Topic: [CryptoStocks][Bitcoin Arbitrage Fund]Fund was closed, we bought back all shares - page 4. (Read 18478 times)

CryptoStocks lists blatant scams. Why even do business there?

I never posted in threads like this, but, considering how many people actually bought Labcoin, it might be helpful.  So:

OP wants your money.  If you're happy with giving him your money to trade 20% of it, and you're happy with paying 15% management fee if the gamble pays off, by all means go ahead.

Please keep in mind that OP's soundest exit strategy is saying "Okthxbai," or
(and this is more graceful) remaining incommunicado for a few days, thus inducing panic, letting the share prices tank & buying them up for nothing (rinse & repeat as needed).

Or any of the 101 proven methods of taking away your coin.

I apologize to the 99.9% of the folks reading this.  Yeah, i know you know.  The intended audience, both for my post & this entire thread, is the remaining clueless .1%.

*To folks asking for dox on bitfunder:  You're planning to mount international legal proceedings, rly?  Over a few BTC you've invested?

Right, if you are provided with 160BTC, successfully arbitrage, and then pay out dividends, then they will know that you can at least do what you say that you will.

Providing ID to cryptostocks is great, but it's not enough - it would be good to know who we're dealing with here before your entrusted with that much currency. I think you'll find people reluctant to invest with no credentials from you.

So many questions. How many 'round' have you previously done? How much money have you made so far? Do you still expect to make ~15% per round with the fees taken into account? What will you do if one of the exchanges closes, or one become more expensive than another? How will you close the fund, if necessary? What factors could lead to a fund closure?

There are SO many questions you haven't answered here. Look at the prospectus at any of these other securities that were listed on BTC-TC, especially, or BF - their are quite a few pages long, not a handful of paragraphs with no credentials.

Good questions:
1) We had posted email and passport to Cryptostocks to get Advanced Verification.
2) We don't have any other funds and stocks, however, we have performed arbitrage for several months and got nice scores.

Additional, https://btcUtiliy.com sells domains which can be paid in Biticon, it is a new try.

In fact, arbitraging is not a complicated activity, if someone finishs a round, then he will know everything.  

The biggest question here is (two actually):

1) Who are you?, and
2) Why should we trust you with a collective 160BTC?

Do you have significant trading experience, either in Fiat, BTC, or other exchange traded funds/stocks? How long have you been involved in BTC related activities and exchanges? Do you have any previous ventures? Were they successful or unsuccessful?

These are big questions that need answering.

Yeah, you are right, BTC-e's funding methods are particularly annoying. We have another choice bitstamp.net or we may transfer bitcoins every day.

To acquire high profit percent, we have to transfer money by International Transfer. This may take more days.

However, if we can perform an arbitrage round every month, then we can take 15%-20% percent profit every month.

This is also a good way to make money.

Thank you very much, we didn't notice this.

We will post verification documents today, at least getting Advanced Verification.

CryptoStocks site shows your verification level as "None", and this gets you nowhere.
I like the idea but unless you do provide certain provable ID documents to CryptoStocks and also to the public, the only people who may jump ahead to buy would be drunk or the newb fool. You should provide documents and full verification first!

Thank you for your advice.

You mean buy and sell at once on different exchanges, then transfer money.

In fact, this is not a secret for all of us. The point is to transfer money easily from one country to another.

So We can't agree with what you said  "If you don't know how arbitrage is done but you start a Fund".

We acted arbitrage process for many times.

However, as for you word, " This risk should not exist", It is correct, so We delete this risk.

Thank you for your advice again.

I think this is a good ideea, and i would invest in it, but the business plan is wrong.
 "(4) The price goes down fast, we may lose some money. "
This is not how arbitrage it's done. This risk should not exist. You don't have to wait for the funds to transfer between accounts. You must have funds available on bouth, or more exchanges and the secound you sel on one exchange you buy on another and you make a profit. Regardless on the price change, this should not affect you. And you must use the money so you do the arbitrage each day, transfer every day, not wait for the rounds.
You should substitute with:
 (4) The Bitcoin Arbitrage Fund disapears with all the investors money.
 or better make it risk number 1, because if you don't know how arbitrage is done but you start a Fund... this is really the only risk for the investors.

Updates:

(1) Bitcoin Forum time: November 12, 2013, 03:37:48 AM

The first dividend will be paid after 7 days, then we will start the first arbitraging process.

(2) Bitcoin Forum time: November 16, 2013, 04:50:48 AM

There will be the first dividend tomorrow.(After 24 hours from now)

(3) We observed the price differece between Chinese exchanges and abroad exchanges is getting small, it will make our fund more difficult to operate.

