the signing of a letter of intent with Cryptogram, LLC to make a strategic investment
and acquire a license in cryptocurrency data analytics, portfolio management, trading platform, and information sharing terminal.
Please explain how you expect this investment to impact your primary operations. In addition, please disclose whether you intend
to acquire and sell digital assets, such as cryptocurrencies, through Cryptogram. Finally, please disclose whether Cryptogram is
registered under the Securities Exchange Act of 1934, as amended, as a national securities exchange, an alternative trading system
or a broker-dealer.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: We terminated discussions
with Cryptogram, LLC, and have made updates to the Amendment accordingly.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">d. To the extent you and/or your
directors and officers are affiliated with other digital asset-related businesses, please disclose such affiliations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: Our Chief Executive Officer,
Jonathan Read, serves as a member of the Board of Directors of BTCS, Inc., a company engaged in a digital asset-related business.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">3. In your January 4, 2018 Form 8-K,
you reported that you purchased Ether, the digital asset offered by the Ethereum Network, and that this purchase is your first
material digital asset purchase.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">a. Please provide a detailed analysis
explaining whether you believe the purchased Ether are securities as defined in Section 2(a)(1) of the Securities Act. For example,
please provide us with an in depth analysis of the method by which Ether is distributed, including how, to whom and when it is
distributed. Please also include in your response an in depth analysis of the activities and operations of the Ethereum Foundation
and any of its respective affiliates with respect to:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&bull; its efforts in or oversight
of developing, improving, operating and maintaining</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">its network,</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&bull; its promotional activities
as those activities relate to the use of its respective</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">network,<BR STYLE="clear: both">
</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&bull; its holdings of Ether, and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&bull; its trading of Ether.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: The Company sold all of its
Ether in May and June 2018 and purchased Bitcoin. Accordingly, the Company no longer holds any Ether. A detailed analyses of whether
we believe Bitcoin and Ether constitute securities is attached as <U>Exhibit A</U>, hereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">b. Also, please explain whether you
are or intend to register as an investment company under the Investment Company Act of 1940. If not, please tell us what exemption
from the Investment Company Act of 1940 you are relying on and provide us with a detailed legal analysis supporting your conclusion
that the exemption is available to you. Include all facts upon which your determination is based.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: The Company does not intend
to acquire digital assets other than Bitcoin and Ether. As discussed in <U>Exhibit A</U>, attached hereto, the Company believes
that neither Bitcoin nor Either are securities. As such, the Company does not intend to register an investment company under the
Investment Company Act of 1940 (the &ldquo;1940 Act&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Nevertheless, the Company recognizes
the risk that the cryptocurrency it holds may be deemed to constitute a security. As such, the Company does not intend to acquire
securities in sufficient quantities which would cause the Company to be required to register under the 1940 Act.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Section 3(a)(1) of the Investment Company
Act of 1940 (the &ldquo;1940 Act&rdquo;) provides that an investment company is an issuer that:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: 0in">(A) is or holds
itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting, or trading in
securities&hellip; (C) is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading
in securities, and owns or proposes to acquire investment securities having a value exceeding 40 per centum of the value of such
issuer&rsquo;s total assets (exclusive of Government securities and cash items) on an unconsolidated basis.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><SUP>[1]</SUP></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">The Company does not believe that it
would be considered an Investment Company under 3(a)(1)(C) of the 1940 Act because the Company will not own or propose to acquire
securities having a value exceeding 40 per centum of the value of the Company&rsquo;s total assets. The Company recognizes that
some types of cryptocurrency may be securities and does not intend to acquire securities, in the form of cryptocurrency, which
exceed 40 per centum of the value of the Company&rsquo;s total assets, exclusive of cash or government securities.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 -40pt; text-align: justify; text-indent: 40pt"><SUP>&nbsp;</SUP></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 -40pt; text-align: justify; text-indent: 40pt">___________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 -40pt; text-align: justify; text-indent: 40pt"><FONT STYLE="font-size: 10pt"><SUP>1</SUP><FONT STYLE="color: #212121">15
U.S.C. &sect; 80a-3</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">The Company does not holds itself out
as being engaged primarily, or proposing to engage primarily, in the business of investing, reinvesting, or trading in securities.
