Topic: [IPVO] [Multiple Exchanges] Neo & Bee - LMB Holdings - page 194. (Read 658701 times)

This will end my sockpuppeting, but I'm most confident and optimistic about N&B out of all my current investments.

It will be a constantly changing reserve and ratio, because there are so many contributing factors. The updates to the prospectus will demonstrate this much better than words alone.

I'm impressed

Thank you for your answers, this cleared up a lot.

Issues of centrality aside, I do think an easy to use service layer of Fiat => Bitcoin => Fiat could very well help both mainstream propagation and closing the loop.

Looking forward to see your updated prospectus. I'm especially interested in your planned ratio of Bitcoin reserves to Fiat accounts holding (eg. for every EUR 100,- in a Fiat account you hold EUR 200,- worth of Bitcoins at free market price)

I failed to answer one part of the questions from HeRetik

number of current account holders of traditional banks, number of people closing accounts with traditional banks... ?

We know from the statistical figures released by the Central Bank every month as to what deposits are held by Monetary Financial Institutions, the Bank of Cyprus being the largest MFI has been losing vast sums despite the €300 per day withdrawal limit. I will provide a monthly breakdown of figures when I get a chance (maybe later this evening or early hours tomorrow morning). Sorry I don't have the time to do it right now.

Thanks, cryptocyprus, keep up the good work!

The maximum income from the IPVO following a complete sell out of the public offerings would be BTC25,250 the required sales to get to market as planned is BTC14,097 by the start of February 2014. (Depending on the exchange rate) However the more we sell the stronger our starting position is.

Please also note that the majority of our strategic partners are being compensated in BTC at their request, so these will not just be dumped onto the markets following completion of the IPVO.

The prospectus will be updated (Monday/Tuesday) to reflect these figures, as some last minute changes had occurred.

Great post and questions HeRetik!

This project sounds very interesting, but I'm still not sure what to think. To be honest it sounds pretty crazy, but then again it might be just crazy enough to work. I do have a problem with the aspect of centralization though. If this takes off, it will bring quite some volume to the market, but it might also become a single point of failure, not unlike the legacy banking system. If this project goes awry and non-Bitcoiners lose money (i.e. your Fiat clients) the media is going to have a field day. Bitcoin should still be considered a highly speculative investment, therefore bringing "civilians" into the mix that are just looking for a safe place to store their Fiat seems pretty risky. Banks using high risk assets for saving accounts is partially what caused this financial mess in the first place. In other words, please make sure to have proper contingency plans and exit strategies prepared to avoid financial damages to your clients and reputational damage to Bitcoin. Nonetheless it's great to see a fresh, bold project apart from the regular mining operation or gambling site. Especially one that aims to propagate the mainstream use of Bitcoin.

100% agree that we shouldn't become a single point of failure, that is why we want others to follow in our footsteps once we have shown that Bitcoin can be adopted en-mass.

We are using multiple signature addresses to ensure that if we as a business fail, the depositor can gain access to their Bitcoin through a separate legal entity. This step by step process will be provided on account opening and available online, to ensure that the customer is well aware that they could get their Bitcoin out of their wallets if we were to go out of business.

Bitcoin will always be highly speculative and extremely volatile until it attracts more users and has many more real world applications, the volatility will only be addressed through volume, something we will be contributing towards. As our customer base grows naturally retained deposits shall follow suit, the more Bitcoin we hold for our customers, the more we will know what is happening to a larger percentage of the coins available. (For demonstrations sake and ignoring slippage; if we had a customer deposit €1m into a 12 month time-based deposit account, at the current price on Bitstamp $125.64 that would equate to BTC10640.7195, we would know that those 10640.7195 Bitcoin cannot be dumped onto the public markets to influence the price negatively for a minimum of 12 months, but that would only happen if we needed to liquidate those coins, to cover the withdrawal.)

It is still early for Bitcoin, however it will always be "early" if the big steps towards mass-adoption are never taken.


2 questions:

a) I'm not sure whether I understood your course of action correctly.

