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1  Economy / Currency exchange / Market makers wanted at TxQuick on: February 06, 2020, 01:00:52 AM
Brief intro:

Me: Founded the Litecoin Global and BTC Trading Corp exchanges in early 2012, which were not compromised and had all funds when the SEC asked me to shut it down in 2013. Over $250mm in crypto at today's values that I returned.

TxQuick: ( My latest project - A zero custody, instant deposit / instant delivery platform similar to Shapeshift before they pissed off the regulators. So what's different about us?

  • All the regulatory T's are crossed, i's are dotted. We are operating globally from our Canadian HQ. (US FinCen registration pending, NK & Iran blocked.)
  • Our flows are setup so that we will not have to hold or confiscate funds for suspicious behavior. We ask for anything that might be suspicious up front, and similar to an airport cash counter -don't deliver a trade unless things check out PRIOR to deposit. Basic sub-$1k trades can legally be done with just name + email address. (Higher limits coming as we develop KYC flows)
  • We are one of the few (maybe only?) instant delivery platforms that have a full trade engine and set of books backing the retail trades. That is to say, we keep our own set of books rather than just using another exchange's API. With the help of a few solid market makers we expect this to allow us to offer some of the best instant delivery exchange rates out there.
  • We are one of the few (maybe only?) exchanges that publicly post our crypto balances so it can be verified that we are not operating fractionally. We believe transparency is the basis of trust.
  • We are one of the few exchanges that take deposits directly into multisig warm wallets on nearly every currency.

So we need a few rock solid market makers / liquidity providers to help us become the most trusted platform in the world. Benefits of doing market making on TxQuick:

  • No fees when providing liquidity. (no fees for makers)
  • Volume rebates. We profit, you profit.
  • Binance compatible API. If you're already on Binance, our API is drop-in compatible. Just change the URL & API keys and you should be good to go. (

Please PM me if interested!
2  Economy / Currency exchange / Resurrecting BTC Trading Corp ( - What are your favorite trade API's? on: July 04, 2018, 08:06:59 PM
Hi all,

I ran BTC Trading Corp back in 2012 - 2013. Returned everyone's deposits and shut it down when the SEC asked us to shutter it in late 2013.

Now I have a team working on resurrecting it under a new name and website as a crypto (BTC) to crypto exchange akin to Polo and Bittrex. Just as before, security, trust, and transparency are our core values.

We always had a full trade oAuth API, but now seems like a good time to improve on it. I'd like to get everyone's opinions for the dev team -

  • What are your favorite API's to trade on? (Polo? GDAX? Binance? Bittrex?)
  • Which were easiest to understand and integrate?
  • What are your favorite security features within the API's?

Thanks a bunch, really appreciate any input we can get!
3  Economy / Lending / 680 BTC Loan? on: May 27, 2016, 04:01:44 AM
Posting here, for that much seems insane, right?

Probably.  But I thought it's worth a shot to see if there's any interest.

My original post about who I am, the project, and why I'm exploring bitcoin options is here:

Looking at it from a loan perspective, the terms would likely be:

- 30,000 Loan Units, $10/ea, total $300,000 USD
- This would be a USD denominated loan with Bitcoins being used purely to facilitate easy transacting.  They would be converted and deposited into the company's Canadian bank account.
- I think two or three paths are possible:
  • The loan could be conventional with an approximate 10% interest rate and payments starting January 2017.
  • Or the loan could be a note convertible to cash with a 20% bonus at any future event where the company secures VC funding. (eg, in a triggering event the $300k loan becomes repayable at $360k + accrued interest.)
  • If you are an accredited investor I believe a convertible note could also have an equity option.
- Lenders would get regular updates on game progress, access to the alphas & betas, and some kind of in-game benefit.
- Collateral isn't likely to happen.  I have already spent six digits bootstrapping the company and can't risk my home at this stage of my life.  However, I will mitigate risk as best I can by making sure we meet all of the criteria in the "Berkus Method" prior to accepting funding.  That is to say, I am funding the company myself through the extremely risky stages.
  • Sound Idea
  • Prototype
  • Acquiring Quality Management
  • Establishing Strategic Relationships
  • Product Release

What do you guys think?  Thoughts?  Criticisms?

4  Economy / Securities / Gauging Interest - Canadian Game Development Studio - By An Ex Playtika Exec on: May 26, 2016, 12:51:06 AM
Hi all, been a while since I've hung out here.