In <FONT STYLE="color: #212121"><U>SEC v. Fifth Ave. Coach Lines, Inc.</U>, the Second Circuit placed emphasis on the word primarily,
stating that &ldquo;<FONT STYLE="background-color: white">whether a company is engaged primarily in the business of investing,
its total activities of all sorts must be considered.&rdquo;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><SUP>[2]</SUP></FONT>
In <U>SEC v. National Presto Industries</U>, the Seventh Circuit found that &ldquo;</FONT>what matter are the company's history,
the way the company represents itself to the investing public today, the activities of its officers and directors, the nature of
its assets, and the sources of its income&hellip;. More important ... [is whether] the nature of the assets and income of the company,
disclosed in the annual reports filed with the Commission and in reports sent to stockholders, was such as&nbsp;to lead investors
to believe&nbsp;that the principal&nbsp;activity&nbsp;of the company was trading and investing in securities.&rdquo;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><SUP>[3]</SUP></FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #212121">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"><FONT STYLE="color: #212121">The Company
does not engage and does not intend to engage primarily in the business of investing in securities but rather in mining </FONT>cryptocurrency
including bitcoin which is a virtual currency<FONT STYLE="color: #212121">. The Company&rsquo;s acquisition of cryptocurrencies
which may be securities will be carefully limited to avoid the 40% limit.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">4. To the extent you intend to purchase
and hold additional digital assets, address substantive differences, if any, between each form of digital asset you might hold
and whether you believe each is a security as defined by Section 2(a)(1) of the Securities Act of 1933, as amended. Please describe
the process and framework you will use to determine which digital assets to add to your portfolio, and discuss any investment parameters,
strategies or criteria you intend to use in making the decisions to sell. Please disclose whether you will hold digital assets
for appreciation or whether you intend to exchange them for other assets. Please describe the risks of holding digital assets including
price volatility and liquidity risks as well as risks related to the fragmentation, potential for manipulation and the general
lack of regulation underlying those digital assets.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: The only digital asset we
currently hold is Bitcoin. We do not intend to acquire any digital assets other than Bitcoin and Ether except incidental to our
mining activities. Our plan is to sell such cryptocurrencies as we earn them. Due to the value of our mining equipment, we do not
think that we will come close to the 40% test. <U>Exhibit A</U> to this response letter contains our analysis detailing why we
believe that neither Either nor Bitcoin constitute securities.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">5. If you intend to act as a custodian
of digital assets, please tell us whether you intend to register as a custodian with state or federal regulators and describe the
nature of any such registration.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0pt; text-align: justify">___________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>2</SUP></FONT>
<FONT STYLE="color: #212121"><U>SEC v. Fifth Ave. Coach Lines, Inc.</U>, 289 F. Supp. 3, 28 (S.D.N.Y. 1968),&nbsp;<U>aff'd,</U>&nbsp;435
F.2d 510 (2d Cir. 1970).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>3</SUP></FONT>
<FONT STYLE="color: #212121"><U>SEC v. Nat'l Presto Indus., Inc.</U>, 486 F.3d 305, 312&ndash;15 (7th Cir. 2007); citing <U>In
re Tonopah Mining Co</U><I>.,</I>&nbsp;26 S.E.C. 426, 430 (1947).</FONT></P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: We do not intend to act as
a custodian of digital assets.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Proposal 2: Ratification of the Sale of
the Company&rsquo;s Subsidiary</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">6. You state that under Nevada law,
the sale of substantially all assets of the business requires approval by the shareholders prior to effecting the sale. We note
that, on January 3, 2018, you effected the sale of TLLC. Please revise to provide the information required by Item 14 of Schedule
14A, including all information required by Items 14(b), (c)(1) and (c)(2). This includes your audited financial statements for
the two most recent fiscal years plus unaudited interim periods. Please also provide audited or unaudited financial statements
of the business that was disposed for the same periods or tell us why you believe such financial information is not material. For
guidance, please refer to Note A to Schedule 14A, Item 14 of Schedule 14A, and Section H.6. of our July 2001 Interim Supplement
to Publicly Available Telephone Interpretations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: The Company has already filed
audited financial statements substantially similar to the requested TLLC financials. The only business conducted by the Company
through the sale of TLLC was through TLLC and the only difference between the financial statements filed for the Company&rsquo;s
year ended December 31, 2017 and new financials for TLLC would be adjustments for non-cash income and goodwill and public company
costs.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Under Rule SEC Rule 3-13 the Commission
may <FONT STYLE="color: #333333; background-color: white">permit the omission of one or more </FONT><FONT STYLE="background-color: white">financial
statements upon written request by the issuer where the financial statements are not necessary for the protection of investors.
