it seems like there are two factors investors would consider before investing in your fund:
1. how much they trust you not to run away with the coins
2. how much they believe in your ability as a fund manager
i'm not worried about 2, you'll be at least as good or better than i could, plus i don't have to put in the work.
however, there's no getting around 1. even with our conversations over PM, there is still a non-trivial probability that this is an elaborate scam. i don't consider it likely, but the risk is still there and it stops me from investing too much in this low-risk fund, when really a low-risk fund is a great idea for the coins i have sitting around.
you said you'll keep a wallet with coins that match the value of the fund. what do you think about keeping these coins in escrow with another, more trusted member of the community? i'm new here so i don't know who to trust, but i assume there must be someone everyone can agree on.
just a thought, keep up the good work.
Hi, thanks for your support. If there was a way for me to prove that I'm not here to scam, then I'd have done it already
Currently, my BTC reserve is above what people have put into this fund, but that won't be the case when this grows. I think john (johnthedong) would be trusted by practically everyone and might be willing to escrow/hold my current funds without charging fees - thoughts? This has the downside of me unable to use my own funds to buyback shares on request, when it is tied up in investments.
BTCINVEST is currently making 14.49% a year in providing credits for margin trading on the Bitfinex platform.
Like 1% a month? You're so far under MPBOR it's sad.
What happens to your bond if the unauthorized Bitcoinica clone pulls a Bitcoinica on everyone?
What happens? I'll pay the coins myself to keep NAV of this bond at 0.1 BTC.
What happens when MPOE doesn't make a profit for a month making 0% interest? This bond isn't solely for Bitfinex - right now only few bonds are issued so it makes no sense to start diversifying at this stage when I can cover it 100% with my coins
So what's the incentive for early investors?
Right now they can either:
a) Invest with you. You then deposit in BitFinex and they get 90% of profits.
b) Invest with BitFinex. They get 100% of profits and no exposure to risk of you taking their money. Then they can invest with you later when you diversify if they choose.
Not seeing how a) offers any advantage over b).
The above shouldn't be taken as a recommendation by me to do b) nor as indicating that I believe a) and b) are the only options available to potential investors.
First of all, this isn't soley a Bitfinex passthrough. Initially, 100% of the funds were in Bitfinex, but that's because it's not worth it to diversify a couple of BTCs. Investing in Bitfinex isn't as simple as depositing the coins in. I frequently F5 Bitfinex to check the status of my offers, to see if it is the best interest rate, etc. I believe unclescrooge offers free account management for accounts > 200 BTC, so if you want to put it 100% in bitfinex and take all of the profits then I suggest sending a PM to him and creating a managed account.
In addition, if Bitfinex runs away tomorrow, I can back 100% of the bonds. My plan is to not invest in one program more than my reserve, so that if one collapses,
I curse at my computer and pays into the bond so the NAV is 0.1, and buy some more BTC.
Obviously there is the risk of me running away with your coins. That is up to you to judge the risk. I should note that my identity isn't anonymous, if you put into the effort you'll be able to find my domain, whois it and get my address in Sydney.
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Reports will be published every time a dividend is issued. I don't plan on producing reports outside of that schedule, other than urgent updates, for the reason of "you used to post reports every week, this week you haven't, scam!" and that investing in new ventures (to me) isn't as simple as just transferring coins and praying. Initially I was considering which platform to put BITINVEST, and after a pretty long chat with Ukto on IRC I'm confident that this exchange is one of the best choices (along with mpex if you disregard the PR).
One thing that I will say is that the first dividends looks pretty good
