@dannotestein in the Profit and Loss Statement, could you please classify the income / current assets by sources? For example how much income is from directly trading on the website / in-wallet bridge service, how much from revenue share by tech support, how much from software development? Thanks!Currently essentially all the income I've reported is from purchases from the web site, none from service contracts or revenue sharing arrangement with OpenLedger.
So you generated more than 200K profit with 29K initial fund in half a year from the direct exchange service only? It's amazing. Although due to the mark-to-market account method, some reasons could be pumping of the coins which you're holding, I still think you did a good job. +5%
Maybe better to use a daily average of values of your assets in a period to value the shares? If as you mentioned "Majority of assets held in BTC", I think there would be no big difference to the result.
By the way, would you like to pay for translating your offer and/or related documents into Chinese? I think @ebit would glad to help. China is a big market for your offer imo.Yes, this sounds like a great idea, especially if he's willing to accept payment in some form of cryptocurrency, since that's what BlockTrades primarily deals in. Have him PM me if he's interested.
What % of the company are you guys putting up for sale? How much do you expect to retain?We're planning to sell 50% to foreign investors to get out of the US classification of a controlled foreign company. For now we plan to retain the rest.
What % of the company are you guys putting up for sale? How much do you expect to retain?We're planning to sell 50% to foreign investors to get out of the US classification of a controlled foreign company. For now we plan to retain the rest.
At some point in the future we may see if there's some way we can open up the investment opportunity to a limited number of US citizens, but this would likely only be available to accredited investors (i.e. high networth individuals) or personal contacts, pending changes to current US security laws. And to maintain an assurance that the company was 50% foreign held, we would probably need to track it with a different UIA.
Most of BlockTrades' current revenue is derived from the operation of the BlockTrades website that provides fast and convenient purchasing of various cryptocurrencies. BlockTrades also licenses use of the backend engine used by our website on an OEM basis. Currently this backend is licensed to OpenLedger to handle deposits and withdrawals in return for a 50% share of the market-trading fees collected for the assets it supports. BlockTrades has also undertaken several custom software development contracts and has pending negotiations for future software contracts as a means of providing development capital to support its long term business strategy.
Fees incurred during trading transactions on Open assets.
Total of all 0.2% transaction fees incurred during trading of all current and future Open assets between OpenBTC, OpenLTC, OpenDOGE, OpenDASH, OpenMUSE, OpenPPC, OpenUSD, OpenEUR, OpenCNY, OBITS and QBITS, and any other assets on the platform that will be traded in the future with these Open assets. Openledger profits and connected projects are used for compulsory redemption of tokens on the first day of the month from the token owners, with 100% of profits used in the buy back. The buy-back option is possible at OpenLedger only, taking into consideration features of all other financial assets and the annual inflation rate, which reduces the true income of investors (thought to be at least 10% per year).
i am confused. on the obits.io website they state, that 0.2% or 100% of their tradingfees are going into buybacks, but with your statement this would put obits only to 50% or do i understand something wrong?I've never read that info before, but I guess the info there should at least be clarified. Strictly speaking, in the section about trading fees, I guess it says 100% of the profits of OL for trading fees, which is 50% of the total trading fees. I am sure Ronny has publicly disclosed the 50/50 split with us several times in the past. It should also be noted I think that if Ronny didn't have BlockTrades doing this, he would have to pay someone to manage it, and those costs would come out of the profit from the trading fees anyways.
i am confused. on the obits.io website they state, that 0.2% or 100% of their tradingfees are going into buybacks, but with your statement this would put obits only to 50% or do i understand something wrong?I've never read that info before, but I guess the info there should at least be clarified. Strictly speaking, in the section about trading fees, I guess it says 100% of the profits of OL for trading fees, which is 50% of the total trading fees. I am sure Ronny has publicly disclosed the 50/50 split with us several times in the past. It should also be noted I think that if Ronny didn't have BlockTrades doing this, he would have to pay someone to manage it, and those costs would come out of the profit from the trading fees anyways.
But I agree this page should probably be clarified to indicate there is a split of the trading fee revenue 50/50 between OL and BlockTrades acting as a gateway service provider. Please note that this split only applies to trading fees, BlockTrades does not participate in revenue sharing for other profit areas from OL (e.g. registration fees and other fees collected by OL).
i would be more interested in your monthly revenue streams and how they are splitted.These are normal stock shares, not some form of derivative with a complex valuation, so I think it's simple to understand how they appreciate in value. Their value will track the value of the company just like any company's shares. When the company is profitable, the value of the shares will tend to go up. Like any other company, based on the desires of the shareholders, we will be able to distribute dividends. Obviously we would do that via the blockchain for simplicity. It is certainly my plan to have the company issue dividends, as the company has a strong cash flow.
where comes the increase in the asset value? only from revenue streams?
do you plan to pay dividends?
i would be more interested in your monthly revenue streams and how they are splitted.These are normal stock shares, not some form of derivative with a complex valuation, so I think it's simple to understand how they appreciate in value. Their value will track the value of the company just like any company's shares. When the company is profitable, the value of the shares will tend to go up. Like any other company, based on the desires of the shareholders, we will be able to distribute dividends. Obviously we would do that via the blockchain for simplicity. It is certainly my plan to have the company issue dividends, as the company has a strong cash flow.
where comes the increase in the asset value? only from revenue streams?
do you plan to pay dividends?