</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">The Commission&rsquo;s Office of General
Counsel and Chief Accountant have been allowing auditing exemptions to public issuers when an issuer is unable to get an audit
and issuers are encouraged to get exemptions for immaterial accounting measures. Further, Commission Clayton has noted that &ldquo;T<FONT STYLE="background-color: white">here
are circumstances in which the Commission&rsquo;s reporting rules may require publicly traded companies to make disclosures that
are burdensome to generate, but may not be material to the total mix of information available to investors.&nbsp; Under Rule 3-13
of Regulation S-X, issuers can request modifications to their financial reporting requirements in these situations.&rdquo;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><SUP>[4]</SUP></FONT></FONT>
This case appears to be analogous as the financial statements requested would be substantially similar to those already available
to investors. <FONT STYLE="background-color: white">The additional costs of TLLC audits cannot be justified as being in the public
interest or for the protection of investors.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0pt; text-align: justify">___________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0pt; text-align: justify"><FONT STYLE="font-size: 10pt"><SUP>4&nbsp;&nbsp;</SUP>SEC Chairman Jay Clayton, <I>Remarks at the Economic Club of New York</I>, July 12, 2017, available at: <FONT STYLE="color: Blue">https://www.sec.gov/news/speech/remarks-economic-club-new-york</FONT>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">7. We note that you did not file
a proxy statement or information statement prior to the sale of substantially all of your assets, TLLC. Please provide material
risks related to noncompliance.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: On January 3, 2018, the Company
effected the sale of TLLC to a group of buyers. The Company&rsquo;s business model in the virtual reality business was not successful
and the Company was unable to continue to finance its business due to a loss of confidence in the virtual reality business by the
Company&rsquo;s investors and threats of resignation from the Company&rsquo;s officers, directors and lead technologist and TLLC
employees. While shareholder approval was required by Nevada law, the buyers refused to fund TLLC unless we closed immediately.
Rather than cease operations and have no working capital, the Company adhered to the buyer&rsquo;s demands and sold TLLC. Because
we needed to eliminate state law liabilities, we opted to get irrevocable proxies which would permit us to seek shareholder ratification.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Prior to the sale of TLLC, the Company
obtained proxies to vote a majority of the then outstanding shares of the Company. Pursuant to Nevada law, the Company&rsquo;s
shareholders could claim that the Company lacked authority to sell TLLC. However, due to the Company&rsquo;s obtaining of the proxies
representing more than 50% of the then outstanding voting power, the Company did have approval of a majority of the Company&rsquo;s
shareholders to conduct the sale of TLLC While the sale of TLLC created risks of non-compliance with the rules promulgated under
Section 14 of the Securities Exchange Act of 1934 regarding providing shareholders with notice, the Company believed that its shareholders
would have been adversely affected by the Company&rsquo;s closure had the Company delayed the sale of TLLC due to the time requirements
imposed by filing a Schedule 14C prior to the sale.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">8. You indicate that the sale of
TLLC was to four buyers who, at the time of the sale, had a majority of voting power in the company. Please revise to identify
the four buyers and provide material risks related to conflicts of interest arising from the related party transaction.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Response: Proposal Four states that
&ldquo;[t]he buyers included four shareholders who, at the time of the sale, held the majority of the Company&rsquo;s voting power.&rdquo;
The four shareholders who executed Proxies and, at the time of the sale, held the majority of the Company&rsquo;s voting power
were Hayjour Family LP, Jeffrey Rassas, John Wise, and Caroline Wise (the &ldquo;Four Holders&rdquo;). In addition to the Four
Holders, the following persons were parties to the sale of TLLC:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Stockbridge Enterprises, LP</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Monheit Family Trust</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Victor Sibilla</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Corey Lambrecht</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Oak Leaf Holdings</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">LEM Diversified</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Ian Whitmore</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Lou Werner</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Mitchell Saltz</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Ralph Saigh</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Barry Monheit</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">A number of risks relating to the sale
of TLLC are contained in the Risk Factors in our Form 10-K. Further, since the Four Holders were the holders of a majority of the
outstanding shares of the Company&rsquo;s common stock, it could be arguable that the Four Holders may owe a fiduciary duty to
the Company&rsquo;s other shareholders regarding the sale of TLLC.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><SUP>[5]</SUP></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">Given the dire circumstances which
the Four Holders found the Company and TLLC in we think there is no realistic claim relating to conflicts of interest. The Company&rsquo;s
directors are disinterested, and they strongly believed they had to &ldquo;unload&rdquo; TLLC.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">___________________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>5
</SUP></FONT><FONT STYLE="font-size: 10pt">The law on whether the majority shareholder of a Nevada corporation owes a fiduciary
duty to the minority shareholders is still developing. See <I>Brown v. Kinross Gold U.S.A., Inc.</I>, 531 F.Supp. 2d 1234 (D.
