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Forums > General Investment Discussion > Topic: SLWallet Conversion

Feb 8th, 10:18
Arbitrage Wise 		SLWallet Conversion
Edited by author Feb 8th, 10:31
This thread is for questions regarding the conversion of JTF Balances to SLW shares (http://www.slcapex.com/home/story/system/1407). Please be sure to read previously posted questions before posting to one to avoid duplicate questions.
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Feb 8th, 10:41
Fujiwara Food 		Re: SLWallet Conversion
Edited by moderator Feb 8th, 16:11
What exactly is going to changed into SLW shares? My cash balance? Or the JTF balanace as it was when imported?

Answer: Your current Cash balance will be converted over to SLW shares. However, we will do it next week so that if you want to allocate your cash to other shares, that you will have sufficient time to do so.
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Feb 8th, 15:17
Dezmond Martinek 		Re: SLWallet Conversion
Edited by moderator Feb 8th, 16:11
Exactly, this is not clear. What exactly was divide between slcapex and JTfinancial? As near as I can tell there was none previously. So how do we know which of our lindens where in JT and which where in Capex? Are any lindens not invested in stock going to be converted?
Answer: Under the original model, funds were JTF balances which earned interest, but could also be used to purchase shares. However, we are now going to create separate balances for Capex and SLW accounts, and you will need to transfer funds/balances from one account to the other in order to conduct transactions.

Now if all the cash is converted into these shares this would mean there are no Lindens left only shares.
Answer: Yes, both SL Capex and SLWallet will start with 0 capital, with balances being converted to SLW shares. This will enable customers to have immediate access to any newly deposit funds. In order for there to be a Buyer of shares, new funds have to be deposited into the system - which in turn will be readily available to the Seller if he/she wishes to withdraw those funds. If we do not convert all cash balances, there will be an imbalance of L$ balances among accounts and actual L$ available.

On the surface this seemed a plausible solution, however if the answers to the above questions are yes, I have grave concerns. Mainly there will be zero liquidity until more money is pumped into the system. This being the case the income projections for the investments stated to back these shares are flawed. Trades cannot be made without lindens, commissions can not be paid without trades and Capex depends on these trades to generate income.
Answer: You are right in that while there will be a stagnant market in the beginning, but we are confident that 1) We can attract new investors who are now confident that their funds will not be stuck in a liquidity crunch and 2) As we buy back SLW shares, we will inject capital back into Capex.
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Feb 8th, 15:22
Strongman Shelford 		Re: SLWallet Conversion
Edited by moderator Feb 8th, 16:22
"The acceleration of this development effort necessitates that I make a difficult and perhaps controversial decision; at launch ALL JT FINANCIAL CASH BALANCES will be converted to SLW Equity ($L for $L in Stock). This may seem counter-intuitive, however, it will allow for immediate liquidity via the SL CapEx Public Market for those needing access to Funds and are unable to wait for the JTF Investments to mature. Before you jump off the deep-end, please recognize that this is the exact and identical methodology that our competitors are using to achieve near-term liquidity - honestly it is both fair and equitable for all, and, is a proven methodology used successfully day-in and day-out in the RW (Debt-Equity Swaps). "

I would like to ask a few questions on this:
1) can you publish a schedule table with dates when all your investments can be converted to cash?
Answer:Unfortunately, we do not have a timeline due to mainly to the fact that 1) We must continue our investments accordingly in order to recover the expenditures we made to build these platforms and 2) The ability to purchase L$ on the market without incurring significant losses.
2) do we still have an option if we don`t want our cash to be converted in SLW shares?
Answer: We are allowing a 1 week notice so that if you do not wish to have SLW shares, that you can allocate your funds to other preferred stocks.
3) This methodology is supposed to provide with near term liquidity for depositors. But at what price?
Answer: We will make a 24-hour public announcement before issuing a share buy-back. During the buyback, we will post a bid to repurchase shares at no less than 1L per share. However, it is up to the depositors to determine their selling prices to the market.
R u going to place a buy order so we can sell at a decent price?
Answer: We will make a 24-hour notice, and you will be able to see our market orders because there are very few investors that will place orders of 1M shares or more.
4) I would like to know reasons why you can`t disclose information about your investments. I think we deserve to know that.
Answer: If you have read our JuiceTrading release on SLReports.net, you know exactly what the investments are. We never said we can't disclose the information. We just require multiple verifications and a signed NDA if you want a detailed verification.

