[Problems with BitDice as a company]

I've already written in the official BitDice Topic, but since it gets filled with nonesense I thought I started a new topic dedicated to my fellow investors.

The worrisome points start to pile up and I was wondering what other investors are thinking, or maybe get some comments from BitDice management itself.

Problems with BitDice as a company

1. The last quarterly report published on medium was from 02/26 for Q4 2019. I was expecting another report in may for Q1 2020, but there are no notes about a delay or why it wasn't posted for over a month.
2. No or slow development. Just to pick an example, according to the ICO prospectus roadmap we should have Sports Betting in Q2 2018. It's 2 years later now and there's not even a preview for Sports Betting. As far as I know at least 80% of the features promised for 2018 aren't implemented yet.
3. Total wagered tapered off since ICO. It appears like all marketing affords have stopped since the ICO. BitDice had around BTC10k wagered from 10/1/17 until today. For reference: From 1/1/17 to 10/1/17 it had BTC44k wagered... Thats 4 times the wager in just 9 months.

And this is just to mention a few points off the top of my head. Maybe you can add more to the discussion?

Problems with the tokens or how token holders get screwed

1. The token entitles only in profit participation. The invested assets no longer belong to the token owners. (which is a stark shift compared to earlier investements where you could redeem your money).
2. In the whitepaper they state that the money invested was to be used for:
"25% of the funds will be kept in vault as reserve. At BitDice’s discretion and dependent on market conditions, some portion of reserves can be used to buy out tokens on the secondary market to reduce public float"
"10% of the funds will be used for promotion and marketing purposes."
"25% of the funds will be used by BitDice Casino to fund capital expenditures related to platform development and business expansion. It will primarily consist of:

    Compensating the development team for enhancing BitDice functionality, applying new technology and integrating gambling providers into the platform.
    Developing its own unique and provably fair games on top of the old ones.
    Acquiring necessary licenses to be able to operate with fiat currencies as a traditional gambling entity across as many regions as possible.
    Paying legal fees to bring the whole business structure into full compliance with regulatory framework.

"40% of the funds will be stored as the casino’s house bankroll to pay out winning bets and bonuses to the players on the whole array of games presented"

3. Now, if you take a look at their quarterly reports you can read things like:
"Higher expenditures have been related to business expansion activities such as finalizing integration of fiat payment systems, expanding to new markets of Southeast Asia, and strengthening presence in social media."
"The majority of the cost was attributed to team salaries and legal fees associated with ongoing process of obtaining a license:"

The result:
These expenditures reduce the distributable profit quite significantly. Which means that token holders (at least those participating in the ICO) pay twice. Once for the token itself and then via the reduced profit.
And just to reiterate: In the whitepaper/prospectus they clearly calculated the dividend with 70% of the profits. There's no mention of running costs.

I can live with the abysmal performance of bitdice, but I don't like getting ripped off.
Either they pay the above mentioned expense from the ICO proceeding and fully distribute the profits. Or they pay all expenditures from the net profits, but in turn treat the tokens like shares in the company.

The last point is vitally important in the case of closing the company. Let's assume in 2 years the team decides that the company wasn't profitable anymore and that they want to close it. The tokens would be worthless at that point, although the assets from the ICO are mainly still there, probably beeing distributed among the team.
One might even say that this creates an incentive to running the company into the ground...


If you want to read up on what I've been referring to:
Here is the original prospectus of the ICO: https://web.archive.org/web/20171105093415/https://ico.bitdice.me/prospectus_en.pdf
Here are some stats about BitDice: https://dicesites.com/bitdiceme

As advertised here: https://bitcointalk.org/index.php?topic=421473.0

The Bitcoin News exists since 3/2013 and is the leading and rising News source for Bitcoin and Crypto currency News with more than 3.5 million Page views in December 2013.

Jan. 2014 already 3 million Page views!


The Bitcoin News is owned by Bitcoin SARL, but we offer our customers opportunity to participate in the profits of the Bitcoin News.

The Bitcoin News system generates income from sell of advertising lots: http://thebitcoinnews.co.uk/advertise-with-us/

The Bitcoin News offers investors exclusive right to participate from advertising income.

TBN Shares:

There are 10.000 “TBN” shares. 5.000 “TBN” shares are held by Bitcoin SARL, 5.000 “TBN” shares is available for investors.

IPO price of 1 “TBN” share is 0.01 BTC for the first 2.500 shares. Early birds can buy only 2.500 “TBN” shares for this price. When the first 2.500 “TBN” shares are sold, the price of the remaining 2.500 “TBN” shares is 0.02 BTC.

When all 5.000 “TBN” shares are sold, the “TBN” shares can bought and sold on BitcoinBourse.eu under the Symbol “TBN” for the market price.

“TBN” shares has the right for a monthly dividend of 0.01% of generated income from advertising.

Dividends will be payed each 15th of month on BitcoinBourse.eu Shares system.

News: If you used your password to login between 06:00 Dec 1 UTC and 20:00 Dec 2 UTC, then your password may have been captured in a man-in-the-middle attack, and you should change your password here and wherever else you used it. If you were only logged in via the "remember me" feature, then you're OK.

