Factom Will Sell Up To 100% Of Its Bitcoin Reserves

[johnyj]

Many bitcoin startups are just speculators, they went to bitcoin for a quick fiat profit. When bitcoin exchange rate is going down, they will panic and cut their loss near the bottom 

[PaulSnow]

Just like ethereum, factom will dump their coins and build a huge sell wall and cause a price drop. They should just accept fiat and not bitcoin if they are ending up to dump it anyway for fiat.

I think they have already dumped most of their coins. And I believe that was why the exchange rate crashed from $290 to $215 all of a sudden. Now the prices should be stabilizing around $215-225.

The Math doesn't work, and we didn't sell the coin on the exchanges.  The volume of trade on the 4/15 was 56 Million USD.  We sold ~400K.  I don't think there is any way Factom's sale of tokens did anything to the market.

[PaulSnow]

Many bitcoin startups are just speculators, they went to bitcoin for a quick fiat profit. When bitcoin exchange rate is going down, they will panic and cut their loss near the bottom 

They've got bills to pay and wages to keep knocking out. You can't really blame them for converting to a more stable currency when there's no shortage of real world costs to meet.

The why don't they just raise the funds with paypal if they are going to to dump the bitcoin amount to their bank accounts ? Either they should just the bitcoin as it is or use paypal so they don't have to dump the bitcoins and cause a price drop to the bitcoin price.

We are raising funds for a project.  From the beginning we disclosed the fact that we would not be holding Bitcoin.  This is because our expenses are nearly all paid in dollars (with the exception of most of our employees, whose salaries are none the less denominated in dollars, because they have the same issues with their expenses).  That said, we don't have access to ANY of this money.  Koinify holds the money until we meet predetermined and documented milestones.  But the money is managed none the less.

The timing of the first sale was just a function of getting the banking in place.  The fact that the first sale coincided with a drop in Bitcoin is just coincidence (but it really worked out poorly for us).  The amount sold ~400K was done off market, and not enough to move the price on April 15 where 56 Million in bitcoin was bought and sold.

Factom is one of the most transparent projects in the space.  At the same time, it is one with the most interest outside the cryptocurrency space.  It is a mechanism to bring the honesty and immutability of blockchain transactions to create immutable audits in business processes.... WITHOUT having business change the way they do those practices, and without requiring them to hold our tokens (or any tokens).

Every single project has many detractors.  And every project comes with enormous risk.  That is why most startups fail.  It isn't always or even common that the fault of failure is fraud.  But this idea that all Bitcoin 2.0 projects are fraudulent because they found the problem they are working on to be harder than expected.... It gets old, and eventually it will be proven wrong by some of the companies as they make a new market that isn't dominated by corporate boardrooms. 

Checkout http://Factom.org.  Checkout http://github.com/factomproject  Watch the videos. Read the whitepaper (can be found at the aforementioned links).  Read the consensus algorithm (ditto about the links).  Read the code.  Read the issues.  Connect with us on nearly all social media.

Basically spend the time to Audit what we do.

[manselr]

yet another bitcoin2.0 shitcoin

Because the financial technology industry is so lucrative (you won a lottery jackpot if you are lucky in that business), a number of startups are trying to create bitcoin-like alternatives that might be more appealing for the traditional banking industry - and that is nothing new. So of course people are working on bitcoin 2.0 but that have little to do with our 'bitcoin'.

it seems that everything new, related to bitcoin(this shit bitcoin 2.0, altcoin, market adoption ecc yes they are a big dumpers too), it's only aiming to dump it for fiat, they see bitcoin as a rich quick scheme and nothing else, this is why the price can't rise

This, along with Ethereum, are nothing but more super hype IPO scams. They sell it as the next big thing, and they end up never finishing the project because its too ambitious, that is if they ever intended to finish the project tho. They'll end up claiming bankrupcy while keeping all the BTC they sold somewhere.

Literally the only big project that is Legit with capical L is Maidsafe. You can trust David Irvine blindfolded but you can not trust that Russian punk.

[nextgencoin]

yet another bitcoin2.0 shitcoin

Because the financial technology industry is so lucrative (you won a lottery jackpot if you are lucky in that business), a number of startups are trying to create bitcoin-like alternatives that might be more appealing for the traditional banking industry - and that is nothing new. So of course people are working on bitcoin 2.0 but that have little to do with our 'bitcoin'.

it seems that everything new, related to bitcoin(this shit bitcoin 2.0, altcoin, market adoption ecc yes they are a big dumpers too), it's only aiming to dump it for fiat, they see bitcoin as a rich quick scheme and nothing else, this is why the price can't rise

This, along with Ethereum, are nothing but more super hype IPO scams. They sell it as the next big thing, and they end up never finishing the project because its too ambitious, that is if they ever intended to finish the project tho. They'll end up claiming bankrupcy while keeping all the BTC they sold somewhere.

Literally the only big project that is Legit with capical L is Maidsafe. You can trust David Irvine blindfolded but you can not trust that Russian punk.

So much defensiveness about Bitcoin related projects on here. Yes many are outright scams and money grabs but some will only help Bitcoin. I believe Gems could be the biggest boost for Bitcoin for ages.

https://play.google.com/store/apps/details?id=org.getgemsmessenger.app&hl=en

[PaulSnow]

This, along with Ethereum, are nothing but more super hype IPO scams. They sell it as the next big thing, and they end up never finishing the project because its too ambitious, that is if they ever intended to finish the project tho. They'll end up claiming bankrupcy while keeping all the BTC they sold somewhere.

Literally the only big project that is Legit with capical L is Maidsafe. You can trust David Irvine blindfolded but you can not trust that Russian punk.

Factom has been as open and transparent as we can make it.  The Bitcoin we are raising is paid out only after making milestones that require full delivery of the project. 

