Bitcoin Forum

This is Dealcoin’s initial public offering of 50,000 units @ 0.01 BTC through Havelock Investments, representing 40% of the company.

Company Name: Dealcoin
Company URL: www.dealco.in
Ticker Symbol: DEALCO
Founder and CEO: Hakim Mamoni
IPO date:  September 3rd, 2013. 12:00 EDT.

Overview
Dealcoin is an In-Person Bitcoin exchange platform. Dealcoin enables the direct buying and selling of Bitcoins between members of a local community. Once the elements of a Bitcoin transaction (amount, price, and channel) have been agreed upon by the parties the transaction can be done through the chosen channel such as hand to hand cash exchange, payment through a bank transfer or an online transfer system. Dealcoin does not charge any commission on the trades and is not involved in any fiat currency trades.

Please see our Prospectus for more details under DEALCO.IN at https://www.havelockinvestments.com/reports.php
or
http://www.dealco.in/havelock

Greetings everyone

I am Hakim, the founder of DealCoin.
I am available to answer questions from the community.
Don't hesitate to ask.
:D

So 50,000 shares at 0.01btc each, representing 40% of the company.

That's $65,000 USD of issued shares at the current mt. gox price.

That's a $162,500 USD valuation of the entire company.


From what I can see, you have a website with virtually no traffic, and virtually no users. I could see justifying a few thousand for the development costs of the site, but beyond that I can't see what else there is here to pay for. Could you justify why your business is worth upwards of 150K?

Thanks for the question pankkake.
DealCoin is based on a blind bidding system where dealers do not see the prices offered by others.
I expect this should help people wishing to buy / sell bitcoins to get better prices.
In my opinion, the price of any instrument should be related to the volume one may wish to buy or sell.
On LocalBitcoins, for whom I have great respect, prices are set by equations based on market prices on other exchanges.
On DealCoin prices will be set based on market conditions, volume of coins to trade, member reputation.
:D

And what do you need $150k for?

Hi vtropolis, the valuation of a company takes into consideration future revenue potential not current traffic or cost of the website. You can check the financials on www.dealco.in/havelock

Hi joesmoe2012, DealCoin is not raising $150k but 500 BTC which is closer to $50k at the moment although if the BTC price continues rising we maybe there in a few weeks ;)

DealCoin will be using the $50k essentially for marketing, development of additional services and business development.
For more details you can download the IPO prospectus at http://www.dealco.in/havelock

Thanks for the link. I do think your valuation is still very aggressive for something that essentially hasn't launched yet, but I do find your plans for expanding your business via augmenting services interesting - especially the VOIP & sms packages. It's a smart way of profiting off in-person transactions, the most difficult type of transaction to profit from. :)

In terms of convincing dealers to use your site, why would they use dealco.in over localbitcoins.com?  I think it will be difficult convincing dealers to use your service over localbitcoins, since localbitcoins already has more users (potential purchasers), and is free to use (no monthly fee).

The only incentive I see would be potential volume from marketing. But the number of people who are paranoid enough to require face-to-face meetings for fiat<->BTC transactions is small enough that I'm not sure the volume is there for any provider, be it Dealcoin or someone else. (I'm not saying the paranoid are the only users of localbitcoins, but let's face it - if you're going to buy regularly, and you're not paranoid, it's easier [and faster!] to get an account with an online seller like Gox or what have you than it would be to arrange a face-to-face meeting, drive there, and hope you don't get stood up - or worse, mugged.) I don't see that paradigm changing by any appreciable extent any time soon.

Thank you for your comments on the expansion plan. :D
I understand you could find the business model to be validated but I hardly find a valuation @ $150k 'aggressive' these days specially for digital enterprises an $150k valuation is not what investors would consider 'aggressive'if you also consider the fact that I am giving away 40% of the company in the first listing with a 1% guaranteed monthly dividend…

LocalBitcoins has a head start I agree but the bitcoin economy is still at its early stage and frankly I believe there is room for more than one in-person exchange. By asking dealers to participate to the development of Dealcoin my objective is to provide more tools and more exposure and eventually make Dealcoin a better marketplace both for dealers and general members buying or selling bitcoin. Furthermore the membership fee is very low, under usd 2 / month and the blind bidding system should attract more people from the community wishing to get the best prices for the trades. 

Hello radiumsoup,
Dealers and members can make the fiat transaction through other means than face-to-face. They may use any payment channels they agree on be it direct bank wire, paypal, etc.
The fact for Dealcoin not to be involved in these fiat transactions means much lesser risk of a regulatory clampdown which seems to be one of Mt.Gox main issues till now. Withdrawing USD on MtGox is not so easy at the moment...
Regarding the risk of mugging in face-to-face, we advise members to conduct their transactions in a bank lobby, preferably the bank of the seller where it will be safe, and convenient for the seller to have the notes checked while being deposited in their account.
Additionally DealCoin features a reputation system to help members deal with the most reliable dealers only.

I think I agree that the 150K is not a particularly aggressive valuation, given the current valuations in the space.

Other than that, you say you are partially spending the money on marketing. What channels of communication are you going to use to drive volume?