   Step 1: Buy up Bitcoins on the free market (ie. other exchanges) which will serve as your backing

We will not acquire all of our coins on the free markets, doing so could mean that we are initially buying off the back of our own hype, so we will also be purchasing them away from the exchanges. We are also in talks with the owners of trading platforms, that operate out of Cyprus (for tax reasons) to ensure they integrate Bitcoin on their platforms, we are also proposing that the board members of the companies, that own these platforms partake in our lobbying efforts.

   Step 2:  Keep the Bitcoins in the local market (ie. Neo) and trade them at local prices

That is what Bee is for, to create somewhat of a closed loop economy, thus ensuring the maximum number of Bitcoin can remain here in Cyprus. Once others follow our lead it will present more opportunities to establish a new global infrastructure to allow frictionless cross border transactions between our own institutions. This would also allow the migration of customers deposits to others offering the same user friendly services should for any reason one of the businesses fail.

   Step 3: Buy / Sell Bitcoins on the free market to make your Bitcoin holdings correspond to the Fiat your clients have deposited (at a much smaller Volume then Step 1)

Yes but also including other platforms that we shall trade on, we do not trade the funds held in our customers wallets, once the rate changes locally we shall automatically balance their Bitcoin from our own reserves, will will never be illiquid unless we cannot acquire enough BTC to complete the adjustments required following a drop in price, to our depositors wallets, as previously mentioned in the thread I shall be providing an updated prospectus either Monday or Tuesday that includes scenarios that include the worst possible case scenarios and their effects on our reserves and the strength of our business.

   Step 4: Profit / Loss depending largely on the difference between the Fiat holdings of your clients and the Bitcoin backing required.

We will be introducing other financial related products to increase the amount of revenue streams we have, these include; insurance products, lending, international money transfer services and many others.

Is this correct or did I miss something?

b) What figures are you basing your estimated numbers of accounts on (eg. 3100 accounts in February)? Your expected reach in advertising, number of current account holders of traditional banks, number of people closing accounts with traditional banks... ?

We have a strategic partnership with Telia & Pavla BBDO who will be responsible for our marketing and PR activities, they have worked with some of the largest brands in the world and achieved great success when launching new innovative products to the Cypriot market. The figures in relation to our marketing reach for television advertisements are included in the prospectus, the reach is forecast at 85%, whilst targeted at those between the ages of 25-54. We also have radio, print media, online media and out of home campaigns (Billboards both inner city and along the motorways) happening alongside our below the line campaigns.

Sorry in case any of this has been answered before. I very much appreciate your transparency and responsiveness so far.

We want to be transparent with everyone and thank you.

^^ good post

This project sounds very interesting, but I'm still not sure what to think. To be honest it sounds pretty crazy, but then again it might be just crazy enough to work. I do have a problem with the aspect of centralization though. If this takes off, it will bring quite some volume to the market, but it might also become a single point of failure, not unlike the legacy banking system. If this project goes awry and non-Bitcoiners lose money (i.e. your Fiat clients) the media is going to have a field day. Bitcoin should still be considered a highly speculative investment, therefore bringing "civilians" into the mix that are just looking for a safe place to store their Fiat seems pretty risky. Banks using high risk assets for saving accounts is partially what caused this financial mess in the first place. In other words, please make sure to have proper contingency plans and exit strategies prepared to avoid financial damages to your clients and reputational damage to Bitcoin. Nonetheless it's great to see a fresh, bold project apart from the regular mining operation or gambling site. Especially one that aims to propagate the mainstream use of Bitcoin.


2 questions:

a) I'm not sure whether I understood your course of action correctly.

   Step 1: Buy up Bitcoins on the free market (ie. other exchanges) which will serve as your backing
   Step 2:  Keep the Bitcoins in the local market (ie. Neo) and trade them at local prices
   Step 3: Buy / Sell Bitcoins on the free market to make your Bitcoin holdings correspond to the Fiat your clients have deposited (at a much smaller Volume then Step 1)
   Step 4: Profit / Loss depending largely on the difference between the Fiat holdings of your clients and the Bitcoin backing required.

