Thanks for your post.
There will be fewer than 20 real members, although some members may have more than one identity. This is to allow them to discuss different asset classes in public. All identities will be known to the other members.
I am in the UK, and the hosting is in the US. Membership will not be based on nationality.
Initial investment will be fairly small, as it is an experimental venture. Probably not more than $100 per member in the initial stage.
Investors will probably be trusted members of the Bitcoin Talk forum, but this is open to discussion with the initial members.
I think it is important that all investments are made based on collaborative decisions. This is for two reasons, it helps with the education of the members, and I bellieve that the joint decisions change the legal status of the club.
My initial idea was that the purchases would be real asets, but I'm open to discussion about the possibility of purchasing short futures, and these may include gearing ( leverage ).
Topic: I need some advice on setting up a crypto investment club - page 2. (Read 495 times)
I am an attorney, so I can probably offer some advice. The answer to your questions begins with what exemption from securities laws that you fall under. Do you know the people who will be investing into the partnership? Are they located in the US or abroad? How much are you seeking to raise for the club? How many investors do you envision having in the club?
I've installed Drupal 8 in a directory on the crypto coin tree web site -
http://cryptocointree.com/clubroom/
There is a forum on that, but it's public, and I really need the initial chat to be private, as I need to take advice. JackG is pretty much on the concept, and I wanted to start in a fairly small way - maybe just $50 or so.
I might use the blab chatroom for discussions if JackG agrees. I'll keep this thread going for public discussions of course. Right at the moment, I'm more concerned with the concept, and setting up the environment. I don't want any investments until the market is a bit more favourable, although I' thinking of shorting Bitcoin. That's specualtion rather than investment though.
http://cryptocointree.com/clubroom/
There is a forum on that, but it's public, and I really need the initial chat to be private, as I need to take advice. JackG is pretty much on the concept, and I wanted to start in a fairly small way - maybe just $50 or so.
I might use the blab chatroom for discussions if JackG agrees. I'll keep this thread going for public discussions of course. Right at the moment, I'm more concerned with the concept, and setting up the environment. I don't want any investments until the market is a bit more favourable, although I' thinking of shorting Bitcoin. That's specualtion rather than investment though.
I’m guessing the coin will be backed physically by other investments/coins which should be stored off the exchange and in a wallet node of itself where possible.
With the club members voting on the coins they want the coin to back.
I’ll put some coin into this too. I think the price of the coin at the time should be considered and not the fiat value also to determine the amount of shares people have.
With the club members voting on the coins they want the coin to back.
I’ll put some coin into this too. I think the price of the coin at the time should be considered and not the fiat value also to determine the amount of shares people have.
I want to be updated about this investment club Jet Cash, and contribute if possible (probably as an investor or helping the project to getting started).
Maybe you could create a thread about it in bitcointalk where you post the updates?
Maybe you could create a thread about it in bitcointalk where you post the updates?
The financial costs of running the club is negligible, and I will pay those. Adding the revenue to the investment pool provides an incentive for members to make public comments which could attract viewers.
The coin needs to be a centralised record of members "shareholding", and it could be exchanged between members, but not outside the club. A member withdrawing funds would result in the associated coins being burnt. Members adding funds would result in coins being created, and the number would be related to the current value of the portfolio.
I'm not sure if there is any software available to handle a blockchain associated with these coins. It would need to include investment purchases and sales, as well as members deposits and withdrawals. Treating investment products as members could turn the blockchain into a form of double entry system, and mean that the financial structure is transparent. At the moment I'm not sure if it is really a blockchain project, and maybe a simple mysql d/b would be sufficient.
The coin needs to be a centralised record of members "shareholding", and it could be exchanged between members, but not outside the club. A member withdrawing funds would result in the associated coins being burnt. Members adding funds would result in coins being created, and the number would be related to the current value of the portfolio.
I'm not sure if there is any software available to handle a blockchain associated with these coins. It would need to include investment purchases and sales, as well as members deposits and withdrawals. Treating investment products as members could turn the blockchain into a form of double entry system, and mean that the financial structure is transparent. At the moment I'm not sure if it is really a blockchain project, and maybe a simple mysql d/b would be sufficient.
IAnother factor will be ensuring that the coin is not traded on third party exchanges.
The idea would be to trade it only inside the club?
If it's going to be an erc20 , its not possible to prevent it to be traded in Dex exchanges such as mercatox. Maybe use omni layer?
Quote
Some of the other topics I've considered are - what to do with any advertising revenue. How to value new payments after the fund has appreciated, and a few other things.
Advertising revenue will probably be small, it would at first moments, only enough to cover the costs of running and managing the club and website. Don't you think?
I know a bit about running small investment clubs in the UK. The real problem is in deciding how to create a coin, and to stop it being considered as a security. I think that one important thing is to ensure that all members are able to influence the value of the coin by contributing to the investnent decisions. I believe that, if this is the case, then the coin will not be considered to be a security. Another factor will be ensuring that the coin is not traded on third party exchanges.
I will be following this thread.
You need professional advice from those in your jurisdiction.
As a lot of laws have yet to be crafted by lawmakers and
as usual with monetary policy makers at the helm any
policies crafted now will probably be in constant change.
Find people who know how to comply with and monitor
securities laws in your jurisdiction
You need professional advice from those in your jurisdiction.
As a lot of laws have yet to be crafted by lawmakers and
as usual with monetary policy makers at the helm any
policies crafted now will probably be in constant change.
Find people who know how to comply with and monitor
securities laws in your jurisdiction
I'm not looking for investors or money, I'm just after advice. I'm setting up the Crypto Coin Tree private investment club, and I've installed Drupal 8 on the domain. I posted a few comment in the internal forum at http://cryptocointree.com/clubroom/forum
I seem to be spending a lot of time reading up on the legal implications, and also the creation of the private coin associated with it. The interaction between future members has also required a lot of thought.
Some of the other topics I've considered are - what to do with any advertising revenue. How to value new payments after the fund has appreciated, and a few other things.
Any comments or advice would be appreciated.
I seem to be spending a lot of time reading up on the legal implications, and also the creation of the private coin associated with it. The interaction between future members has also required a lot of thought.
Some of the other topics I've considered are - what to do with any advertising revenue. How to value new payments after the fund has appreciated, and a few other things.
Any comments or advice would be appreciated.
Jump to: