The company is claiming, “to be among the first companies in the world to tokenize shares”[1].
Although the idea seems beneficial to all owners of tokens the proposed swap would leave token holders with only 16.21% of the dividend rights as opposed to the 100% guaranteed during the ICO. The original shareholders of Modum, pre-ico, invested roughly $500,000 to fund the company, and the ico participants contributed $13.5million.
In early 2019 the Mod token was delisted from Binance. Following the delisting the token gradually lost 90% or so of it's value trading on obscure decentralised exchanges. It is this opportune timeframe that the company decided to base it’s valuation method “to offer a ratio at a net dilution of current shareholders of 16.21%”[2] The valuation method was not explained any further for token holders to evaluate.
Modum’s chairman, Marc Degen, held an ama (ask me anything) on telegram as a result of token holders negative response to the proposal but they were left with many unanswered questions.
Token holders have decided to organize, for more information regarding our stance on the proposed swap please view this site we created.
https://www.modumtokenswap.com
Disclaimer, I am not a token holder of Modum since the ICO, but am posting for a friend that is.