[BTC-TC] CryptX introduces the PETA-MINE - 18,000 CHIPS IN SEPTEMBER/UPDATE

[dhenson]

The IPO is just asking for way too much BTC, I have a feeling this will go the way of Hosted-Mining and end up DOA unless the initial price gets lowered and is replaced by some money from the actual founder in order to get his skin in the game.

If you run the numbers, this is actually a very interesting value proposition.  There is plenty of room for growth considering they will be going live with 1PH when the network is forecasted to be around 3.5-4PH translating to an initial 20% of the network.

@ 20% of the network that's 800 btc/day * 65% for dividends = .0052btc/share per day or .0364/week (around 300%/year dividends over IPO price).

edit... As far as skin in the game, they have already stated they will be adding 20% hash rate out of their pockets with the dividends going 100% to investors until .65 is returned.

A few points:

-Surely having spent a fair amount of time around bitcoins and companies that deal in them, you cannot expect PETA-MINE to deploy on time.

-PETA-MINE does not have any additional revenue streams other than bitcoin mining. In order to maintain revenue, PETA-MINE would have to deploy an additional 20-30% of its total hash rate every 12 days. This equates to adding 200-300 Gigahashes the first time, then 240-390 Gigahashes the 2nd time and you get the picture. This is entirely non feasible given 35% reinvestment from mining alone.

-cryptx is as far as I understand not doing anything that any of us could not do. He is raising money in order to buy mining rigs - this is something that you and I or any average joe could theoretically do, so this is essentially a group buy with an extra fee.


These reasons are why I am skeptical of companies like basic-mining, cognitive, or peta-hash. It will be very hard to maintain any sort of network percentage and prohibitively expensive to keep up with difficulty increases. Real money is in making machines, not mining with them.

I'm actually quite optimistic about deployment schedule.  Cointerra is unlike any chip manufacturer we've seen.  One look at their team and all doubts of their ability evaporate fairly rapidly.  If these guys can't deliver on time, no one can.

You are correct that anyone can do this, however you really need to scale up in order to effectively add new equipment with 35% reinvestment.  If the entire IPO is sold, and they go live with 20% of the network they will be able to add approx. 17TH/day via their 35% reinvestment. (assuming they are paying 100% retail, which they don't seem to be).

edit... re-reading my post I think I may be a little too excited.  Time to drink some good ol' bitcointalk fud juice.

[DeathAndTaxes]

These reasons are why I am skeptical of companies like basic-mining, cognitive, or peta-hash. It will be very hard to maintain any sort of network percentage and prohibitively expensive to keep up with difficulty increases. Real money is in making machines, not mining with them.

This.  There is a limited market IF the entity has an advantage over the retail consumer.  Access to industrial space at below market prices?  Signed a power agreement for interruptable supply at unbeatable rate <0.04 kWh?  Operating in a climate that reduces the need for HVAC?  Have a deal w/ manufaturer to buy initial and upgrade hardware at substantially (30%) less than retail?

Optimally it would be all of them combined.  A person who has access to couple thousand feet of warehouse space in Canada in a district where with an interruptable contract can get power at $0.035 per kWh and is being offered rigs at $5 per GH/s for Dec delivery.

[FloatesMcgoates]

The IPO is just asking for way too much BTC, I have a feeling this will go the way of Hosted-Mining and end up DOA unless the initial price gets lowered and is replaced by some money from the actual founder in order to get his skin in the game.

If you run the numbers, this is actually a very interesting value proposition.  There is plenty of room for growth considering they will be going live with 1PH when the network is forecasted to be around 3.5-4PH translating to an initial 20% of the network.

@ 20% of the network that's 800 btc/day * 65% for dividends = .0052btc/share per day or .0364/week (around 300%/year dividends over IPO price).

edit... As far as skin in the game, they have already stated they will be adding 20% hash rate out of their pockets with the dividends going 100% to investors until .65 is returned.

A few points:

-Surely having spent a fair amount of time around bitcoins and companies that deal in them, you cannot expect PETA-MINE to deploy on time.