I would study up on Factom and many of the other projects before making such blanket statements.

[R2D221]

But this idea that all Bitcoin 2.0 projects are fraudulent

Please, stop. There's no such thing as a “Bitcoin 2.0” project. Bitcoin is at version 0.10, and any project that works on top of Bitcoin but is not Bitcoin, should not be called Bitcoin.

[S4VV4S]

But this idea that all Bitcoin 2.0 projects are fraudulent

Please, stop. There's no such thing as a “Bitcoin 2.0” project. Bitcoin is at version 0.10, and any project that works on top of Bitcoin but is not Bitcoin, should not be called Bitcoin.

I will agree with the above statement.
Bitcoin did NOT reach version 1.0 yet and it's still in beta.

How are some people creating "Bitcoin 2.0" projects really makes me wonder....

[Fabrizio89]

Such non profit.

[tokeweed]

But this idea that all Bitcoin 2.0 projects are fraudulent

Please, stop. There's no such thing as a “Bitcoin 2.0” project. Bitcoin is at version 0.10, and any project that works on top of Bitcoin but is not Bitcoin, should not be called Bitcoin.

I will agree with the above statement.
Bitcoin did NOT reach version 1.0 yet and it's still in beta.

How are some people creating "Bitcoin 2.0" projects really makes me wonder....

Don't go full nerd about it. 

[ensurance982]

Well, what do you expect if a company or a project is funded using BTC? This is the biggest difference between VC money invested by Wall Street or Silicon Valley and regular old Bitcoin projects - projects funded in BTC generate selling pressure!

[fox19891989]

yet another bitcoin2.0 shitcoin

Maybe the other Ethereum, both are braggers, just dump their unfinished products to investors, and screw investors. Wow, guys you forget Ethereum? Buy factom if you wanna give the free money to the dev team   And they get rich, we get poorer. 

[ensurance982]

yet another bitcoin2.0 shitcoin

Maybe the other Ethereum, both are braggers, just dump their unfinished products to investors, and screw investors. Wow, guys you forget Ethereum? Buy factom if you wanna give the free money to the dev team   And they get rich, we get poorer. 

Well this is just the way startups go. They may succeed or they may fail. They had relatively solid and good ideas, and it's not completely their fault these didn't work out the way they intended. Just they way the world works, I guess.

[Q7]

Based on my own understanding, there are a number of interpretations after reading this news article

1) They are going to do an auction to sell off their coin reserves. If they have it sold to investors who will continue to keep the coins, then it should not be a problem affecting the price. Else if this goes to the open market competing with the coins already put on sale, this will be bearish towards bitcoin price. Is selling the coin reserve *only* option due to severe shortage of funding? There are questions remain to be answered.

2) These Bitcoin 2.0 companies are entrusted and is supposedly tasked to build and develop new technology on top of the existing bitcoin network. So does selling off the coins reserve go against this principle? Where is the integrity of these so-called bitcoin 2.0 companies after what we have seen happened with Ethereum?

[fox19891989]

yet another bitcoin2.0 shitcoin

Because the financial technology industry is so lucrative (you won a lottery jackpot if you are lucky in that business), a number of startups are trying to create bitcoin-like alternatives that might be more appealing for the traditional banking industry - and that is nothing new. So of course people are working on bitcoin 2.0 but that have little to do with our 'bitcoin'.

it seems that everything new, related to bitcoin(this shit bitcoin 2.0, altcoin, market adoption ecc yes they are a big dumpers too), it's only aiming to dump it for fiat, they see bitcoin as a rich quick scheme and nothing else, this is why the price can't rise

Just like ethereum, factom will dump their coins and build a huge sell wall and cause a price drop. They should just accept fiat and not bitcoin if they are ending up to dump it anyway for fiat.

Dude they accept btc so later on they can say "oops our plan did not work out, chao"

Accepting Fiat would have SEC and FinCen on their asses

Yes, you are totally right, if they accept fiat, they will be accused by SEC and FinCen, their ICO/IPO is obviously illegal in US.

[ensurance982]

Based on my own understanding, there are a number of interpretations after reading this news article

1) They are going to do an auction to sell off their coin reserves. If they have it sold to investors who will continue to keep the coins, then it should not be a problem affecting the price. Else if this goes to the open market competing with the coins already put on sale, this will be bearish towards bitcoin price. Is selling the coin reserve *only* option due to severe shortage of funding? There are questions remain to be answered.

2) These Bitcoin 2.0 companies are entrusted and is supposedly tasked to build and develop new technology on top of the existing bitcoin network. So does selling off the coins reserve go against this principle? Where is the integrity of these so-called bitcoin 2.0 companies after what we have seen happened with Ethereum?

It doesn't matter how they're doing it: Coins being sold always means that someone paid money for those coins - money that maybe would have entered the open market in some sort. It always leads to a decrease in buying pressure!

[tokeweed]

Based on my own understanding, there are a number of interpretations after reading this news article

1) They are going to do an auction to sell off their coin reserves. If they have it sold to investors who will continue to keep the coins, then it should not be a problem affecting the price. Else if this goes to the open market competing with the coins already put on sale, this will be bearish towards bitcoin price. Is selling the coin reserve *only* option due to severe shortage of funding? There are questions remain to be answered.

2) These Bitcoin 2.0 companies are entrusted and is supposedly tasked to build and develop new technology on top of the existing bitcoin network. So does selling off the coins reserve go against this principle? Where is the integrity of these so-called bitcoin 2.0 companies after what we have seen happened with Ethereum?

It doesn't matter how they're doing it: Coins being sold always means that someone paid money for those coins - money that maybe would have entered the open market in some sort. It always leads to a decrease in buying pressure!

Huh?  But the market cap is going down.  That means money is going out, not in.