ICONOMI the Fintech Start-up company which is developing a blockchain-based ICONOMI digital asset management platform is moving towards legalisation as a joint-stock company in Liechtenstein named as ICONOMI AG, and has notified all users that ICN token holders can convert tokens into eICN security tokens(shares) of ICONOMI AG. The value of one share will be set to 1 CHF.
Their Timeline regarding this work is as –
- Starting on November 1, 2018, eligible ICN token holders can choose either to opt into becoming shareholders of a new joint-stock company that will be tokenized with eICN tokens or to exchange their ICN tokens for ETH;
- The first phase of the transformation will end on December 31, 2018, with the tokenization process starting in Q1 2019;
- ETH will take the place of the ICN token’s utility on the ICONOMI platform (e.g. fees paid by DAA managers).
Those who want to convert ICN into eICN will have to register on ICONOMI platform and become verified at Tier-2 or higher to become able to convert except US/Canada Residents. Those who do not wish to do so can easily exchange ICN token into ETH where exchange rate is kept as 0.0019 ETH 5% higher than current market rates.
Process flow of Conversion:
on November 1 2018, ICONOMI is going to make an investor interface available for converting ICN to eICN, Crypto exchanges might halt trading in ICN by than, Kraken will halt it on Oct 29.Users can than sell ICN for ETH or they can verify themselves to tier-2 and proceed to eICN conversion.
December 31, 2018 is the last day for the same. after which conversion process will take place, who still hold ICN but want to sell after this time can do so but maybe for a charge.
What after Conversation
After conversion, former ICN token holders who are eligible and have applied to become shareholders of ICONOMI AG will be given corporate governance rights, such as voting rights, via the General Assembly of ICONOMI AG, and will be able to vote on the approval of annual reports, electing and discharging members of the board of directors, amendments to the Statute, dissolution and liquidation of the company, etc. Therefore, standard shareholder rights will be given to shareholders of the company based on the corporate law of Liechtenstein, bringing not only clarity but also legal certainty and security to the relationship between the shareholders and ICONOMI AG.
After the first phase of the transformation process ends, shares of ICONOMI AG will be assigned to former ICN holders who opt into becoming ICONOMI AG shareholders. This will be the basis for the tokenization of ICONOMI AG shares and the issuance of the eICN security token.
What’s expected ahead now-
Much smaller users and those big ones who don’t wanna become shares holders due to various issues like very less holding, to steer clear of regulatory radar etc will sell it and get off now leaving serious investors in play, Since ICONOMI is supporting high price than market for exchange price, panic is not expected much, but if you hold ICN and are not in the mood to go further in process, sell it within some days as exchanges might start delisting ICN, announced by Kraken already.
This development is better and ICN holders will be soon in a better legal framework with more rights than a simple token holder however this move is not helpful to the crypto world but is like Brain-drain for crypto sphere.However its a process we should keep an eye on as more similar acts are supposed to be coming in near future.