eICN Frequently Asked Questions, Part II
Please note: Due to changes in the ICN exchange process, the answers below are subject to change. The last change occurred on November 22, 2018.
Please also consider finding updated information regarding eICN in our Help Center and recent blog posts:
This is the second part in our series answering frequently asked questions concerning eICN. Part I is available here. For more information about eICN, read the general overview announcement here, or read this post for further legal and technical details. For more information about the conversion process now live on the platform, read our announcement.
Can I change my mind after submitting my non-binding interest/completing the exchange process?
Yes. If an ICN token holder changes their preference, they can revisit www.iconomi.com at any time during the non-binding period, click the “Exchange ICN” button, and cancel their previous choice. After cancellation, ICN token holders can repeat the process by choosing to exchange a smaller amount of their ICN tokens for eICN tokens, or choosing to exchange their ICN tokens for ETH instead of exchanging them for eICN tokens. The only process that is final and unable to be changed is the exchange of ICN tokens for ETH (see below). The process can be repeated several times within the periods indicated in our latest announcement.
Notwithstanding the above, please note that since the first exchange of ICN tokens for ETH will be done in December 2018, i.e., during the first round of submission of non-binding interest for exchanging ICN tokens for eICN tokens, once the process of exchange of ICN tokens for ETH is irreversible (please see the technical description below), ICN token holders can no longer change their mind about exchanging their ICN tokens for ETH.
What is the exchange rate between ICN tokens and eICN tokens?
We currently predict that the exchange rate between ICN tokens and eICN security tokens will be 1:1 (i.e., for one ICN tokens, one eICN security token will be issued).
What is the technical process of exchanging ICN tokens for ETH?
ICN token holders who transfer their ICN tokens to the ICONOMI platform for exchange for ETH from October 30, 2018 to approximately December 10, 2018 (so that the transfer of ICN tokens will be mined on the Ethereum blockchain up to and including block number 6867000) will be included in the first batch of the exchange. The block number is due to be reached on approximately December 10, 2018, but this cannot be precisely predicted (the current latest block can be seen at https://etherscan.io/blocks at the top the table). ETH will be sent to these ICN token holders’ wallets no later than December 31, 2018.
ICN token holders who transfer their ICN tokens to the ICONOMI platform for exchange for ETH from approximately December 11, 2018 (see above) to December 31, 2018 (so that the transfer of ICN tokens will be mined on the Ethereum blockchain up to and including a predefined block number; the exact block number will be publicly announced after December 10, 2018 and no later than December 14, 2018) will be included in the second batch of the exchange. The block number is due to be reached on approximately December 31, 2018 but cannot be precisely predicted (the current latest block can be seen at https://etherscan.io/blocks at the top the table). ETH will be sent to these ICN token holders’ wallets no later than January 15, 2019.
Will the fee for later exchanging ICN for eICN be a nominal fee to cover costs, or is it intended to go up over time, even if the holders of those ICN tokens still aren’t able to exchange for eICN?
Most likely a nominal fee to cover costs, but this will be finalized in the future.
Could you set a contract to temporarily freeze ICN given from those who would like to lock in at a fair price, even possibly based on ICO contribution, without the need to be disqualified from exchanging for eICN as of next month?
Thank you for your suggestion and perspective, but the process has been finalized and the user interface released.
Will 1:ICN/1:eICN always be honored?
The ICN to eICN ratio will not change, though there may be additional fees. It will no longer be possible to exchange ICN for eICN after December 31, 2019.
What is the reason for waiting for 2019 if you want to swap your ICN for ETH?
The timeline is in place for operational reasons. We needed to ensure we would have enough time to carry out the exchange process without any issues for those who choose to exchange their ICN for ETH.
Does ICONOMI intend to obtain a MIFID II license in accordance with the Liechtenstein Banking Act so it can offer investments in security tokens through the ICONOMI platform?
We are investigating this option. We believe there will be many security tokens in the future, and being competitive in this field may require licenses of this kind, depending on the jurisdiction.
When will the first general assembly of eICN holders take place?
The date of the first general assembly of eICN holders has not been set. We will publicly announce the date once it has been defined.
Since ICONOMI has officially stated ICN will always be able to be exchanged for eICN past the December 31 deadline with an additional fee, does that also mean the ratio of 1% ICN will equate to 1% eICN if exchanged after the Dec 31st deadline?
Yes, this ratio will not change after December 31, 2018. However, as stated previously, there may be additional fees. The exchange of ICN for eICN or for ETH will not be possible after December 31, 2019.
If eICN will not be tradeable, will you purchase/sell eICN over the counter on the platform?
This is a possibility for the future. Our current focus is on executing the exchange process smoothly. We believe security token exchanges will be a major trend in 2019, and we look forward to being part of it.
Since you will be buying ICN significantly below book value at .0019 ETH, are you concerned that large shareholders will just exchange for eICN so they can vote to liquidate eICN at book value at the first vote?
This is not something we are concerned about.
Is eICN covered under the Malta VFA act?
Because eICN tokens will be securities, they are not covered under the Malta VFA Act.