ICONOMI, a digital asset management platform, recently announced that it would be moving to a more traditional legal structure for the purposes of achieving a better position for token holders and to resolve any ambiguities. The platform is establishing itself as a joint-stock company in Liechtenstein while also tokenizing its shares as securities.
ICONOMI is making some big changes.
All ICN holders will soon find that their coins will be converted to tokenized securities (eICN), as shares of ICONOMI’s Liechtenstein holding company. However, as per their announcement, only users who are verified as Tier 2 on their platform will be able to convert their tokens. All others users will have the option to exchange their ICN tokens for ETH. The process is expected to begin on November 1st, 2018 with a deadline of December 31st 2018.
A New Start for ICONOMI
Being an asset-management platform, ICONOMI has had some issues with its legal structure in the past year. With further SEC scrutiny expected, it has become clear that in order for ICONOMI’s future to be free from any expected legal burdens, it will need to move to a tokenized security model.
The conversion swap will be a simple conversion from ICN to ICONOMI AG shares or tokenized securities known as eICN. Holding eICN will effectively make holders as shareholders of ICONOMI if verified on tier 2. These eICN holders will also gain many other benefits, namely:
- The ability to vote on the approval of annual reports
- Electing members on the board of directors (and also removing them, if need be)
- Making amendments to the Statute of the company
- Having a say in any discussions on the dissolution and liquidation of the company
And so on. The aforementioned ‘benefits’ of being an ICONOMI AG shareholder is nothing out of the ordinary. Being a holder of their tokenized security effectively gives one the same rights one would expect as a shareholder.
After December 31st, the original ICN tokens will have no utility any longer. However, they can be traded from November 1st to December 31st 2018 at a fixed rate of 0.0019 ETH for 1 ICN, which is currently ~5% higher than the market price. This rate was calculated based on price averages of the past 180 days.
What’s in ICONOMI’s Future?
ICONOMI has said that leading up to November 1st, a host of new blog posts and informational content will come out to clear up any doubts or questions about this transitionary period.
Matej Tomazin, the COO of ICONOMI writes,
“We will follow our set principles of transparency, diligence, and integrity and will place particular emphasis on the interests of ICN holders.”
What do you think of ICONOMI’s changes? Do you think this is the beginning of a new start for the project or is there serious reason for concern? Leave us a comment with your thoughts.
Image courtesy of ICONOMI.