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Offline btswildpig

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“Use crypto technology to empower people from outside of the crypto space use their funds to invest in projects outside of the crypto space that they wouldn’t have access to otherwise,” said this major crypto player. This sounds a little unreal considering how hard it is to attract outside funding in this industry.  Using the blockchain technology to trade American Stocks? What kind of mysterious project is this?

 

Host:  Hello Prince, glad you can make it to our interview.  I heard that you started a digital asset company, can you tell us more about your project?
Prince:  Hello, the project of ours is called DACx, the Chinese name is “everybody is angel” and the site is www.DACX.com.  DACx is a consulting firm that provides BDR or Bit Depository Receipts crowd-funding in order to provide related BDR crowd-funding service for businesses, projects or individuals in need of financing.  As a brand new form of crowd funding DACx is the first attempt to use a digital asset platform to help those in need of better and faster financing.  DACx itself is neither the issuer nor the trader of the BDR, but provides a complete solution for BDR crowd-funding.

Our first project will be crowd-funding for American Stocks.  We would like to perform a crowd-fund of Warren Buffett’s stock (Berkshire Hathaway).  This is a creative project of ours.  One partner came to us with this proposal and we are glad to do it.  We also hope to use the technology provided by BitShares to try to make it work better.  Many people may have heard of Buffett, but maybe none of you here has ever bought one because its price is too high, it’s like 220,000 USD per share, almost 1.4 million CNY.  To most people, even buying one share is too much for them.  We’re trying to use this new form of crowd-funding to let you guys buy Buffett stock together, and we would like to start with one share.

 
Host:  How do you plan to do this?
Prince:  We will issue an asset on BitShares first to split one Buffett stock into pieces using blockchain technology( The project purchases one shares of the stock first from the actual stock market and hold it  ).  Everybody can buy such an UIA (user issued asset )in order to obtain part of the Buffett stock.  You can invest in 100CNY, or even 1CNY.  Then you can trade inside the BitShares Exchange.  If this project is successful, then we will be providing more American Stocks including Tesla, Apple, Google and Alibaba.  For most middle and small investors these stocks are expensive and it’s hard to buy them.  If we put it through the BitShares platform, it would solve these issues quite nicely.  Of course we will do other crowd-funding projects such as traditional assets like as domain names too. You can exit your investment easily in the BitShares platform unlike the traditional crowd-funding platforms, which normally would take 6 months or even 2-3 years to fully exit and you don’t necessarily exit with your funds, you may instead receive gifts such as mugs or movie tickets. But using BitShares you can trade anywhere you want on a global scale.  It’s a good tool for crowd-funding.  This is the project we’ve been working on.

Host:  Do you expect some policy or legal issues?
Prince:  Of course there always will be concerns so we have two legal teams working on the research.  So far the risk probably comes from SEC of United States.  We will have some policy to forbid Americans to purchase such a project and I don’t think Americans would want to buy this because it’s easy for them to buy in the States.  We would only allow investors from outside of the States and we will be blocking USA IP, real name register and other measures to prove that we’re obeying the guidelines of the SEC.  The Chinese has no rules against buying American Stocks so far.

 
Host:  Will Buffett sue you? You split his shares for sale.
Prince:  Sue us? I think Buffett will love us very much.  If we can sell a lot of his stock through this project, who knows, maybe we can visit his company in May and introduce the advance performance of the BitShares platform to him.

 
Host:  What if the Americans buy this BDR directly on the BitShares wallet?
Prince:  That would have nothing to do with us, DACX only does the crow-funding part. Investors decide if they want to trade in the BitShares market or not, we won’t be able to intervene and it has nothing to do with us.

host:  Prince, do you think this kind of crow-funding is good?
Prince:  Of course, you can spend 1 CNY to buy American Stocks and it’s totally based on transparency. Not only for us, the Venture Capital who invested in us thinks this model has potential otherwise they wouldn’t be investing millions of dollars in us to operate this project.  I’ve been involved in the financial world for quite some time in order to shorten the chain of financing and bring more fragmentized capital to participate in crowd-funding.  This is the direction of the future, just like “YuEBao”(a successful fund financed by millions of ordinary people with petty cash which now worth billions of dollars ).  It embraced the spirit of the fair, open and decentralized Internet.  So for that I’m very confident.  People around me showed interest in investing in Buffett’s stock, but it’s hard for them to buy from Newyork and the other markets are not open enough.  I think this really solves the need of many people in the real world.  If you have something that could solve problem for the people then the market will tell you that this “something” is badly needed.

host: Thanks for your time.
Prince:  Our project will be launching in early March, DACx will use the BitShares blockchain to build a crowd-funding platform with total transparency.  Crowd-funding for American Stocks is just one of our projects and we’ll have more on the way including crowd-funding for domain names, parking slots, individuals and companies.  Using BitShares technology we can easily digitalize things from reality and provide an easy exiting strategy for the investors. This is awesome. Thank you everybody .


