[LABCOIN] IPO [BTCT.CO] - Details/FAQ and Discussion (ASIC dev/sales/mining)

[TheSwede75]

What's the status of the locked shares?

I think they have more important things to focus on right now.

This would take a very, very short amount of time to complete and update us on.  There is no excuse for not doing it.

I agree to a large extent but it is slightly more complicated since the team is split between Italy/Europe and China/Hong Kong.

That said, I have made Sam aware that it is a priority, and I expect this to happen quite soon.

[Luckybit]

Also, people on the "Custom Hardware" board have been complaining about all the pre-orders.  You guys should be able to make a killing selling miners on hand, rather then as pre-orders if you can do it in September

+1

Exactly, this is the right time to give the pre-order fueled companies a run for their money.

Yes. The Labcoin team does realize how exceptionally valuable short time to market and in-hand products are and are definitely considering this. We are however also aware of the possible caveats of exporting high value electronics (as proven by the latest delays and problems that for example Avalon has experienced).

Awesome.  I'd love to see Labcoin beat HashFast/Cointerra's pricing on the one hand... on the other I'd rather not give away any profits unnecessarily.

If you are actually going to sell units you have on hand, the best thing to do might be to auction them off.

They could always do a franchise thing like what ASICMINER is trying to do. They can also do the HOSTED MINING thing where they mine for the customer and sell contracts. There are many ways to make money if they have a working chip.

[TheSwede75]

Cool beans.  

Are the chips your sending out samples or paid orders? How are financials and dividends for chip sales going to be handled?

There will of course be more "hard numbers" on this posted as chips are received, tested etc. the general policy is to pay out all profits as dividends to share holders, though Labcoin also plans to reinvest when profitable.

I have requested that customers that make "serious inquiries" be sent sample chips from first run and I am also trying to facilitate a miner and first run chips be send to me for review for the forum.

More information will be available (including pictures and stats) as soon as first run chips lands in the hands of the team.

What can shareholders do to promote Labcoin? Maybe advertising can be made to be cheaper? Why not just go to the forums where people are looking for ASIC miners and to reddit and promote the hell out of it?

As soon as the Labcoin team has performed testing and verified first-run and PCB functionality we will be dealing with all aspects of promotion and sales. This approach is chosen intentionally since the team feels that promoting a non proven product before they can show 100% functionality and specs is not something that Labcoin is interested in as the project is funded through the IPO well through first production run.

I know that there will be in depth discussions on how to best leverage fast time to market once miners are up and running, so I don't want to speculate too much into the exact model that will be chosen for chip/miner/contract sales.

The focus of the Labcoin team for the next few weeks will be 100% on becoming maybe The First ASIC project to actually deliver according to project timeline. Something I would consider quite a feat in itself.

[Bitcycle]

Well, a decent price bump at least.  Though I'd be surprised if 0.0025 was the roof from this update. If they really have chips in hand next week, the price should go much higher.

[AngelSky]

Well, a decent price bump at least.  Though I'd be surprised if 0.0025 was the roof from this update. If they really have chips in hand next week, the price should go much higher.

0.0018-0.002 you mean

[twentyseventy]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

[demzie]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

What do you mean by that?

[BlockChains]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

 .000605 / share per what timeframe?

[twentyseventy]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

 .000605 / share per what timeframe?

Total expected value of the mining capability - basically I've charted it out until June 2015

[demzie]

Can you put that online?

[TheSwede75]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

 .000605 / share per what timeframe?

Total expected value of the mining capability - basically I've charted it out until June 2015

I would personally refrain from making long-time predictions reg. hash rate and diff. Considering the long block time solve we are currently seeing in the Bitcoin blockchain I am not even all that sure we will have 'perpetual' 35% increases in the next 12 months, and of course the 50TH expectancy of the Labcoin mining operation is also (if first and second deployment is successful) is also not a 'ceiling' as funds will be available for follow up orders as long as the team deems it profitable.

Aside from 130nm rollout the team is also working in parallel on the 65nm chip as well.

[Bitcycle]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

 .000605 / share per what timeframe?

Total expected value of the mining capability - basically I've charted it out until June 2015

What do you mean by expected value?  The amount of coins generated by a certain amount of TH?

[twentyseventy]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

 .000605 / share per what timeframe?

Total expected value of the mining capability - basically I've charted it out until June 2015

I would personally refrain from making long-time predictions reg. hash rate and diff. Considering the long block time solve we are currently seeing in the Bitcoin blockchain I am not even all that sure we will have 'perpetual' 35% increases in the next 12 months, and of course the 50TH expectancy of the Labcoin mining operation is also (if first and second deployment is successful) is also not a 'ceiling' as funds will be available for follow up orders as long as the team deems it profitable.

Aside from 130nm rollout the team is also working in parallel on the 65nm chip as well.