Another thought, is there anything stopping people that are currently using LocalBitcoins from using DealCoins as well? Maybe you should provide incentives to trusted dealers on LocalBitcoin to use DealCoin as well, so the business can start out with a solid reputation.

Hi xchrisxsays, I believe that well targeted online communication is the most cost effective way to reach potential users. You can understand I cannot give you too much details since that would be divulging my communication strategy to potential competitors in a public forum. I certainly hope localbitcoins' users will also try and adopt Dealcoin! Thank you for your advice, I hope competitors' dealers will find Dealcoin services and model attractive enough to come from their own volition.

This is a great idea, and I checked your resume on LinkedIn: JP Morgan, Sunguard, Bloomberg, and you speak 3 languages? Impressive. Why choose Havelock though instead of BTC-TC or BitFunder? They are more reputable IMHO due do their resiliency to DDOS attacks in the past. Havelock is based in Canada if I remember correctly- sure they look pretty and have a nice trading interface but the last time they were down it took them 2 WHOLE DAYS to recover. I think if you go with BTC-TC or BitFunder you are more likely to reach your goal because the trust is already there.

OK, I didn't realize that it's more than the localbitcoins model, but that actually raises even more questions...

If you're going to pitch this as an online alternative to the large exchanges, then you're going to have a HUGE trust issue to overcome. Not your trust, mind you, but the trust that buyers and sellers have with each other, and that's not always easily overcome with a trust/reputation rating. When bitcoin started, almost all transactions were either between people who knew each other or via small online traders that tried to make a reputation for themselves through volume and good service. Eventually, people got burned (or scared) enough by theft that they wanted to start meeting in person to overcome the problem with trusting anonymous folks online, and localbitcoins was born as a method for finding those local people (who had largely used sites like Craigslist to find each other - this still happens quite often, btw.) This was not a perfect setup either, so the market started to demand large exchanges to provide easy, fast, and trustworthy providers as opposed to the small, independant anonymous dealers online, and the major exchanges started popping up, providing exactly that. Today, due to the regulatory crackdowns on the larger exchanges, you're now offering this service as some sort of hybrid that allows buyers and sellers to more easily meet each other, either online or in person, without the overhang of regulation. A good idea on the surface, but that negates the single biggest draws that the major exchanges have: the speed of a transaction, and reliable trustworthiness over many millions of dollars' worth of transactions. It's no different from an individual trust perspective than meeting face to face, but at least with an in-person meeting you have the knowledge that you have a lot greater control over the transaction (you can get up and walk away if you feel uneasy.)

So really what you're proposing is more akin to a specialized Craigslist (or eBay, not really sure how you're going to present the data) to help bitcoin buyers and sellers match up with each other, who can then choose to meet up in person or not depending on their mutual needs. Fine - if you can brand it well enough somehow, you've got a fighting chance at success just from volume, which is what my original post was really getting at. But it isn't a novel solution, really, and reintroduces some of the problems already mitigated by other existing transaction methods.

There is a popular programming mantra, that you can pick exactly two of the following: Good, Fast, or Cheap. You can't have all three - if it's good and fast, it's not cheap; if it's good and cheap, it's not fast, and if it's fast and cheap, it's not good. (Yes, it's variation of a false dichotomy if taken literally, but the general pattern is sound empirically.)

To paraphrase that saying for this situation, pick two of: Trustworthy, Fast, or Best price. If you want trustworthy and fast, as either a buyer or seller, you're not going to get your best price. If you want trustworthy and the best price, it's going to take a while to look through all the listings finding your perfect trading partner, by which time the price may have changed. If you want the best price immediately, you're going to have to take the first person available and roll the dice on their trustworthiness. Additionally, by decentralizing the exchange, you're inherently lowering both the trustworthiness (the sum of trust of all transactions on the site does not imply trustworthiness of the individual with the best price) and the speed at which the transactions can take place. Best price is always fluctuating, so you can sometimes get lucky on that, but you're still limiting the market (compared to what's already out there) in two of three basic criteria.

That brings us back to the idea of localbitcoins and their (largely) face-to-face model as the alternative. The market for face-to-face sales is still quite limited compared to the major exchanges, and it seems from your last post that your primary market will be those users. The only real advantage you appear to have, then, will be the tracking of trust/reputation, which is difficult at best due to subjectiveness. Again, great idea on the surface, but it's not going to be the driving criteria for all transactions.

As for the risk of mugging, I think you missed the point I was making: it's not about the safety of the transaction itself, it's about the choice the buyer or seller has to make regarding the method used for the transaction; again, weighing trustworthiness, price, and speed... for the in-person transaction, the decision on trustworthiness would include trust that you won't get murdered.

I know this was rather long-winded, sorry - but I do have a specific purpose in saying all of this.

We at Havelock are striving to offer the highest quality companies for bitcoin investors and I believe our reputation and trust in the community matches that.  We perform due diligence on our listed companies which exceeds any other exchange and do not allow just anyone to list, which sets us apart.  As for the DDOS attacks, we were down intermittently during those two days but every site is susceptible to a degree as illustrated by fact that BTCTC was down a few days ago themselves due to DDOS attacks.  Thanks for your interest in our latest listing.

