The PLM / ARM story, towards ICO regulation?
We all know that some ICOs are just scams but how do you decide that some projects are valid one?
A. PLM tokens first launch an ICO in early October 2017 on the Waves platform.
This ICO was not even finish, they decided to change platform and make another ICO on the Ethereum platform, allowing previous investors of the waves platform to get in with a substantial gain (10 times their investment).
In the waves blockchain, 1 PLM token worth $ 0.50, but the first ICO never reach his end.
So investors was left wasn't news and just receive an email saying that the ICO was now on the Ethereum platform.
B. 1 PLM token worth $10 dollars in the Ethereum platform
They were sold at $5 for early birds, but at the end of the ICO their price should have been $10.
But, once again this ICO never reached his term.
So if you have invested $1000 or 2 Eth, your investment worth 10 times or more if the PLM token worth $ 10.
Investors have 1340 PLM tokens, valued at $6700 or $13400 for an investment of $1000.
C. PLM administration have decided to rebuild the project, and create another token : ARM, as now the corporate name is Armpack.io.
PLM holders have been able to join the new project, because for the guys at the head of the project it is still the same ICO. An ICO with a duration of 7 months... as it is still not finish yet.
Just imagine, a company going to the markets, and change twice his mind (going first to Nasdaq, then going to another similar place... and finally change name and project.... without regarding the times to sell the shares and regardless to the investors.
Our investors will respond?
This will never happen in the regulate market.
We don't ask for regulation on the ICO area but at least for some kind of "coherence".
Some governments will jump on the occasion to introduce regulation in the ICO area or simply bannish them.
According to you is it still the same ICO for the same project?
I don't think so and many investors left, even if they have made a profit.
Let's take a look at the numbers :
Some investors have been able to value their PLM tokens at $10, others less fortunate at 5$.
In the third ICO, or second or third part, we don't know exactly yet, ARM tokens were evaluated at $0. 050
If we keep our example :
- if 1 PLM worth $5, you get approx...147 400 ARM tokens
- ! PLM worth $10, you get approx.. 294 800 ARM tokens (1340 X 10 X 22)
At this point, you will say, PLM/ARM administration have made mistake but it's all in favour of the investors even if they haven't had the same treatment, but the story is not finish yet.
D. Epilogue
In order to attribute the new tokens to the PLM holders, PLM/ARM admin apply the value in dollars of the ARM token. it is the right move if any holders have the same treatment.
in fact, they just apply the exchange rate of the day and this rate change everyday on their platform. (You can see this, if you are not a registered user of armpack.io)
if you exchange your PLM today you will profit a $0.027 rate per ARM, but if you have exchanged them 10 days ago you get a $0.050 per ARM.
If you take the previous numbers people who invest $1000 can split in 4 categories.
Let me know if you have similar stories about ICOs.