For those that weren't around here in 2012 - 2013, I'm the guy that founded/developed/maintained/etc BTC Trading Corp as an after-hours hobby.  Outside Bitcoin, over the last 20 years I have been the Network Engineer at National Cristina Foundation, CEO at Kattare Internet Services (a $10M hosting company), and VP at Playtika (aka Caesars Interactive Entertainment, recently valued at $4B) where I helped develop and launch Bingo Blitz, Bingo Blitz Lotteria, Bingo Blitz Slots, Faro Blitz, Penguinauts, Bingo Rush, Bingo Rush 2, & Caesars Total Rewards Social.  Bingo Blitz alone currently makes over six digits in revenue A DAY.

My foray into Bitcoins as a hobby was not taken well by the legal department at Playtika, and family matters in Canada at around the same time made it necessary for me to move from Los Angeles, California to Kelowna, British Columbia.

Here in Kelowna I have been developing the game design documentation, hiring developers, and overseeing ongoing development of my next project.  It's a free to play, social casino game.  We are developing simultaneously for Desktop (Facebook Canvas) and Mobile (iOS & Android).  My wife was a psychology major and I've been using her input, several studies on gaming, and my experience from Bingo Blitz to design the game to be compelling and fun.  I have potential distribution partners lined up, a high end marketing exec from Sony's Playstation arm on board, and a potential rewards program lined up, among many other things that are very positive.

So why am I here?

My plan with the game is to get it to a beta stage, then seek a loan or investment to fund the subsequent six months of development, launch, and marketing.

With my recent move to Kelowna, I am new to town, an unknown from the US, and I have no access to affordable credit.  My mortgage here has a horrible rate and has to be renewed annually. (ugh) I applied for permanent residence immediately after moving here, and it is currently being processed but until I have residence and a social insurance number I can't even start to build credit here.  For the lower corporate tax and potential technology grant reasons I founded the company in Canada, so my contacts in the US are not able to grant me a loan either. Several of the guys that I consider friends and that I might normally go to for investment are already competitors in the space, ruling that out.  I don't want to kickstart or do anything public simply because I don't want the game idea itself to leak. Right now there's nothing out there that does what we're doing and we need to establish a beach head before we attract clones.

My thoughts are that a USD denominated loan or investment using Bitcoin to get the cash into the company's Canadian bank account might be the right way to go.  I'm not asking for millions or anything crazy - I project we will need $300,000 to get through the end of the year.  It may be possible to write it up as a loan option to swap debt to equity in the new company.  Alternately maybe use convertible debt with a 20% conversion preference, where the debt converts to equity in the next round of funding, which is why I am posting here.

Does this sound like something anyone here would be interested in?  

5  Bitcoin / Development & Technical Discussion / listtransactions output is not in order on: May 15, 2013, 12:42:22 AM
I have an issue where the output of listtransactions is not in chronological order.  I depend on it somewhat to be able to give people updates on their deposits.  It's been broken for some time, no idea how it got screwed up and I initially fixed it in our web application's code just by pulling 10k records, but performance has been poor and I'd much prefer to just get this fixed.

I'm guessing this code is not returning them oldest to newest:  (bitcoind 0.8.1, rpcwallet.cpp around line 1047)

   CWallet::TxItems txOrdered = pwalletMain->OrderedTxItems(acentries, strAccount);

    // iterate backwards until we have nCount items to return:
    for (CWallet::TxItems::reverse_iterator it = txOrdered.rbegin(); it != txOrdered.rend(); ++it)
        CWalletTx *const pwtx = (*it).second.first;
        if (pwtx != 0)
            ListTransactions(*pwtx, strAccount, 0, true, ret);
        CAccountingEntry *const pacentry = (*it).second.second;
        if (pacentry != 0)
            AcentryToJSON(*pacentry, strAccount, ret);

        if ((int)ret.size() >= (nCount+nFrom)) break;
    // ret is newest to oldest

Because what comes out of here is not oldest to newest:

std::reverse(ret.begin(), ret.end()); // Return oldest to newest

I tried to add the following above the std::reverse():

std::stable_sort(ret.begin(), ret.end());

But with that in there it doesn't compile.