Is this correct or did I miss something?


b) What figures are you basing your estimated numbers of accounts on (eg. 3100 accounts in February)? Your expected reach in advertising, number of current account holders of traditional banks, number of people closing accounts with traditional banks... ?


Sorry in case any of this has been answered before. I very much appreciate your transparency and responsiveness so far.

According to the latest prospectus the IPVO will raise BTC24,600
But it says that the launch will require BTC13,856. So I'd guess that's a minimum that needs to be raised.

What is the total amount that will be raised?

Yes, there is lots of demand for a solution to the problem that people have just experienced, but Bitcoin needs to be simple and the common shortfalls of Bitcoin needed to be addressed, so we have done just that to ensure the use of Bitcoin here has a good chance of taking off on a scale previously only dreamed about.

This definitely looks promising.  I don't know how many people would be interested in bitcoin in Cyprus on their own, but given the government confiscations of money in bank accounts there, I would expect you'd have a lot of demand for it.

Was it unclear?

The more I click on this thread and the more I hear from its leadership, the more promising this whole pursuit becomes.

And I'm not alone.

Acquaintances of mine who don't want to get involved in mining securities are heavily looking into investing in N&B. The potential is spectacular - let's keep this up.

We haven't launched any PR campaign as of yet. People know we are coming but no mass media at this moment in time, our offices are located in a landmark building so that shall also raise our presence locally once we take delivery of them on the 23rd September.

The piece in the newspaper came as a pleasant surprise.

Monday/Tuesday an updated prospectus shall be released because the most concern in this thread has come from some misunderstandings on how we will be operating. These will all be addressed to make it much more clear as to what we are doing including the effects of a 75% flash crash over a 2 hour period without any recovery of the rate during that day. To make the scenario even worse, we shall include a run on 100% of instant access accounts during our first day of accepting deposits to demonstrate that we will still be in business should this event occur.

Great news that local media have started talking about bitcoin.

From what I understand the company has not launched any PR campaign yet, is that right?

Awesome that the local news already picked it up.

I think they give a great rundown of the best reasons Cypriots would find this valuable. They say that any publicity is good publicity, but this is great publicity!

We have already been noted in the local media, specifically in their "Markets" section, we did not get interviewed for this piece, it just appeared in the largest Cypriot newspaper Phileleftheros in their Sunday edition (25th August), I have included a brief English translation below for those that cannot read Greek because the only words in English are my name, LMB Holdings and Bitcoin. We shall have a full page feature in the coming weeks following a media briefing.





At the final stages is the launching of a Bitcoin exchange in Cyprus, which also will offer banking services. Behind this is the company "LMB holdings".

What is a Bitcoin? The simple answer is "A Crypto-Currency".

Bitcoin is an algorithm that runs in a decentralized virtual network of computers that have downloaded the Bitcoin program, which anyone can download to participate in the network. This program allows Peer-to-peer transactions through cryptographic messages, all these transactions get verified by at least 51% of the network before it is approved and saved (in the block). All complete transactions are saved in the Block and cannot be edited.

The Bitcoin exchange in Cyprus will be within the Cypriot law, This will offer traditional bank services (savings accounts, current accounts, electronic payment with a card). But all of this without the dangers of a haircut, without transaction limits inside and outside of Cyprus and lower transaction fees for electronic purchases.

LMB Holdings has raised it's required start-up capital by Bitcoin investors worldwide with their goal for Cyprus to be first in the world to use Bitcoin as a main-stream currency.

Because the ECB and the CBC have refused to give their opinions on the matter, Danny Brewster - founder and president of LMB Holdings has stated that he will agree with any decision that the ECB and CBC will take on the issue.

Some of the information is not correct as we gave no interview for the piece. We shall be completing a press briefing within the next 3 weeks to obtain a full page feature on the business, despite some misinformation overall the article holds Bitcoin in a positive light, without the usual mud being thrown at it.