I've read your posts carefully and honestly i really just dont think you understand the project. I think you have a lot of misconceptions.
First of all, 100% of businesses need sufficient capital or they fold. There's nothing unique about that from gigawatt - that's universal. If (name any company ever) didn't raise sufficient capital they would fold.
Second, they are not raising capital from the miners. They raised capital from their WTT token ICO, which already completed and raised over $20,000,000 in capital. That's exactly what pays for the "facilities, electricity, ongoing maintenance, staff" you point out. Where did you think the money came from? Yes, I had to invest in their WTT token ICO in order to have the right to host my own miners (which i own and ordered directly from Bitmain) at the brand new gigawatt facilities, which were built and funded from their ICO and token sale. The numbers add up perfectly. Because I gave gigawatt substantial funds up front, I now have access to 3.3c/kwh electricity and use of their mining facilities. the difference in electricity costs alone will pay for the investment in about 4 months.
I guess they could just be like "HAHA JK IM TAKING YOUR MONEY LOL" but that's not a reasonable fear or suspicion. When you buy a candy bar, are you suspicious it will actually be a turd under the wrapper? There's no logical reason for this other than the fact that it theoretically COULD happen.
I do get what you're asying about the front loaded costs. yes that is true, but again, thats exactly what their value proposition is: pay us up front and then recoup that cost in ultra-cheap electricity costs (and some other benefits like on-site maintenance of miners if needed).
And ultimately, if i don't like gigawatt, I can always go grab my miners, take them back home to mine, and then rent out or sell my WTT tokens.
It alllllll makes sense man.
Exactly, the WTT ICO paid for their capital expenditures to build out the facility.
That was stated up front.
Not sure why this is considered "shady."
Now that the ICO is over. I don't have enough WTT for the last miner I purchased and they stated I will have to pay the rental fee and electricity, which equates to 10 cents per KWH.
Hey as long as you guys are happy throwing your money at Giga who am I to complain? Seriously, enjoy your investment. I hope it pans out for you.
I don't see that Giga has hardly any skin in the game so whatever. They are the ones making out like bandits here.
I am sure we will see a bunch of knockoff companies appear. Heck why not, convince people to throw money at you to fund a venture and you don't have to do anything other than market the pitch to the audience and then hopefully execute on the plan if you raise the capital. Other peoples money at work... Hey if they can pull it off good for them.
All of crypto is a risk and an investment, and there are definitely a lot of shady business propositions out there with no real value that I can see. I thought giga's white paper and their value proposition was unusually clear and measurable in a spreadsheet. I thought they were one of the few projects who actually did do something other than market their pitch - they built physical mining facilities (which are already operational).
The business model of "convincing people to throw money at you to fund a venture and you don't have to do anything other than market the pitch" sounds like the VAST majority of token ICO's these days (SNC being a great example), without any functioning or working product. Thats why I like etheroll (DICE) and gigawatt - they both have real, functioning products - DICE being a working ethereum dice game, and gigawatt being a functioning mining facilities / gigapods.
i actually had to read the giga white paper about 3 times before i really understood what they were selling, but once I "got it" it made perfect sense to me.
anyway better to be overly skeptical in crypto than blindly plugging every stupid ICO launch.
