Then it seems that you have quite a racket going.
Betking will be taking the cumulative investors' profit to buyback tokens, reducing the bankroll, then Betking alone will be accumulating profits on those tokens to infinity with no benefit to remaining token holders.
Eventually, Betking will have purchased the majority of tokens back with investors' money (Bankroll profits) - in essence diluting remaining token holders since Betking retains the re-purchased tokens and earns all future profits on those tokens. Sounds like it's good to be Dean / Betking.
If I'm misunderstanding, please let me know.
I'm buying tokens back with my own profit, the 30 million tokens I keep from the ICO.
There's not going to be any significant reduction in bankroll, max 10% every 3 months.
Yes I will then be making a profit on the tokens I hold, the ones not being sold plus the ones I buy back, that's pretty normal and how most businesses work.
Remaining token holders have the benefit that their tokens have much more value the longer they hold them. They can choose to never sell them back to me for many years or if the site was to be sold.
There's no dilution going on at all.
Thank you for this answer.
Please hear me out on this, and hopefully this explains what I mean and hopefully a better situation for all.
Hypothetical:
Money Raised: $10,000,000
70% Bankroll: $ 7,000,000
30% BetKing: $ 3,000,000
Price per token: $10,000,000/70,000,000 = $0.14
Q1 Profit: $500,000
Bankroll at end of Q1: $7,500,000
Buyback 10% of tokens: 71,000,000 x 10% = 7,100,000 (includes bounty token holders)
Buyback price: $500,000/100,000,000 tokens = .005 + 0.14 = .145
Reduction to bankroll: 7,100,000 x .145 = $1,029,500.00
Bankroll value after buyback: $7,500,000 - $1,029,500 = $6,470,500
Remaining Investor tokens outstanding: 71,000,000 - 7,100,000 = 63,900,000
Value of token after buyback as proposed: $6,470,500 / 100,000,000 = 0.064705
(this is where the dilution comes into play, although not a typical dilution as in the stock market) - Q2 would need to overcome the deficit just to break even.
Value of token after buyback if repurchased tokens were burned: $6,470,500 / (100,000,000 - 7,100,000 = 92,900,000) = 0.069650161
When companies buyback shares, the outstanding shares are reduced, thus raising the value of the remaining shares. I understand that these are not shares, but the same theory applies.
Don't get me wrong, I'm not trying to dog your project, on the contrary, I'm still very interested under the right circumstances. I think there is value in your casino and profit to be made if done correctly. I just think that by not burning the re-purchased shares it's a losing situation for the investor.
Please consider burning the re-purchased tokens, you would still always have the majority of tokens and they would be worth more and the more you burn, the higher percentage your 29,000,000 tokens represent (or whatever the final number is after all marketing and costs). You would still achieve your goal of owning all tokens eventually.
Thanks for listening/considering.
Regards,
Dave
Correct except one thing.
My buy back price does not reduce after buying back. So if sa I bought 10% of tokens back for $1 or whatever after first quarter.
The remaining tokens are still worth $1 and then have the profit of next 3 months added on top of that