However, remember, don't sell any shares at price below 0.01 BTC, because if the fund is closed oneday, we will deliver all dividends and buy back all shares at price 0.01 BTC.

(4) Bitcoin Forum time: November 17, 2013, 04:54:51 AM

The first dividend 5% was paid, we began the first arbitrage process.
The first round,  All btc = 28.23 (All investment from shareowners)+ 40 (Investment from OP) - 1.416(the first dividend) = 66.814 BTC

The First Artraging Process:

>>>>>>>>November 17, 2013, 66.809 BTC rececied on Okcoin.com, 66.809 = 66.814  - 0.005 transfer fee of bitcoin network.

>>>>>>>>November 18, 2013,  66.809 BTC Sold on Okcoin.com, Total RMB= 3901 RMB * 66.809 = 260621.909 RMB

>>>>>>>>November 18, 2013, Withdraw from Okcoin.com to Tenpay ,Total RMB= 260621.909 * 0.995 = 259318.80 RMB

>>>>>>>>November 18, 2013, Tenpay transfer to bank account, Total RMB= 259318.80 - 200(transfer fee) = 259118.80 RMB

>>>>>>>>November 18, 2013,  Exchange to USD, Total USD = 259118.80 RMB/6.117 - 10 USD (Additaional fee) = 42350.44 USD

>>>>>>>>November 18, 2013,  Internet Wire Transfer to bitstamp.net 42330.44 =  42350.44 - 20 (Transfer fee)

>>>>>>>>November 21, 2013,  Received USD on bitstamp.net , the price was very high, we can't buy back orignal BTC amount, so we have to wait for a couple days to see whether there is a chance or not. 

(5) Bitcoin Forum time: November 17, 2013, 01:05:06 PM

We got Advanced verification from Cryptostocks just now.

Bitcoin Arbitrage Fund

https://cryptostocks.com/securities/66

Summary:

The purpose of this fund named Bitcoin Arbitrage Fund (BAF) is to arbitrage between several exchanges based on price difference of Bitcoin.

Business:

There are several BTC exchanges such as bitstamp.net, btc-e.com, btcchina.com, okcoin.com. We can observe that the price of Bitcoin is always different.

In the past two months, the prices of btcchina.com and okcoin.com were always lower than those of BitStamp.net's and Btc-e.com's. However, things changed within 15 days, the prices of Bitcoin of the latter are higher than the formers’.

The difference was always between 8% and 20%, So there is a good chance to arbitrage between these exchanges. As well known, China takes strict policy with foreign funds, so it is not easy for some of you to withdraw RMB to bank account in China, exchange RMB to USD, and transfer USD from China to the rest of the world.

However, as Shenzhen citizens in China, we have several bank accounts in Hong Kong. So it is easy for us to perform the whole arbitraging process. Of most important, this fund is operated by a full-time operator, so we have enough time to consider when to buy and when to sell.

Shares:

The fund will issue 20,000 shares at price 0.01 BTC, which is 200 BTC. The management will invest 40 BTC, which is 20% of all shares. So shares held publicly will be 160 BTC, which is 80% of all shares. The 20% shares held by management will not join the share exchange. All bitcoins included in the fund will take part in the arbitrage progress.

Assets, Dividends and Management Fees

There are no assess except shares, cash and bitcoins included in this fund.

Buy BTC from Btc-e.com, sell them on China exchanges, transfer money back to Btc-e.com and buy BTC again, we called these steps an arbitrage round. Each arbitrage round will take several days which is vary from seven days to fifth days. It depends on the time transferring USD from bank to Btc-e.com or bitstamp.net.

Dividends will be paid after each arbitrage round. 15% from all accrued dividends will be paid to management as management fees before being paid to shareholders. The rest 85% of all profit will be paid to all shareholders.

Transparency:

The fund seeks maximum transparency by fully disclosing all assets held in the fund at any time. Each round of arbitrage process will be disclosed to any shareholders. All dividends accrued and paid will be disclosed. All management fees will be disclosed.

Risk to shareholders :

There are some risks to shareholders, they are following:

(0) Price difference disappears. It will affect the price of shares.
(1) Exchanges closed suddenly, and we can’t take money back
(2) The coins held by exchanges were stolen, and we can’t take them back.
(3) Exchanges or banks delay our transfer requests.
(4) Other underlying risks, which we are not mentioned and we can’t control.

This fund does not hedge against any of these risks. Each shareholder must understand these risks before investing.

Fund Closure:

The fund's value relies on the price difference between exchanges. If the difference disappears, then management will close this fund giving 30 days notice. All assets in the fund including each share's value will be liquidated on the respective markets and paid to shareholders. Unpaid dividends will be paid to shareholders at the same time after 15% management fees.

[email protected]