In an industry first move, Lympo, the sports and wellness company is giving away company shares to their token holders. Lympo closed a successful ICO at the end of February and the ERC20 LYM tokens are available on a few international exchanges. LYM is one of the few tokens that has managed to remain at a price above the ICO price which was 1 ETH = 40000 LYM tokens.
In a surprising move today, Lympo announced they are distributing 20% of their company shared to LYM token holders. Not only that, they have added an IPO on the roadmap as well. Explaining the move, the announcement reads,
In most cases, token holders have no say in critical decisions of a company and, most importantly, receive no transparency. Besides, the market is very unstable and many tokens lose their value because of the volatility of the major crypto currencies. Due to these unfortunate developments we have decided to become a major force seeking a positive change and to create long term value to our community. Let’s make crypto fair!
Unlike in an IPO, coins or tokens offered in pre-sale of a product do not give you a stake in the company. This is definitely a positive move to involve the community and investors.
Lympo aims to create an ecosystem powered by user-generated and user-controlled fitness and wellness data. The users can earn on their fitness value in LYM tokens. Lympo’s goal is a marketplace where data itself is used efficiently by ecosystem members, like Healthclubs rewarding their participants in LYM tokens, insurance companies using your data to cater personalised services to you and so on. The CEO Ada Januse has been an advisor to the ETHLend Decentralised lending platform as well.
How will the Share Distribution take place?
Starting this April, Lympo will offer 20% company shares via equity options. The share distribution will take place next year. The limit of ownership will be 1% to prevent the domination of a few big holders. ‘The distribution will be based on the number and the duration of the tokens held, expressed in a number of points to be constantly updated in a public data base.’ Further details will be announced by Lympo soon.
CoinCrunch still wonders how will the Indian residents hold these shares? Nevertheless this is a progressive approach. Although Lympo is not actually a blockchain company and the migration from traditional system to blockchain will take a long time, the share distribution and an IPO in future is a good strategy to increase HODLERS.
Disclaimer: The author of the post holds a small number of LYM tokens.