[Smidge.Com] - A virtual, actively managed, multi-asset digital currency fund

[Vexual]

"Zero share holding ..." doesn't apply if the shares are obtained for zero cost. If you want to own 15% of the fund, you need to contribute 15% of the assets.

The thought that Smidge thinks this is reasonable raises questions about his abilities as a fund manager.

[stripykitteh]

Warren Buffett ran a very successful fund in the 1950's and 1960's called Buffett Partnership, Ltd., before he bought Berkshire Hathaway. He got a quarter of the return over 6%, i.e., if he got a 10% return for the fund, he got 1%. If he got a 18% return, he got 3%, et cetera. He only owned the shares he paid for. If he got 6% or less for the fund he starved.

I wonder why the manager of the smidge.com thinks he needs a staggeringly better deal for himself than Warren did?

[Smidge]

Hi everyone,

Please hold back your questions about the share structure for now. It is currently being discussed and as I announced earlier today, it is approached in the most careful way.

Here are some facts:

- Until now, no Smidge.Com shares (the 135.000 in question) have been issued
- Until now, all management fees have been instantly reinvested into the fund

There are no disadvantages whatsoever to the shareholders until now. Moving forward from here, there will be a solution announced that is acceptable for everyone before IPO, in order to create as much transparency as possible.

[Vexual]

The only solution I can imagine is increasing your capital input to 2700BTC. (135,000 x 0.02)

[dexX7]

I announced last week that I will be making performance comparisions with the first data sets generated by DCX at http://dcx.smidge.com

Hi Smidge,

maybe I miss a very important point, but I can't see how you are able to use the DCX for this comparison. In the current form the DCX will only oscillate around 100 and shows the relative change to the last "tick", while you are looking for an absolute change in value (I guess) or at least a relative change to your last point of comparison.

Let's look at an example:



Those numbers are made up, but I hope you get my point. While the market capitalization has grown by 40k Bitcoin, the DCX would have lost 0,79 points.

[bbxx]

25      MYMINER   333.0000         0.02649000   8.82117000      1.92%

Wtf?

Real price is...
Highest bid price   0.0186   BTC/Share

Can you provide more detailed sheet, how much btc you have burned in this week?
You said you have got good trades, where i can find it?
I have counted about 20 btc 3 days ago, you said that it is not true.

[Smidge]

Letter to Shareholders / IPO postponed

Dear Shareholders,

As there are currently ongoing discussions with operators of exchanges and the community about the upcoming IPOs, we decided ourselves (Smidge.Com) to postpone the IPOs until further notice.

We want to answer all open questions, especially regarding share structure and other details. I think this is the most sane way to approach this to create as much transparency as possible for our current and future shareholders. As stated many times earlier, nothing will be rushed and I am willing to take each and every precautionary measure in order to build trust and confidence, BEFORE we step onto the open market. This can only be beneficial for all of us.

In case you require any of your funds right now, I can of course offer you a share buyback at the initial price (0.02) to help you out incase you are in an urgent situation. Once the NAV/share goes up significantly, I will of course also offer you a buyback at the higher NAV/share.

Thanks a lot for your confidence! If you have any questions, I'd be happy to answer them.

[Pale Phoenix]

I know you've said that you are rethinking the terms of your IPO and I think that's wise, but I'd like to point out how misleading the current plan is.

I noticed this statement on the Havelock IPO summary, which is obviously false given that a portion of each share purchased goes directly into the issuer's pocket.

"The funds structure is very transparent, there are no other fees besides a management fee on actual earnings, which means 100% of your coins generate ROI from the moment they are invested."

[Smidge]

I know you've said that you are rethinking the terms of your IPO and I think that's wise, but I'd like to point out how misleading the current plan is.

I noticed this statement on the Havelock IPO summary, which is obviously false given that a portion of each share purchased goes directly into the issuer's pocket.

"The funds structure is very transparent, there are no other fees besides a management fee on actual earnings, which means 100% of your coins generate ROI from the moment they are invested."

Hi Pale Phoenix,

This statement is absolutely true. It means that there are no purchase fees, like "for 1 BTC you get 0.90 BTC worth of shares" or any other instant fees whatsoever.

Only because the share structure is being discussed and the community raises questions (which is actually a very healthy process that I have requested since day 1), it does not mean that everything is "obviously false".

[freedomno1]

Just reading up on the extortion issue in China curious on your approach and what your dead man switch is, also forgot to ask what country you operations is based in.

[xaviarlol]

Smidge, I highly suggest you stop and review your plan for this fund before it turns in to another Sandstorm.

A word of valuable advice: People aren't stupid. If you have a sh*tty deal masked as a great deal by using deceitful caveats, people will find out. Don't fall in to the trap of trying to outsmart investors.

[dexX7]

Just reading up on the extortion issue in China curious on your approach and what your dead man switch is, also forgot to ask what country you operations is based in.