As a trader I have dealt with Havelock for over a year now and have had excellent service from them. I have never had a problem getting BTC in or out. DDOS can happen to any site. Havelock has a very well designed interface and I have never had an issue executing trades. They keep most of the BTC in a cold wallet and thus have limited their customers exposure to theft should someone breech the hot wallet. I highly recommend setting up an account with Havelock, it is fast and easy. IMHO Havelock is just as trustworthy as the other BTC Stock Exchanges and has had many successful IPO's to date.

Hello igba, thanks for your comment. I do speak 3 languages. 3.25 if i count my basic knowledge of Mandarin ;)
I believe the people at Havelock are a very serious and professional team.
There has not been any horror story out of Havelock thanks to their due diligence and strict selection process.

I don't think Havelock is any less reputable than any other exchange. They seem to be quite responsive and are building a nice portfolio.

I haven't gotten too far into the details of this IPO, but I'm surprised at the size of the float. Wouldn't DealCoin be better off self funding, or raising 500BTC privately, and going public once there's a viable business with revenue?

This really seems like more of a seed stage investment, and to compete, aren't you going to need far more capital later on?

On top of the reputation feature, DealCoin offers an additional feature to enable its members to find out more about unknow dealers; we call it Need-to-know Privacy. We encourage dealers to link their account to up to 4 different social network profiles from LinkedIn, Google+, Facebook or Twitter. This private information is made available only to members about to trade with a dealer. Prior to accepting a deal, our members may choose to connect with and get to know a dealer via their social network of choice. The most transparent dealers will probably be the most requested ones.

Additionally we are planning to launch a series of premium services to add additional layers of security for our members, starting with a BTC escrow service in November 2013.

As for price fluctuations taking place while the payment takes place, I understand this may be an issue for active speculators like day traders. For such speculators, soon-to-be regulated exchanges like Mt Gox would be the place where they maybe able to turn around quickly. I suspect most of the dealers on DealCoin (and LocalBitcoins) would probably also have an account with Mt Gox or one of their competitors. But in my opinion, Bitcoin is useful for more than just day traders. Consider people travelling in foreign places who prefer using bitcoins instead of carrying cash or travelers cheques. Upon arrival in their travel destinations, they probably won't have access to a local bank account to connect to Mt Gox. Consider also the unbanked who do not have access to a bank account and may wish to participate in the Bitcoin economy or may wish to sell bitcoins sent to them by family members abroad. We are still in the early days of Bitcoin and as more people recognize the benefits of this currency, some will be guided to use regulated exchanges while some will choose to use services like DealCoin.

Thanks pankkake :)

I dont know i actually think its a pretty decent valuation, compared other clowns giving themselves 11 million, 20 million dollar valuations. 150k ish isn't tooo bad. 40% going to share holders is nice.

An interesting IPO for the amount of risk and growth potential.

What is your execution strategy?
Such as your ad campaign: The way you will address your target market and how you will penetrate that market and raise your brand awareness as well as what differentiates you from the competition.
Examples: Banners, advertisement's, youtube videos, mascots, business cards, reputation system etc.

Hello Pale Phoenix,

You are correct this is a seed stage investment, I am fully aware that the term IPO is traditionally associated to a later stage 'exit' type of offering but for most of bitcoin startups listing on Havelock or other exchanges IPO rounds are basically seed-stage fund raises. I agree I could have done some private funding and gone public later. But the IPO also gives DealCoin exposure to the bitcoin community, such as in this thread which greatly helps me in explaining Dealcoin. Re. later funding, Dealcoin is part of Seedcoin, a bitcoin startup virtual incubator in which I am involved and I intend to get some funds and other services via Seedcoin for the development of Dealcoin.

The primary purpose of that long rant I posted was to see how you'd respond, really - it was more to gauge your professionalism in a response, and to see if those (relatively simple) questions had been thought through before you brought this to market; it was only a secondary goal to get actual answers. A lot of recent IPOs seem to be rather hastily thrown together with a good idea but very shallow implementation plans; this was my attempt to flush you out if this was the case here. I'm rather pleased with your response, it does a lot for your credibility in my mind. Thanks. :)

Hi BitHub,
Thanks for the comment.
IMO the IPO offers a great opportunity for members of the bitcoin community and of our site to benefit from DealCoin's future success. :D

Hello freedomno1, we don't have a mascot yet ;)
DealCoin will be using various online as well as offline channels to advertise its services. Please understand that I cannot divulge the details of our marketing strategy or execution plan on a public forum. You will find more info on the IPO prospectus available at http://www.dealco.in/havelock

So, I didnt quite get how dealcoin is producing any revenue ?

Thank you radiumsoup :D

Hi bobboooiie,
DealCoin revenues are generated from:

Dealer Membership Fees
Dealcoin charges dealers an upfront membership fee on a monthly basis. 
Dealers are able to buy multiple months at once in order to reduce the average monthly fee.

Escrow Service Fees
The upcoming optional escrow service carries a 1% fee of the transaction amount.
The escrow service fee is to be paid by Bitcoin buyer only.

