After announcing the decision to take ARCx Private, there have been some outstanding questions from the community about what “going private” means. This blog post aims to address those questions to the best of our ability.
1. Why go private in the first place?
We’re at a turning point in ARCx with the new products we’re launching. These new products require:
Deeper focus of the team
Maintaining a long term view
Removing the distraction of the token price
2. What rights do I have as a holder moving forward?
Holding ARCx beyond the 1st of December marks your ownership stake in ARCx as a project. The key reason to hold ARCx is if you still believe in the mission, purpose & team and would like continued exposure to the upside of what we execute on over the long term.
In the event of future fundraises, treasury tokens would be sold. We may facilitate Over The Counter and secondary sales on a discretionary basis.
There are no guaranteed voting rights moving forward.
We acknowledge that not everyone may want to be locked in for an extended period, hence our commitment to purchase the tokens at spot with a 20% premium.
3. Is there any equity issued to the team/investors?
The intention is for the token to always be the primary way in which value is captured. Our commitment to financial stakeholders remains with our token holders. We want to ensure that if we win, everyone who has been alongside us so far wins as well. Any additions or changes will always be with the intent of bringing supporters alongside. At present there are no other equity types issued to the team or to investors, only the ARCx token.
4. Why should I continue to hold versus redeem?
We’re seeing exciting traction with our new product lines and believe that going private will allow us to maximise on the opportunity presented to us. We’ll be updating the ARCx brand to include all our product offerings and introducing things to the public soon. We also want to go into deeper depth about the world-class data infrastructure we’ve built that will be used to create the on-chain identity layer for the crypto ecosystem.
Going private is us going all-in on what we believe and committing capital to that belief.
5. Will the token ever become unpaused/tradable again?
Ultimately, yes. The team and community has spent years working on ARCx and would like to see a return from their hard work. However, we don’t want to make the same mistake when re-launching the token in the future. A key requirement when re-launching the token will be ensuring we’ve created real economic value and validated a sound business model to go alongside with it. At this stage, we can’t make a firm commitment about the timing of a re-launch.
Closing
Thank you all for your support so far. Being the first token to go private isn’t easy, we believe that this is the right long-term action to take in the interest of all ARCx stakeholders. We look forward to showcasing some of the cool things we’ve been working on behind the scenes.
Upwards and onwards!