It could be a good idea, as long as it's not too expensive. One problem with most "independent audits" is that I think they just look over the books provided to them by a company, and those tend be just be "rubber-stamped" by the auditors. Hence we have situations like Enron, all AAA valuations of CDOs, etc.i would be more interested in your monthly revenue streams and how they are splitted.These are normal stock shares, not some form of derivative with a complex valuation, so I think it's simple to understand how they appreciate in value. Their value will track the value of the company just like any company's shares. When the company is profitable, the value of the shares will tend to go up. Like any other company, based on the desires of the shareholders, we will be able to distribute dividends. Obviously we would do that via the blockchain for simplicity. It is certainly my plan to have the company issue dividends, as the company has a strong cash flow.
where comes the increase in the asset value? only from revenue streams?
do you plan to pay dividends?
Do you guys intend to obtain an independent audit of your financial statements? Something like that could have excellent ROI for you with expansion of valuation multiple with enhanced confidence.
It could be a good idea, as long as it's not too expensive. One problem with most "independent audits" is that I think they just look over the books provided to them by a company, and those tend be just be "rubber-stamped" by the auditors. Hence we have situations like Enron, all AAA valuations of CDOs, etc.i would be more interested in your monthly revenue streams and how they are splitted.These are normal stock shares, not some form of derivative with a complex valuation, so I think it's simple to understand how they appreciate in value. Their value will track the value of the company just like any company's shares. When the company is profitable, the value of the shares will tend to go up. Like any other company, based on the desires of the shareholders, we will be able to distribute dividends. Obviously we would do that via the blockchain for simplicity. It is certainly my plan to have the company issue dividends, as the company has a strong cash flow.
where comes the increase in the asset value? only from revenue streams?
do you plan to pay dividends?
Do you guys intend to obtain an independent audit of your financial statements? Something like that could have excellent ROI for you with expansion of valuation multiple with enhanced confidence.
In general, I'm not a big fan of wasting money unnecessarily on accountants and lawyers. I took over accounting for SynaptiCAD years ago, as I found as was able to do a better job than the accountants we employed (partly because I was more motivated and also because I understood the business better and could do more "pro-active" tax planning). Similarly, Donna handles all our legal issues. Donna got her law degree many years ago after we paid about $100K to lawyers to defend SynaptiCAD against a patent infringement lawsuit back in 1995. Nowadays, she tracks the law associated with patents, IP, and cryptocurrency.
I suspect the best thing for adding confidence to our financial statements would be some kind of certification of our current holdings in cryptocurrency, since we're using mark-to-market accounting for our primary assets right now. There's various ways we can do that, just not sure yet which is best. One simple way is I could show our wallet balances to someone trusted by the community (our bitshares wallet balance is visible, of course, but our bitcoin one isn't) and they could serve as an independent auditor. Alternatively, i could publish some public BTC address and move funds into that address temporarily I guess.
i am confused. on the obits.io website they state, that 0.2% or 100% of their tradingfees are going into buybacks, but with your statement this would put obits only to 50% or do i understand something wrong?I've never read that info before, but I guess the info there should at least be clarified. Strictly speaking, in the section about trading fees, I guess it says 100% of the profits of OL for trading fees, which is 50% of the total trading fees. I am sure Ronny has publicly disclosed the 50/50 split with us several times in the past. It should also be noted I think that if Ronny didn't have BlockTrades doing this, he would have to pay someone to manage it, and those costs would come out of the profit from the trading fees anyways.
But I agree this page should probably be clarified to indicate there is a split of the trading fee revenue 50/50 between OL and BlockTrades acting as a gateway service provider. Please note that this split only applies to trading fees, BlockTrades does not participate in revenue sharing for other profit areas from OL (e.g. registration fees and other fees collected by OL).
i would be more interested in your monthly revenue streams and how they are splitted.These are normal stock shares, not some form of derivative with a complex valuation, so I think it's simple to understand how they appreciate in value.
where comes the increase in the asset value? only from revenue streams?
do you plan to pay dividends?
If this is an actual stock share then am I right that this will be the first actual (legal) company share issued on the blockchain open to retail investors? I know others have done it like Overstock but they weren't available for the likes of me to buy. Maybe there are others I've missed but I can't think of any.As far as I'm aware, these would be the first actual legal shares issued on the BitShares blockchain, but it's possible it's been done on another blockchain. It would be kind of cool if it turns out these are the first ever, though, would be a nice press release if so.
How's this project going? :)IPO is still in the works, but we keep getting distracted by other projects/tasks with tight deadlines. We're looking to hire 3 or 4 more programmers soon to help handle the workload.
How's this project going? :)IPO is still in the works, but we keep getting distracted by other projects/tasks with tight deadlines. We're looking to hire 3 or 4 more programmers soon to help handle the workload.
Yes, but we're still planning to do it this year, but it's been delayed a bit by our work on Peerplays, OpenLedger gateways, and Steemit. We're hiring more people to handle the load, picked up two new guys so far, still looking to hire 2 more.How's this project going? :)IPO is still in the works, but we keep getting distracted by other projects/tasks with tight deadlines. We're looking to hire 3 or 4 more programmers soon to help handle the workload.
Do you still work on the public offering?