I promised to share my thoughts on the market when I have one. Well today I do.
The topic is:
'BitShares Music'
Short Version:
Sell, sell, sell... whenever you get your hands on any bishashares Music shares (called Notes) sell. At whatever price the poor buyer is offering; do not give him a chance to think twice!
I don't give any financial advise so can't comment on this.
Let’s not talk about PTS/AGS holders – getting in 30 % of a worthless product is not much better than getting just 10%, I know getting 10% is insulting nevertheless.
That is why on the 8th day the lawd invented forking. PeerTracks does not have a monopoly on the BitShares toolkit.
The IPO is designed to follow all well-known path of ‘crypto space’ stupidity –Ethereum style, or ‘known number unknown quantity’ style IPO. In short you pay $5 for X number of shares, but you are totally unaware how many shares will be sold. With every passing day the new buyer get less number of shares per $5 but at least know how many other crazies have bought before them. The total number of crazies still remains unknown, as there may be many more coming after them.
If by stupidity you mean most successful crypto IPO yet. Then yes!
Our first goal is to raise capital... effectively.
In the absence of price, this is the simplest model imo. We put up a random arbitrary price per Note. We don't know how many Notes will sell and so we can't sell out / run out. Now after the 6-8 week Note pre-sale, we use the number of sold notes to determine the total number of units this DAC will have.
If only 5 Notes sell, then the DAC will have a low unit number. If a million sell, then we base our DAC unit amount on this. People that bought Notes still get their percentage.
Similar to what AGS did really. Whenever I donated funds to the AGS addresses I never knew how many AGS I would get. I knew how many were sold that day but didn't know how many "crazies" as you put it where also going to jump in the pot.
This is the exact same thing only it's the other variable that is missing. In one case it's the fixed amount of "shares" the other case it's the % of shares.
If this is not enough, the wise DAC creators/founders not just keep the proceeds of the ipo, they also reward themselves with free shares (about 30% of the total DAC’s shares, never the less!)
Of course we are going to keep the proceeds. What do you think we would do? Give it to charity? We have an entire industry to revolutionize. We need all the funds we can get.
-Well the IPO was the fun part, there the creators of this DAC just rob you in bright daylight and that is in a way honorable of them.
While they thought hard for their 30-35% free notes, in the business model we see that those Notes are not worth much. They entitle you to transactions fees… and that is pretty much it (well other than being a speculator and shorting musicUSDs at their own eXchange)
Yes, COB is taking around 2% of Notes. If it pleases you, I can just take all my bitcoin, send it to the Pre-Sale address so that it looks fair.
1. Seems like a waste of time to send my funds from my btc address, to the peertracks pre-sale address which I will also control...
2. this will just inflate our Pre-sale numbers. Kinda crooked imo
3. How is it so surprising that I would want stake in this project? I've been at this since Febuary it would be highly fishy if I didn't have any stake at all in this haha
As for the % going to the peertracks corporation, this is another entity.
These are the corporate funds. They are to be used in whatever way benefits the whole endeavour. We might need them for partnerships, marketing, getting big name artists to jump on, etc.
They also are used to generate revenue via transaction fees. If the fees are enough to cover Peertracks' expenses, we can then reduce (or possible even eliminate) the small fee the website charges on each song/album sale.
Also, keep in mind that at launch, Peertracks will pretty much be synonymous to BitShares Music. The blockchain itself NEEDS a platform that ties every coins together, that allows a place to actually browse and download music, etc. Without a user friendly front end, you'll only have Ode to Satoshi being downloaded lol. No offense to Lij and John. That song is badass. But a song here and a song there just is not going to get crypto to mass adoption.
At launch, no Peertracks, no BitShares Music... AT LAUNCH. Now give it a couple months or years and competitors will pop up, or maybe it'll be a site in china that does the same thing, or a spanish music focused website, or an audiobook store, etc.
PeerTracks will be the company bringing value to the BitShares Music Blockchain at first.
And yes, we are aware that no BitShares, no PeerTracks. This is a symbiotic relationship. PeerTracks will get high volume and exposure to BitShares Music, they BitShares music will be strong enough to survive even if PeerTracks disappears.
Think of a site that just sells bikes. Then a site that just sells cell phone cases. And another site that just sells 1 type of lamp.
Sure they get a bit of traffic...
Now think of ebay. The fact that it is a site where you can shop for anything is what gives everyone an advantage, buyers, sellers and ebay itself. It's a win / win / win. This is what PeerTracks aims to be.
Titiana coin was a great experiment but it lacks PeerTracks to make it successful.... not to mention our mechanism that brings value to the coin!
The other way to make money in this system are the following:
– You lend money to a promising musician, he promises to give you something back (or not) if he is a success. Way to enforce such promises are something that the ‘founders’ will have to think of… but that is for later.
This is wrong. I'm sorry if I wasn't more clear. We'll get to the secret sauce soon. Before we start the Pre-Sale of course.
We don't have to think about it. We already have a working, regulation compatible model. Artistcoins will have value depending on the amount of content that is sold. They are not stock in the artists, they are not equity, they do not pay dividends.
-The 3rd way the system makes money is buy selling music- on $1 dollar sales here are the proposed ratios:
95% for the musician;
4% for the ‘founders’ ? (as they have expenses for bandwidth, etc.)
1% transaction fees…
This is quote mining, cherry picking and a strawman.
First of all, the very first line in my post was
keep in mind these are fictitious %s and #s for the sake of simplicity
Then I say
If a song sells for 1 BitUSD (FROM the PeerTracks website), a couple of things happen.
So not only are you bashing the fictitious numbers I gave out to explain the concept. But also the big "IF"
In PeerTracks, the artist decides what price he sells his music for. It's none of our business!
Second, that fictitious 4% does not go to the founders at all. It goes to the PeerTracks corporation. And this is only on stuff PURCHASED ON PEERTRACKS. It has nothing to do with the Bitshares Music blockchain. ANYONE can start a website that uses this blockchain and charge whatever fees they want. We are betting on it!
It's like you are complaining that Bitpay takes a certain % out of merchant transaction. Well... Bitpay can do what it wants! If it screws up, a competitor will capitalize on their errors and take em over or just outcompete them.
You seam to be mixing up Bitpay with Bitcoin and PeerTracks with BitShares Music.
And to cover your final point, yes, the DAC makes money from transaction fees of of every piece of audio content sold. Be it, songs, albums, audiobooks, podcasts, lectures, etc. If you don't think that's a big enough market, look at the numbers more closely. Check out Pandora, spotify, itunes, google play, etc. Add up that potential.
Then realize that there are also transaction fees from anything else that isn't a sale. People trading around artistcoins for example. What if a band starts accepting it's artistcoin as currency for it's concerts? For it's merch? Think of the incentive artists and bands will have to make their coin worth more then the others. We envision 1000 DOGEcoin type ecosystems all residing on the BitShares Music Blockchain.
By all means, sell sell sell ^^
To sum up.
This is going to be one hell of a game changer. Not only for the music world, but for BitShares and the crypto world. Whether you sell your Notes or not.