The original source is here : http://www.bts.hk/buffett-stock-crowdfunding-in-bitshares-dacx.html

There are a lot more in the article , but I'm too tired to translate it all , just pick something interesting at this point .
This is only part of the interview , many contents are waiting for further translation . 
I want to thank Matt608 for editing .
« Last Edit: March 05, 2015, 05:55:01 PM by btswildpig »
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline Xeldal

Re: Interview : Using BitShares to crow-funding for Buffett Stock
« Reply #1 on: March 05, 2015, 04:21:03 PM »
 +5%

This is a great use of BitShares.  Glad to see it.

BRK-A shares are quite expensive, but the BRK-B shares are currently only $145.61

I'm not sure Bufftet would particularly care for this.  He's specifically avoided splitting his stock to restrict ownership to a certain type of investor.

the B shares were a result of Mutual Funds that would sell slices of the stock through "unit trusts"  and tag on extra fees etc.   The B shares eliminated that.

Quote from Warren Buffet:
Quote
"They would be sold by brokers working for big commissions, would impose other burdensome costs on their shareholders, and would be marketed en masse to unsophisticated buyers, apt to be seduced by our past record and beguiled by the publicity Berkshire and I have received in recent years. The sure outcome: a multitude of investors destined to be disappointed. Through our creation of the B stock – a low-denomination product far superior to Berkshire-only trusts – we hope to make the clones unmerchandisable."

Offline matt608

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Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #2 on: March 05, 2015, 05:01:56 PM »
This is a great idea and a major project.  Excited to see what comes of it.

zerosum

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Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #3 on: March 05, 2015, 05:23:42 PM »
Great!

I do not know if it is bad translation or indeed the projects goal but:

Crowd-funded bitAsset is a scam that  beats NuBits 10x as far as Ponzi's go.

Hopefully someone will add the much needed details about this project to clear the picture.

Offline Riverhead

Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #4 on: March 05, 2015, 05:27:50 PM »

This is pretty powerful stuff. Buffet's concerns about fragmentation seemed to be mostly due to the overhead, or expense ratio, the trusts charged for their service. BitShares doesn't require such large overhead. The last thing Buffet said in his BRK-B release was that he hoped the trusts would become unmerchandisable. To me this implies a free market approach versus violence.

 +5% +5% +5%

Offline btswildpig

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Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #5 on: March 05, 2015, 05:28:46 PM »
Great!

I do not know if it is bad translation or indeed the projects goal but:

Crowd-funded bitAsset is a scam that  beats NuBits 10x as far as Ponzi's go.

Hopefully someone will add the much needed details about this project to clear the picture.

 BitAsset  is what it said on the original interview , I believe the correct term is UIA (user issue asset) , because pegged assets is call "MPA" asset in China , so mixed up a little .

Already edited in the translation as "user issued asset" , thanks for the point .
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline Riverhead

Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #6 on: March 05, 2015, 05:28:55 PM »
Crowd-funded bitAsset is a scam that  beats NuBits 10x as far as Ponzi's go.

How is it different from any other mutual fund?

zerosum

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Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #7 on: March 05, 2015, 05:34:33 PM »
Crowd-funded bitAsset is a scam that  beats NuBits 10x as far as Ponzi's go.

How is it different from any other mutual fund?

I do not get the question? It is -How is a bitAsset different from mutual fund?   [edit] OK this was fixed to UIA



Now. They do not explain anything - how it is gonna work or what they gonna do actually with the money - buy the underling asset? If not what. Right now this interview is a BS generally saying:

"We gonna do great! Split it this share BTK,  and use this shiny new thing - BTS."
« Last Edit: March 05, 2015, 05:44:19 PM by tonyk2 »

Offline Riverhead

Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #8 on: March 05, 2015, 05:39:14 PM »
Crowd-funded bitAsset is a scam that  beats NuBits 10x as far as Ponzi's go.

How is it different from any other mutual fund?

I do not get the question? It is -How is a bitAsset different from mutual fund?

I'm trying to understand how it's a Ponzi scheme. If I understand correctly that is where returns are bloated with new investor funds to make it appear the fund is doing much better than it is.

The way I understand this to work is if StockA is trading at $1000/share and there are 10,000 DACXSTOCKA then each DACXSTOCKA would sell for $0.10 and be pegged to the price of StockA the same way MPA's work.

That is the idea, isn't it? Or have I misunderstood what DACx is doing here?