SMS Notification Service Fees
The upcoming SMS notification service will enable dealers to quickly react to new orders from DealCoin members
The service fee will vary based on mobile operator and location of message recipient.

Voice Meeting Service Fees
The upcoming voice meeting service will enable dealers to speak with our site's members without exchanging phone numbers.
The service fee has been tentatively set around 0.03 BTC/month. Final fee rates to be determined.

For more info, please refer to our IPO prospectus available at http://www.dealco.in/havelock

Just testing I like your response and now I honestly am curious what your mascot will be :)

Follow up question: I see your model being viable but what is your return incentive.

If your company sells a product to trade bitcoins with other people face to face, then what is to stop them from trading with the same people after a successful trade the first time they use the service. By using the services that you have provided they can do another trade and lower their own personal costs by trading with the same person again, basically I am asking if the models core user-base will be constantly required to add new users and how your company would plan to address this type of scenario. Or if you consider the ability of sellers constantly looking for new customers to be an incentive to keep an account over the long run.

That aside, I do see the viability of taking a one time upfront fee to use the service in order to access your database of users but I am curious on how you plan on expanding that built up userbase without needing to talk specifics about the execution strategy over the longer duration.

Thanks for the response, and the marketing / exposure angle does make sense. We can use as many outlets to trade BTC as possible, so I wish you great luck, and I look forward to future ideas coming out of your incubator.

These are good questions freedomno1.
While it is true that 2 people meeting on the site may decide to stay in direct contact with one another, we must take into consideration the fact that a particular dealer may not always have the best buy/sell prices at all times. Imagine when a dealer is running out of BTC, his/her sell price would not be low. Similarly if a dealer expects a market slump or a correction, he/she may not wish to offer a high purchase price during that period. Not all dealers run out of BTC at the same time; not all dealers have the same market forecast...
So as far as regular members are concerned, it will always be in their best interest to place an order on the site (free of charge) to make sure they always get the best prices from all the dealers. IMO most members will want to do so. There is a strong incentive for dealers to continue paying for our services if they wish to continue receiving offers from members with whom they have dealt with in the past and from those with whom they haven't. 
Furthermore, as more people realize the benefits of using bitcoin, more people will join our site. Since we are still in the early stages of bitcoin, I expect a regular stream of new members from all corners of the world for a long while :D

Thank you very much, Pale Phoenix :)

This is a very good point. Good to get in the competition early so when an influx of investors come, you're ready. I definitely like the long-term viability of this website, so long as you can survive the original perhaps low traffic. Good luck! I will be investing on Tuesday :)

Thank you very much  :D

Thanks for the good and honest reply.
Bitcoin is still in it's early stages and this year is for retail development having a service available in the market before future competitors arrive will be a distinct advantage.
I will also be investing on Tuesday best of luck on your IPO.

Thank you very much freedomno1!
:D

I like this idea, and I am definitely going to invest some BTC into this, but I have a quick question.

I love Bitcoin, but I live in an area where face to face transactions simply aren't feasible, and I don't think they ever will be.

For example, Craigslist, which is a household name, and far more proliferant than Bitcoin is not even very active in my area.

My question is this - Does your proposal do anything to help me, and people like me in rural areas where face-to-face transactions between users may not be viable?

Hello Ninshatamoto, that's a good question. We'd love to help people in remote areas access BTC trading in an efficient manner. We understand that in rural areas, proximity between members can be an issue. Cash trades are not always an option. Not all trades on Dealcoin need to be made face-to-face; buyers and sellers can choose to send money via a wire transfer or any other form of payment. Although Dealcoin does not intervene in the wire transfer of the fiat currency, we intend to offer an BTC escrow service to provide additional security to our members. If you have further ideas on to how we can provide better services to rural areas, we welcome your input. :)

I plan to buy good luck in this!  8)

Thank you klee.
 :D

Great answer.  I'm sold.

Thank you Ninshatamoto
:D

so.... if this is a beta test, where do I make bug reports?

For all bug reports, please email support[at]dealco.in
Thanks
:)

Is that guaranteed dividend also the maximum dividend? Apparently so from your prospectus:


For a start-up bitcoin company that isn't a great best-case-scenario maximum return. :(

Well you also have to factor in the potential appreciation of the stock

But why would the price appreciate much? Potential buyers will compare Dealcoin's return with those being returned by other securities.

I'm not sure why this 1% monthly maximum was set. Why couldn't dividends rise when profits do?

I wish Dealcoin the best of luck and hope it works out for them, but I don't see the risk/reward being worth it for an investor as the rules have been laid out.

Well a 12% annual return in dividends can be a lot or vey little, depending on which angle you a re looking at it from. For a mining stock, it is very poor as it is an extremely fast-moving and therefore often short-lived market. On the other hand, this can be seen as a long-time enterprise which doesn't depend at all on mining technologies, difficulty increases, etc.

Normally start-ups in the "real world" don't pay out any dividends at the beginning, focusing this way in growth rather than fast returns. It is now up to each investor to decide for himself if he/she prioritizes fast returns vs. long-term business.

