Episode 163- Want a nap at the airport? No problem

Welcome to Crypto Nights. Will we help you finally make sense of the trending world of cryptocurrencies? So get your virtual piggy bank and let's get started. Gregor Morgole, welcome to Crypto Nights. I'm very excited. My name is Count Miriala and we are excited to have you as a guest speaker on Crypto Nights today. Thank you very much for your invitation and I'll be glad to give

you all the answers that your audience would need to find our project interesting. We already gathered a lot of questions for you. So I'm going to kind of shoot them off. So let's start off. We want a couple of minutes about who's Gregor. Who are you? What have you done in the past? How did you come about there for idea? He was that little combination. Sure.

I'll try to I'll try to squeeze it into a couple of sentences. So basically, my name is Gregor. I'm the CEO and co-founder of Fairfathers Project. I have been involved in this airport story for more than two years. Well, the idea, actually, the shortest way is that I came up with idea because there was, I was a constant traveler and it was actually my personal experience.

I was tired of waiting on the airports while, you know, in transit and similar story happened to me. I was a part of my partner and co-founder, Meha as well. So we came up with an idea, build up a product that will actually have functionality that people at that certain situation need. So this is the shortest way of putting this in couple of sentences. But other

than that, I don't know if I already told, but I'm 35 years old. This is my first startup. I have been part of the successful story seen to others. My business, I started business. My first business when I was 19. I was involved in sport nutrition, fitness equipment. I had distribution across Europe. So basically, I saw this company when I was 24, 25. I started my

second company, which was totally different. I'm choosing business. I started distribution across Slovenia, Croatia, Austria, and some other countries as well. But due to, let's say, need for capital. I sold my shares in, I believe, now 2014. And then the idea about airport came because, you know, I was, you know, I was I said previously it's traveling a lot. And it started like a sketch on

a paper and currently, we are putting together the whole infrastructure, the whole manufacturing process. We are currently in the ICO phase, still in pre-sale phase, but running towards ICO crowdsale. So shortly, this is, this is my introduction. So, I get the idea. I go to your website. It's, it's a very well designed pod. So if I'm at their port and I want to take a nap

or I want to just have private space, I want to have internet, maybe want to watch my Netflix or whatever. And we are not selling the product because our product needs to be an experience. And by being able to achieve that certain point, we of course need to know what people actually need. And we will, we were, you know, doing a deep research asking thousands of

people and, you know, gathering together in called the information that was needed for us to put together the product that would actually function in reality. Maybe just one other thing that you haven't said about airport. What we are trying to do is also put some sort of relaxation slash anti-stress technology integrated into airport, which will help our users to become more relaxed. And they will exit

our product stress-free. And this is what we are trying to do. What we are trying to achieve here to make a zen capsule that will put people in such a good mood that they will, you know, while traveling for or thinking about traveling next time, they will think about us. Got it. Now, what I was surprised was, why have you not made a couple of samples

that you installed somewhere and did some testing? You have not yet, from what I could gather, have you manufactured a prototype? Yes, we currently, we have, and this is still not public, but it's going to be in couple of days. And this is just maybe an introduction to what we are going to publish in a few days. We have gone from version one to version two

and now version three. We have completely changed it, changed not functionality, but the concept of airport itself. We have partnered up with the project one of the best architects and industrial designers in Slovenia, maybe even Europe. Mr. Robert Klun, which is also currently our partner. He has got a team of experienced architects and designers. And further on, we have partnered with free big companies, which names

iconotics, I cannot tell out loud yet, because we are still in process of, I got it. Yeah. Put a mockup. This is, this was on a basis of first version of airport. And by telling mockup, this is just a wooden version of product itself, which just help us put, put things in perspective of how do you actually feel when you enter? How much space is there?

Is there enough space for the luggage, etc, etc? All the things that were actually needed for us to put together a good. We went to a second redesign style. There was, let's say, there was some complicating. So, we had a conversation with that because the production wise, production wise, it was very hard to achieve what we have put on our sketches. So we kind of redesigned

everything. And went to version three, which, so. So called version number one, we went to version number two, but we had much. Well, we had some challenges with manufacturing process. So we had to rethink. And as I said, by partnering with Mr. Klun, the magnet design and some other big companies, we went to version number three. So currently what we are doing, we are in a

phase of putting together a prototype, which is going to be done sometime in the middle of August. So this is really important for us because, of course, people need to try it. For us, it's very important to make a commercial test. By that, I mean, we are going to place between 15 to 20 airports within UK international airport, where this phase is going to start. And