Can any C++ guys out there lend a hand?
6  Economy / Securities / [BTCTC][[ASICMINER-PT]] - Public trading of ASICMINER shares on: March 02, 2013, 10:19:47 AM
For up to date asset information, please visit the asset page on here:

Transferring shares to the ASICMINER-PT on

Quote from: burnside
The process is:

1) Let me know you'd like to be transferring shares into the passthru.
2) Send friedcat an email (if you have shares, you know his email address) and cc me (burnside \\\ with roughly the following content:  (fill in XX, YY, and ZZ!)
Please, transfer XX of my shares to burnside to be traded on his ASICMINER-PT.

My bitcoin address on file with ASICMINER is: ZZ
burnside's bitcoin address on file with ASICMINER is: 1DXyYV4oxehn828ZnRSvuziArPoJLQq7SM

When the shares have been transferred please send a confirmation to (burnside \\\

(burnside, my BTCT.CO account login is: YY.)
3) Once I receive confirmation from Friedcat I will credit your shares on the exchange by transferring shares from the ASICMINER-PT to your BTCT-CO account.

Transferring shares out of the ASICMINER-PT on

Quote from: burnside
The process is:

1) Send your ASICMINER-PT shares on the exchange to "BurnsideAsicminer".
2) Send me an email or PM containing your preferred ASICMINER BTC address and email address, along with a confirmation of the number of shares you are moving.
3) I will then compose a message to Friedcat requesting the transfer.

ASICMINER-PT - issued by burnside

burnside is currently a 90% stakeholder of BTC Trading Corp.

burnside also operates LTC-MINING on BTC-TC and LTC-MINING.LTC on LTC-GLOBAL

burnside built this exchange so that LTC-MINING would be able to continue operation when GLBSE failed.  Such is his commitment to his shareholders.

burnside can be contacted via PM on or

This asset is a pass-through for ASICMINER, the ASIC MINING company.


    For each ASICMINER-PT, one ASICMINER will be held on file with Friedcat until such time as ASICMINER is listed on a public exchange.
    Once ASICMINER is listed on a public exchange, one ASICMINER will be held on such exchange for each ASICMINER-PT.
    As long as burnside owns 51% or more of BTC Trading Corp there will be no management fee.
    If burnside's ownership of BTC Trading Corp drops below 51%, A management fee of 0.5% will be levied on each dividend payment.
    Payment of dividends is to be made within 2 weeks of their issuance from ASICMINER.
    Dividend payments made more than 72 hours after their issuance from ASICMINER will be paid 100% of the original ASICMINER dividend.
    Each share has no voting rights.
    More pass-through shares can be issued, provided there is sufficient backing.  For example, if there is sufficient demand, the issuer may attempt to contractually secure more call options for ASICMINER purchases.


Transfers in and out of the passthru are supported.  Such transfers can take some time, due to the manual nature.

One transfer OUT OF ASICMINER-PT will be processed free once per month per account.  Subsequent transfers within the same month OUT OF ASICMINER-PT are subject to a fee of 0.25 BTC for transfers of 49 shares or less.

Transfers OUT OF ASICMINER-PT are always free for any transfer of 50 shares or more.

Transfers IN TO ASICMINER-PT from elsewhere are free for any size transfer.

Asset Termination

Should the issuer of ASICMINER terminate the asset, any funds received through this asset termination will be distributed in full without any fee taken.

During the IPO process should we become unable to secure ASICMINER shares to back ASICMINER-PT the asset will be terminated and all ASICMINER-PT shares will be bought back at the IPO price.

The issuer reserves the right to close down the asset with a 30 day warning.  Should this right be exercised, every reasonable attempt will be made to transfer the assets into the direct control of the ASICMINER-PT shareholders using the methods described in the Transfer section above. (but with no fee)  Any shareholders the issuer is unable to contact or unable to transfer the shares for within a 90 day window will receive a forced buyout at market prices at the end of 90 days following the closure.

Should the issuer of ASICMINER choose to list ASICMINER on the BTC-TC exchange this asset will be terminated and the ASICMINER-PT shares will be automatically redeemed on the exchange for ASICMINER shares.

Exclusion of Guarantees

This pass-through makes no further guarantee shall any issues arise with ASICMINER's issuer. Should ASICMINER issuers requires any fees/process to claim shares arising from any issue/event, fees will be paid in full in the name of the pass-through holders from future dividends.

What happens if burnside gets hit by a bus?  (Quoted from

Arrangements have been made with trusted people for emptying the cold wallet into the hot wallet so everyone can withdraw their coins.