P.S. I do agree that the door should be left open for possible future dividend increases in case the company has made enogh profits. However, this should be submitted to investor voting.

I think that a shift towards a more realistic (12%) ROI for investors will be a good sign that the Securities sector of Bitcoin has come to reality, and that the market is healthy.

Hello TsuyokuNaritai

1% is the minimum monthly dividend guaranteed over the first 2 years as per our IPO prospectus. It is not the maximum.
As Dealcoin starts turning profits, we will review this dividend policy and we may increase it before the end of the 2 year period.

Hi thehun, You're absolutely right. Regular start-ups don't usually pay out any dividends in the early days. DealCoin is focused on growing a long term business :)
We're starting with 1% monthly dividend and we're absolutely keeping the door open for possible dividend increases once the company makes sufficient profits.

Just sayin'.

(Nitpicking aside, I do trust Havelock more than BTC-TC and BitFunder.)

This IPO sounds interesting, although regarding the service itself, I'm in the same boat as Ninshatamoto -- I live in a city of ~200k people, and there is exactly one local seller on localbitcoins.com.

+1

The Bitcoin securities world is OBSESSED with dividends, it is really annoying. Good luck today!

Hi Nubbins, I see what you're saying but to clarify, LABCO is passthru fund on Havelock (official listing is on BTC-TC).  So we perform the due diligence on such funds themselves (easy on the Labcoin PT since we manage it) and not on the underlying assets as we don't have the same access to the managers/owners that we would if listed through us.  The way we look at it, its when a major exchange lists an ETF or mutual fund.  They look at the fund's structure, management etc but don't necessarily dig into each underlying asset that the fund may invests in. 

That being said, it is something we have debated internally and reviewed periodically.  Do we want passthru funds on Havelock?  The added investing options and demand for the underlying assets from our users have so far made passthru funds worthwhile.  Cheers.

While this is true, the rationale behind it holds up. Investing into a new Bitcoin-specific company in 2013 demands the investor take on considerable risk that simply does not exist in the fiat investment world of Stocks. There are other risks you incur by owning fiat-denominated stocks that do not represent Crypto however that is for another discussion.


Dividends in the crypto world act as a mitigating factor to the investors risk profile. Couple this with the reality of several Bitcoin-specific companies launching weekly and soon daily, there is only so much liquid ฿ to soak up the tidal wave of assets coming to market. I expect new companies entering into the Crypto arena will have to consider this reality before finalizing their prospectus. The market demands something in return for the 'Wild West' environment involved so early on in Crypto.


Now...

BRING ON THE IPO BABY!!!!! WOOOOOOHOOOOO ;D

because dividends (especially as high as 75% of net profit, something we've somehow come to expect in Bitcoinlandia) mean the company isn't investing as much as it could for growth. While this may be great for short-term bursts for the shareholder, it's detrimental to the company, since growth is now limited to profits minus dividends.

While I certainly enjoy the high dividend yields currently available, the landscape MUST necessarily change to something more reasonable, or the companies throwing their returns back at investors will choke on their self-imposed slower pace of innovation and adaptation. Certainly 1% is a huge jump down, I think there's room for more than that in the current environment, to be frank, but a reasonable dividend amount is certainly closer to 1% than it is to 75%.

Bought!! Let the party start  8)

Noted and understood. Sorry for giving you guys a hard time about that in this and other threads; I agree that there are both pros and cons to hosting PTs. That said, I think you're providing a valuable service, and doing a great job.

And we're off to the races!

Annnnnddd... It looks like we crashed Havelock.

Wow and site down there was a lot of demand  :D
Got my purchase in just before it 404ed

Error 524 - website is offline. Seems to exhibit similar behavior to BTCT under heavy load. :-/

Site went down while i was completeing purchase!

WTF!

Looks like all the traffic has made accessing Havelock difficult if not impossible....

Great news for Dealcoin!  I made my purchase.

+1

Okay its back up, my order did execute :)

Wow that sold out fast!

Wow 516 units and done

Congrats on a successful fully sold out IPO

7 minutes, 13 seconds.

Looks like it sold out in under 7 minutes.  I'm impressed by the demand.

Man it was almost out after 1 minute.

Lots of demand... although at 10k shares max, it could have been bought up by 5 or 10 people. :)

And it would have been sooner if the site didn't crash/cloudflare kicked in (not sure which happened).

Excited to see how this starts trading now.

I share the sentiments, but the low number of shares available was also a factor in the quick sellout. There was no need for a waiting period to see what everyone else would do similar to a larger IPO.

UP UP UP!

As am I but it was a fairly valued asset in my opinion for the potential demand of the market
That said I'm happy I got my holdings in those 7 minutes :)

Me too! I was preparing 1 week for this, learned my lesson with Labcoin - this 40% thing really hurt me I would have made much more money right now..

Cheers! Lucky to get my desired holdings!

I'm a little out of the loop on the Labcoin thing.  What is the whole 40% thing?

True enough, I remember getting my holdings divided pro-rata that was not fun in hindsight as a precaution should have tripled my original purchase in Labcoin back then so I could get my original position power of hindsight, but it's always nice to see a fully funded IPO.