Thanks...
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Feb 8th, 15:36
Kailen Juran 		Re: SLWallet Conversion (Corporate Balances)
Edited by moderator Feb 8th, 16:23
This does not directly affect me, but I'm wondering if the cash balances that corporations have (in their designated sub-accounts) will be converted as well. I suspect that doing so would have a major impact on the issuing of share dividends.
Answer: We will need to do a full conversion first, then we will work on a case by case issue with CEOs regarding their funds.
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Feb 8th, 16:49
Yanik Lytton 		Re: SLWallet Conversion
Edited by moderator Feb 8th, 19:55
In one of your answers, you stated: "2) As we buy back SLW shares, we will inject capital back into Capex."

The cash is going to someone who sell SLW shares, which if i understand well, will be able to withdraw it. So i don't see the point of your answer.
Answer: Yanik, we cannot assume that any new funds placed into SLCapex will be only to purchase SLW shares. There may be new investors who would like to invest in other stocks, but chose to hold out because of the liquidity issue.

I know of one bank that will convert the Term Deposits to stock, but the exchange where it will trade has no liquidity problem. So there is a huge difference in strategy.
Answer: After the conversion, we will not have a liquidity issue as well.

So i'm asking myself why in the world, since i didn't have any money in JTF bank, and that my cash balance on CaPex is almost zero, won't I be able to withdraw cash if i sell other shares, but new investors will be able to do it freely? Will i have to liquidate my portfolio, then buy SLW shares, then sell them to get my money? Or.... let me think.... i create an alt (a friend would also do), i privately sell shares to him, he/she/it creates an account on Capex, sell all the shares i just sold him/her/it, and can then withdraw the funds, and give me back my money. How will you cover yourself from those kind of schemes?
Answer: Yanik - once the conversion is made, anyone is free to sell any shares to anyone they wish, and withdraw their funds as they see fit. Whether you sell it to your alt or someone else makes no difference because if someone is willing to purchase it, that means they have the L$ to pay you.

Why is it that you do not have money for us right now, buy after converting to SL Wallet, you will do?
Answer: Because it takes time to liquidate investments.

Why is it that you often invoke that you cannot care for your obligations because you will do so at a lost, but all of us are losing right now?
Answer: You have not lost anything - and there is no reason you should sell your shares right away if you already trust that we will. We have already stated that we will buy back shares at 1L. Receiving and holding onto SLW shares to sell back to us later at 1L or waiting for us to inject capital to open up the ATM is the same. At least with SLW shares, you have the option to either wait or sell it on the market, whereas with a balance, you'll have to wait. There can also be the possibility that new investors will deposit funds in additional to what we can put in to help move the process faster.

I just don't understand the conversion. WSE is still closed cos they don't have the money. Capex is still open but doesn't have the money. I don't see much of a difference here. And if WSE doesn't reopen, and people complain to LL, i bet we're all doomed.

Yanik. (who has been awfully patient, but will now want to see her money)
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Feb 8th, 17:10
Servme Nakamura 		Re: SLWallet Conversion
Edited by moderator Feb 8th, 20:11
Balances are converted to SLW stock in about a weeks time. This leaves us with a period in which we can buy other stock, thus making a profit for SLCapex (buy/sell fees). At least we get the time to prevent our cash balances to be exchanged for some stock that may some day be worth something (or a lot).
Answer: Servme - keep in mind that in doing the conversion, I am basically issuing almost all of SLW to you and our customers, and own less than 26% of SLW. That means that you the investor gets more than 73% of what SLW makes from ownership of SLCX.

Apart from the courtesy period in which we can trade, I can't do anything but see, read and say "WTF". Take "hard but fictional currency" and convert it to something even more fictional. Yes, people will have a way out, at - I'm making assumptions - say 10% of the face value?
Answer: If you are going to trust that we will repay you your balance, then you should hold onto SLW shares and wait until we start buying the shares back. There is little difference between having a balance you cannot withdraw right now, and having shares that you can hold onto. Either way, if you trust us and wait, you'll get your L$ back.

We all know what happened with the Ginko bonds and how they were gonna be bought back at face value and pay out in the mean time. Didn't happen. Instead, several conversions later, we're stuck with WTF shares on a (for now) closed stock exchange.
Answer: We have laid out in details how we feel we can generate the revenues to buy back the SLW shares at face value.