-PETA-MINE does not have any additional revenue streams other than bitcoin mining. In order to maintain revenue, PETA-MINE would have to deploy an additional 20-30% of its total hash rate every 12 days. This equates to adding 200-300 Gigahashes the first time, then 240-390 Gigahashes the 2nd time and you get the picture. This is entirely non feasible given 35% reinvestment from mining alone.

-cryptx is as far as I understand not doing anything that any of us could not do. He is raising money in order to buy mining rigs - this is something that you and I or any average joe could theoretically do, so this is essentially a group buy with an extra fee.


These reasons are why I am skeptical of companies like basic-mining, cognitive, or peta-hash. It will be very hard to maintain any sort of network percentage and prohibitively expensive to keep up with difficulty increases. Real money is in making machines, not mining with them.

I'm actually quite optimistic about deployment schedule.  Cointerra is unlike any chip manufacturer we've seen.  One look at their team and all doubts of their ability evaporate fairly rapidly.  If these guys can't deliver on time, no one can.

You are correct that anyone can do this, however you really need to scale up in order to effectively add new equipment with 35% reinvestment.  If the entire IPO is sold, and they go live with 20% of the network they will be able to add approx. 17TH/day via their 35% reinvestment. (assuming they are paying 100% retail, which they don't seem to be).

I would like to see any sort of proof that they are not paying 100% retail. If cryptx were just paying 100% retail for this project, then there is absolutely no point in investing as we would be better off individually purchasing cointerra products.

Also, 17TH/day may sound great, but realize that we are dealing with percentages in a zero sum game. It will be completely and utterly impossible to maintain network percentage by reinvesting 35% of mining income. If that were possible, then everyone and their mothers would be doing it and causing a feedback loop making it impossible. As we have seen, ASICminer was unable to maintain 20% network percentage even though they produced equipment inhouse with no markup and had additional revenue through hardware sales. Do you really expect PETA-Hash to have a higher network percentage than ASICminer through simply buying machines through a third party? What about their ability to maintain any percentage they have? If ASICminer is struggling in the face of difficulty adjustments, what are the prospects for a company that has only 1 revenue stream that will only decline over time?

[dhenson]

Imagine for a second the IPO sells out and they deliver mid December @ 20% of the network.  Now ask yourself what the btc/share price will be given there are only 100,000 shares.

You will be able to re-evaluate your position and sell for an incredible profit if you should so choose.  If they aren't keeping up with the network then you can bail.  This isn't till death do you part.

I am bullish on the profit potential, even if it might be for only a few months into 2014.

[FloatesMcgoates]

Imagine for a second the IPO sells out and they deliver mid December @ 20% of the network.  Now ask yourself what the btc/share price will be given there are only 100,000 shares.

You will be able to re-evaluate your position and sell for an incredible profit if you should so choose.  If they aren't keeping up with the network then you can bail.  This isn't till death do you part.

I am bullish on the profit potential, even if it might be for only a few months into 2014.

Undoubtedly we are not getting through to each other so I'm just going to bail out after this last comment. I see very little potential for profit but if you want to be an early adopter and buy the IPO when it is nearly full then go ahead. If I see that there is actual demand then of course I would be in short term for the post IPO-bubble, but the prospects for this company long term are dim indeed.

[cryptx]

These reasons are why I am skeptical of companies like basic-mining, cognitive, or peta-hash. It will be very hard to maintain any sort of network percentage and prohibitively expensive to keep up with difficulty increases. Real money is in making machines, not mining with them.

This.  There is a limited market IF the entity has an advantage over the retail consumer.  Access to industrial space at below market prices?  Signed a power agreement for interruptable supply at unbeatable rate <0.04 kWh?  Operating in a climate that reduces the need for HVAC?  Have a deal w/ manufaturer to buy initial and upgrade hardware at substantially (30%) less than retail?

Optimally it would be all of them combined.  A person who has access to couple thousand feet of warehouse space in Canada in a district where with an interruptable contract can get power at $0.035 per kWh and is being offered rigs at $5 per GH/s for Dec delivery.

Our vision is that to maintain a portion of the network, we have to take in all factors that contribute to reduce costs. Because of the scale of this project, we are able to get much better prices with manufacturers (chips / boards etc.) than retail customers and deploy hardware in an optimized location with low electricity costs. We will also be using our own mining pool (0% pool fee) that is optimized to improve communication with our miners for maximized hashing results.