(Also work up for this as well when talking about preparing for it :D)

Now cracks open the champagne and the Dealco workers can start today.

Edit In: @ Nisnshtamoto due to the huge demand in Labcoin burnside in coinjunction with labcoin at the time decided that all assets on the orderbook would be split proportionally at the IPO price.
That roughly became 40% of what people originally ordered in shares.

Thanks for the info!

I really hope that DealCoin takes off.  I would love for this to be another ASICMINER quality IPO opportunity.

Is that Dealcoin holding everyone's money, or shareholders holding Dealcoin shares? ;)

They wanted 7K btc but before the IPO was initiated there were already 20K btc in the order book!
As it was FIFO people started raising their bids so BTCT and Labcoin decided to offer everyone the chance to buy by lowering the share on everyone.
Long story short we ended up purchasing 40% of what we had bid.

https://bitcointalk.org/index.php?topic=263445.msg2842172#msg2842172

Plus the wallet @ btct was not functioning for at least 3h so people (me too) who had send additional funds to compensate for this loss could not actually use them (though they were visible somehow).

24h online for this...

wtf i signed in after 2 minutes past 12 and it was all gone. been waiting for this for a week.

:-\

Your clocks must be off.  :(

According to the time on the site, shares were available until ~12:07.

Your welcome and I hope so as well the idea is based on bitcoin adoption and popularity and as the community grows we will see an increasing influx of users getting into bitcoin. Maybe even meet a few fellow bitcoiners (come on cute girls :p)

@klee (Right it was First in First Out changed to Pro Rata with a Wallet lock error slept through it saw my order was locked could not purchase more then had the server crashing left and right all that day that was a wild day)

Or maybe it just took the site the extra few minutes to catch up.

At 1 and a half minutes after, i saw 84xx shares left.

(that's when i bought mine)

Any idea on when the trading will begin?

Hopefully soon....I have a meeting soon and I won't be able to focus on it at all if I haven't seen the order-book go live yet!

Havelock should be monitoring this thread or the main feedback and comments thread so I expect a reply momentarily
(Would go to IRC and ask directly but I'll just wait)

The order book will open soon.  The IPO sold out exceptionally fast so we are turning it on sooner than expected.

Thank you. 

Congrats!

Does "soon" mean within a few minutes, in a few hours, or by the end of the day (depending on time zone)?

I mean, the IPO had a specific time for opening, is there a specific time for the order book to open?

Soon™

1h and counting :P

Hey, at least soon is better than 2 weeks  ;D

It is open now!

No bids yet though.

Ah, how I love irrational hype. Buy into an IPO, and within an hour or two I can sell for a 50-100% profit :)

Cr*p! sold out in less than 10 minutes!

Thank you very much to all of you for your questions, input and support.
  :D

This.

I don't think many investors were in this IPO to hold.

Personally my plan was to sell off enough at a profit to make the initial investment pay for itself, and then keep the rest in holdings for future gains.

^ Yeah, I would have loved to have been able to invest in LocalBitcoins at a similar stage in their history. I'm holding.

I'm skeptical as to how high this will go though, given that the dividends are fixed for the first year.  Anyone have any thoughts on that?

I predict 0.02 by the end of the day, so you better cancel your asks ;)

Someone is holding the gem!

That would be quite the exciting prospect! 

I never purchased in the IPO but even at 0.02 it's not a hefty valuation if the founders actually realizes even just a fair portion of the plans.

DIVIDENDS ARE NOT EVERYTHING WHEN IT COMES TO A COMPANY'S VALUE. Their plans for growth and product/service are vastly more important.

+1

Dividends are completely pointless as a measure of a seed finance. Why would anyone invest in a start-up company for dividends?

Actually, I don't believe the dividends are fixed. The 1% is a minimum guaranteed dividend. https://bitcointalk.org/index.php?topic=283075.msg3071262#msg3071262

I don't know how high it will go either, but it's such a small investment that I'm just not terribly concerned about short term price movement. I'd like to see him build another useful piece of bitcoin infrastructure.

Holding - will sell half if it gets x5!

Holding :) and just registered for a month try out this new service

Would you guys like some help with the dealcoin website? Quite a few readability/UI/color changes could be made to enhance the site. Yellow and black is typically a web design no-no (makes potential customers think of warning and danger signs). Either way, i'd be up for offering a hand to straighten it out, no charge (i'm a fan of the service and it's viability to the community). PM me and let me know if interested!

Good point. I could see light green and white looking good there.

I'm happy about the growth that it has seen already since IPO :)  Hopefully Hakim has good news for us in the coming days and weeks.

With such a fair valuation, this thing is going nowhere but up!  ;D

Congrats on the successful IPO, I also hope to hear good news.  This looks like a good company with great potential for growth.


Agreed.  Even the current valuation is extremely fair based on the potential growth of the space and other factors. 

Agreed.  And it is one of thes only (if not the only?) IPO that I have seen that is not in the same competition-space as all of the mining companies, and ASIC producers.  It stands completely on it's own 2 feet.

Exactly.  Mining is only one way of obtaining BTC and that space is extremely crowded.  The every day person still needs a way to obtain BTC and DealCoin/LocalBitcoin solutions are much less traveled route. 