Here is how to trigger their involvement:

    Email manpaz \\\ and/or ssamee \\\, point them at this page, ask them if I am dead.
    Once verified I am dead or incapacitated, they will need to open "when_i_die.txt" on my backup drives...
        Log into my desktop. (They can hack their way in.)
        Plug in the /srv volume. (They'll know what this means.)
        Open up "when_i_die.txt", follow the instructions... roughly:
            Spin up litecoind and bitcoind.
            Send all of the litecoins in the ltcexchange wallet to the exchange hot wallet. (litecoind listaccounts to get [balance], then litecoind sendfrom [account] [address] [balance])
            Send all of the bitcoins in the ltcexchange wallet to the exchange hot wallet. (bitcoind listaccounts to get [balance], then bitcoind sendfrom [account] [address] [balance])
            For ASICMINER-PT: Spin up my mail client. Locate the most recent email titled "BTC-TC Shareholder Report for: ASICMINER-PT". Forward it to friedcat, let him know I am gone.
    Once this is complete, everyone will be able to withdraw their coins from the exchanges.
    Eventually the sites will get shutdown due to non-payment, but the guys at will be able to assist if there are any crashes that prevent withdrawals.

I hate to say it, but the LTC-MINING and LTC-MINING.LTC bond holders will be mostly out of luck. Thankfully the damage there will be minimal.

The asset issuers already have all the data they need to move to another exchange.
7  Economy / Securities / Enough is enough. on: January 29, 2013, 06:37:04 PM
Nobody wins when you go spreading FUD.  I'm getting really sick of it:

IRC: #bitcoin-assets

[10:47] <Ukto> hmm, can someone explain this to me.. 29k share sissued.. yet tyere are over 29k shares on the ask list...
[10:47] <Bugpowder_> I enjoyed the mpcd experience
[10:48] <Ukto> er 29k outstanding
[10:48] <mircea_popescu> Ukto they allow naked shorts ?
[10:48] <Ukto> dont think so
[10:48] <Bugpowder_> it was fun exiting each tranche before it exploded
[10:48] <mircea_popescu> heh.
[10:48] <Ukto> i cant post asks for more shares than I have
[10:50] <mircea_popescu> 0.0
[10:51] <Ukto> hence my "wtf"

So crazy easy to explain it's laughable.  The number you see is shares held publicly and the issuer has shares up for sale.  Didn't you just finish coding an exchange?

[12:05] <Ukto> on btct, I can fill my account with 100btc, put up to 100btc orders on each asset, and withdraw the 100btc
[12:05] <Ukto> and then its a complete, lie
[12:06] <mircea_popescu> dub speaking of which, what's happening to nefario's comeback thing ?
[12:06] <mircea_popescu> did he get the financing eventually ?
[12:06] <dub> not heard anything about it
[12:06] <Ukto> Regardless of 'pumping the numbers', i think traders have a right to knwo that a bid is actually backed, and not just a fake number on the books.
[12:07] <mircea_popescu> traders are free to figure it out neh ?
[12:08] <Ukto> I just cant bring myself to knowingly allow lies and inaccuracy on my system.
[12:08] <Ukto> I will be letting Deprived know that it just wont be happening.
[12:08] <mircea_popescu> so then don't.
[12:08] <Ukto> ;;tslb
[12:08] <gribble> Time since last block: 33 minutes and 12 seconds
[12:09] <mircea_popescu> on btct, I can fill my account with 100btc, put up to 100btc orders on each asset, and withdraw the 100btc << this is pretty rich tho

Holy crap.  Outright Lies.

When you withdraw or transfer it cancels your orders you can no longer afford.  Plain.  Simple.  Effective.  I even have a display on the withdrawal page clearly showing the maximum you can withdraw without orders getting canceled -- AND, this behavior has been discussed to death in the btct/litecoinglobal threads.

This behavior is totally unnecessary.  Tongue

8  Alternate cryptocurrencies / Altcoin Discussion / Litecoind / Litecoin Explorer Question on: January 16, 2013, 12:57:24 AM
Hi all.  I'm posting this on behalf of someone else that asked me about the Litecoin Global wallet.

Their address: LeFEWNmzYqQKKe6D3vJdzupUo3EQHRPgLz

Thus their address on Litecoin Explorer:

When I query litecoind I see:

Deposit: 128.19505227
Deposit: 100.00000000

The move transactions are all internal to LTC-GLOBAL.  (trading shares with other ppl.)