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA256

Here's what we think happened:

8-14 hours ago, an attacker used a flaw in the forum's AnonymousSpeech registrar to change the forum's DNS to point to 108.162.197.161 (exact details unknown). Sirius noticed this 8 hours ago and immediately transferred bitcointalk.org to a different registrar. However, such changes take about 24 hours to propagate.

Because the HTTPS protocol is pretty terrible, this alone could have allowed the attacker to intercept and modify encrypted forum transmissions, allowing them to see passwords sent during login, authentication cookies, PMs, etc. Your password only could have been intercepted if you actually entered it while the forum was affected. I invalidated all security codes, so you're not at risk of having your account stolen if you logged in using the "remember me" feature without actually entering your password.

For the next ~20 hours, you should only log into the forum if you're quite sure that you're talking to the correct server. This can be done by adding '109.201.133.195 bitcointalk.org' to your hosts file (remember to remove it later!), or by using some browser plugin to ensure that you're talking to the server with TLS certificate SHA1 fingerprint of:
29:0E:CC:82:2B:3C:CE:0A:73:94:35:A0:26:15:EC:D3:EB:1F:46:6B

Simultaniously, the forum has been the target of a massive DDoS attack. These two events are probably related, though I'm not yet sure why an attacker would do both of these things at once.
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MV5tdw8zE1AAWvbstt8BAIrndOXCYmawoXN+VeSZkLXHnCyQbR8IOftQnpl2aXYs
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I think the end date in the news is wrong, it seems to be in the future. Or is that a precaution regarding DNS propagation?

Since DiabloD3 is trying to censor us, I figured to start a discussion about DMCs closing.

DiabloD3 decided to close his operation on Oct. 09 after an announcement on BitFunder. This is his announcement:

https://bitcointalk.org/index.php?topic=77469.msg3304465#msg3304465]What this means for Diablo Mining Company:

The SEC has gone after BitFunder (ab)using the legal process.

The SEC will go after all domestic and foreign Bitcoin stock markets that do business with Americans or American companies.

DMC is from America.

The majority of DMC shareholders are from America.

SEC rules generally prohibit foreign investors unless you jump through hoops.

DMC will no longer be allowed to trade on BitFunder.

DMC will no longer be able to pay dividends or participate in any form of share buyback.

Due to the fact that the SEC is trying to obliterate any Bitcoin startups by whatever means necessary, and that DMC has far exceeded its goal to payback investors, this marks the end of share buyback.

It is unlikely that Yochdog or Namworld will pay anything they owe to DMC. If anyone wants to buy their debt from me, they are welcome make an offer on a significant fraction of what is owed, however I believe it is unlikely anyone will. If this offer is completed before November 1st, and BitFunder hasn't shut down and hasn't delisted DMC, it will be paid out to the remaining shareholders.

As per the shareholder contract, DMC is now closing and liquidating.

The last 3,947 shares can still be traded 11:1 for ASICMINER shares until BitFunder shuts down or delists DMC or before November 1st. Anything remaining will be used to resolve DMC's debt.

Between 158% and 183% of the original investment has been repaid.

Although DMC has failed at its original goals, I wish everyone else luck.

The announcement was neither posted on BitFunder nor were there any reminders. During that time, a lot of discussion broke regarding BitFunder and thus the post about liquidation of DMC was unrecognized by many shareholders.

According to public records 2789 shares are still unredeemed.

On Nov 3rd DiabloD3 announced the invalidation of remaining DMC shares:

Diablo Mining Company is now closed. Any shares not redeemed before November 1st are now void.

In my opinion he breached his contract by voiding the shares. It does not say anything about a deadline and invalidation of shares in the contract.

Each share represents 0% of the ownership in the company assets. In the event of liquidation, 100% of the revenue from sales of the assets and 100% of the growth fund, minus any expenses incurred from the operation or liquidation of the company will be paid to shareholders.

He effectively stole 2789 shares from his share holders. Given the 11:1 ratio and estimated value of BTC.5 of ASICMINER shares thats BTC126.5.

Minimum price per share: BTC0.0026
Amount: 3537

This auction is running for about 24 hours until Monday 11/11 21:00:00 GMT. Pleae check your timezone accordingly.

You may bid on smaller lots, but no less than BTC2.5 in total.

Shares are currently on BitFunder, but may be converted to direct shares if buyers chooses to.
Buyers goes first or pays for escrow.

Selling 2 accounts with Hearthstone Beta enabled. Both accounts created just for Hearthstone, you will get the account.
Account details will be sent via Instant Delivery.

https://www.bitmit.net/de/item/59061-hearthstone-beta-instant
https://www.bitmit.net/de/item/59065-hearthstone-beta-instant

Start bid 1 BTC (running for 24h)
Buyout 2 BTC

On the one hand, many people are hearing about Bitcoin for the first time due to media coverage.
But on the other hand, they might be scared away because of the current market situation.

What do you think?