(May 4, 2023). Hi everyone,. I am writing with an update on the status of the project.

04 May 2023, 22:40

(May 4, 2023) Hi everyone, I am writing with an update on the status of the project. As announced on April 23, an outcome to the computing hacking/hack back case I have been involved in was reached. From the outset, we have strived to be as transparent as possible about the matter, proactively disclosing it to all pre-salers, institutional investors, and relevant partners. We've discussed the circumstances in depth in our Telegram group and linked out to specific court documents. Although we were not anticipating the outcome, we had developed a corporate contingency plan in the event it came to pass. I will delve into the application of this given the current circumstances later in this message. We are in a precarious and uncertain position, very similar to where we were in 2018. Through the late spring and summer of that year, we raised a modest amount of capital as the 2018 crypto winter set in. We used the capital to build a functional testnet and developed a "skeleton operating plan" which would allow us to keep the project "default alive" until conditions might improve. At the time, the vast majority of founders in the space either thought the markets would not recover or they were not willing to stand by their projects until that time would come. Our decision to batten down the hatches and wait paid off. Although it took about 2.5 years of relative inactivity, we were able to continue our work in a significant way. Seemingly overnight, we scaled our community by tens of thousands and began working with bluechip partners on innovative PoCs. As market conditions began eroding last year and a new winter set-in, we were able to secure a funding commitment from GEM Digital which would allow us to pursue our mainnet development plan. However, as announced in January of this year, after making some meaningful strides forward, we ultimately had to pause development as, based on market conditions, the funding commitment did not provide enough capital to pursue the plan. As it stands right now, market conditions do not allow us to draw sufficient funds from the GEM Digital token facility to fund the mainnet plan (As discussed in-depth in the past, under the arrangement, BP draws down against the facility by "selling" tokens at a prearranged discount to the market price; the amount of funds BP can draw down at any given time is restricted by the trading volume of the token, among other parameters). So where do we go from here? On one hand, we have valuable "assets:" - core testnet, PoCs, and a portion of MQTT-to-blockchain portal - a supportive core community, who genuinely believes in our mission - meaningful partnerships and relationships in "tech" and "crypto" (e.g. PoC partners; Wintermute, Huobi, etc) - product-market fit: the "AI revolution" is validating the burning need to provide guardrails on how far it can go; by using PUF, BP's device-level tech allows consensus to be formed between devices (and the people behind them) as AI iterates On the other hand, we face considerable headwinds: - market conditions of our native token, "BP," are preventing us from drawing down adequate capital against the facility to finalize mainnet - funding for crypto projects has substantially diminished, especially those with a tradable asset - one of the founders to be absent from project for up to 18 months In working to plot a path forward, I think it's helpful first to review the "worst case" scenario: trade volume/token price continuing to render GEM Digital facility unviable Under this scenario, can BP, as an ecosystem, still push forward? In considering the "assets," the answer is "yes." It may mean developing and seeking funding for a new operating plan to focus on a more specific area of the ecosystem, and it may mean "battening down the hatches" for a prolonged period like 12-24 months as we've done before. In the event of this, we would determine a way to move forward together, stronger than before (this may be through a token swap, for example)