I don't understand what is going on at Cryptostocks with FIREMINE and MINECO. I'm hoping that someone who maybe does understand this can explain it to me, if there actually is someone who understands this.
I understand that supposedly Altswap's CEO account got hacked, and someone sold a large number of shares at 0.000001 instead of 0.005. My understanding from reading the thread
https://bitcointalk.org/index.php?topic=488669.20 is that apparently Altswap plans to sort of rectify it by issuing 5000 additional shares to each person who bought shares at the correct IPO price of 0.005.
What I don't understand is FIREMINE and MINECO. I have not read anywhere that anything similar happened to FIREMINE. So, I don't understand why FIREMINE would be affected by this at all.
FIREMINE posted the following announcement to their asset page on March 4:
"Due to the fact that Cryptostocks has not fixed their security glitches yet, we are being forced to change things a little bit for FireMine. This afternoon an upgrade option will be available to all shareholders of FireMine to upgrade their shares to another stock in an attempt to fix the price drop. Trading of FireMine shares will still continue but the dividends will be paid out to the upgraded stock."
What is the connection between the supposed Cryptostocks security glitch, and FIREMINE stopping paying dividends and asking investors who want to receive any dividends to pay a 0.01 upgrade fee to switch their shares to MINECO? If there actually is a security glitch, how does switching "FIREMINE" to "MINECO" do anything to improve security?
And if FIREMINE really wants investors to trade in or sell back their shares, why don't they post any kind of instructions for doing so? (not everyone chooses to disclose their email address with asset issuers, especially when the asset issuer seems sort of scammy)
And what about shareholders who bought FIREMINE who don't want to pay any additional money for the upgraded version of the mining stock? The FIREMINE contract states:
"Revenue Sources:
Shareholder money will be directly put towards new mining
power on a daily basis. We have miners ready to set up, more being shipped, and
others that can be quickly ordered and delivered. Shareholders will see mining
stats on the Google Doc and be able to track exactly how much they are making
each day. We will be continually adding more hashing power as more shares are
released to even out the dividend payments and maximize shareholder profits!
Share Structure:
As a shareholder of FireMine Corporation, you will be
entitled to your calculated percentage of revenue derived from mining. Your dividend
percentage will be determined by how many shares you own of FireMine
Corporation at the time of payout. Detailed stats can be found at the Google
Docs link listed at the beginning of this breakdown.
Shareholders: 90% of mining revenue
Operating Costs: 10% of mining revenue"
Based on the description, assuming that the company is still mining, it would appear to be a violation of the contract to arbitrarily stop paying dividends, whether it's because Cryptostocks has a 'security glitch' or the price of the mining company 'needs fixing'.
And can someone explain the part about 'fixing' the price drop? What evidence is there that the "correct" price is the new price set by MINECO of 0.05? I thought usually when a company's share price drops, it's a sign of a problem with the company, not that the price is 'wrong' and needs 'fixing'?
I've grown used to seeing strange things happening at Cryptostocks (forced buybacks a week after the IPO at less than the IPO price, assets like FIDOR where the real bank had absolutely no connection with or knowledge of the FIDOR asset on Cryptostocks, etc.). But I think this FIREMINE/MINECO situation is a new one for me.
