Author Topic: Prospectus for BlockTrades public offering  (Read 5403 times)

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Offline cylonmaker2053

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Re: Prospectus for BlockTrades public offering
« Reply #15 on: February 18, 2016, 10:39:41 pm »
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.

cool, best of luck to you guys. i would have supported if i were not subject to my rulers protecting me from my own possibly poor decisions. will certainly be interested to see how things evolve and if you can figure a way to open participation up for Americans.

Offline Shentist

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Re: Prospectus for BlockTrades public offering
« Reply #16 on: February 20, 2016, 04:34:07 pm »
i would be more interested in your monthly revenue streams and how they are splitted.

where comes the increase in the asset value? only from revenue streams?

do you plan to pay dividends?

Offline Shentist

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Re: Prospectus for BlockTrades public offering
« Reply #17 on: February 20, 2016, 04:39:45 pm »

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.


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?

Quote
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).

http://www.obits.io/

Offline dannotestein

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Re: Prospectus for BlockTrades public offering
« Reply #18 on: February 20, 2016, 05:48:57 pm »
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).
« Last Edit: February 20, 2016, 05:50:30 pm by dannotestein »
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Offline Shentist

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Re: Prospectus for BlockTrades public offering
« Reply #19 on: February 20, 2016, 05:56:53 pm »
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).

thanks for the clarification.

Offline dannotestein

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Re: Prospectus for BlockTrades public offering
« Reply #20 on: February 20, 2016, 06:01:55 pm »
i would be more interested in your monthly revenue streams and how they are splitted.

where comes the increase in the asset value? only from revenue streams?

do you plan to pay dividends?
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.
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Offline cylonmaker2053

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Re: Prospectus for BlockTrades public offering
« Reply #21 on: February 20, 2016, 07:24:58 pm »
i would be more interested in your monthly revenue streams and how they are splitted.

where comes the increase in the asset value? only from revenue streams?

do you plan to pay dividends?
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.

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.

Offline dannotestein

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Re: Prospectus for BlockTrades public offering
« Reply #22 on: February 20, 2016, 07:57:00 pm »
i would be more interested in your monthly revenue streams and how they are splitted.

where comes the increase in the asset value? only from revenue streams?

do you plan to pay dividends?
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.

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.

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.
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Offline cylonmaker2053

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Re: Prospectus for BlockTrades public offering
« Reply #23 on: February 20, 2016, 08:44:36 pm »
i would be more interested in your monthly revenue streams and how they are splitted.

where comes the increase in the asset value? only from revenue streams?

do you plan to pay dividends?
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.

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.

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.

yeah, it's all about certification, confidence, and reducing potential agency issues between you guys as owner-managers and outside investors. Whether an independent audit provides any real information value (I agree re: tendency to rubber stamp), it's at least some measure of openness and third-party verification. I think these kinds of things pay for themselves in subsequent market valuation.

Offline openledger

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Re: Prospectus for BlockTrades public offering
« Reply #24 on: February 21, 2016, 10:35:54 am »
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).

It will be changed monday, dont know why it has not been updated that part, as should have been of course, no matter what information has already been mentioned in various forums of the split.

the 50/50 is on the crypto gateway, fiat trading fees of USD, EUR and CNY are added to OBITS revenue stream in full as well as the trading fees of OBITS, BTSR, OPENPOS, DISRUPTDAILY and more to come.
« Last Edit: February 21, 2016, 09:26:53 pm by ccedk »
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Offline profitofthegods

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Re: Prospectus for BlockTrades public offering
« Reply #25 on: April 09, 2016, 08:35:21 pm »
i would be more interested in your monthly revenue streams and how they are splitted.

where comes the increase in the asset value? only from revenue streams?

do you plan to pay dividends?
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.

So you will be getting money from some kind of central bank, either directly or via its subsidiaries, whilst everyone pretends that your share price has some kind of connection to the value of the company when in actual fact it really doesn't?

Joking, kind of.

Its funny, but everyone is calling scam all the time in the crypto world yet when I look at this the whole idea that a company's shares are supposed to magically track the value of the company without some kind of mechanism to enforce it looks like such a scam after being in crypto - but yet that is exactly how the stock market works! Amazing! I think I've been spoiled by crypto-investments, but you look like a great company anyway and I'm lucky enough to be in the UK where the main financial rule seem to be that if you're doing something dodgy you base it in one of the colonies (yes Cayman Islands, I'm talking to you) so I'll probably want to buy some of your shares.

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.

Offline dannotestein

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Re: Prospectus for BlockTrades public offering
« Reply #26 on: April 10, 2016, 02:32:14 am »
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.
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Offline CLains

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Re: Prospectus for BlockTrades public offering
« Reply #27 on: May 19, 2016, 08:24:28 pm »
How's this project going?  :)

Offline merockstar

Re: Prospectus for BlockTrades public offering
« Reply #28 on: May 19, 2016, 09:36:31 pm »
we should make a smartcoin pegged to the value of blocktrades stock.

Offline dannotestein

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Re: Prospectus for BlockTrades public offering
« Reply #29 on: May 19, 2016, 10:08:32 pm »
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.
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