today is 26th May and project collect less then 20% of minimum cap
True, and just like every single token sale ever, about 90% of all of that activity is going to occur within an day of opening or a day of closing. Not that I am necessarily saying anything, but rather just to point out this:
Our original token sale had to be stopped 48 hours after it began because the sale widget at first was inaccessible to a majority of users due to a small code error by the third party, then the smart contract (it was an ETH-based sale at that time) was not accepting valid transactions toward the sale. After having that experience, and then literally rebuilding the sale from the ground up and using Bitcoin as the only method of payment (a requirement from one of our large investment groups) we relaunched the token sale on May 5th. We had advertised to a large extent and sent updated information to all of the ICO sites to get them to update the info so that people would know when the sale changed. Of course a vast majority of these sites never bothered to change the information, or changed it much later, after the sale had already launched.
Because of the vary nature of these sort of things, suddenly, perception is fact. The perception is that this is a sale that has been shunned or ignored by investors and enthusiasts. When the reality is that many did not know of the sale's move, or change in features, or even that it was still running. This really dented the early sales of the project, which in this "demand economy" is a potential death sentence. Except I know a few things that many others do not:
1)
We do not need the token sale to be successful to create the product.Regardless of the token sale, Embermine is going to proceed and continue with the development of the platform. Our platform, especially now that we have committed to EOS and the backbone development platform for utilizing Graphene, the BitShares DEX, and their integrated Smart Contract development platform, is going to be developed. The token sale was important as a funding vehicle for Embermine, but there are plenty of other options that we are working on acquiring, including matching grants, personal loans, business loans, and other financing options. All of these are already being developed and were always intended on being pursued, in an effort to provide the most efficient management and caretaking of the company's funding capital. In a highly volatile and developing marketplace such as blockchain technology, it is important that you are not a "one trick pony". Flexibility and efficiency are critical to long term success and having the capital and mindset to enable a dexterous business plan that can flex to meet new developments in the areas of compliance and data collection requirements.
So why did we do a token sale at all? There are many pathways for funding development, but the biggest advantage for token sales is the combination of marketing as well as geographical distribution. Because of the immense effort that is undergone to promote token sales and all of the interest and websites dedicated to these sales, advertising and getting recognition for your project is one of the most under appreciated results of a token sale. Add to that the vast geographical diversity of those who will participate in events like these, your market diversity and spread is almost unattainable in any other way. By literally placing the very key to entering our site in the hands and computers of thousands of people worldwide, token sales also become a great source of your first group of potential Users and marks the beginning the viral spread of Embermine's platform and advantages. It is this last purpose that truly attracted us to the token sale over typical VC models which would have us primarily focused upon investors and NOT the actual Users.
2)
We are not running and creating Embermine for investorsSome blockchain projects are created with the purpose of appealing to investors, specifically the token sale and bounty programs. Development objectives with only the funding or crowdsale dynamics in mind is not only, in my opinion, questionable in terms of intent, but also distract from what is "supposed" to be the real reason why anyone should be interested in the project at all. FBecause of all of the reasons mentioned above, the ultimate result is that we are first and foremost, concerned about finding and appealing to the eventual end users. Those users are not only going to want a token for themselves, but also for anyone that they potentially would want to collaborate with on a current or future project. By being able to get a number of Seat Licenses at a very cheap rate (approx $0.10 each at current BTC prices) and with a low minimum BTC cost (~$12.00) and a low minimum for the token sale (200 BTC), we tell people, go get the minimum (125 licenses) and now you have "invested" $12.00 to get 125 licenses that you can either sell, use for yourself, or give them to your collaboration network to bring them with you to Embermine. So the very thing that distracts from the token sale aspects of Embermine, actually helps to develop the value statement for owning the coins in the first place. Most people in the crypto space do not know what to think about a company that is intended on being a mainstream, direct to end user product. Where the token is never going to be $1000. Or that the value to be found in owning the token is that ANYONE can use it. Hand be a bitcoin, and I may have a lot of "potential" money, but I only ever truly enjoy the actual value of owning the coin once I use it to buy something. Embermine is different. Regardless of the the coin's market value, the access the coin provides never changes, and you can enjoy the advantages of the network, or holding coins to participate in the DPoS protocol. Either way, the actual token has value just like bitcoin in trade, but it also has value in it's specific use.