Yet Litecoin Explorer shows a ton of tiny little deposits and withdrawals with amounts that have nothing to do with the Move transactions.

This person is claiming they plugged this address in on p2pool and their deposits are not showing up.  I'm just not seeing any of these.

I think there's something going on internally within litecoind to transact those moves out on the network, and no deposits coming in from p2pool.

Can anyone provide any insight?

9  Economy / Securities / Possible sale of LTC-GLOBAL site code to someone who wants to run a BTC exchange on: October 05, 2012, 08:46:38 AM
I'm offering up for potential sale a perpetual license to run an exclusive bitcoin denominated stock exchange using LTC-GLOBAL site code.  (

I am very busy with my day job, my mining pool, and LTC-GLOBAL.  However with GLBSE's recent issues, Now is the time to roll out LTC-GLOBAL to the bitcoin community.  I simply do not have the time to do the business development and to take care of the day to day operations of what I know would be a very busy site.

I will point out that in terms of interface and site speed, the LTC-GLOBAL code should far surpass that of GLBSE.

I will also point out that LTC-GLOBAL's site code solves many of the primary complaints regarding using GLBSE on a daily basis.

The site should be easy to skin by changing the header, footer, and css.  Any reasonably competent graphic artist should be able to make it look very nice.  (Admittedly, I am great at making things work, but not great at making them pretty.)

Proceeds of the sale will be distributed to shareholders of LTC-GLOBAL on the LTC-GLOBAL exchange.

I'll discuss serious offers via PM.


Just for reference: (and no, we do not value LTC-GLOBAL at this much.)
Theymos valued GLBSE in this thread here:
17500 out of 77500 total GLBSE shares, representing 23%, asking 0.3 BTC per share.
By my math that's a rough valuation of 23250 BTC.  If their valuation was based on annual revenue, you can see the kind of potential this opportunity presents.
10  Alternate cryptocurrencies / Altcoin Discussion / [LTC-GLOBAL] The Litecoin Global Virtual Stock Exchange - Public Beta on: August 19, 2012, 10:42:57 AM
Litecoin Global Beta currently supports:

       * Trade Virtual STOCKS, BONDS, & FUTURES.
       * Receive email confirmations of your trades!
       * LIMITED TIME ONLY - create your own security for just 250 LTC..
       * Per-transaction fee of 0.2%.
       * Simple, easy to learn interface.
       * JSON API for security values and history.
       * Only LTC exchange you can own revenue shares in.
       * Google Authenticator 2-factor authentication support.
       * Withdrawal fee of 0.1 LTC per transaction.  (to cover fees the litecoin client automatically adds.)
       * Free transfer of LTC between accounts.
       * Free transfer of Assets between accounts.
       * Dividend scheduler.  Plan your future dividends where your shareholders can publicly see them.

Visit us at!

Lots of development still in the works.  You can see the todo list on the main page.

Official forum/support thread here:,551.0.html

11  Alternate cryptocurrencies / Mining (Altcoins) / [ANN][LTC][Pool][PPLNS][STRATUM] - - burnside's Mining Pool on: July 16, 2012, 04:30:55 AM
Introducing burnside's LTC Mining Pool...

   - STRATUM protocol support.
   - PPLNS payout structure with a 0% Fee  (but please donate if you like it!)
   - FREE dead worker notifications via email.  (worker monitoring)
   - Longpoll support.
   - Custom patched & compiled litecoind to reduce stales in pushpoold.
   - Full reaper v13b4 support
   - Traditional simplecoin interface, tweaked for LTC.
   - Automatic and instant payout options.
   - Graphs, history, and network stats available.
   - BTC & USD profit calculator.
   - Per-user timezone settings.
   - Low per-withdrawl fee of 0.05 LTC.  (to cover the Litecoin client transaction fees.)
   - Dedicated server hosted at in Oregon, USA.

Come and visit burnside's LTC Mining Pool at


I am getting 403 errors when connecting to the mining port.

Double check your WORKER username/password settings.

12  Economy / Securities / [BTC-TC] [[LTC-MINING]] - GLBSE LIST RECEIVED - BTC-TC TRANSITION COMPLETE on: July 16, 2012, 04:17:17 AM
LTC-Mining by burnside

was at:
now at:

LTC has gone up in price a lot lately, definitely enough to start getting into LTC Mining.  Recent developments on the LTC scene have brought GPU mining into the mix, just as GPU mining is starting to become unprofitable in the BTC market.