Nev. 2008); see also <I>Gowen v. Tiltware LLC</I>, 2009 WL 1441653 (D. Nev. 2009).</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>Exhibit A</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company currently owns
Bitcoin. As stated above we may acquire Ether. We analyze whether digital assets are a security under the investment contract analysis
from the leading Supreme Court Case <U>Howey</U>.<SUP>1 </SUP><U>Howey</U> creates a test for determining if an asset is an investment
contract based upon whether there was: (i) an investment of money, (ii) in a common enterprise, (iii) with the expectation of profits,
(iv) primarily through the efforts of others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Bitcoin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Regardless of how one obtains
Bitcoin you cannot dispute the fact that it requires an investment of money (whether it be U.S. dollars, other currency, or virtual
currency) or mining. When a holder acquires Bitcoin, the holder pays for the Bitcoin with some form of currency, thus Bitcoin satisfies
this prong of <U>Howey</U><I>.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Courts have focused on
three distinct types of common enterprise: (i) horizontal commonality; (ii) broad vertical commonality; and (iii) strict vertical
commonality. &ldquo;The horizontal commonality approach to evaluating the existence of a common enterprise provides that a common
enterprise exists if there is a &lsquo;pooling of assets from multiple investors so that all share in the profits and risks of
the enterprise.&rdquo;&rsquo;<SUP>2</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The holders of Bitcoin
do not pool their assets in a common entity or make payments to one common enterprise.<SUP>3 </SUP>Bitcoin is, by its design, decentralized
and has no common entity controlling it. Mining, buying, and selling of Bitcoin are all decentralized exchanges which do not feature
the holders sharing in risks.<SUP>4 </SUP>&ldquo;In addition, purchasers of Bitcoin are not investing in the profits and risks
of the person or entity selling the Bitcoin. While these sellers of Bitcoin <I>may</I> use the payments that they receive to take
actions that would increase the value of Bitcoin, they have absolutely no obligation to do so, and purchasers generally have no
reason to expect the sellers to do so.&rdquo;<SUP>5</SUP> Bitcoin holders who see their holdings as an investment are viewing Bitcoin
as an appreciating asset not as a common enterprise. Thus Bitcoin does not satisfy the test for horizontal commonality.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Broad vertical commonality
&ldquo;focuses on the expertise of the promoter of the alleged security [which] requires that the well-being of all investors be
dependent upon the promoter&rsquo;s expertise.&rdquo;<SUP>6</SUP> There is no central promoter or common seller for Bitcoin. Further,
an individual seller of Bitcoin would not constitute a promoter. &ldquo;Where a seller is &ldquo;attempting to transfer its entire
interest and upon sale [removes itself] from the enterprise, this is not a situation where the seller and buyer [enter] into a
common venture dependent for success upon the providing of capital by the buyer and management by the seller.&rdquo;<SUP>7</SUP>
The lack of continuing management by the promoter or developer is similar to the land development cases where the courts have concluded
that initial development services do not lead to the conclusion that the sale of a real estate parcel is a security. Thus Bitcoin
does not satisfy the test for broad vertical commonality.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><SUP>1 </SUP><U>SEC
v. W.J. Howey Co.</U>, 328 U.S. 293 (1946).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>2 </SUP>Jeffrey E. Alberts, Bertrand Fry,&nbsp;<U>Is
Bitcoin A Security? </U>21 B.U. J. Sci. &amp; Tech. L. 1, 15-16 (2015) (citing <U>SEC v. SG Ltd.</U>, 265 F.3d 42, 46 (1st Cir.
