KEY TAKEAWAYS
- We began upgrading our token smart contract starting from 13th December 2021.
- We are performing a reverse token split to boost PCL token price by decreasing the number of tokens outstanding.
- A reverse token split has no inherent effect on the Market capitalization, which is remaining the same after it’s executed.
- This path is usually pursued to improve a company’s image and visibility.
The last few months have been packed with progress on many fronts. The web SAIΞVE app has been unveiled back in July, and is currently going through a rapid iteration cycle with its mobile shift. The Rewards Membership program has been launched, and a great number of our customers benefit from the gold status. The PECULIUM economic model is now ready to start an accelerated and sustained growth period. Thank you for being here every step of the way.
The path from PCL to PCL (2.0)
Starting with the 12th of December we have officially begun the swap from old PCL to new PCL (2.0). The new PCL (2.0) remains the native token of the PECULIUM economy, and all old PCL tokens will gradually be swapped to new PCL (2.0) tokens.
The swap at a 10:1 ratio, 10 PCL (old) = 1 PCL (new).
The value of 1 PCL (new) are 10x increased.
Example: 1 PCL (old) = $0.007, 1 PCL (new) = $0.07.
Next steps
Moving forward, there will be two ways to swap your old PCL to New PCL
- one through exchanges (bitMart.com, Hotbit, Idex) which will be an automatic swap on the 14th of December,
- and an ongoing one through the wallets where you need to switch the network to see your new PCL tokens.
For PCL ERC20 tokens held on BitMart.com, Hotbit and IDEX
It will automatically be swapped for PCL 2.0 on the 14th of December, so no action is needed.
BitMart will announce the precise details later this week, and the trading of the new PCL is targeted to begin on the 14th of December.
For all other wallets
If you hold PCL on MetaMask, Ledger, TrustWallet, Atomic Wallet or any other wallet, swap is already done starting from the 15th of December.
Note: Please be very careful, no other swap methods exist beside mentioned above. Do not trust anyone asking for your private keys or seed phrases.
Why a token reverse split?
A reverse token split is a process that consolidates the existing number of issued tokens into a smaller number of proportionally more valuable tokens. When extreme market fluctuations decrease the value of a token, a reverse token split often happens so as to boost the token’s liquidity and price. Reverse splits are not an entirely new financial concept, it sometimes occurs in traditional securities too, such as stocks.
There are several reasons why a company may decide to execute a reverse token split and reduce its number of outstanding tokens in the market. Here are our main five motives:
Boost the token’s price
We took this measure to reduce the number of outstanding tokens (2,13B) in the market. Having Millions or Billions of tokens outstanding is more favorable as it shows a scarcity of overall supply against a growing demand for PCL which is positive.
Existing tokens are consolidated into fewer, proportionally more valuable, tokens, resulting in a boost to the company’s token price. — A higher token value will make our project and PCL more credible in the marketplace.
Fractional cent tokens are often seen as similar to “penny stock” and are not taken seriously. This places an unfortunate stigma on the project that we’re not mature enough as a company and investment.
If a company’s token price is too low, it’s possible investors may steer clear of the token out of fear that it’s a bad buy; there may be a perception that the low price reflects a struggling or unproven company. To fight this problem, a company may use a reverse token split to increase its token price.
Optimize our position with the upcoming ambitious roadmap and economic model
Often, companies that use reverse token splits are in distress. But if a company times the reverse token split along with significant changes that improve operations, projected earnings, and other information important to investors, the higher price may stick and could rise further. In this instance, the reverse token split was a success for both the company and its stakeholders.
Draw more attention from analysts and influential investors
Doing a Reverse 10 for 1 split is to PECULIUM’s advantage. There is a huge psychological advantage of having PCL trading at 0.07 cents rather than 0.007. Higher-priced tokens attract more attention from market analysts, and a favorable view from analysts is excellent marketing for the company
They are also more likely to pop up on the radars of big institutional investors, many of which have policies against taking positions in a token whose price is below a minimum value.
Boost the company’s image
If the token is trading in the single digits, it is likely to be viewed as a risky investment, particularly if the price is considered a penny token by investors. There is a negative stigma attached to penny tokens traded only over the counter (OTC), and sometimes the quickest method to escape this association and protect a company’s brand image is to engineer a reverse token split.
Businesses sometimes execute reverse token splits to improve the prestige of their company. For instance, “penny” tokens can sometimes be more appealing to institutional investors if they are merged into tokens with a much higher token price.
What does mean for our Investors?
When a company consolidates tokens in a reverse token split, an investor’s portfolio will remain temporarily unchanged. This is because the total market value of the newly consolidated token will equal the market value of the token before the reverse split. The primary benefit for investors is that reverse token splits can stabilize companies and make them more attractive to institutional investors and whales.
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