Plutus.it — Statement on SEC’s Investor Bulletin

Due to recent statements by the SEC regarding certain other token sales in the space, we wanted to clarify Plutus’ official stance on which our enterprise was founded, as well as the previously agreed upon terms and conditions of our product pre-sale. In the Plutus pre-sale terms and conditions, a Pluton (“PLU”) is defined as an in-app / in-game token and a pre-sold product to be used within the Plutus ecosystem. Therefore, and based on the official definition, PLU are gamified tokens intended to serve a similar purpose as loyalty points and air miles for example.

More importantly, it is crucial to note that PLU does not represent ownership of any kind and do not contain or support any type of sharing mechanism. There isn’t, and hasn’t been, any promise of appreciation or speculative value. There are no buyback offers, and no fund distribution to PLU holders.

In summary, PLU are intended for in-app usage. Structurally, PLU are ERC20 tokens issued on Ethereum. And because of the decentralized and distributed structure of blockchain technology, any and all 3rd party uses are entirely at the users’ discretion and outside of the purview of Plutus.

This means that 3rd party applications cannot be limited or restricted through any technical means on our side whatsoever. Following our product pre-sale, the only intended method for users to obtain PLU is when they are emitted automatically as a reward for making deposits, which is a common practice similar to loyalty points or cashback programs used by airlines, grocery stores, clothing retailers, and many others. Another distinguishing characteristic is that Plutus as an entity does not own any PLU, as well as all usage of this token is free and instant for all users.

PLU rebates / rewards are distributed automatically whenever a deposit is made on the Tap & Pay app. Plutons (PLU) are primarily a decentralized bonus and rewards system designed for our Tap & Pay customers, who can accumulate PLU by shopping and storing it for future use within the Plutus ecosystem (currently Tap & Pay, and the PlutusDEX). To protect our users and ensure that we proceed responsibly, we have notified cryptocurrency exchanges early on and advised against facilitating PLU trading until the full ramifications of doing so become known.

We are currently working with our legal advisory team to determine our next steps to protect our user-base, and the Plutus project. As a precaution, we will initially block customers based in the U.S. from using PLU deposits (during the open BETA) until the specific guidelines become clear.