Path Network and Crypto Exchanges
There has been a lot of fervor over BitForex’s recent addition of Path Network tokens to its trading platform. With this post we will attempt to address the myriad of questions and hopefully quell some of the frustration.
But first the basics. The Path token is a utility token. It is used to establish credits on the Path platform to pay for services. The hourly cost of those services dictates the value of the credits. It is like an old-style video game arcade token. You insert your quarters into the token machine and receive brass tokens in exchange. You can then take those tokens to any game and insert the token and received the allotted play time.
Path Network entered into purchase agreements with 10 different parties. All parties underwent AML/KYC checks. The token purchasers were made aware of the use of the Path token and that its only value was toward services on the Path Platform. All 10 parties signed token Purchase Agreements and were provided with details about the company and the intended use of the moneys received from the token sales. Each party bought the tokens ostensibly to use them on the Path Platform to further support their own businesses and websites.
If you did not purchase tokens directly from Path Network and do not have a signed contract with Path Network, any issues you have regarding the tokens value and use must be addressed toward the person/company/syndicate from whom you made your purchase.
Though Path is a utility token, the U.S. SEC currently considers ALL tokens sold during an ICO as “securities” and as such has very specific rules. Path has worked to be compliant with these rules and regulations. It is why all Non-US based purchasers had to wait 90 days before being able to transfer their tokens to any other party other than Path Network. U.S. based token purchasers are required to hold the tokens for 366 days and face stiff penalties if they transfer their tokens early.
The SEC also regulates where tokens can be offered for sale. Path Network is prohibited from listing Path tokens on exchanges that are not SEC regulated. The process to get on an SEC regulated exchange is long and costly but Path is working diligently on this front.
If these rules change we will be quick to implement the changes.
Regarding BitForex and Bilaxy-
· Path Network did NOT participate in the listing of Path tokens on either exchange.
· Any token holder can arrange to list a token on an exchange. Listing does not have to be done by the corporate entity behind the tokens
· BitForex’s parent company is a token purchaser. It was their decision to list Path on the exchange. The listing was done legally after the 90-day hold period expired.
· Marshal Webb is a security advisor to BitForex but that relationship is separate from any token purchases. Mr. Webb like many of the Path Network team, Mr. Webb is considered a cyber security expert and his skills are sought be various companies. Path Network has begun work on a consulting arm under the ECKCyber title to assist clients when requested.
· Path Network LLC no longer controls the Path International telegram channel. The “creator” account is held by a former employee of Path Network and we are currently taking legal steps to regain control of that account. At this time Path Network CANNOT remove admins from the International Path channel also the “creator” account has the ability to over ride the actions of Path Network employed moderators.
· Therefore, before believing any postings on the Path International Channel, one should check the Path.net blog or contact Path Network at email@example.com
Regarding the flood of Path tokens on BitForex-
· The flood was caused by an advisor to Path who was unhappy with Path’s decision not to hire him for “market making.” In response this person decided to sell some of his tokens at a loss in order to harm Path. This person is an American and his transfer of Path tokens took place before the 366 day hold period expired. As such he is liable for SEC legal action. Path is working on the reporting mechanism to address this matter.
· Path Network will never take part in “market making” for our tokens because it is illegal. Buying and selling a token to inflate/manipulate the price is fraud and is punishable by jail time in multiple countries including the U.S. and China.
Regarding the AirDrop-
· The Airdrop was cancelled because 95% of those who signed up failed the AML/KYC checks.
Other facts about Path tokens and the ICO-
· The public sale portion of the ICO was cancelled due to numerous false claims and various other issues resulting from advisors and their connections to syndicates
· Path raised nearly 10,000 ETH from the 10 contracted token purchasers on approximately 75M tokens.
· Save for the reserve and tokens allocated to employees and advisors, all other unsold tokens have been destroyed.
· Each Path token has a trade-in credit value of $0.40 toward Path Services to include all network traffic monitoring, DDoS mitigation, near bullet-proof VPN and others. If a token holder does not want to use a Path offered service, there are clients who might be interested in acquiring your tokens
· The $0.40 credit value is based on the current hourly cost to perform the services. This value will increase as the operating costs decrease.
· Operators whose nodes have been used to conduct jobs for Path clients will be paid in tokens beginning in early Dec. 2018.
· Path currently has an Android based app and is set to release an iOS version in coming weeks
We hope this post answers most of the questions you have regarding Path Network and our tokens. And know this, there are amazing things happening at Path Network that will be truly disruptive to the Network Traffic Monitoring and Network Visualization arena. Check out www.Path.net to learn more.