There doesn't seem to be any buy support whatsoever today....somewhat discouraging.  I hope we get some good news in the coming days.

Looks like they have technical problems with their domain "dealco.in" and/or webserver.

Someone offered them help for re-design of the webpage Maybe they need also technical help  ??? in running one.

Macintosh-7:~ trepex$ dig @a1.in.afilias-nst.in. dealco.in. NS   (output filtered)
dealco.in.      86400   IN   NS   ns2.dreamhost.com.
dealco.in.      86400   IN   NS   ns1.dreamhost.com.
dealco.in.      86400   IN   NS   ns3.dreamhost.com.

Macintosh-7:~ trepex$ dig @ns2.dreamhost.com. dealco.in NS
; <<>> DiG 9.7.6-P1 <<>> @ns2.dreamhost.com. dealco.in NS
; (1 server found)
;; global options: +cmd
;; connection timed out; no servers could be reached

Macintosh-7:~ trepex$ dig @ns1.dreamhost.com. dealco.in NS
; <<>> DiG 9.7.6-P1 <<>> @ns1.dreamhost.com. dealco.in NS
; (1 server found)
;; global options: +cmd
;; connection timed out; no servers could be reached

Macintosh-7:~ trepex$ dig @ns3.dreamhost.com. dealco.in NS
; <<>> DiG 9.7.6-P1 <<>> @ns3.dreamhost.com. dealco.in NS
; (1 server found)
;; global options: +cmd
;; connection timed out; no servers could be reached

All nameserves for dealco.in are unreachable!

Just as I type this, the ns2 starts to respond again.

I did not say that they use Dreamhost as Webserver - I don't know what they use.
I only said that they use nameservers operated by Dreamhost.

Of course, when all your nameservers are down, your whole service will be down (besides for people having the IP in
their cache or type it manually).

But of course, you should never operate (let operate) all your nameservers by the same company or via the same infrastructure.

Ralf

Hello trepex, we did run a server upgrade on Sept 5th. The site is currently online. If you experience any issues connecting please contact our support at support[at]dealco[dot]in

Regarding the re-design, we are running a contest where designers may win 2 BTC. I contacted Rawted, who offered to help, via PM to inform him of this opportunity.

Hi Trepex, service is normal now and you should not have problems connecting. Thanks for the feedback.

Hi joesmoe2012, we only use the DH DNS. Not their shared hosting... For info, we're running a VPS.

Thanks for the info joesmoe2012

Everything is working fine again.
I think I would not have been worried so much if your webserver would have been down  ;)  but when I saw the nameservers being
unreachable, I had been worried what is going on. This and the share price drop made me wondering what happened.

Ralf

Upcoming Host Upgrade

Great news: In preparation for our upcoming private beta test sprint run starting next week, we are moving DealCoin to a better, faster server!
In order to complete this transfer, we will be freezing our databases on Sunday, September 15th at 11:00 AM UTC.
The transfer will occur on September 15th between 12:00 - 16:00 UTC. We do apologize in advance for the downtime involved.
We have made every effort to minimize the impact but we are anticipating our site being offline for approximately one hour.
We expect normal service to resume on September 15th at 16:00 UTC.

Where can we look for updates on progress and status of the private beta testing? Do we have a date that dealco.in will open to public and real trading starts?

Hi Bitrich, the private beta is going well. We have had 92 people registered for the tests already. Tests are going well so far.
I will be sending a newsletter at the end of September with more info.

Thank you, I registered and completed some tests also, the site seems to work well. Didn't notice any glitches in my experience. I look forward to the newsletter update.

Any news on progress, success, adoption, beta test, first dividends etc?
Thanks

Well the first beta test phase took place (I participated in it), and the site looks good although there are still a few details to polish. They said there would be a second beta too.

this is going painfully slow... any hard dates for going live yet?

I wouldn't say painfully slow... anyone who has been involved in a real life/world start-up understands the growing pains associated with what Dealcoin is attempting to accomplish.  It is much better to slowly implement a working system than to immediately implement something full of bugs.

Like any BTC investment, Dealco.in is not risk free by any means.  The bottom line though, is that the mining game is oversatured (at the very least).  As more individuals would like to obtain Bitcoin (especially those without bank accounts), in person exchanges will become increasingly important. 

I have been involved with IT startups - the last two places I worked at have been startups, and for the most recent one, I was hired before it even had an office. Presumably, most issues would have been flushed out during the architecture rollout (if not earlier in the design planning), then internally identified and QA'd well before the public announcement and request for beta testers. That's how we did things at my startups, anyway.

I was one of the first to sign up at dealco.in, and I have to say that although there have been minor improvements to the interface since I first saw it, this is not as complicated a system as you seem to believe it to be. It's pretty straightforward. It just seems that there's not a lot going on right now. The amount raised during the IPO was small enough that I thought this to be a "we're ready to go, just raising some token cash to let people have a stake in it for word-of-mouth-marketing reasons" project, especially since they appear to be prefunded from Seedcoin. I understand the need for a short beta to find any unexpected items, but this really does seem to just be kinda dragging along at the moment. Perhaps the beta was premature?