I'm not claiming this is the route SLCapex will go - I'd be royally screwed - but I hope you do understand my extreme caution and weariness for such a conversion. Been there, experienced that.
Answer: I understand your concern because past events cannot be simply forgotten. However, it also should not affect your perception of us and our abilities. We have actual businesses generating revenue, and products in development that you can actually see, not just empty words. If the past Ginko events make you leary of what will happen, the let what we did in the past for CYB, SLMS, AIG, and Allenvest customers make you feel more optimistic as well, keeping in mind that we had absolutely no obligations to make those customers whole again.

Assuming - and I'm doing that in good faith - that you are doing buybacks with a 24h warning, nowhere is stated when these will happen, not even hinted at apart from "As new capital is acquired, a 24-hour notice will be made to the public of a share buy back, with a market bid of no less than 1L per share." which could take days, months, years.
Answer: As stated in the previous answers, we ourselves do not have an accurate timeline due to mainly to the fact that 1) We must continue our investments accordingly in order to recover the expenditures we made to build these platforms and 2) The ability to purchase L$ on the market without incurring significant losses.

I understand the trouble SL Capex is facing - or at least I try - and I would be very pleased to see some serious trading going on again, but this plan just irks me to no extend.
Answer: We understand your concern, but we have tried multiple methods to solve the liquidity issue, and none come close, including injecting over 10M in funds since the ban on interest begin.

My 2 cents, which you can keep ;-)
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Feb 8th, 17:41
Kiashia Yifu 		Re: SLWallet Conversion
Edited by moderator Feb 8th, 20:19
I am not an invester, I don't want to BE an invester. i stuck my money in the bank for what i thought was going to be a couple days till my tear was due and you have had it ever frigging since forcing me to buy more linden so i can make MY obligations mean while you are feeding us more crap.

I don't want worthless shares of a worthless bank that cant pay out the money for the shares any more then they can pay me my money back.

I don't know shit about playing stocks, i don't care to it does not intrest me in the lest and the entire market thing you may as well be talking to a clam cause it understands it about as much as I do.

I just want my money flat out, No stocks no iou's, give me my cash back.

Answer: Kiashia - if we had funds to give you cash back, we would gladly do it. We're not asking you or forcing you to play stocks or enter the market. We are simply giving you an asset equivalent to your balance to hold onto until we can give you your money. If you want to look at it from a different perspective, consider the SLW shares as an IOU (a receipt for a loan), and once we have funds to pay you back, we'll take back the IOU from you.
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Feb 8th, 19:02
Barbie Chaika 		Re: SLWallet Conversion
Edited by moderator Feb 8th, 20:25
i have been holding out to see what you were about to do with balances and such. I am sorry but putting my money in stocks gives me no choice but to pull out the money I have as I have never wanted to be part of any stock market. This is hard earned cash of a small business that is trying to make ends meet in SL as well as RL. Please tell me how I can receive all of my balance before it becomes stocks and I lose what I have in the market. I would like an answer before you touch my money and I would like it in plain, non technical terms as you seem to enjoy using. Non technical speech makes for clearer communications with those of us that do not have a background in business.

Answer: Barbie - you have not lost anything yet. One of the misconceptions people have is that once they receive the shares, that they should dump it on the market and get whatever they can for it as soon as they can. Instead, why not sit back and let us put your money to work for you, and see if we can make you more money than you would if we gave you the cash back now.
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Feb 8th, 21:02
Arbitrage Wise 		Re: SLWallet Conversion
Edited by author Feb 8th, 21:04
At this point, we have already decided to move forward with the conversion. This was our LAST option, not our first. If we had the funds to offer withdrawals, we would have done it, and have done it. Before you get angry and reject our plans, why not take a deeper look at what we're offering.

Second life as an economy is still young, with very limited markets. Why not take a leap of faith and jump in on a business that is different, that is new, and has a lot of room to grow? Once we get out of the liquidity crunch, and get our businesses going, we can only go up. The business will be there. The publicity and marketing will be there. The customer base will be there. There's no where to go but up. So rather than languishing over money that we currently do not have right now, which will not do any of us any good, why not move forward, and grow our business together. Give us the responsibility of making you money. Help yourself and your busienss by getting more investors and customers to use your service. Afterall, this business is now as much of yours as it is mine.

We already have the ideas and businesses in place. All we're asking is for you to join in on the ride. We have not failed you before - and there's no reason you should think that we will now.
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