this is like a free trial for the users, where we expect some information from them. And they are going to be trying to. Our product for free. So that's like a short version of roadmap. Till let's say the end of September. But doesn't that leave open the risk that their user ex, you know, you don't have proof of user acceptance yet, whether they're, they will like

it, whether they will pay for it. Isn't that still an outstanding risk. Now, I do understand that there are many, many ICOs that are just white paper and they don't have any idea. You're. You're ahead of them, but I'm just putting on an investor hat, but because in my, okay, I'm also an investor. So I'm putting on an investment saying. The risk that is not yet

eliminated is user acceptance users willingness to pay for it. So, but, but you're already in the middle of the ICO. So that concerns me a little bit. What does that worry you as well? Well, we have done a lot of research. Before ever, before actually putting together a concept, we gathered a lot of information. What, what is the price that people are prepared to pay for

such service? So this is what we actually know. We do not know what people are going to pay for our service. Because we haven't built the product yet. But as I said, our idea of airport is, you know, combining all the functionalities that people actually need at that certain time. And of course, we are doing that in a way, which is not totally risk free because

anything, nothing in the world is risk free. But by putting together something that we believe in and that is actually going to work for that reason, of course, we are making a commercial trial. By that point, we are still able to change some things in terms of functionality, in terms of functionality. In terms of software adjustment and so on and so on. Okay. Go ahead. Yeah.

Yeah, we're on. Okay. So what I'm trying to say is, of course, there are certain risks involved. But by doing tons of research, by finding out what really people really need. And this is on one side. And on the second side, business wise, we do have a partner who is helping us build the product, helping us achieve a certain point where because our partner and actually

the company who is from who has been in industry for more than 20 years. This is a company who is helping us who is going to help us build the distribution. And this is actually our entry points to all major international airports. This company has a lot of experiences, especially with clients or other companies. Or customers who are in transit. So, you know, we are not,

you know, this is not, we are not building a project and product itself. Just because I think so. We're building it on facts. We're building the product on the basis of people's needs. And this is what, you know, this company has not, we have not been able to. I mean, yet, it's not. It's a big, big company. It's a big, big company from the UK. And

they don't want us to use their name on behalf of, you know, our project raising funds. So. But we have an agreement. As soon as we finish its ICO, we will be able to publicly say this company is a company from the UK with this. And this name, they have been in industry for more than 20 years. And so on and so on. So I hope

that I answered your question properly. Yes. So the other question I have is I think you're using blockchain more for because your product itself does not need blockchain, but you're using blockchain to build a community. If I understood correctly, yeah. So can you explain why you're using blockchain and what does your what is your token design all about? How will somebody who buys the tokens now

benefit from the growth of the business? Does can you explain that? Sure. I'll put it in very simple perspective. We have, we are issuing our own cryptocurrency, A pod. And this cryptocurrency has two main functions. Number one is you can pay with our A pod token for our service. So, you know, to rent out. We are renting out our airport with with with A pod token.

Of course, this is not the only payment payment. You will be able to rent a airport with a fiat and a card as well, definitely. And the second function, and this is really where things get interesting is by owning a token, you can in the second phase of our project enter so called sponsorship program by saying sponsorship program. This is and this I have to be

very careful what I'm saying because our legal. The team has has advised me some stuff that I said in in in couple of other interviews. I cannot say I'll just say like this, but people who are going to hold our tokens are going to be able to benefit from the economy that each airport unit is going to make putting it to maybe even simpler way is

they are going to be able to be like. Shareholder or let's say a beneficiary of economy that is being produced by certain unit. It's similar to you as you would be. You would be able to collect a DVD. But this is something, you know, that is very. By me saying this I'm walking on the edge. We have been able to find a way. So our token

will remain. It's not going to be security token whatsoever. And we have going we are going to announce corrections in our white paper again in about two to three days where it exactly says how this technical process is going to be done with our system. And by our I mean we are using the block. Change. Because it's helping us. Because it's you know I have to

go one step back. If you you know if you get a VC fund on board and you give them equity and you know at the end of the year you give them dividends. This is what we are doing right here. But with blockchain we are going to be able to do that on a monthly basis. But not paying out. Fiat but paying out a pot tokens

as a reward. So this is basically what we are doing here. And this is the simplest way I can explain what blockchain is doing to us. And what I also believe that such project are going to be able to put blockchain. This is how these projects are going to sort of say advertise and put blockchain mainstream. This is what I believe. So let me try and

understand this. So what is your soft cap and hard cap for the ICO? The soft cap is $2.7 million US dollars. This has already been reached. We are now currently a little bit above 3 million. But and the hard cap is 20 million US dollars. And how much time is left in your ICO sale? This is something that I've been we have been postponing a little

bit. Especially because the market currently is not very speaking in our favor. So we have moved removed the dates. But I honestly think that we are going to we are going to close the pre sale phase sometime in the middle August in the mid August. And we are going to start with ICO crowd sale at the beginning of September. Of course these dates are unofficial. This

is just you know, I think that's the most important thing. You know me saying out loud the dates that we are kind of that we have as a team predicted for for our ICO. So you raise 20 million dollars. Let's imagine we hit the hard cap for just for the argument. What is the cost each airport? You mean the what is the unit cost production cost?

