@JakeThePanda

Imagine someone sold you a piece of an entity, which we will call Genesis. Genesis is limited in size, but it will grow in the future (after the sale) at a set rate. Initially, Genesis will be divided up into 5,500,000 Genesis units, known as GEN. This means that Genesis is equal to 5,500,000 GEN. The terms that you agreed to when you bought into Genesis stated that the amount of units that you would own will be proportionate to the amount of currency (in this case BTC) that you contributed to the Genesis fund divided by the total amount of currency (BTC) contributed. This would be your fractional ownership. The terms stated that funds would be collected until the close date, which is 30 days from the initial sale date.

You thought that this was a good deal, as you believed that there would be a high demand for GEN in the future, so you contribute 1 BTC to the Genesis fund. Nine days go by, and you and 197 other people have contributed 1 BTC each towards the Genesis fund, which, at its current value, would buy each of you approximately 27,778 GEN (5,500,000 / 198). Now, its too early to say what the actual price per GEN is going to be because the sale has not closed yet, but you can keep a running tally. At this rate, if it stayed constant, one can assume what the price of GEN will eventually be. We take 198 BTC raised so fair, divide it by 9 days, which gives us an average amount of 22 BTC raised per day. 22 BTC time 30 days of the sale, equals 660. So, 5,500,000 GEN divided by 660 BTC, equals 8,333 GEN per 1 BTC, or 0.15% of Genesis.

At this point, on day nine, the seller decides that he doesn't like the original terms, so he decides to update them. He says that Genesis is now made up of 10,000,000 GEN, and that an investment of 1 BTC will equal 6,000 GEN. While not increasing the size of Genesis, the new valuation is equal to about 1,667 BTC. So, you original investment of 1 BTC is now only worth 0.06% of Genesis. Your investment has decreased by 60% (0.15% - 0.06% = 0.09% / 0.15%).

Do you believe that the seller would be acting fair in changing the terms of the sale after you already bought into Genesis?

So, for the early buyers who bought in under the original Terms and Conditions, those original terms will still apply.

QUESTION:

The site breakoutcoin.com currently says, "1 bitcoin buys 6,000 bro", but the Terms and Conditions of the Breakout Genesis Sale (https://www.breakoutcoin.com/pdfs/TermsandConditionsOfTheBreakoutGenesisSale.pdf or  http://pastebin.com/YLuU3Pav) clearly state in section 6, paragraphs 2 and 3:


"The supply, the total amount to be sold in the Coin Sale, is 5.5 million BRO. The demand is unknown now and
will become known, by everyone, at the end of the Coin Sale. The demand will be quantified as the total bitcoin
submitted by participants.

The price of BRO in terms of bitcoin will be discovered after the Coin Sale completion date once the total of the
submitted bitcoin purchases can be summed. That sum divided by the 5.5 million BRO will determine the ratio of
bitcoin per BRO for all BRO units at that point in time."


Can you please provide some clarification on this apparent inconsistency?

Thank you.