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Before discussing my thoughts on the SLW Conversion, I am grateful for the hard work that Arbitrage Wise has put forth after LL’s announcement regarding the ban on banks. He has exemplified his efforts on ensuring his trustworthiness and his client’s protection from a potential bank run. Kudos to you and we look forward for new products and services this year. Now, on with my thoughts on SLW Conversion.  The SLW Prospectus is clear and concise as it lists the Business Strategies and how revenue is generated. However, what is SLW’s main objective? My original intake was that this business will be used as a payment gateway and currency platform of SL and other metaverses for business related transactions. In RL, this would mimic PayPal. After further analysis, has the SLW Conversion correctly reflected its business strategies stated in its prospectus? I will compare SLW with PayPal based on its objectives and its current status.
SLW Objective: Payment gateway and currency platform allowing payments and money transfers to be made through Real life e-commerce and metaverses for products and services. Currently: Payment gateway using SLW shares for owned businesses. PayPal Objective: E-commerce business allowing payments and money transfers to be made through the Internet. Performs payment processing for online vendors, auction sites and other corporate users. As mentioned above, currently SLW shares are being used as the payment method. The prices of these shares are determined by the fair market value when these purchases were originally purchased at $1 Linden. If SLW is indeed a payment gateway currently, shouldn’t SLW also be used as a currency platform? This would protect shareholders from price market fluctuations and the currency rate would be much more correctly valued. The rates would then be traded in cents (or tenths) where currency would be more stable with higher trading volume. As the Currency Exchange remains stagnant, merging SLW and the currency exchange would be a potential solution solving both liquidity issues in addition to protecting its customer base. If one of the services provided by SLW would be currency exchange, it is best to compare with one of its largest competitors, SL Exchange. Just a thought. After the SLW Conversion, shareholders are now left in limbo in determining the best approach to convert their shares back to equity without a significant loss or a lost at all. To-date, SLW is trading at $0.66 Lindens, or roughly 34% loss if the shareholder decides to sell, excluding transaction fee costs. The only way for shareholders to at least breakeven is when Arbitrage Wise himself repurchases the SLW shares at a premium rate over $1 Linden. If the stated original goals for SLW are met, estimated about $2.4M Lindens of revenue is generated per month, this would estimate about 2 years to completely acquire $58M of its current liability. Only time will tell. iVentures Group www.sliventures.com
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