He's from Germany afaik.

[Smidge]

Hi everyone,

After a lot of discussion, it has been agreed to run the fund as a private fund for now. The growth in pre-IPO stage (since July 21st) has been extreme to say the least and the capital raised has to be reinvested in a very careful way to maximize shareholder value. This obviously takes time. As I've expressed many times before, we won't go on a buying spree just because new capital arrived.

The general decision was to run the operation on a smaller scale, which means:

- The share structure will be reworked to a lower number of total shares
- The initial investment (24.6349 BTC) that has been made will be given to the management team, in shares of the fund
- Management fee will stay the same, but most likely be paid out in shares aswell (awaiting final decision)
- Any effort to avoid redundant information will be taken, which means only this thread (and letters to shareholders) will be used for communication

Once these measures have been implemented and the operation is running smoothly, we will be thinking about an IPO. We have all the necessary approvals already for the current setup and will certainly be allowed to go ahead with the new one.

Trust from investors is very high and we cannot thank our shareholders enough for this. We only had two share buybacks of minor proportions (7.5 BTC total).

As stated before, in case you require any of your funds right now, I can of course offer you a share buyback at the initial price (0.02) to help you out incase you are in an urgent situation. Once the NAV/share goes up significantly, I will of course also offer you a buyback at the higher NAV/share.

[alexius89]

Thanks for the Update.

I Guess that many investements are made because The Security will be listed soon.

Well, that is my opinion but an IPO within 1 week was a major reason for my Investment in SMIDGE....

So are there any plans for a coming IPO in the next weeks?

[bbxx]

25      MYMINER   333.0000         0.02649000   8.82117000      1.92%

Wtf?

Real price is...
Highest bid price   0.0186   BTC/Share

Can you provide more detailed sheet, how much btc you have burned in this week?
You said you have got good trades, where i can find it?
I have counted about 20 btc 3 days ago, you said that it is not true.

any comment smidge, to this?

is this a mistake or lie ?

you are valuating fund holdings by price you have bought ?

what is real loss ?

[Vexual]

Hi everyone,

After a lot of discussion, it has been agreed to run the fund as a private fund for now. The growth in pre-IPO stage (since July 21st) has been extreme to say the least and the capital raised has to be reinvested in a very careful way to maximize shareholder value. This obviously takes time. As I've expressed many times before, we won't go on a buying spree just because new capital arrived.

The general decision was to run the operation on a smaller scale, which means:

- The share structure will be reworked to a lower number of total shares
- The initial investment (24.6349 BTC) that has been made will be given to the management team, in shares of the fund
- Management fee will stay the same, but most likely be paid out in shares aswell (awaiting final decision)
- Any effort to avoid redundant information will be taken, which means only this thread (and letters to shareholders) will be used for communication

Once these measures have been implemented and the operation is running smoothly, we will be thinking about an IPO. We have all the necessary approvals already for the current setup and will certainly be allowed to go ahead with the new one.

Trust from investors is very high and we cannot thank our shareholders enough for this. We only had two share buybacks of minor proportions (7.5 BTC total).

As stated before, in case you require any of your funds right now, I can of course offer you a share buyback at the initial price (0.02) to help you out incase you are in an urgent situation. Once the NAV/share goes up significantly, I will of course also offer you a buyback at the higher NAV/share.

This sounds like a promising framework to demonstrate fund performance at a larger scale. Looking forward to more details.

[Smidge]

25      MYMINER   333.0000         0.02649000   8.82117000      1.92%

Wtf?

Real price is...
Highest bid price   0.0186   BTC/Share

Can you provide more detailed sheet, how much btc you have burned in this week?
You said you have got good trades, where i can find it?
I have counted about 20 btc 3 days ago, you said that it is not true.

any comment smidge, to this?

is this a mistake or lie ?

you are valuating fund holdings by price you have bought ?

what is real loss ?

Hi bbxx,

The incorrect MYMINER valuation was an honest mistake, which will be corrected asap in the next release of the balance sheet.

[Smidge]

Thanks for the Update.

I Guess that many investements are made because The Security will be listed soon.

Well, that is my opinion but an IPO within 1 week was a major reason for my Investment in SMIDGE....

So are there any plans for a coming IPO in the next weeks?

Hi alexius89,

As stated before and in the few E-Mails we traded yesterday, the fund/share structure will be reworked first before next steps are planned. I will inform you on this thread as soon as there is any news.

Edit: I don't want to be too unspecific to you, we might have a final decision on it beginning of September.

[Smidge]

This sounds like a promising framework to demonstrate fund performance at a larger scale. Looking forward to more details.

Hi Vexual,

Thanks a lot for that, and above all, the input and suggestions you have given us over the last days. It is invaluable.

[alexius89]

any news?   Sorry,  I'm pretty curious.