Topic: Kraken Fund - page 4. (Read 17607 times)

You mis-typify the PPT.x situation.  Collectively as a group (six of us) there were discussions around how to make it profitable and provide a good return to investors.  One of the things, because of its structure, was that it was quite small compared to the other passthroughs (12k vs 25k for a "trust" account and 150k that Payb.tc was assumed to have).  I didn't agree with some of the suggestions being made and thought they would be too far away from what the contracts allowed.  I could also see a use for the asset and liked how it runs, so I negotiated with the other five holders to purchase their stakes in the business.  Then BS&T closed and things were rather screwed up as I looked after the obligations at the time, and continue to do so.

Other than Chaang, I did not have anyone else ask me to take over their PPTs, but I did have a few people ask if they could operate sub accounts (three people), and the recovery efforts I'm taking aims to have them repaid as well.  Nothing particularly complicated.

Wait, so almost all the PPT operators tried to sell their operations to you when it became obvious the situation was unsustainable?

Like rats off a sinking ship 

Nice to know the private newsletter is getting some circulation and that Chaang took the time to read it.  Fortunately the PPT series retains value and I am committed to paying out on those even if it takes a little time.  I am less sure of the Tygrr bonds which are possibly worthless given the additional issue of liabilities without clarity of assets to back them.  I am also pleased I didn't take up Chaang's request to take over his PPT business on GLBSE although it might have been better for his investors if I had done so (but we'll never know).

That's interesting. There's been an odd dearth of actual evidence of Pirate paying out despite him claiming to have done so. Insured passthrough that somehow didn't implode?

+1, patrick will take the hit himself if pirate takes us all to the cleaners.

Patrick guarantees Kraken investors face value.

The market is only valuing BS&T debt at ~3% of face value, so Kraken is essentially carrying a large amount of unrealized losses.

That is incorrect.

In any event, there are steps to recover funds from BS&T.

I probably don't, but here's the thing, anything bitcoins for me is a high risk investment. I never invested anything more than I could accept as a loss.
 I would really rather me and him work out any problems we have as I'm a reasonable guy, if there is a serious problem we can work around it, however if he does run I have the ability to write it off as a loss.

Skype doesn't cut it. If he did run, would be you have any legal means to get your money back? Are you sure?

if patrick runs with my money, I will eat my shoes, I have him on skype and talk to him every night about how things are progressing, and the weekly newsletters he gives out to kraken members is quite informative on how his business is working out.

Look, bitcoins are already up 170% YTD. And you are so greedy that you are willing to lend them to some dude on the internet for some fictional returns? The price appreciation of bitcoin is due to market forces-- there is a real demand for them. These schemes are nothing but a bunch of hot air from an anonymous person (remember when pirate was saying "oh look everyone knows who I am this can't be a scam!").

Nobody looks like a scammer until they run with your money. And no, it is not possible to have an anonymous lending economy without legally enforced property rights. That's not what bitcoin is for.

Hm, putting BTC into the sceme worth 6% pulling it out at least 3%, if doing it quicker then 6%. And what will u do if btc price drops or becomes worthless?
So if u were using your credit card u would have to work first month only to get back transfer fees.
Again, it said that 2.5% is maximum, actually it could be much lower. So this fund makes much more sense to me than all other.

Ugh

If anyone could reliably make 2.5%/w they would be doing it with their own money.

If they needed to borrow money they would use a credit card cash advance, which is actually cheaper than 2.5%/w.

Check

Mate

Its

A

Scam

It says up to 2.5%/w.
Lately it was only 0.5%/w.
You can see yourself how it is possible to make 2.5/w and more in bitcoin world.

Cool another scam/scam circlejerk/bunch of idiots handing out their money to a criminal (despite what his "wife" thinks). What a great day for bitcoin!

How are you making 2.5% a week, Mr. Anonymous Internet Business Genius Patrick "Pirateat40 has a AAA credit rating" Harnett?

Tell him to keep his chin up.

how

It's been a couple of busy days and I'm catching up on a few things, but the time has also given some space to do some thinking as well.

First up, those in K1 know the initial asset allocation, and that included some distressed BS&T debt.  Of the accounts purchased, one was paid and provided the first week returns (a little over 0.5%).  For week two, a flat 0.5% was paid and the tentative plan is to look at making a similar payment this week.

Going forward, despite what the forum trolls like to say, there is a newer opportunity with some of the HashKing debt.  I know some about what he's been doing in terms of hardware and I talk to him every day (normally via skype) and he is part of YABMC with me and JWU42.  He tells me payments would be daily (!) but Kraken pays weekly.

There are also a number of other assets that might be worth picking up as some GLBSE prices have been trashed.  The other aspect I am investigating is transferring or offering the profits from a BTC hardware business I have a stake in to the fund (again, a lumpy revenue stream from a real world business), but I need to sort some issues out with the majority shareholder.

And finally, there are some additional spaces opened up in Kraken Fund.  Because it is not a simple deposit system, redeeming funds/units is a bit more tricky.  There are three slots covering 1400 coins, and each account is entitled to a maximum investment of 1000.

Thank you for the expressions of interest in the available Kraken spot - it has been taken.