What is the unit? We are aiming to achieve. So we are going to have a little bit of price a little bit around 7000 euros. Okay. So let's say it's 7000 euros. What is that in all of us? It's like 8000 or 9000? That's around 8000 a little bit less than 8700 something like that. Yeah. So I just launched it off and say 10,000 US dollars

just to make the math simple. Sure. Sure. If you are looking at 20 million divided by. 10,000 right. So how many pods can you produce? I know you have a lot of other expenses. So maybe 5 million. I know what you're asking. So I'm just going to shoot it out. Yeah. Yeah. Well, you're able to support with that money. By heating hard cap. We have to

we have to be aware that we are not actually we have not actually raised 20 million because we're giving up bonuses. I don't know. Our net received money is about 13.0.3 million US dollars, which is roughly around 11 million euros. By by achieving hard cap. We can produce between 1,000 1,200 1,300 airports. We have still some costs with for you know running costs company costs. We

have some cost for. For development of our decentralized application platform, which is actually the brains of our project because this is where everybody and everything is going. Through we have some cost for the marketing and that is roughly said it. This is where the money raised from the ICO is going to be allocated. So yeah, OK, 1,200. And what are the unit economics? So 7,000 for

per unit. And what are the expected revenues per year for each airport? Well, we have been doing a research with other competitive companies. And we have found out that. On the busiest airports this similar company or similar product has occupancy between 8 to 11 hours. And and the. Of course, the airport is open 24 hours. Our. Per day. Yeah. Per day. Of course, this is net

usage. And we have been put out a calculation that is based on six hours in average per day. And if we, if we count in that you pay for our service $18 or 15 euros. And the expected return on investment is. That's about 100% per year. If you buy our tokens, if you take into consideration that that calculation that I'll just said and so on and

so on. OK. So, so that means if I invest just for an example, 100. 100 airport, a part tokens. By the end of the year, I could have 200 because of the dividends that I got. Actually not. It depends. Value wise value wise. Yes, but it depends what the value of the token is going to be. Because you, if you know what I'm saying you in.

If you invest now the nominal price of the token is 10 cents of a dollar. And if that goes to 30 at the end of the year. Value wise, you will receive the same. But token wise, you will receive less. So it will be at the current price of the token that you'll be. And then you will receive the definite. Yes, definitely. If I invested $100

for 100 a parts right now. By the end of the year, maybe I, the $100 is only 50. So I might have 150. So I get it. Exactly. And how do my a parts expire or can I keep them as long as I want? You can keep this as long as you want. And we, with our ICO, what we are trying to avoid is so called.

Flippers or people who are speculating to earn 10 times 20, 30 times. Our token is not that kind of token because it's linked directly to our. Company economics. You know, that is the thing. The most and that's what brought me to this. That's a reason why. Trying to have an interview with you is because I really believe that we need real businesses more and more of

real businesses on the blockchain. And that's what I think. Thank you very much. Thank you very much. That's why I'm so excellent about what you're doing. And so you're running a real business. So now how much of the profits are you distributing back as tokens? How much are you retaining to grow the business? Because I'm assuming 1000 is nothing in terms of a number of units.

You will need. Now many more. So are you retaining some portion of the profits and putting in more? How are you doing that? Yeah. Well, what just just again, the basic stuff. So, you know, people can understand what we're talking about. When entering this foreign sponsorship program, you are. You, you can. Not earn, but you get up to 80% of profits that are being generated by

the airport unit. But again, that's very important. We're not. If one unit. One unit revenue is 1000. That doesn't mean that this 80% from that 1000. That just means that if one unit has 10,000 dollars of revenue, the costs are 400. That means that the remaining 600 is being divided. 20% for our company 80% for the token holders or the people who own smart contract in

sponsorship program. Got it. Got it. So, I think that's what I'm saying. After the cost, after the costs have taken out, you keep 20% and you return 80% that is after the cost. So the profit is divided. And then the 20% of the profits will go into the, of course, the upkeep of the company, but also investment into more airports. Yeah. Go ahead. Okay. So actually,

yes, we put 80% of the profit. Let's back to the community or back to the person who has. Who is the owner of that certain smart contract. It with airport unit on. On that. Let's say certain location certain airport. Where we are getting additional money. Of course, we are getting it 20% of profits that are being generated by unit. But we get additional money. It's an.

