Topic: [RETURN] Announcing CoinReturn Financial IPO! - page 21. (Read 32167 times)

Update:
We've had some requests for more shares to be made available and have been surprised by how large the buy side of the orderbook is growing. We are aware our shareholders are likely pleased by this, however we don't want our share price to go too high too fast* but at the same time we must look out for the long term health of the portfolio. We said we are going to only sell 200 shares every other day for the near-term and we are sticking to that, but what we are doing is developing an algorithm to determine how many shares to sell. What does this mean exactly? Here's a (very rough) example of how it could work: say the orderbook has 2000 bids for shares and 500 asks, 400 which way above the last trade price and only 1000 bids are at or above .006, we would then take realistic bids*1/2 minus realistic asks and find how many shares to sell. So, 1000(.5) - 100 = 400 shares put up. So in a situation with lower demand: say 200 bids above .006 and 80 asks within X% of the last trade price would look like: 200(.5) - 80 = 20 shares would be put up for sale then.
Obviously this is a very crude example and what we come up with will be a bit different but it gives you an idea of what we have in mind; something to keep the price stable but growing.
Last few things to note about this: we will likely still only sell every other day, we will let users know when we have a possible formula/algorithm and will post it so shareholders can make suggestions/comments, when we do have a final version we will make it public so users can verify we are using it, and there's still a good chance that we aren't going to just keep selling shares/will still taper off sales for the same reason: to keep the price stable but growing.


*For anyone wondering why we don't want the share price to fly up fast: this can be bad if we decide to issue more shares in the future (like 2000 at once, not our regular day to day) since we could tank the price, if a user or users with alot of shares decides to sell they could tank the price and make people think the price is "crashing" which scares off bids and attracts asks, if a someone spends 1 btc on 20 shares they will find the dividend much less attractive and unfair than someone who bought 133 shares for 1 btc.



tl;dr
We're going to move from offering 100 shares/day to offering shares based on how much demand is out there.


Let us know how this all sounds to you; as always we welcome your questions/comments/feedback and appreciate your involvement.

-Tom and Jeff

This is a pre-first month update---just letting everyone know we're about to come to the close of our first month since our IPO.

- Given the increasing frequency of successful break-ins of accounts on bitcoin related sites (online wallets, cryptostocks, etc) we'd like to assure everyone we use, and would like to encourage everyone else to use, secure, unique passwords that aren't stored on any of our computers. Nor do we use any third party trading programs or similar suspect programs (i.e. prone to keylogging). Never say never, but we like to think that no one unauthorized is getting into our cryptostocks or trading accounts anytime soon:



https://howsecureismypassword.net/ and http://passwordmeter.com are good simple sites to check the security of your passwords. If you do prefer to store your passwords on your computer then PGP is your friend (just don't store your privkey password too!)

Anyone else ever wonder what it'd be like if the bitcoin network were used for password-cracking?


- Secondly, we'd like to remind everyone that the period of 95% profits to investors is ending soon (can't believe it's almost been a month since we launched!) 4/5 will be the last dividend at 95%. Then we move to a 65% profit to investors model. Our dividends seem to be well received by you guys and so far we've managed to payout a 60% return to our first shareholders so we hope many of you will stick with us. We'd also like to move to a twice weekly (i.e. every monday & thurs) payout for dividends but if our shareholders have strong objection to this we're open to comment.
If anyone else has any other suggestions or ideas to make CoinReturn better we're always happy to accept the input and implement what we can.


Good luck investing,
Jeff, Tom, and Tony
CoinReturn Financial

return is nice 

We appreciate the feedback but we're going to keep it as is, we want potential investors to have as much information as possible.

On an unrelated note 3/29's dividend has just been paid out and is a good example for showing where our dividends come from (and how we could have done alot better the past two days). If you take a look at the following image you can get an idea of how things work:


You can see the vertical line markings for sell points at about 575 and buy at 510, so if we would have taken say 8btc, sold at $575 for a sum of $4600 then bought back in at 510, that's an easy 1.01 bitcoin (- fees). We did more or less do this but we had money in litecoin and could have done better timing (though some is still in fiat waiting to "buy in"). So 3/29's dividend was 0.58btc or so, certainly not bad but we could have done better.

