Below a recent report from the GLBSE asset issuer (he already received his investors' list from Nefario) to "explain" why he cannot pay dividends accrued from the GLBSE closure up to now as per the contract below, nor refund his investors.
My opinion is that both him and his associates are worth of a scammer tag.
Here is the consolidated version:
1. When YABMC expanded from 5 to 55 Gh/s (we planned 150 Gh/s -->
https://bitcointalksearch.org/topic/glbse-yabmc-growth-82249 ) this was enabled by the addition of hashking and Patrick Harnett. The 50 Gh/s of additional capacity (revenues from sales and future debt responsibility) was split slightly to the favor of HK and PH as I already had 5 Gh/s of commitments.
2. hashking has confirmed his inability to pay the accumulated coupons and further his ability to pay any future coupons. This represents ~33% of the outstanding shares (Note: There are 33,832 outstanding shares -- each partner acquired shares on GLBSE to meet their own needs and 732 were never sold).
3. Patrick Harnett has a debt burden much smaller (Responsible shares less purchased shares) and is trying to devise a plan to cover his obligation.
So unfortunately, best case, the past (i.e., accumulated) and future value of YABMC shares (namely the coupon) is ~66% of what they were post GLBSE shutdown. The shortfall of ~33% being hashking's inability to cover his past and future "debts" to YABMC bondholders. The 66% could decrease without the participation of Patrick Harnett - but not by an additional 33% as his debt burden of shares (Gh/s) is much smaller.
It should be clear that neither PH or HK will receive any coupons and they have effectively returned the shares to YABMC (so the burden is 33,832 not 54,278).
While we announced wanting to not re-list YABMC (the reasons/concerns are probably understood), I am now thinking differently. Not that it is a way to raise more capital - but it would allow bondholders a market to sell shares (if they so desired). If it remained private the ability to sell shares is gone and I am trying to make this BAD situation just a little bit better. My preference is
Bitfunder but I am open to your suggestions.
I deeply regret delivering this somber message so soon before the holidays.
Please know, as you have seen posted, my portion of the YABMC debt will continue to be sent to the
https://blockchain.info/fb/1yabmc address until a final plan is made (private vs. re-list).
PS - I will e-mail this as well for those who do NOT frequent the forum.
PPS - Bitfunder is offering a 10 BTC bonus if we list there. That would obviously be returned to the bondholders in light of the situation.
Original YABMC contract:
***Bulk Share Purchases Available***If you missed out (or want diversification) on the other VERY successful offerings by Meni Rosenfeld (PureMining), amazingrando (Bitbond) and gigavps (Gigamining), I offer the following 100% PPS bonds (transaction fee revenue excluded).
Offering:5 Gh/s total --
20 Gh/s is goal by July - increasing in 5 Gh/s increments * Currently provided by GPUs
* Transitioning to 6 BFL Singles when arrived (4-6 weeks
) to improve efficiency
5000 Shares @ 1 Mh/s
Price: The BEST return possible today on GLBSE for 1Mh/s @
.3 BTCReturn:Daily 0.00049386 BTC (493.86 μBTC)
Daily ROI 0.3406%
Weekly 2.3841%Monthly 10.3597%
** As of 8/3/2012 (Ask @ 0.145) with 50 BTC reward and Difficulty at 2,036,671.08869332 **Call Provision:The bond will be callable at 105% of the 15 day maximum price.
Coupons:A minor twist is to pay coupons at each change in difficulty (~14 days -- determined by market forces). When paying weekly (as most have done thus far) it creates additional bookkeeping for mid period difficulty changes. The timestamp on blockchain.info will be used to calculate the payout to the nearest minute.Effective after the coupon paid on 24 May 2012, coupons will now be
paid 2x per week (Tuesday and Friday at 1200 UTC). This will be communicated to all bondholders via a new functionality in GLBSE very soon.
Trust:I have another 4.6 Gh/s of personal mining capacity and am sincerely reviewing growth opportunities (mini-rig and LargeCoin). For now my focus is to bring this to market and then move forward in 5Gh/s increments (but this might change to 25 Gh/s increments). I have been involved in Bitcoin mining since February 2011 and have included my OTC references in my signature. I have been verified by GLBSE.
I am happy to discuss my mining operations via PM, e-mail or Skype at your convenience.Again, thanks for reading and your interest in
YABMC.
TermsThe holder of this bond will receive as coupons a number of bitcoins equivalent to 100% PPS output of ONE MILLION HASHES PER SECOND for as long as they hold the bond. This hashpower will be used in private computer systems owned by THE ISSUER and used in the process of "mining" bitcoins. All coupons will be paid timely (within 24 hours) after each change in difficulty (which occurs every 2016 blocks – approximately every 14 days). Coupons are not pro-rated; you must hold the share at time of coupon to be paid. All dates / times will be represented in UTC. In the event the cost of mining exceeds the value of coins mined, THE ISSUER may suspend mining operation for as long as it sees fit to mitigate potential loss, or indefinitely. THE ISSUER can buy back the bond at any time at a price equivalent to 105% of the highest price the bond was last traded on GLBSE over the previous 15 days (360 hours). Though THE ISSUER will use all reasonable efforts to ensure value for the holders of these bonds, they are provided on a best effort basis and as with any investment there is risk involved. Please do not invest what you cannot afford to lose. Liability of a bondholder is limited to the capital already invested when this share was purchased. *** This share does not represent ownership of any company ***
Now we know that YABMC can't pay as per its contract because some of the asset issuers gave the coins to Pirate:
@conspirosphere.tk
Honesty is what was posted above.
1. A buyback at ~ .07 BTC/share will not happen
2. Listing on a new exchange increases the potential of this (exchange closing) happening all over again - that is not acceptable!
3. YABMC grew from 5 to just shy of 55 Ghs with the addition of hashking and Patrick Harnett. With recent events (Trendon Shavers default) that growth has complicated matters.
Background:
Can you clarify a bit about points 1 and 3? Why is YABMC unable to buy the shares back at the price you outlined in the contract? If it is because of the Pirate default as you mentioned in point 3, I'm not sure why YABMC investors should take a bath on money you (or hashking or Patrick) "invested" in an obvious ponzi.
As best I can tell, YABMC sold nearly all the shares at the IPO price of 0.30 BTC per share and paid about 0.10 BTC per share in dividend total since YABMC started. Buying the shares back at 0.07 BTC per share still nets YABMC a tidy 0.13 BTC per share profit. A profit of 0.13 BTC per share, multiplied by the 54278 shares YABMC sold, yields a profit of over 7,000 BTC even after buying out all of us at the price you stated in the contract. The fact that you "invested" your profit and lost it does not allow you to violate your contract obligations to those of us who bought your shares.