business model. Where, you know, this was very interesting. When I got a money in December when I was driving in Vienna, we had Obama in" And I think that's very smart. You know, they have a platform they have infrastructure that enables everybody to be part of their community, their business, and so on and so on. Why don't we do the same? We have a platform. We

have the" Okay. Yeah, thank you. So actually, where our company gets additional funds is in our first stage where I thought of an idea similar to Uber because I like Uber a lot because they are giving people, they are allowing people to be part of their community and part of their business in a very, very simple way. You know, because they have developed a platform, they

have developed a complete infrastructure, they just invite people to join them. And this is what we are trying to do. Of course, we do not expect people to pay $50,100,000 USD of fee. We are going to ask for a small amount of fee that Yeah. So actually, what we are doing in first phase is that, you know, there's a lot of people who are trying to

be part of our wants to be. They find our project interesting. They find our product interesting. And if and when they have ability to, they have We are giving them opportunity to propose a location where they think that our product is going to be making them money. So what we are enabling with this partner program in first stage is that while the location is being proposed,

we just ship the airport, they just plug it, you know, when they are doing the operation. And when it arrives to a location, the location can be anything. It can be a shopping center. It can be a private location. It can be a bus station, you know, anything. So by giving people opportunity to build distribution for us, this is where I see the real power of

networking and inviting people to be part of our community. And if you could just imagine when we finish the phase where we believe there is a possibility to implement more than 1,000 airports only within international airports. You know, we end in the first stage where we are giving people ability to be part of our system and part of our community themselves. I see that we can,

you know, produce and install more than 10,000 of airports globally. So this is where I see the real power. So will I be in the phase 3? Can I come in as an investor and put in some money and own the airport and then get Is that what you are saying? How? How am I? Yeah, yeah, yeah, sure. It's exactly like in the second phase, but

in the second phase, you get tokens first and then you choose the location. In the third phase, you just choose the location. We ship you the airport. And you get you just, you know, a plug it into our system. By plug it into our system, I mean, you know, it's going to function the same way as all the others do. With only one difference, probably this

is something that we are still putting in. And, you know, everything I do needs to be done on a basis of facts. I do not accept predicting or calculating something that doesn't, you know, doesn't fit in reality. So what we are doing at the moment is calculating what the percentage of the profits that are going to be collected by those in the third stage, which, you

know, they propose the location. So basically what they actually own, call on the airport. And this The airport is not being put on the market like in the second stage where ICO contributors can actually choose the location. You know, it's the other way around in the first stage. They actually propose the location and they get the airport installed in place they proposed. In the second stage,

we install the airports. And then the ICO contributors can choose between various locations and they can exchange tokens for so-called sponsorship program, which enables them to collect rewards at the end of the month. Wow, sounds good. So I think we are coming to the end of the podcast. So I wanted to ask you, what are the questions that I probably did not ask? What are the

key points that I might have missed that you wanted to communicate with the audience? You know, I got from Well, from More and more people ask me, is Apple going to sue you? That's a very stupid question. But I just, you know, would like to answer that upfront. No, Apple will not sue us because our brand is not Our brand is registered. It's not PANDIC. It's

not in process, but it's registered. We have got We have got three different legal opinions. So they might. But maybe, you know, it can be a good marketing for us. The second thing is maybe that we have I have a team who is really I love each member because they are Currently, we are working basically for the past six months. We have been working between 12

and 18 hours per day. And all the team members are putting You know, sweat and blot into this project. And it's not just something that we came up with. A few months ago, this has been going on for, you know, more than two years. And the team is being very, very supportive. So I would like to thank each member of AirPod team because this is ICO

is I have been in business for more than 15 years, but ICO is a little bit different. It's It's not easy. I should put it like this. And maybe just for the end, we are currently putting together a manufacturing facility, all ICO contributors when it's done. And when the production facility is done, I can invite And I will invite each ICO contributor to see what we

are doing. You know, like BMW when you see the factory, you know, they invite people. I would like to do the same. And also people can see what we are doing, how we are doing to introduce every Every team member. So, yeah, that's it. There's nothing more that I wanted to say just this couple of few sentences. Wow. That is fantastic. Congratulations on a fantastic piece

of work already. Thank you. We had crypto nights. We should have a very best. And we are very excited about We have to see how the progress happens from this point on forward. We wish you the very good. ICO and also building the business after that. Good luck to you. Thank you, Kana. Thank you very much. Really appreciate it. To all our listeners, I hope you

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