2001); <U>SEC v. Infinity Grp. Co.</U>, 212 F.3d 180, 187-88 (3d Cir. 2000)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>3 </SUP><U>Id.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>4 </SUP><U>Id. </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>5 </SUP><U>Id,</U> at 17.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><SUP>6 </SUP><U>Id.</U> at 18 (citing <U>SEC
v. SG Ltd.</U>, 265 F.3d 42, 49 (1st Cir. 2001))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>7 </SUP><U>Id.</U> at 19 (citing <U>Ballard
&amp; Cordell Corp. v. Zoller &amp; Danneberg Exploration, Ltd.</U>, 544 F.2d 1059, 1065 (10th Cir. 1976)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 10pt">6</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Strict vertical commonality
&ldquo;requires that the investors&rsquo; fortunes be &lsquo;interwoven with and dependent upon the efforts and success of those
seeking the investment or of third parties.&rsquo;&rdquo;<SUP>[8]</SUP> &lsquo;&ldquo;It is not necessary that the funds of investors
are pooled; what must be shown is that the fortunes of the investors are linked with those of the promoters, thereby establishing
the requisite element of vertical commonality&hellip; a common enterprise exists if a direct correlation has been established between
success or failure of [the promoter&rsquo;s] efforts and success or failure of the investment.&rsquo;&rdquo; <SUP>9</SUP> &ldquo;Sellers
of Bitcoin receive their only compensation at the moment that the Bitcoin is sold; they do not receive additional compensation
based on future increases in the value of Bitcoin. Accordingly, the connection between the financial interests of buyers and sellers
does not create a vertical commonality of interest.&rdquo;<SUP>10</SUP> Thus Bitcoin does not satisfy the test for strict vertical
commonality.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Holders of Bitcoin often
expect profits arising from value of the appreciation of Bitcoin. While some holders may acquire Bitcoin exclusively for the purpose
of transacting sales (similar to a currency), many holders acquire Bitcoin in order to sell it at a later date when the value has
appreciated. Thus Bitcoin satisfies this prong of <U>Howey</U><I>.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><U>Howey</U>&rsquo;s use
of &ldquo;solely&rdquo; has been interpreted to mean &ldquo;the efforts made by those other than the investor are the undeniably
significant ones, those essential managerial efforts which affect the failure or success of the enterprise.&rdquo;<SUP>11 </SUP>However,
the effort to create profit need not come exclusively from the efforts of others so long as the efforts of others are significant
and primary. Bitcoin&rsquo;s expectation of profits arise not from any efforts of others but from mere appreciation of value. This
is similar to commodities such as gold or diamonds. &ldquo;If the expectation of economic return from an instrument is based solely
on market forces, and not on the efforts of the sponsor, then the instrument does not satisfy this prong of the <U>Howey</U> test.&rdquo;<SUP>12</SUP>
As such, Bitcoin does not satisfy this prong of <U>Howey</U><I>.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a result of failing
to meet the prongs of the <U>Howey</U> test for common enterprise and the efforts of others we believe that Bitcoin does not constitute
an investment contract. Further<FONT STYLE="color: #212529; background-color: white">, we note that during the April 26, 2018 </FONT>testimony
before the Financial Services and General Government Subcommittee of the United States House of Representatives Committee on Appropriation<FONT STYLE="color: #212529; background-color: white">,
Commission Chairman Jay Clayton made comments that indicated the Commission may no longer be considering Bitcoin as a security.
<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>13</SUP></FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Ether</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our lawyers believe that
Ether does not constitute a security for the same reasons previously expressed for Bitcoin. Ether was initially offered by the
Etherium Foundation as part of a pre-sale in 2014. When Ether was initially sold, it may have been a security. However, due to
the Etherium Foundation focusing on non-essential updates to the platform and limiting its role in support of the Etherium platform
in contrast to the development of Ether, the Company believes that Ether is no longer a security, to the extent it ever was.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company is not relying
upon the efforts of others to profit from its investment in Ether any more than it would if it acquired the euro, gold, wine or
art. Ether as a virtual currency will rise or fall in value apart from any efforts of its developer or the Ethereum Foundation.
