Topic: Ethereum: 2nd gen cryptocurrency with contract programming, "dagger" hashing - page 2. (Read 84330 times)

the second issue is the same  I raised for mastercoin and no one has given an answer
say everything about etherium is true, what is the advantages of owning 1 or 100 if what I am getting is access to a bundle of programable switches.
A clone will just come out with all the switches available for any fraction of a coin, or is near free. For example I don't pay much for the bundle of switches that is javascript to make my gmail function

So how is anyone able to invest and take advantage of the 2000ETH - 1BTC?  I don't see that info posted anywhere.

AFAIK the minimum investment is 0.1 BTC and anybody with at least that much BTC is free to invest. I haven't seen any restrictions at all, other than a) the deadline is March 31, and b) no more than 30,000 BTC may be invested. So I guess if a few huge whales invest in the first hour of the IPO they could shut it down early by fulfilling the capital requirements, but otherwise the opportunity is open to anybody who wants to take advantage of it.

But this means that the valuation they're raising at is NOT fixed. Since the post-money valuation is 1.5X BTC, and the investors put in X BTC, the pre-money valuation must be 0.5X BTC. But that's not a fixed number: the more interest in the IPO, the higher the resulting valuation they raise money at (in direct linear proportion). If 1000 BTC of money wants to get in, then investors are collectively valuing the existing company at 500 BTC. But if 10,000 BTC wants to get in, then it must mean the company was worth 5,000 BTC initially. That's definitely not the way startups typically raise money, but it is not completely absurd, either. The more VCs that are competing to put money into a startup, the higher the valuation is going to be. The difference here, though, is that all the money doesn't go in at once. Only the people who invest BTC at the very end of the 60-day window will know approximately the actual valuation at which they're investing. The people who invest early on, might think they're getting 1% of the resulting company, but end up only getting 0.1% of the company.

If they chose to, the founders could address this in two ways. One way is to have an explicit pre-money valuation cap, of, say, 5,000 BTC. Then, the founders would receive min (0.5X, 5000) BTC worth of Ether, but they could end up owning less than 1/3 of the company. The other way would be to put a cap on the amount they're willing to raise in the IPO. If they committed to raise no more than 10,000 BTC, then the pre-money valuation is capped at 5,000 BTC, but the founders also guarantee they will still own 1/3 of the resulting company. This would be easy to do: simply return investments once 10,000 BTC had been reached. The benefit of both these approaches is that ALL investors, early and late, know the maximum they are paying for the company.

I do think it would be wise for the founders to do something of this nature, since it strains the imagination that a company which hasn't actually yet launched a product should be worth more than about $10 million (and even by Silicon Valley standards, that's a stretch). There's also a limit to how much and how quickly a large amount of capital could actually be effectively used. If they somehow raise $100M of BTC, it'd be awfully tempting just to split it up and go sit on a beach in a non-extradition country somewhere...  So, just spare yourselves the temptation, guys. :-)

Confirmed.

It's not cool to keep dragging the man's age into the discussion. If you think he is too young and unpredictable then the best course of action is to stay away from this project. Also he is but one among 4 officially stated founders and perhaps one among a larger group of developers involved in this project...

Breaking deadlines always bad sign.

Borderline fud...  Vitalik dropped out of the University of Waterloo to pursue cryptocurrency

WTF start in 7 days?? why?

Limited resources = electricity gets more expensive = mining isn't as profitable = fewer miners waste electricity mining.

AFAIK the minimum investment is 0.1 BTC and anybody with at least that much BTC is free to invest. I haven't seen any restrictions at all, other than a) the deadline is March 31, and b) no more than 30,000 BTC may be invested. So I guess if a few huge whales invest in the first hour of the IPO they could shut it down early by fulfilling the capital requirements, but otherwise the opportunity is open to anybody who wants to take advantage of it.

It was my understanding that anyone could take advantage of the 2000 per BTC rate, is that not the case?

Well that sounds unfair, so I guess it isn't technically an IPO if only a few people can buy

crowd funding starts in seven days according to new countdown on website, so I guess some selected people will get 2x coins this week, rest got to wait.