Sorry, didn't mean to step on any toes with this one; just figured I'd share what I think may be a good indicator of long term viability. I doubt that we'll be seeing 35% DIs each time, and this doesn't account for any reinvestment.

TL;DR - This wasn't supposed to be a valuation of LC shares, just a rough calculation of what the 50TH would bring in in the face of high (35%) perpetual increases.

I believe that the value of the shares is higher than the .0031 number that I mentioned, as that would not have accounted for reinvestment or any slowdown of the total network hashrate.

[bitrocket]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

 .000605 / share per what timeframe?

Total expected value of the mining capability - basically I've charted it out until June 2015

What do you mean by expected value?  The amount of coins generated by a certain amount of TH?

I think twentyseventy is referring to the total number of coins produced from a certain amount hashing power before the difficulty goes up so high it's unprofitable to mine any longer. The yield per share is the total coins produced divided by the number of shares

[jborkl]

Thanks for the update TheSwede75. Waiting for the end of this week to see some Labcoin porn pics.

[Bitcycle]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

 .000605 / share per what timeframe?

Total expected value of the mining capability - basically I've charted it out until June 2015

What do you mean by expected value?  The amount of coins generated by a certain amount of TH?

I think twentyseventy is referring to the total number of coins produced from a certain amount hashing power before the difficulty goes up so high it's unprofitable to mine any longer. The yield per share is the total coins produced divided by the number of shares

So it's basically a 'revenue per share' calculation from mining (not including any hardware sales).  Then the expected share price would be a multiple of the revenue per share.

[TheSwede75]

My back of the envelope calculations put the value of the 6TH running on 10/1 at .000605 / share and the remaining 44TH running on 10/15 at .002435/share, for an expected value of at least .0031

EDIT: These calculations assume 35% increase per Difficulty Increase

 .000605 / share per what timeframe?

Total expected value of the mining capability - basically I've charted it out until June 2015

I would personally refrain from making long-time predictions reg. hash rate and diff. Considering the long block time solve we are currently seeing in the Bitcoin blockchain I am not even all that sure we will have 'perpetual' 35% increases in the next 12 months, and of course the 50TH expectancy of the Labcoin mining operation is also (if first and second deployment is successful) is also not a 'ceiling' as funds will be available for follow up orders as long as the team deems it profitable.

Aside from 130nm rollout the team is also working in parallel on the 65nm chip as well.

Sorry, didn't mean to step on any toes with this one; just figured I'd share what I think may be a good indicator of long term viability. I doubt that we'll be seeing 35% DIs each time, and this doesn't account for any reinvestment.

TL;DR - This wasn't supposed to be a valuation of LC shares, just a rough calculation of what the 50TH would bring in in the face of high (35%) perpetual increases.

I believe that the value of the shares is higher than the .0031 number that I mentioned, as that would not have accounted for reinvestment or any slowdown of the total network hashrate.

Oh absolutely not my intention to ask you not to try to ballpark some numbers. I simply want people to realize that 'ballparking' is all that anyone can do at this point. Do keep up the great work and stay involved

[Ytterbium]

Cool beans. 

Are the chips your sending out samples or paid orders? How are financials and dividends for chip sales going to be handled?

There will of course be more "hard numbers" on this posted as chips are received, tested etc. the general policy is to pay out all profits as dividends to share holders, though Labcoin also plans to reinvest when profitable.

I have requested that customers that make "serious inquiries" be sent sample chips from first run and I am also trying to facilitate a miner and first run chips be send to me for review for the forum.

More information will be available (including pictures and stats) as soon as first run chips lands in the hands of the team.

What can shareholders do to promote Labcoin? Maybe advertising can be made to be cheaper? Why not just go to the forums where people are looking for ASIC miners and to reddit and promote the hell out of it?

Labcoin doesn't get much discussion in the Custom hardware board, but they blather on about friggin' xCrowd. 

Of course we don't know the exact final specs and prices, etc so there's not a lot to talk about in terms of mining yet. But once we get pricing data and real performance numbers it should be worth talking about.

A lot of people there think 130nm is out of date and obsolite, though. They don't realize that what matters is $/W and a cheaper to tape out chip wins in the short run, and over time Labcoin will have time to reduce feature size.

[canth]

<snip>

A lot of people there think 130nm is out of date and obsolite, though. They don't realize that what matters is $/W and a cheaper to tape out chip wins in the short run, and over time Labcoin will have time to reduce feature size.

+1. This certainly worked for AsicMiner and they started out with an even smaller amount of seed funds. At some point all mining operations will need to get more cost efficient and they'll need to be creative for sourcing electricity but that doesn't mean that an initial rush to 28nm is the right answer.

[demzie]

No Pre-Order game = Labcoin win/win/win