Re: [BTC-TC] Virtual Community Exchange [WINDING DOWN]

Quote from: twentyseventy on September 28, 2013, 08:33:24 PM

Quote from: woodrake on September 28, 2013, 08:05:04 PM

Dear Investors and Security Issuers,

As some of you may be aware a collective of security issuers and interested parties have banded together to attempt to purchase Burnside's code so that we can continue to operate the exchange, although perhaps under a different name and likely with some restrictions. If you are a security issuer please join the conversation on the recovery board (in the litecoin forum).

I am urging all security issuers not to make rushed decisions to move to a new exchange right now! Unfortunately some of you have gone to CryptoStocks.com already, which from what I can see is technically inferior and has near-zero liquidity (there are also some oddities like why VirCurEx has not paid dividends there for ages).

At CipherMine we are developing a simple tool to allow an issuer to import the .csv from a shareholder report and use that to distribute a dividend payment manually (ie. you just enter the amount and it sends that much to the shareholders). We intend to give this away to all of you for free.

BTC Trading Co does not shut down entirely for a month yet. You will be able to use the mechanisms there to distribute dividends in the mean time, and then you will still be able to with our tool or something similar.

It is the hope of our collective that we can have something operational within the next couple of months, so hopefully there would only be a short period of time where your securities were illiquid (barring manual trades of course).

To Shareholders, I cannot speak for all but most of us issuers intend to do the Right Thing and are making efforts, including committing significant personal resources, to try to look after you all.

In the mean time, please everyone hang in there and don't make panicked decisions! We will keep you posted as to developments.

Kate.

Burnside, can you comment on these developments?

I'm pretty sure that we can sell assets as long as they are used in a legal manner and we do not sell them as an ongoing concern. This is why no sale can complete prior to shutdown, and the domains, database content, and my involvement cannot be included.

My thoughts are that we should have a silent auction for the site code, with a proportional portion of the purchase price able to be paid in LTC-GLOBAL revenue shares. For example, if you own 10% of the shares, you would get a 10% discount. I likely would apply a multiplier though, such that if you owned 10% of the shares, you'd get a discount equal to 3x that percentage, or something similar, thus diluting my own shares to the benefit of the other revenue shareholders.

I am aware that some of the existing LTC-GLOBAL revenue shareholders would prefer first right of refusal, but I do not believe that such an arrangement would be fair for other revenue shareholders that are not part of the deal because an alternate offer could come in for 2x more, and revenue shareholders that cannot be involved in the deal going forward (US residents) would not receive a fair value. It is my opinion that giving a discount/credit toward the purchase price is the best compromise available.

Given the limitations at hand, I am open to alternate suggestions.

Cheers.