We wanted to highlight this to show an example of how our dividend income works since alot of people find it to be "unrealistically high". Of course our dividends will not always be great, if the market is flat or if we have poor timing then the dividends will seem a bit more "realistic" let's say. But we hope this shows that it's really not that unfathomable to have the kind of returns we've been having.


-tom

It's important to read as much as possible about something before investing. Or else you'll only get scammed

Your strategy is working marvellously well, the trade volume has grown considerably since you stopped selling shares at IPO price.
Congratulations
(Plus, giving us these good day-trading opportunities is quite appreciated )

Thanks, I've got my buy order in now for 0.006 

Keen eyes you guys have
What we've been doing is selling shares in chunks at .006 so we're usually undercutting everyone else but still allowing it to be sold higher by you guys. We're hoping we can fit in to a new equilibrium that makes everyone happy but at the same time isn't too high to sell our shares at; this way those who joined us early can seal in some profits and we can get a better valuation but still be able to sell shares at a good price overall.
We'll be putting some more shares in at .006 but we'll wait for some at the .006-.007 range to clear

Aha, thanks Lynn 

''it will likely be at this price''
I did see their name for the sales at 0.006, under Transactions by Owner.

I wasn't sure if that was them selling them at 0.006 or if it was normal shareholders trying to sell for a profit. They'd said:

"we'll offer 500 shares at .0055btc, thus those wishing to sell right away
 can still undercut our price and those that want to buy in can get a
fair price. When we do re-enable the IPO, it will likely be at this
price."

So I didn't want to spend 0.006 a share if they were just about to drop back down to 0.0055 again...

They are selling them at 0.006
Not sure what advantage they get from selling higher though.

Hi, do you plan to resume selling shares again soon?
You'd said you would be selling again on the 26th (yesterday) but so far you haven't. Did you decide to delay/cancel in light of your latest announcement?

This is just an announcement about the plan, not an actual activation or implementation notice!

           Due to the recent announcements regarding vircurex shutting down and suspending withdrawals (which also owns this site) we thought it'd be best to develop a crisis-management plan should the situation ever warrant it. We are going to release a poll to see how many people don't have access to the e-mail associated with CS, if this includes you we strongly suggest you message us on bitcointalk.org and let us know what e-mail address you have associated with CS so we can verify your ownership of shares and how we should contact you (i.e. a different e-mail). We will be backing up our shareholders list regularly for the foreseeable future. Some shareholders show up as "anonymous", meaning you don't have your CS settings set to show e-mail to owners we strongly advise you change this ASAP.
          If CS ever stops operations or a similar end-crisis occurs our crisis dispursement plan will go in effect. The crisis disbursement plan, or CDP, is this: to move all associated funds into a single wallet and then immediatly payout the sum evenly. So, for example, if there are 2,500 shares out there and we have 12.5btc in funds we will pay out .005 btc for each share (so a user with 2 shares would get .01btc, a user with 25 would get .125btc, etc). We will try to contact everyone and ask for what wallet address they want payment sent to and to let everyone know what the single address is so everyone can see payouts on the blockchain.
We may make some changes to this plan but this is the basic premise of what it would look like, we'll keep you posted.

As always if you have any questions, comments, feedback, suggestions, they are all welcome.

Hopefully this plan is never put into motion but we owe it to you to be prepared.

shareprice up to da moon 

sorry, dont understand your operation right now.

laffrafflery?  i dunno if that is a word yet

lol

Which part is so funny? Based on your previous post we're guessing your "awesome" isn't quite sincere.... We're just trying to be honest, if the share price attains a higher equilibrium we'd like to know, that may be greedy but that's how markets and business works. We don't want to leave the IPO active if it doesn't have our full attention since that's not fair to shareholders and we said we'd always try to avoid keeping btc stored online whenever possible. And if any shareholders are having second thoughts/aren't happy with the dividend rate/need liquidity we'd like to give them a chance to sell their shares if they so choose.
We don't have a problem if you don't trust us yet or don't like us but we prefer criticism to be constructive so we can do things as best as we can.

LOL you guys are awesome

Funny, funny shit