Topic: [BTC-TC] CryptX introduces the PETA-MINE - 18,000 CHIPS IN SEPTEMBER/UPDATE - page 12. (Read 238185 times)

So in fact now what happening is that the shares the issuers are holding are more and the investment in hardware will be less naturally because of less bitcoins from IPO right? Otherwise, if its still the same investment i dont see why an IPO was needed at all. This doesnt make much sense to me yet. I shouldnt rush with investing i guess... now i can only hope this turns out well.

As stated in the initial shareholder agreement, for each share sold, 10 GH/s of hashpower, based on CoinTerra systems, will also be deployed in December, this equals to an additional 100 TerraHash by December for 10,000 shares.


Shares are decreased to 10k. They dont offer 100ghs for 0,65 BTC.

I am confused!!
Does this update only talk about 10,000 shares for the 20TH or was the total amount of shares decreased from 100,000 to 10,000?

I do understand from what you are writing that 1,000,000 GH (1PH) will now be distributed over 10,000 shares.
1,000,000 / 10,000 = 100GH/Share. That would also mean that with that update you just decreased the value of your IPO by about the factor 10 (not accounting for the 0.01btc increase every 2000 shares), correct? So instead of hauling in 100,000*0,65=65,000BTC your IPO is now worth only 6,500btc, right?
On the other end, you are offering 10 times the value for the same price, speaking of 100GH/Share for 0.65btc, I am right?

Thanks for clarification.

PS: It says at btct under outstanding shares 1349 (as of writing) - shouldn't it be 10,000. In the details about your mine it still talks about 100,000 shares to be issued. So either your update is confusing and missing some information, or the details on btct are out of date...

So the 30000 changed to 10000? And btct.co approved? And regardless of the income of IPO it will move on the same way like it was planned before? So for what was the IPO-Investment needed then?

Im not feeling very well with this. I mean theoretically if i would like to scam i claim i will create the biggest mining farm ever, i make many shares so i can get much money and when IPO works i take the money and run. Now the IPO didnt work so take the less money that will be available and run with this instead. Im not feeling very well with this now. And i wonder how the IPO can be changed one sided.

The exact location of the datacenter can not be disclosed for security reasons. We will send pictures of the boards in the datacenter when deployed.

Can we get photos of your datacenter?
If not, why not (better be a good reason).

We have secured a 20TH Bitfury chip deal with an ultimate arrival date of 20 September. We will drive the chips directly to the PCB manufacturer and take the assembled and tested boards back with us to the datacenter. We start immediate deployment after arrival.

Can we get a date when the hashing will start?

Instead of giving the 20% of additional hashrate in December we will deploy it end September.

Let me explain what's happening to those too stupid to work it out for themselves (i.e. most of you).

BTC is rising vs USD.  If BTC rises vs USD by X% then the BTC paid for shares in this buy X% more hashes than they did when the IPO listed.  But the amount promised to investors isn't rising by X% - the gain gos straight to the issuer.  Yeah - you've been given 20% extra but that didn't even use up the hidden markup built into the IPO at the original price.

BTC rising vs USD is what makes most mining investments useless anyway.  When BTC rises, the price of hardware (in BTC) falls making the apparent profitabilty of mining rise.  That spurs more purchase of hardware - causing difficulty to rise.  Although USD-profit may slightly increase even afterwards this wipes out most of the benefit of the rate increase leaving you worse off than if you just held BTC during the rise.

Once you add in hidden levels of markup in the sales price plus a visible cut being taken via shares you end up lucky to make anything in USD terms and out of pocket in BTC terms.

What the issuer is doing is trying to bribe everyone into ignoring the IPO terms - by giving back a part of the increase in hashing power that your BTC could buy as a result of the exchange-rate change.  Which would leave them with not just the markup they'd originally planned to take - but also a bonus in keeping the extra USD generated by the exchange-rate move whilst guaranteeing that investors end up with a loss in BTC terms (i.e. worse off than if they just held their BTC).

What you need from an issuer if the exchange-rate is rising is a commitment that all BTC raised (or the same proportion as would have been the case if exchange-rate hadn't moved) will be used to purchase hashing power for investors.  But as they've never tried to be transparent in the first place there's little likelihood of it starting now.  And by the looks of it, little chance that they intend to honour the contract and return your funds if they fail to sell the 30k target stated in their contract.

Which kind of serves you all right for investing in such a pile of shite in the first place tbh.

Attually they froze the last IPO whist they sorted out these terms, that's why it is an update.

This IPO is a joke , you can't change terms at will after issued shares.

Your CONTRACT says :

"Shareholder Protection

The IPO will prove successful with the sale of at least 30,000 shares. If fewer than 30,000 shares sell within 30 days, CryptX will refund the entire IPO to shareholders."

Do you know what a CONTRACT is?

Here's a hint : it isn't something that one party can change at will in forum posts.

EDIT : and "as early as end September" means absolutely nothing.  A useful time-scale is "no later than X".  "as early as" solely means "not before" and covers any date on or after the stated time.  It's a weasel-word phrase that gives the impression of one thing whilst actually meaning the opposite.  Careless readers think it means deployment is promised/guaranteed for end of September - when all it actually promises is that it won't be before then.  Noone wants to know the earliest date deployment of something could be (as it's meaningless) - everyone wants to know the date it's guaranteed to be deployed by.

I just creamed my pants

UPDATE 31/08/2013

CryptX is pleased to announce the deployment of 20 TerraHash as early as end September (BitFury chips). The net mining revenue of this 20 TH/s will be divided over the shareholders until their total investment is recovered.

CryptX will also limit the sale of shares to a maximum of 10,000. This means that no more than 10,000 shares will be sold and mining revenue will be divided over those shares. Shares will be sold in batches of 2,000 shares each, starting at 0.65BTC. Price with each new batch will increase with 0.01BTC.

As stated in the initial shareholder agreement, for each share sold, 10 GH/s of hashpower, based on CoinTerra systems, will also be deployed in December, this equals to an additional 100 TerraHash by December for 10,000 shares.

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Thanks for your questions, we appreciate you sharing your remarks and hope to provide some clear answers:

The pricing perception is probably caused by the recent BTC rally (and can works both ways). When we prepared our launch last week, BTC rate was hovering at $105, or $6,8M for 1PH. In addition, shareholders get 20% (2GH) extra per share until their initial investment of 0.65BTC is recovered -> 1 share is 12 GH/s (at the rate of $105 = 5.68$/GH or at todays rate of $125 = 6,75$/GH, which is still lower than retail prices).

Regarding reinvestment, we will continue to deploy additional systems at below market retail prices. The additional hashpower and mining revenue will be equally divided over all shares.

We are under strict guidelines/agreement not to disclose pricing information regarding our bulk purchase of chips in public, this is also in the interest of the PETA-MINE project (as not to disclose sensitive information to competitors) and not to jeopardize our relationship with CoinTerra. But, as stated before, we are able to purchase chips at a lower rate then current retail prices.

Maybe there's a correlation between the latest news on btct and the trading volume.