Note pre-sale is live!

[donkeypong]

I noticed there is discussion of no pre-sale for Play for legal reasons. Are there likely to be any legal issues with the pre-sale of Notes? What risk is borne by a participant in this pre-sale?

I wouldn't worry about it.  I think they actually cleared it with SEC.

They're just rewarding you with tokens, which you can use within the PeerTracks ecosystem. The market will assign these some value later on. It's not a security you are buying. And you have no idea how many tokens you'll get for your BTC on any given day.

[santaclause102]

Pushing the presale a bit. It is heavily undervalued: https://bitcointalk.org/index.php?topic=819163.msg9556704#msg9556704

[Agent86]

I noticed there is discussion of no pre-sale for Play for legal reasons. Are there likely to be any legal issues with the pre-sale of Notes? What risk is borne by a participant in this pre-sale?

I wouldn't worry about it.  I think they actually cleared it with SEC.

[starspirit]

I noticed there is discussion of no pre-sale for Play for legal reasons. Are there likely to be any legal issues with the pre-sale of Notes? What risk is borne by a participant in this pre-sale?

[starspirit]

Notes are the collateral required for the BitUSD used on the music blockchain.

So if we manage to displace a billion dollar music industry (meaning tons of BitUSD now trading around on the BitShares Music blockchain) that means a LOT of demand for Notes since they are needed as collateral for each an every BitUSD.

Does that make sense?

cob, i know this is the intuition of many people, but I don't think it's right as I explain in this thread here for bitUSD at BTSX...https://bitsharestalk.org/index.php?topic=10690.0

If I could explain this in the most intuitive way I can, demand for the unit of account (lets call it NoteUSD) encourages arbitragers to move the Notes they have on hand into the collateral pool by shorting NoteUSD at a favourable price. It creates a shift in where people hold their Notes, but not in the total demand people have for Notes.

The demand people have for Notes is determined by the return potential people see for the Notes themselves. That will depend on how demand for the NoteUSD translates into actual sales of music or other sources or revenue. If this is too little to justify an increase in the demand for Notes then Notes valuation will not rise as an automatic consequence of demand for NoteUSD. Further if Notes valuation does not rise as fast as NoteUSD market cap, the Notes valuation places a ceiling on how much NoteUSD can be issued (NoteUSD demands at least 3x that value be stored in the collateral pool).

So the business model for Notes needs to rely on music sales (or other sources of revenue), not just growth in holdings of NoteUSD.

For various arguments for and against this view, it is best to refer to the thread rather than repeat them here. Although I can't call it a proof, I'm fairly comfortable with the conclusions.

[Marky0001]

Transaction #75469QBB to the amount of 20.079 BTC has been confirmed. Proceed: //bit-sec(DOT)org/tx/75469QBB

Whats that?? when i check the address on the block chain i see a bunch of those messages!

[wasthatawolf]

Notes are the collateral required for the BitUSD used on the music blockchain.

So if we manage to displace a billion dollar music industry (meaning tons of BitUSD now trading around on the BitShares Music blockchain) that means a LOT of demand for Notes since they are needed as collateral for each an every BitUSD.

Does that make sense?

THIS is what is confusing people.  The use of the term "BitUSD" interchangeably whether you are referring to USD pegged assets on the Bitshares Music chain or the BitsharesX (soon to be Bitshares) chain.

BitUSD is the USD pegged asset collateralized by Bitshares. 

The USD pegged asset collateralized by Notes should be NoteUSD.

[cob]

Notes are the collateral required for the BitUSD used on the music blockchain.

So if we manage to displace a billion dollar music industry (meaning tons of BitUSD now trading around on the BitShares Music blockchain) that means a LOT of demand for Notes since they are needed as collateral for each an every BitUSD.

Does that make sense?

[oco101]

I'm not sure what it is not unclear but what will happen, in Bithshare Music you'll have notesUSD.  But what is important to understand is that noteUSD will be pegged to the value of USD

[Marky0001]

can someone comment this:

https://bitsharestalk.org/index.php?topic=10520.0

[xeroc]

In comparison AGS have been a DONATION for legal reasons .. and you received you BTSX as a gift

[Marky0001]

Not sure about the legal perspective

why?

[xeroc]

Not sure about the legal perspective

[Marky0001]

so i can buy bitUSD with NOTES?

With NOTES you invest in the DAC, the blockchain, the business ..

you can also trade them for bitUSD .. (that's the plan) ..
those bitUSD you can use to pay for music/artistcoins whatsoever

yeah, i understood that i am investing in this business (DAC), but with the statement on the page it sounded it is ONLY a fund raiser and has nothing to do with shares that will be traded.

but thank you guys for making things clear

[xeroc]

so i can buy bitUSD with NOTES?

With NOTES you invest in the DAC, the blockchain, the business ..

you can also trade them for bitUSD .. (that's the plan) ..
those bitUSD you can use to pay for music/artistcoins whatsoever