Topic: Lab Rat Data Processing, LLC (LabRatMining) Official Announcement - page 91. (Read 452224 times)

To clarify:  I want to understand the causality for this, the "fix" he dropped is the resultant.   Which is causing him to talk to lawyers to create another fix.  What I want to know is what the original cause of this situation is. 

I have a not-insignificant number of coins invested as well, and am as concerned about them as any.

My read of Lab_Rat is that he is struggling to find a solution that everyone will find acceptable.  He's been placed in a very difficult position, and is looking for a legal way out.

And I'm not worried about my reputation -- I know I have dealt with everyone I have had contact with fairly, calmly and transparently.


grnbrg.

He also indicated he is having a detailed report on the issue produced and that "I'm doing what's necessary and I believe that the end result will be something everyone can live with."

While it might be nice to have all the information on everything related to LRM the instant it is available, that's just not how business works.  I expect we'll have something concrete within a week or two.


grnbrg.

I have lost 150+ bitcoins, so I don't mind to cost a little money to put you in prison.
grnbrg, I hope you can clarify the Real identity of lab_rat, and don't stand with lab_rat who are just a big fraud. Or you will also be put in the blacklist of bitcoin world.

No he didn't.  He said he'd attempt to find a way to benefit us.  Maybe he'll offer us a 25% discount on future bond purchases.  That would also qualify as an attempt to benefit us.  As of right now he has not once said he would honor the original agreement of our shares growing proportionally with the company's hashrate.

Also:
Current hashrate is 23-24 TH.
75% of it is 17.62 TH.

So as i understand, LabRat now will take whole 25% to himself(minus electricity)? No reinvestment part anymore?

Also, already asked:
What is real name of LabRat?

LOL - thats right, you dictate time frames - totally reasonable!

I'd make a longer list, but I'm giving him until friday to get his house of cards in order.

You are right, but he has acknowledged several times that the change made is a temporary fix and that "the specifics of the payout moving forward is being worked on".

LR could turn around and offer us 25% and that's when we, collectively, would take action.  There is zero doubt that we all based our investment decision on the promise of proportional BTC returns based on reinvestment and increased hashrate.  We know it, LR knows it and his lawyers know it.  They just need to work out a compliant way of achieving that and if they can't then something needs to change or the operation needs to be liquidated.

Let's see what they come up with.

You are right, but he has acknowledged several times that the change made is a temporary fix and that "the specifics of the payout moving forward is being worked on".

LR could turn around and offer us 25% and that's when we, collectively, would take action.  There is zero doubt that we all based our investment decision on the promise of proportional BTC returns based on reinvestment and increased hashrate.  We know it, LR knows it and his lawyers know it.  They just need to work out a compliant way of achieving that and if they can't then something needs to change or the operation needs to be liquidated.

Let's see what they come up with.

No he didn't.  He said he'd attempt to find a way to benefit us.  Maybe he'll offer us a 25% discount on future bond purchases.  That would also qualify as an attempt to benefit us.  As of right now he has not once said he would honor the original agreement of our shares growing proportionally with the company's hashrate.

I will make an attempt to clarify #4 in one quick sentence but the rest you can read a little more for.  Everyone who has contracts at this point in time is an "early purchaser" of contracts.  The company is still young and people should not be looking at this like it's all going to end in 3-4 months.  I can't count how many times I've stated Bitcoin is not a sprint it's a marathon.  For over 2 years people said that graphics cards were not profitable and in 4-6 months people will stop mining so much, but every time someone said that the price went up and they remained profitable.  Change =/= Death.

The very question implies a complete lack of understanding of the investment you have made. Your original 1 BTC investement, for accounting purposes, is converted to USD at the time it is was made. The tax system does not function under BTC - think of it as if you had bought Euros or Yen six months ago and then sold them today at a loss or a gain. Furthermore, the market is the place you go to sell your bonds (or whatever the hell they are actually supposed to be called) just like you would with any company where you wanted to sell your stake. There is no right of redemption in the "real world" of investments, nor should one be implied with any investment in the wild west of BTC land.  

I do not intend this reply as a defense of LRM or any other company in the world of BTC but rather as a comment on the seemingly basic and essential lack of understanding regarding accounting and business that seems to come through loud and clear when the shit hits the fan(s).

Also, while I took a pretty hard stance towards LRM in my initial reaction to this situation, I await further guidance from Zach, particularly in regards to the disposition of the incoming hardware, before a decision that this is bad or good. In fact, this may turn out very, very well not only for us but also for the entire space that this kind of business is working within. Its the bleeding edge people. Get your red blood cell count up because you might bleed a little more before its done.

I will make an attempt to clarify #4 in one quick sentence but the rest you can read a little more for.  Everyone who has contracts at this point in time is an "early purchaser" of contracts.  The company is still young and people should not be looking at this like it's all going to end in 3-4 months.  I can't count how many times I've stated Bitcoin is not a sprint it's a marathon.  For over 2 years people said that graphics cards were not profitable and in 4-6 months people will stop mining so much, but every time someone said that the price went up and they remained profitable.  Change =/= Death.

To be fair, LR already said that new hashrate will be divided between contract holders one way or another. He just hasn't proposed the method yet.

So right now we are stuck with 300mh contracts + his word.  It's far from ideal but it's not quite time to sue either.  Let's see what the proposed method is.

I'm stuggling to see why the change is necessary and how we will achieve adequate liquidity going forward, but the lawyers must have something in mind...

1. What is up with the 150TH order?

In one comment you wrote:
"No new hardware is in yet."
I had figured it wasn't in. But wasn't sure. So, that answers that part. But the question is a little deeper. Was the order actually ever placed, and if you were getting any updates.
I was speculating that since Coinseed's orders were so large that it would interfere with LRM orders. Ifso, that would stink.

2. What is the current status of the hardware resources you've been working on? Were any bridges closed or burned?

I found three relevant comments you made to others:
i. "There are certain important connections that are still in place, but there are things changing in the BTC hardware manufacturing community that are not my place to comment on."
Can you at least comment on if buying at prices comparable to what were expected before are at the least still achievable?

ii. "It has been done as an immediate fix, but the business world does not operate on same day basis unfortunately.  I can beg and plead for information today and I'll get answers by the end of the week if I'm lucky."
The second half seemed to be a comment about begging for hardware shipment updates. Is that correct?

iii. "No I can't as they are not my companies and releasing information that is not mine to release would destroy relationships built with manufacturers."
Ok, secret squirrel stuff.

3. Are you committed to LRM being an actual success?

No answer found.
This may have been answered in some effect, but I don't think it is entirely clear. Let me just ask: Do you have a confident (not necessarily certain) outlook for LRM and current investors for the long run?

4. Are you committed to keeping the spirit of the agreement you communicated and sold to everyone?
That spirit means you intend to continue to send out dividends in proportion to the growth of the whole company hash-rate, and maintain the same continual re-investment plan.

You commented in one place to another comment:
"I'm working on doing so and all I have done is provide an immediate fix that does fit into the original contract promises, with the intent to find a way to benefit early contract purchasers as more hardware comes in."
Is it correct for me to interpret this to mean that you do have the intention to do what you can to grow investors dividends with the company in at least the general spirit of the original agreement? In other words, you intend to diligently seek ways to grow investors investments (sounds obvious, but needs to be asked in light of how things have been perceived).