The very first LTC Mining Bond:
This is the first and currently the only mining bond that can bring you profit from LTC.  

Each bond issued represents a minimum of 1 kH/s ongoing hashing.  More bonds will be issued as demand dictates.

All bonds sold will be maintenance free.  All power, internet connectivity, hardware maintenance, and LTC to BTC conversions will be managed by burnside.

Additional Details:
I will be brining additional capacity online as the bonds are sold, with a 1 week lag for purchasing equipment, configuring it, and deploying it.  Dividends will still be paid during that time by using existing hashing gear.

Each bond will pay out earnings every 4-10 days with a targeted average of every 7 days.  To keep things simple, all bond-backed hashing will be directed at the burnside Mining Pool ( using it's own account with it's own wallet.  On payout days I will be converting all LTC in the LTC-Mining wallet to BTC on public exchanges and then distributing the resulting BTC to bond holders on the GLBSE.  I require a wide berth in the payment interval because I wish to maintain a stable price for the security and I must maintain a flexible schedule should any family or day-job issues arise.    

The bond will not expire.

Because I am taking on a very possible risk (eg, difficulty doubles, exchange rate drops) whereby the cost of operating the hashing pool will become a liability:  

    I reserve the option to repurchase bonds at 105% of the highest traded price over the last 15 days.

    I reserve the option to shift mining resources to alternate crypto-currencies should profitability in LTC
    diminish and an alternate crypto-currency become more profitable.  Should I exercise this option, all bonds
    will be converted to a hashing rate determined to be as profitable or more profitable than the LTC equivalent
    as of the day of conversion.

And because I would like to somewhat future-proof this bond:

    To grow the operation I reserve the option to issue additional bonds at a price I will determine.

    I reserve the option to use alternate mining pools, should anything happen to the burnside Mining Pool.

    I reserve the option to increase the hashing value of each bond should there be a significant shift in the
    market. (eg, much as ASICS have done to BTC)


13  Economy / Securities / [GLBSE] - MINING_B.HEADS.FUT / MINING_B.TAILS.FUT - Bet against the mining bonds on: June 27, 2012, 05:38:40 AM
Currently Discontinued... Sorry.  I need to work out the flaws and come back with a new contract.

You can now buy MINING_B INDEX futures on GLBSE!

Experimental Mining Futures Trading
  - The MINING_B.HEADS Future is for investors that believe the MINING_B INDEX will go UP more than 5% by the end of the month.
  - The MINING_B.TAILS Future is for investors that believe the MINING_B INDEX will go DOWN more than 5% by the end of the month.

The MINING_B.TAILS.FUT future and the MINING_B.HEADS.FUT future are a paired offering, betting against each other.


The future is offered starting on the first of the month around 12 NOON EST.  At the end of the month, the future will be purchased back from the bearer for the strike price.

The strike price will be based on the rise and/or fall of the MINING_B INDEX.

If the MINING_B INDEX has risen in excess of 5% over the course of the month, the strike price will consist of:

  1 BTC + ((The total quantity of all MINING_B.TAILS futures x 0.6) / The quantity of MINING_B.HEADS futures) BTC

If the MINING_B INDEX has not risen in excess of 5% or fallen in excess of 5% over the course of the month, the strike price will consist of:

  0.8 BTC

If the MINING_B INDEX has fallen in excess of 5% over the course of the month, the strike price will consist of:

  0.0001 BTC


The future is offered starting on the first of the month around 12 NOON EST.  At the end of the month, the future will be purchased back from the bearer for the strike price.

The strike price will be based on the rise and/or fall of the MINING_B INDEX.

If the MINING_B INDEX has fallen in excess of 5% over the course of the month, the strike price will consist of:

  1 BTC + ((The total quantity of all MINING_B.HEADS futures x 0.6) / The quantity of MINING_B.TAILS futures) BTC

If the MINING_B INDEX has not risen in excess of 5% or fallen in excess of 5% over the course of the month, the strike price will consist of:

  0.8 BTC

If the MINING_B INDEX has risen in excess of 5% over the course of the month, the strike price will consist of:

  0.0001 BTC

The MINING_B INDEX is created by polling the GLBSE's top volume mining bonds.  For a complete explanation and graphing, please visit:

For the purposes of calculating the strike price, the FIRST polled value within the month will be used and the LAST polled value within the month will be used.  Thus, if there is a server outage or other interruption that prevents polling, there will be no question as to what values will be used in determining the strike price.