3)
Bitcoins invested do not lose value against the market if it does not hit the minimumThere have been a number of individuals who have said that they are holding off on purchasing until the bull run on BTC ends, or as they get closer to the end of the sale to eliminate various "opportunity costs". I can appreciate the fact that people know that they can wait because the crowdsale is not in imminent danger of closing without them. For some traders, having access to every one of their coins provides them the flexibility to react to changing market conditions. But if the only reason to not purchasing is because it may not reach the minimum is like saying you do not want to deposit money in a savings account because the money may be less valuable when you take it out. It is possible that Bitcoin's price could drop drastically at any time and for some people, having the flexibility to maneuver in those moments are good, but that is not the reason people are giving. Many are worried because the price is increasing. This is actually a desired thing. Until the sale ends and the tokens are minted, the price (value) of the EMB is virtually tied to BTC. For example, when we started this crowdsale, the cost of BTC was $1125. that means that at full token distribution, each EMB would have an initial market value of $0.045. Now, because of the raise in price of BTC, each coin now has a virtual value of 0.086, or almost double.
4)
The sale will hit the minimumAside from a million pieces of evidence or logic that I can apply to show that the sale WILL go through, I will instead just say this: ICOs are the holders and multipliers of the crypto world. Regardless of the ICO, the product, or level of funding required, I have been made aware that we should easily hit our minimum as an investor's group intends on using our token sale as a large "value battery" against Bitcoin's possible tumble in value. Even without that, the trick for ICOs and their value multiplier, is that all investors in single currency ICOs are making a bet. They are not betting that tokens like Embers are going to be worth MORE than Ethereum or Bitcoin, but rather, that the new token MULTIPLIES in value against the founding coin. If Embers open at a value of $0.10/each, and you paid for those coins in Bitcoin, you are not "betting" that Embers will be worth $2500, but rather that the value ratio between EMB and BTC will increase in EMB's favor. To put it another way, you could set any arbitrary percentage of increase for the two tokens, EMB and BTC, say 100% and purchase with the intent to leverage THAT relationship, meaning that once EMBs reaches a 100% increase in value compared to BTC, you can sell up to 50% of your EMBs to get back your entire investment of BTC, PLUS still have EMB left over. So when evaluating that proposal, someone is betting that Embers will hit $0.20/each before BTC hits $5000, which allows them to essentially own Embers for free.
Allow me to try to explain what I have learned. (Which if you are in this to make money, it is time to pay attention.)I received a DM from a twitter user name @Crypt0Leviathan that laid out the entire value proposition for Embermine's ICO and the results were stunning. I have since worked out the math myself, and found it to be 100% correct. The fact that is was so easy for me to understand makes me wonder why everyone does not already know this, or for that matter, why EVERY non-scam ICO does not fund out. I do not know for sure the Crypt)Leviathan's intent in sending me this info, but in the end, I am sure it is because of money. Here is what they sent to me:
For the purposes of this illustration, we are assuming that the current USD price of Bitcoin is $2500, making Ember value at $0.10/each
ICO Minimum: 200 BTC ($500,000)
ICO Maximum: 4000 BTC (10 million)
ICO Ending Date: June 2nd
So let's say that someone invests 100 BTC into Embermine tokens. They would receive 2,500,000 EMB when the sale concludes. Making their current "value chart" look like this:
EMB value: $0.10
BTC Value: $2500
Total BTC: 0
Total BTC Value: $0
Total EMB: 2,500,000 EMB
Total EMB Value: $250,000
Total Value: $250,000
As long as the price of Embers either is increasing or stays roughly the same while the sale is accumulating, your perceived value in the ICO is still increasing because the BTC are being held, but at not being converted into the EMBs yet. So their value stays equal with the market until that happens. Then the two coins will not only have separate relationships to the other currencies and independent values, but they will also establish a price ratio between the two. In crypto, most people equate value directly to the USD value, but there are potential trading pairs for any currency. Unlike just about any other market, you can directly trade any crypto for any other crypto. This fundamental difference is the power that makes the rest of this possible.
The #1 rule in crypto. Once your value is IN crypto, taking it out in fiat penalizes you. So unless you are going to actually use that fiat value for a purchase, removing it from crypto is eliminating this multiplier factor and also costs money and time in the effort to pass through the "membrane" that exists between these two financial markets. Much like the stock market. The only reason why you take the money out of the market is to use it or protect it. Since stocks and securities require tremendous amounts of effort to move value from one stock and security to another, and almost never directly, and with all of the regulatory framework and friction that exists in transferring this value during IPOs and other stock offerings, there are few, if any opportunities in investment potential that quite match ICOs.
