Is an open-source blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements
Despite the fact that the hackers from the White Hat Group returned the funds they have saved to Satoshi Pie (about $7m as ethers and tokens back), the investment fund stops registering new accounts and accepting funds.
As the company reports, one of the reasons for such a decision is that The Securities and Exchange Commission has declared The DAO tokens as securities. Thus, it increases the risks related to the token issuance.
Distributed database that is used to maintain a continuously growing list of records, called blocks
Besides, taking into consideration that the best part of customers does not acknowledge the risks of investing to blockchain assets and that the token issuance risks have increased, Satoshi Pie team have decided to give up storing the customers’ blockchain assets under control and switch from custodian to software manufacturer.
Therefore, having considered all pros and cons, we have decided to liquidate Satoshi Pie.
Therefore, part of the customers had invested at a higher price than now and the immediate Satoshi Pie elimination will hurt them as they expected to put money under management for the investment period of about 18 months upon the recommendation. Consequently, Satoshi Pie is planning to fulfill its obligations of fund management within the following 18 months. However, due to the increased risks, the management fee will be raised, the company details.
The goal of the transformation is to enable future changes of fund management that will allow Satoshi Pie not to hold the customers’ assets under direct control.
The transformation plan
- Satoshi Fund stops registering new accounts and accepting funds for Satoshi Pie token issuance.
- The redemption of tokens will be held weekly within the next 18 months. The company removes the redemption limit planned before.
- On the 31st of January, 2019 the Pie will be liquidated. All non-redeemed funds will be sent for charity purposes to communities like White Hat Group.
- Till the 31st of January, 2019 Satoshi Pie is planning to launch an investment product of the next generation, which will not require any trust to them as private key keepers.
- For the next 18 months the company is setting a monthly management fees of 0.2%. They are increasing the trading fees to 0.25%.