Offline btswildpig

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Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #9 on: March 05, 2015, 05:42:41 PM »
Crowd-funded bitAsset is a scam that  beats NuBits 10x as far as Ponzi's go.

How is it different from any other mutual fund?

I do not get the question? It is -How is a bitAsset different from mutual fund?

I'm trying to understand how it's a Ponzi scheme. If I understand correctly that is where returns are bloated with new investor funds to make it appear the fund is doing much better than it is.

The way I understand this to work is if StockA is trading at $1000/share and there are 10,000 DACXSTOCKA then each DACXSTOCKA would sell for $0.10 and be pegged to the price of StockA the same way MPA's work.

That is the idea, isn't it? Or have I misunderstood what DACx is doing here?

The user issued asset is a token for ownership of an actual stock purchased by the project   . The market decide its price , not pegged though .
If everyone wants to sell the token at a low price , then whoever buy it all , can claim all the ownership of this actual stock and ask DACx to sell it for them on the real stock exchange .

It has nothing to do with any pegging system .
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Offline Riverhead

Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #10 on: March 05, 2015, 05:47:28 PM »

The user issued asset is a token for ownership of an actual stock purchased by the project   . The market decide its price , not pegged though .
If everyone wants to sell the token at a low price , then whoever buy it all , can claim all the ownership of this actual stock and ask DACx to sell it for them on the real stock exchange .

It has nothing to do with any pegging system .

I see. While it has nothing to do with the pegging system it may end up functioning in the same way. For most people they'll never own a full share of BRK but they'll buy/sell their fragments based on the price of the actual security; effectively pegging it to some fraction of the cost based on fragmentation.

zerosum

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Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #11 on: March 05, 2015, 05:55:50 PM »
How you gonna prove ownership of the underlying asset (leaving aside why you did not include info that this IOU, in your initial explanation)?

Why/How is this better than  bitAsset bitBTK?

What is so 'great' about this random IOU?
« Last Edit: March 05, 2015, 05:57:47 PM by tonyk2 »

Offline btswildpig

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Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #12 on: March 05, 2015, 06:04:39 PM »

How you gonna prove ownership of the underlying asset?

Why/How is this better than  bitAsset bitBTK?

What is so 'great' about this random IOU?

waiting for further translation of the rest of the interview . Answered in there .
Part of that is " The ownership will be proved by legal documents of the actual stock .  "

BTA is BTA , IOU is IOU , if you have BTA to perform such operation , and trust it'll peg forever , go for it .

IOU can still be honored even if the peg broke as long as you trust the ones who issued the IOU . But BTA rely on the pegging system works forever .

Of course IOU is based on trust . If you don't trust IOU , then buy BTA  .

This IOU isn't great . It just solves actual problem for some actual user outside of crypto space .

Side note : there are 30,0000 people in China who are trading American Stocks through all kinds of channels . 

Just like every IOU does . 
« Last Edit: March 05, 2015, 06:49:28 PM by btswildpig »
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline Riverhead

Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #13 on: March 05, 2015, 06:06:03 PM »
1) How you gonna prove ownership of the underlying asset (leaving aside why you did not include info that this IOU, in your initial explanation)?

2) Why/How is this better than  bitAsset bitBTK?

3) What is so 'great' about this random IOU?

Fair questions. While I have no skin in the game here is my take on it:

1) This is a Trust fund. DACx would be a registered company with all the usual things that go along with that. A Trust fund is either going to run off with the money or not. Not sure how to prove they have the underlying asset. How do brokerage houses handle this?

2) The project has two advantages over bitBTK a) Partial ownership of a larger asset vs bitBRK which is atomic. This is just wrong (thanks Tonyk2) b) It can be marketed and sold to the non-crypto masses while using the BitShares blockchain as a public ledger.

3) See (2).
« Last Edit: March 05, 2015, 06:17:29 PM by Riverhead »

Offline muse-umum

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Re: Interview : Using BitShares to crowd-funding for Buffett Stock
« Reply #14 on: March 05, 2015, 06:26:01 PM »
Something like this:

A buys in 1 share of NYSE:BRK.A ( $218,800 ), then hands up his account to DACX to prove that he actually owns that share.
A signs legal contracts with DACX promising he will never sell that share out (Cash deposits / collaterals are needed IMO). 
DACX creats UIA BDR.BRK on BTS and issues 100,000 shares. So DACX can sell each BDR.BRK at price $2.188. Then investors are able to trade BDR.BRK on BTS against MPA or BTS.

I really like this project.

Moreover, this interview took place on the 'Sound of Blockchain' hangout several weeks ago. The hangout is a weekly get-together funded and organized by market.cn.group101. 
 

 

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