Since the key to evaluating an ICO is found in the potential for the new coin to generate more value over any period of time proportional to the source coin, it ultimately does not matter if that token increases in value against USD or not to gain or retain value. It just has to gain or maintain value relative to the source coin. Take this example:
EMB Value $0.20
BTC Value: $2500
Total BTC: 100
Total BTC Value: $250,000
Total EMB: 1,250,000
Total EMB Value: $250,000
Total Value: $500,000
In this case, this user saw the value of the token hit $.20 each while BTC stayed even. Because Embers simply increased by $0.10 each, this allows the user, if so inclined, to sell Embers for Bitcoin at half the original price, because the price is expressed in terms of BTC, not USD. So this User sold 1/2 of their EMB to return the original investment back to BTC. Now, not only do they have the original BTC amount back, but they still have plenty of EMB too, and an increase in personal net worth. Of course, this works at any percentage, and interestingly enough, in both directions. But it is this essential element that crypto whales use to multiply their stake while at the same time diversifying their holdings and opportunities.
Now that we have established how the value multiplier works, we can also evaluate how certain scenarios, either engineered or natural, can create enormous opportunities for holders. Consider this example:
EMB Value: $0.10
BTC Value $1250
Total BTC: 100
Total BTC Value: $125,000
Total EMB: 1,250,000
Total EMB Value: $125,000
Total Value: $250,000
In this example, every thing is done just like the last example, but in this case, the opportunity existed because of the value multiplier between EMB and BTC moved, even while neither coin gained value relative to USD. And because we will always continue to evaluate value in terms of our fiat currency, that is only done because that is what we use to pay for things. Again, the goal on this is to diversify and increase opportunities for value. These two examples show some obvious mechanics, but the real shocker comes when BOTH occur. Consider this final example:
EMB Value: $0.20
BTC Value: $1250
Total BTC: 300
Total BTC Value: $375,000
Total EMB: 625,000
Total EMB Value: $125,000
Total Value: $500,000
Now, even though that does not LOOK impressive, taking a longer examination of it reveals some pretty amazing things. For example, now you have TRIPLED your original Bitcoin total, and still have a very significant number of EMBs. Of course, the user could have SOLD the 1,875,000 EMBs for USD and made $375,000, and that is an option, but here, to take advantage of the Bitcoin drop (and likely recovery), the User used the multiplier to increase their holding in BTC and generate a market position that is very strong after a market down turn. And they were able to do it without investing a single additional dollar of fiat. They are able to do this because they were able to store the value in the ICO and its tokens it produced.
So if you know that Bitcoin is going to fall, or that demand for the crypto will cause EMB to rise, or especially BOTH, one can use a token sale like Embermine to leverage that information to generate not only a ton of value, but avoid losing their accumulated value in the process.
So why did someone tell me all of this? I cannot say for sure, but what I can say is that I have many people looking at this project. Our investment group has said that they will invest as a group, close to the end. Of course they are, as if the sale does not close quickly, a severe drop in Bitcoin before it generate tokens does not evoke the multiplier, but rather, lowers the value of EMB when it does get minted.
So, if I KNEW Bitcoin was going to tank, regardless of what anything else does, and I have a large number of BTC value for my group or myself to protect. I start looking at new/uncompleted ICOs as options for retaining value and once I have marked a candidate or two, I organize my efforts so that everyone is buying at the same time. This not only allows them to get the maximum number of coins possible as there is little competition, but it gives them clear targets they need to meet to either hit the minimum or to close out the sale entirely. Because as long as that sale is open, EMB are pegged in value to BTC, and if the drop is coming, they want the sale to end, or maximum total reached so that the sale ends and the clock can begin ticking toward the minting of the new coin. So they will try to organize that it will get bought out as quickly as possible.
So that is the "cliff notes" version of what I was sent. In short, If you think that Bitcoin is going to fall in value, or you think that EMBs will rise in proportional value quicker than Bitcoin, you should buy some Embers. Soon. Because it is only a matter of time before EVERYONE figures this out, or the investor group starts everything, and the sale with sell out, or end.
So take this for what it is. Math. Will this happen? I cannot say for sure. But there is no doubting the math. The only question is what are people going to do with this information?