Our lawyers believe that Ether is no longer a security for the same reason the <U>Howey</U> orange grove in the hypothetical fact
scenario ceased to be a security. Assume that following the <U>Howey</U> decision in the Supreme Court, there was a foreclosure
sale of the Howey In the Hills orange grove at which a lender sold the orange grove and related equipment to a Florida rancher
who bought it in a general partnership in which his corporation was the sole partner. The partnership operated the orange grove
for 10 years. It seems clear that the partnership was not a security. Assume further the partnership sold the orange grove land
including the trees and equipment to another rancher. We are sure the Staff recognizes that whether or not an instrument or factual
scenario is an investment contract is determined by the underlying facts and circumstances. Just as the Supreme Court using a facts
and circumstances test held in <U>Howey</U> that the sale of the orange grove interests involved an investment contract, It would
be unreasonable to conclude that grower one sold a security to grower two in our hypothetical. The same reasoning applies to Ether.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: justify">___________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>8 </SUP><U>Id. </U>(citing <I><U>SG Ltd.</U>,</I>&nbsp;265
F.3d at 49; quoting&nbsp;<U>SEC v. Glenn W. Turner Enters.</U>, 474 F.2d 476, 482 n.7 (9th Cir. 1973)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>9 </SUP><U>Id.</U> quoting <U>SEC v. Eurobond
Exch. Ltd.</U>, 13 F.3d 1334, 1339 (9th Cir. 1994).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>10 </SUP><U>Id.</U> at 19-20</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>11 </SUP><U>SEC v. Glenn W. Turner Enters</U>,
474 F.2d 476, 482 (9th Cir. 1973).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2; text-align: justify; background-color: white"><SUP>12 </SUP>Jeffrey
E. Alberts, Bertrand Fry,&nbsp;<U>Is Bitcoin A Security?</U>, 21 B.U. J. Sci. &amp; Tech. L. 1, 21 (2015) (citing Noa v. Key Futures,
Inc., 638 F.2d. 77 (9th Cir. 1980).)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP></SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><SUP>13</SUP> SEC Chairman Jay Clayton, <I>Testimony
before the Financial Services and General Government Subcommittee of the House Committee on Appropriations</I>, April 28, 2018.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Further, as mentioned in
the Commission&rsquo;s Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934, Ether is a virtual
currency originally created by the Ethereum Foundation that operates digitalized contracts on a decentralized blockchain platform
called the Ethereum Blockchain.<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>14</SUP></FONT> The Report refers
to Ether as a &ldquo;virtual currency&rdquo; which was used to purchase DAO tokens. In the Report the Commission concluded that
the DAO tokens under discussion were securities. The Commission has distinguished between cryptocurrency labeled as virtual currency
and that labeled as securities. The Commission&rsquo;s complaint against Recoin Group Foundation LLC stated that consideration
given for an investment in an initial coin offering is &ldquo;often in the form of virtual currency - most commonly Bitcoin and
Ether&hellip;.&rdquo;<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>15</SUP></FONT> The Commission goes on to state
that &ldquo;virtual currency is not issued by any jurisdiction and functions only by agreement within the community of users of
that particular currency&rdquo;<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>16</SUP></FONT> The Commission&rsquo;s
determination that Ether functions only by agreement within the community of Ether&rsquo;s users indicates that Ether does not
meet the efforts of others prong of <U>Howey</U><I>. </I>Since Ether functions only by agreement between the users, there is no
central sponsor or promoter is effectively creating any profit to the holders of Ether.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the reasons stated above, the Company does
not believe that Ether is a security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">___________________________</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>14
</SUP></FONT><FONT STYLE="font-size: 10pt">Securities and Exchange Commission, Report of Investigation Pursuant to Section 21(a)
of the Securities Exchange Act of 1934: The DAO, Release No. 81207, July 25, 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>15</SUP></FONT>
Complaint in <U>SEC v. Recoin Group Foundation, LLC, DRC World Inc. a/k/a Diamond Reserve Club, and Maksim Zaslavskiy</U>, Case
No. 1:17-cv-05725-RJD-RER, Page 7 (E.D.N.Y. Sept. 29, 2017).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>16</SUP></FONT>
<I>Id.</I></P>



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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-size: 11pt">11</FONT></P>

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