Topic: Factom Will Sell Up To 100% Of Its Bitcoin Reserves (Read 1579 times)

Huh?  But the market cap is going down.  That means money is going out, not in.

It doesn't matter how they're doing it: Coins being sold always means that someone paid money for those coins - money that maybe would have entered the open market in some sort. It always leads to a decrease in buying pressure!

Yes, you are totally right, if they accept fiat, they will be accused by SEC and FinCen, their ICO/IPO is obviously illegal in US.

Based on my own understanding, there are a number of interpretations after reading this news article

1) They are going to do an auction to sell off their coin reserves. If they have it sold to investors who will continue to keep the coins, then it should not be a problem affecting the price. Else if this goes to the open market competing with the coins already put on sale, this will be bearish towards bitcoin price. Is selling the coin reserve *only* option due to severe shortage of funding? There are questions remain to be answered.

2) These Bitcoin 2.0 companies are entrusted and is supposedly tasked to build and develop new technology on top of the existing bitcoin network. So does selling off the coins reserve go against this principle? Where is the integrity of these so-called bitcoin 2.0 companies after what we have seen happened with Ethereum?

Well this is just the way startups go. They may succeed or they may fail. They had relatively solid and good ideas, and it's not completely their fault these didn't work out the way they intended. Just they way the world works, I guess.

Maybe the other Ethereum, both are braggers, just dump their unfinished products to investors, and screw investors. Wow, guys you forget Ethereum? Buy factom if you wanna give the free money to the dev team   And they get rich, we get poorer. 

Well, what do you expect if a company or a project is funded using BTC? This is the biggest difference between VC money invested by Wall Street or Silicon Valley and regular old Bitcoin projects - projects funded in BTC generate selling pressure!

Don't go full nerd about it. 

Such non profit.

I will agree with the above statement.
Bitcoin did NOT reach version 1.0 yet and it's still in beta.

How are some people creating "Bitcoin 2.0" projects really makes me wonder....

Please, stop. There's no such thing as a “Bitcoin 2.0” project. Bitcoin is at version 0.10, and any project that works on top of Bitcoin but is not Bitcoin, should not be called Bitcoin.

Factom has been as open and transparent as we can make it.  The Bitcoin we are raising is paid out only after making milestones that require full delivery of the project. 

I would study up on Factom and many of the other projects before making such blanket statements.

So much defensiveness about Bitcoin related projects on here. Yes many are outright scams and money grabs but some will only help Bitcoin. I believe Gems could be the biggest boost for Bitcoin for ages.

https://play.google.com/store/apps/details?id=org.getgemsmessenger.app&hl=en

This, along with Ethereum, are nothing but more super hype IPO scams. They sell it as the next big thing, and they end up never finishing the project because its too ambitious, that is if they ever intended to finish the project tho. They'll end up claiming bankrupcy while keeping all the BTC they sold somewhere.

Literally the only big project that is Legit with capical L is Maidsafe. You can trust David Irvine blindfolded but you can not trust that Russian punk.

We are raising funds for a project.  From the beginning we disclosed the fact that we would not be holding Bitcoin.  This is because our expenses are nearly all paid in dollars (with the exception of most of our employees, whose salaries are none the less denominated in dollars, because they have the same issues with their expenses).  That said, we don't have access to ANY of this money.  Koinify holds the money until we meet predetermined and documented milestones.  But the money is managed none the less.

The timing of the first sale was just a function of getting the banking in place.  The fact that the first sale coincided with a drop in Bitcoin is just coincidence (but it really worked out poorly for us).  The amount sold ~400K was done off market, and not enough to move the price on April 15 where 56 Million in bitcoin was bought and sold.

Factom is one of the most transparent projects in the space.  At the same time, it is one with the most interest outside the cryptocurrency space.  It is a mechanism to bring the honesty and immutability of blockchain transactions to create immutable audits in business processes.... WITHOUT having business change the way they do those practices, and without requiring them to hold our tokens (or any tokens).

Every single project has many detractors.  And every project comes with enormous risk.  That is why most startups fail.  It isn't always or even common that the fault of failure is fraud.  But this idea that all Bitcoin 2.0 projects are fraudulent because they found the problem they are working on to be harder than expected.... It gets old, and eventually it will be proven wrong by some of the companies as they make a new market that isn't dominated by corporate boardrooms. 

Checkout http://Factom.org.  Checkout http://github.com/factomproject  Watch the videos. Read the whitepaper (can be found at the aforementioned links).  Read the consensus algorithm (ditto about the links).  Read the code.  Read the issues.  Connect with us on nearly all social media.

Basically spend the time to Audit what we do.

The Math doesn't work, and we didn't sell the coin on the exchanges.  The volume of trade on the 4/15 was 56 Million USD.  We sold ~400K.  I don't think there is any way Factom's sale of tokens did anything to the market.

Many bitcoin startups are just speculators, they went to bitcoin for a quick fiat profit. When bitcoin exchange rate is going down, they will panic and cut their loss near the bottom 

this is exactly spot on, its mostly just a scheme to defraud crowdfunders

Dude they accept btc so later on they can say "oops our plan did not work out, chao"

Accepting Fiat would have SEC and FinCen on their asses

Bitcoin is currently at version 0.10.0. There's still a long way before version 1.0, let alone 2.0.