14  Economy / Securities / Seeking Discussion - GLBSE bonds for web hosting upgrades. on: June 26, 2012, 08:25:09 AM
I'm relatively new to Bitcoin.  I've jumped into the fray recently, doing some small scale mining, and more importantly, I've spent the last couple of weekends coding support for Bitcoin into our website.  Grin

While doing this, and while figuring out the most productive places to put my newly mined BTC to use, I stumbled upon GLBSE.  So here are my thoughts.  Hopefully you all can comment and help me figure out if any of this makes sense.

My company has been in business for ~15 years now.  Until now, I have never sought investment.  I have always funded growth via what was available to me at the local banks.  The debt load for the company is like a seesaw, we incur debt to expand, we spend a few years paying it off, then we incur more debt to expand again.  Thus far this has proven a fairly prudent approach, and we've never bit off more than we could chew.  It occurred to me, as I was looking at the various securities on the GLBSE that maybe issuing bonds would be a better way to approach the company's funding needs.

I've researched the legality of offering up bonds in the US.  It seems legal, at least on the surface.  Small fry's are allowed to offer up bonds to private investors without having to register with the SEC.  So I just have to make sure that at some level my bond investors are "private".  I would thus define the potential pool of private investors in my bonds by saying our bonds are only available to those in the GLBSE Bitcoin Club, (aka, registered members of the GLBSE)  or something of the sort...  However... I'm not really sure if this would pass the test of an actual US courtroom or not.  The definition of a "private investor" seems somewhat vague.

I've researched the various payout strategies and approaches to the various securities.  I know for instance that with our current corporate structure, I cannot offer stocks.  That seems to really only leave bonds.  I've also thought a lot about the risk involved and it seems like most of the risk to the company stems from the volatile and unpredictable nature of the exchange rates.  For example, the company has to operate based on USD, which means revenue comes in in USD, and bills get paid in USD.  

Some of my ideas for bonds are:

COMPANY.BND.A - Initial offering of 100,000 shares at 0.25 BTC/ea.  Bond to mature at 5 years.  Company converts all 25000 BTC to USD, ends up with some amount USD, call this $VALUE.  Company pays interest at 3% of $VALUE, minus the USD->BTC transaction costs at monthly intervals.  Company reserves right to buy back bonds at 1.5x the 5 day average at any given time.  At maturity, company buys back all bonds at $VALUE USD, converted to BTC at that time.  

COMPANY.BND.B - Initial auction of 100,000 shares starting at 0.25 BTC/ea.  Bond to mature at 5 years.  Each share is a coupon entitled to 0.000003% (total offering value = 0.3%) of the company's actual revenue, currently a bit north of $1 mil/yr and growing at ~8% annually.  Company converts all BTC to USD, ends up with some amount USD we will call $VALUE.  Company pays dividends monthly based on company's actual revenue.  Company reserves right to buy back bonds at 1.5x the 5 day average at any given time.  At maturity, company buys back all bonds at $VALUE USD, converted to BTC at that time.

COMPANY.BND.C - Initial auction of 100,000 shares starting at 0.25 BTC/ea.  Bond to mature at 15 years.  Each share is a coupon entitled to .000008% (total offering value = 0.8%) of the company's actual revenue, currently a bit north of $1 mil/yr and growing at ~8% annually.  Company pays dividends monthly based on company's actual revenue.  Company reserves right to buy back bonds at 1.5x the 5 day average at any given time.  At maturity, company buys back all bonds at $0.01 USD, converted to BTC at that time.

All of these options would be extremely stable from a USD perspective and would bring additional stability to the GLBSE.  The last bond feels like the most risk to the company, but it seems to accomplish nearly the same thing as a stock offering.  If growth follows the established pattern, in 10 years 0.8% of the company's revenue would represent a pretty significant gain.

If we do move forward of course all the relevant records and numbers necessary to achieve transparency would be made available to bond holders.  I was trying to figure out a way to authenticate bond holders somehow... It'd have to use the GLBSE site somehow to distribute a new password to the site every 6 months or something.  Does the GLBSE currently have a mechanism for privately emailing or messaging all bond holders?

Thoughts?  Does this seem like a security anyone would be interested in?

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