Deposits for debt swap ... or deposits for shares swap ... (albeit now evaporated deposits mind you)
Convertible deposits
Topic: Make Bitfloor solvent so it can resume operations then pay back losses - page 2. (Read 3057 times)
September 06, 2012, 05:45:22 PM
Deposits for debt swap ... or deposits for shares swap ... (albeit now evaporated deposits mind you)
Convertible deposits
September 06, 2012, 05:37:37 PM
This is what IPOs are for, it has been proposed a few times in its thread.
Loans and equity investments are very different things from tax, finance, and legal perspectives.
And while people enjoy playing "grey area" with the status of BTC's, the legal status of a GLBSE "IPO" as promoted/offered by a person/entity within the US' jurisdiction is clear: it's a violation of the securities laws, and may even be a crime.
I realize it's fun to think that anything that touches the Internet is exotic and weird and completely beyond the vision or comprehension of a regulatory or law enforcement agency - but the 1980's called, and they want their Internet back. We're going to have to use our boring 2012 internet, and - news flash - it is not beyond the reach of regulators and governments.
September 06, 2012, 05:20:32 PM
This is what IPOs are for, it has been proposed a few times in its thread.
I have no funds in Bitfloor but I'd buy a few hundreds BTC in shares if he valued the company appropriately and his plans for security looking forward were reasonable. This would also mean even less revenue short term and he's running things quite tight at the moment so there's that as well. Life is expensive in NY. Say he IPOed 50% in GLBSE and only covered the losses with that, that would leave him with under 1K US$ a month revenue for himself at least for some months.
He needs financing now. I understand that means losing part of his own "child" and a lesser part of the cake but the fuck-up was massive and I guess he needs to take responsibility for that. He cannot continue running it as a one man's shop without external capital I'm afraid. He also risks losing the whole thing and having his reputation destroyed.
He might also strike a good deal from an angel investor but after past events this would seem rather unlikely to me. But in Bitcoin world everything's possible.
I have no funds in Bitfloor but I'd buy a few hundreds BTC in shares if he valued the company appropriately and his plans for security looking forward were reasonable. This would also mean even less revenue short term and he's running things quite tight at the moment so there's that as well. Life is expensive in NY. Say he IPOed 50% in GLBSE and only covered the losses with that, that would leave him with under 1K US$ a month revenue for himself at least for some months.
He needs financing now. I understand that means losing part of his own "child" and a lesser part of the cake but the fuck-up was massive and I guess he needs to take responsibility for that. He cannot continue running it as a one man's shop without external capital I'm afraid. He also risks losing the whole thing and having his reputation destroyed.
He might also strike a good deal from an angel investor but after past events this would seem rather unlikely to me. But in Bitcoin world everything's possible.
September 06, 2012, 02:44:39 PM
For those of you that have Bitcoin or USD deposited at Bitfloor, I would remind you that if Bitfloor declares bankruptcy, you will only get pennies on the dollar back. Roman of Bitfloor said on September 4th:
“Once trading resumes, I hope to be able to start repaying BTC losses using the proceeds from fees. More information about this will be provided later. “
Probably the only way we who are creditors of Bitfloor will be made whole is if Bitfloor can continue earning revenue. But to continue operations, they must first become solvent. The best way for them to become solvent is for their largest creditors (those who had large balances in Bitcoin or USD at Bitfloor) to volunteer to redefine their account balances as a loan to Bitfloor.
Bitfloor is the best exchange out there in terms of its technical implementation, their fees are very low, they don't require personal information, they are easy and cheap to get money in and out of. Their trade volume has doubled from June to August (according to Bitcoincharts), showing that they are a rapidly rising star among Bitcoin exchanges. They are currently making $2100 per month, but what if they continue to double their market share every two months as they have the last two months?
If Bitfloor doubled it's trade volume twice more as it has done in the past two months and the price of Bitcoins rose to $30, then Bitfloor would have a revenue of $18,000 USD per month. If half of these funds were used to pay off loans to large creditors, the lost coins could be paid off in about two and a half years.
I realize there is a serious risk that Bitfloor trade volume may not grow dramatically or that the Bitcoin price may not rise significantly. But if the major creditors of Bitfloor do not band together and give it loans or raise funds some other way, we are sure to receive only pennies on the dollar in a bankruptcy settlement, at best. Given this poor alternative, I think the creditors of Bitfloor would be more likely to be made whole by volunteering to redefine their current balances as a loan.
I have a balance of 600 BTC and 6,000 USD at Bitfloor and I am willing to negotiate loaning these funds to Bitfloor. I would want some new security protocols committed to and some evidence presented that Roman was not the thief (which I consider unlikely).
If you have a balance with Bitfloor and are willing to loan some of it to Bitfloor to make them solvent and allow them to continue operations, please reply to indicate what your balance is and what kind of terms you would be looking for.
“Once trading resumes, I hope to be able to start repaying BTC losses using the proceeds from fees. More information about this will be provided later. “
Probably the only way we who are creditors of Bitfloor will be made whole is if Bitfloor can continue earning revenue. But to continue operations, they must first become solvent. The best way for them to become solvent is for their largest creditors (those who had large balances in Bitcoin or USD at Bitfloor) to volunteer to redefine their account balances as a loan to Bitfloor.
Bitfloor is the best exchange out there in terms of its technical implementation, their fees are very low, they don't require personal information, they are easy and cheap to get money in and out of. Their trade volume has doubled from June to August (according to Bitcoincharts), showing that they are a rapidly rising star among Bitcoin exchanges. They are currently making $2100 per month, but what if they continue to double their market share every two months as they have the last two months?
If Bitfloor doubled it's trade volume twice more as it has done in the past two months and the price of Bitcoins rose to $30, then Bitfloor would have a revenue of $18,000 USD per month. If half of these funds were used to pay off loans to large creditors, the lost coins could be paid off in about two and a half years.
I realize there is a serious risk that Bitfloor trade volume may not grow dramatically or that the Bitcoin price may not rise significantly. But if the major creditors of Bitfloor do not band together and give it loans or raise funds some other way, we are sure to receive only pennies on the dollar in a bankruptcy settlement, at best. Given this poor alternative, I think the creditors of Bitfloor would be more likely to be made whole by volunteering to redefine their current balances as a loan.
I have a balance of 600 BTC and 6,000 USD at Bitfloor and I am willing to negotiate loaning these funds to Bitfloor. I would want some new security protocols committed to and some evidence presented that Roman was not the thief (which I consider unlikely).
If you have a balance with Bitfloor and are willing to loan some of it to Bitfloor to make them solvent and allow them to continue operations, please reply to indicate what your balance is and what kind of terms you would be looking for.
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