SeedCoin and DealCoin are run by the same person, it is clearly visible on his LinkedIn profile.

In my experience, these startups will all take much longer than expected.  With the uncertainty surrounding much regulation of the Bitcoin ecosystem, there is less of a rush.  Expect to see more movement 1q 2014.

Great to see the DealCoin CEO on Bitcoin Magazine today: http://bitcoinmagazine.com/8037/hakim-mamoni-talks-about-the-bitcoin-conference-om-singapore-preview/

Hakim (the CEO of Dealco.in) is featured in this video from Bitcoin Singapore:
http://shitco.in/2013/11/20/bitcoin-singapore-video/

One question :

Someone knows why in the last 2-3 weeks the Dealcoin stock value on havelock has lost a lot of his unit price from 0.004 to 0.001 (and lower) without (apparently) no news from the company, no btc price big changes (versus fiat) or something that will justify this big down ?

Cheers

Cesmak

Seriously. Done with Havelock. Their companies' stock prices go in one direction; down.

Well... now it's going up !

Is there any update coming soon ?

Couple of questions to the company:

• I was on the website and saw links to some newsletters. However they were all dead. Will this be fixed and the newsletter provided to us? Or do we need to subscribe with an email address?
• I saw there have been some Investor Q&As for the Seedcoin portfolio companies. Will there be a chance to do something similar for Dealco.in as well?
• Or will there be any other opportunities to meet the founder like at one of the upcoming BTC conferences?
• Just in general: Who is working at Dealco.in. Just the founder? Or also some employees? Which external companies is Dealco.in working with?
• lots of other questions, to be answered ... report on the results of the tests ... focus in terms of geography ... expenses/salaries... BTC left from the IPO (are they still there or have they been converted to USD?)... business relationship to Seedcoin ... time commitment of the founder ...

Just saw it: There has been a link to the detailed financials at dealco.in. Where did they go?

Wow...this security has gone straight to the crapper!!  Keep up the great work Hakim!!  Way to stay on top of things! <--sarcasm!

I noticed a dividend change without any notification within the two year guaranteed monthly divided period.
Breach of contract unless someone can prove they actually sent a notification on this.
I want the other half and shareholders have the right to it as dealcoin can't change it unilaterally.


Dividend Policy
DEALCO will pay a 1% fixed monthly dividend in accordance with the exchange rules and practices
based on the 0.01 BTC listing price (0.0001 BTC/month/unit). The dividend will begin on October 31st
, 2013 and continue for a period of two years.

Prior to the end of the two year period, Dealcoin will inform DEALCO unit holders of the new dividend
policy to be defined at the time.

It does appear that Dealcoin is in breach of contract. Here is the Dealcoin prospectus that outlines their dividend policy for other shareholders to see: https://www.havelockinvestments.com/reports.php (https://www.havelockinvestments.com/reports.php). Havelock, can you please comment on this so cooler heads prevail and an equitable resolution can be found.


Shareholders have made their investments into the company largely based upon the fixed dividend policy for the two year period. Changing the terms 50% of the way into the policy, by enacting a 50%  reduction of the dividend, is a sure fire way to bring about legal action and negative publicity. Let's hope this is a administrative mistake given that how it comes off currently is extremely unprofessional.

Legal action against a Hong Kong co. selling illegal shares purchased through an [allegedly] Panamanian unlicensed exchange?
Best of luck :D

*Would this guy break a non-legally binding contract?
http://s1.postimg.org/97f4h9gan/Capture.jpg

Just recieved a new Dealcoin newsletter looks like they will go back to the default for the rest of the year
Consider the issue resolved

** Dividend Updates
------------------------------------------------------------
The dividend for the next 12 months stays unchanged at BTC0.0001. A typo was made in our dividend payments on November 30th. A payment of BTC0.00005 was issued instead of the expected BTC0.0001. We have now corrected this mistake and a further BTC0.00005 will be issued today December 1st 2014.

much appreciated the right action. (+)

What about September 2015 dividend ? There is an official statement about this ?

It's a good question the two year guaranteed dividend period has passed
Now its up to the asset issuer to post an update on Dealco.in

No, there is September in the two year fix dividend, from october will be the end....


First dividend 30 November 2013....

Sorry I was incorrect and read it from the issue date IPO was Sept
That said you are correct in your presumption since the dividend payout began in November.

i send an email to the founder Hakim Mamoni, he answered me, that today they will pay the september dividend.

Seems legit.  https://www.youtube.com/watch?v=iHQHXObeD3g (https://www.youtube.com/watch?v=iHQHXObeD3g).

So what do you think happens after the 2 years is up?

Two years ended and they are paying as before, they are continuing with the same dividend and this happened on november and december (the first two dividend after the 2 years end)... we will se if they will continue in this way....

I don't see dealco on havelock any more, anybody knows what happened?

Dealco was sold to Anonimous Ads, so the new ticker is AADS, at the moment nothing had changed, and the new management will keep the same dividend payout...

om havelock site on the AADS page on updates tab you can find all the infos.