A digital assets management platform that ICOed in 2016 has seen a 1,550% instant price rise and an equal percentage fall following their announcement that the conversion process of their ICN tokens to eICN security tokens has now begun.
The token saw a price jump to $3.79, giving it a top 20 market cap at nearly $400 million. It has now fallen back to about 20 cent with a market cap of just $20 million.
They say individuals will now be able to convert their tokens to eICN at a price of 1:1 or they can exchange it for eth at a fixed price of 0.0019 eth, currently worth 23 cent, per ICN. Announcing their plans back in September 2018, Iconomi said:
“All eligible holders of ICN tokens will be given the right to convert their ICN tokens into shares of the Liechtenstein holding company (herein tentatively referred to as “ICONOMI AG”).
ICN tokens whose holders opt into converting their tokens to ICONOMI AG shares will be transferred to ICONOMI AG as an in-kind contribution, raising the share capital of ICONOMI AG and instituting the former ICN holders as shareholders of ICONOMI AG.
The value of one share will be set to 1 CHF, and the ICN/CHF exchange rate will be determined and duly published at a later stage, taking into consideration the specifics of this case and the provisions of applicable laws.”
This is the first token that ICOed in 2016 or 2017 to go through the securitization process. They say they might further apply for an MIFID II license in accordance with the Liechtenstein Banking Act so that it can offer investments in security tokens through the ICONOMI platform.
The platform itself looks like a somewhat centralized portal where individuals can set-up crypto index funds that have different investing strategies and assets, with end-users then able to buy some of the fund and profit or lose depending on how it performs.
Making it similar to Melonport, which kind of does the same thing but in a decentralized manner through ethereum’s smart contracts. For Iconomi we were not asked for Metamask, so there might be custody aspects to their platform.
“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.,” they say.
Making this basically a tokenized share after they raised 6,900 Bitcoins and 200,000 Eth in an ICO in 2016.
It isn’t clear whether eICN will be able to trade on current main exchanges, however, as usually there are numerous ownership rules because stocks are issued on paper, so the issuer needs to keep a registry to prevent fraud and so on.
For a token, ownership of the token can by itself prove ownership, making such registries unnecessary, but the law of course moves far too slowly.
Yet Liechtenstein has become quite friendly to this space, so one can imagine them coming up with some modern balanced rules for a digital age, but whether they will, remains to be seen.