[HeRetiK]

Our vision is that to maintain a portion of the network, we have to take in all factors that contribute to reduce costs. Because of the scale of this project, we are able to get much better prices with manufacturers (chips / boards etc.) than retail customers and deploy hardware in an optimized location with low electricity costs. We will also be using our own mining pool (0% pool fee) that is optimized to improve communication with our miners for maximized hashing results.

In what range are your electricity costs going to be?

0.20 - 0.10 USD?
< 0.10 USD?

[cryptx]

In what range are your electricity costs going to be?

0.20 - 0.10 USD?
< 0.10 USD?

We are targeting < 0.10 USD / kWh
Even though our HQ is located in Brussels for administrative reasons, our operations are not limited to Belgium (Electricity rates in Belgium are in the 0.15 - 0.20 USD range).

[floatyfish]

In what range are your electricity costs going to be?

0.20 - 0.10 USD?
< 0.10 USD?

We are targeting < 0.10 USD / kWh
Even though our HQ is located in Brussels for administrative reasons, our operations are not limited to Belgium (Electricity rates in Belgium are in the 0.15 - 0.20 USD range).

If they aren't limited to Belgium, where else would they be? If you don't feel comfortable telling us in what country they would be hosted, would you at least be able to give us the EUR/kWH or USD/kWh of where the machines would be hosted?

[cryptx]

If they aren't limited to Belgium, where else would they be? If you don't feel comfortable telling us in what country they would be hosted, would you at least be able to give us the EUR/kWH or USD/kWh of where the machines would be hosted?

We are still in negotiation with several datacenters in Europe so no exact price USD/kWh yet.

[001sonkit]

The IPO is just asking for way too much BTC, I have a feeling this will go the way of Hosted-Mining and end up DOA unless the initial price gets lowered and is replaced by some money from the actual founder in order to get his skin in the game.

If he can do a 1/100 share split, it would be considerable as the liquidity is higher even if this things suck dick after it launches

By the way, good luck on liquidating 0.5% of the networks' coins

[cryptograd]

The IPO is just asking for way too much BTC, I have a feeling this will go the way of Hosted-Mining and end up DOA unless the initial price gets lowered and is replaced by some money from the actual founder in order to get his skin in the game.

If you run the numbers, this is actually a very interesting value proposition.  There is plenty of room for growth considering they will be going live with 1PH when the network is forecasted to be around 3.5-4PH translating to an initial 20% of the network.

@ 20% of the network that's 800 btc/day * 65% for dividends = .0052btc/share per day or .0364/week (around 300%/year dividends over IPO price).

edit... As far as skin in the game, they have already stated they will be adding 20% hash rate out of their pockets with the dividends going 100% to investors until .65 is returned.

they will NOT be going live with anything

they will never raise the money

these guys are snakes

[romerun]

Imagine for a second the IPO sells out and they deliver mid December @ 20% of the network.  Now ask yourself what the btc/share price will be given there are only 100,000 shares.

You will be able to re-evaluate your position and sell for an incredible profit if you should so choose.  If they aren't keeping up with the network then you can bail.  This isn't till death do you part.

I am bullish on the profit potential, even if it might be for only a few months into 2014.

The future of mining is equipment selling. Bullish only a few months sounds like pump and dump.

[dhenson]

The future of mining is equipment selling. Bullish only a few months sounds like pump and dump.

I was simply trying to say that if they don't keep up with the hash rate with their reinvestment, you can always sell your position.  How do you pump and dump an IPO that has 65,000 btc worth of shares left to sell?

[Dexter770221]

It's locked. Why?

[dhenson]

It's locked. Why?

edit... no idea.

[TsuyokuNaritai]

It's locked. Why?

Maybe it just says that when issuer gets the 5 votes, so it's now waiting for the issuer to hit the button.

[dhenson]

It's locked. Why?

Maybe it just says that when issuer gets the 5 votes, so it's now waiting for the issuer to hit the button.

That is the state it WAS in, the issuer has since locked the asset.  Possibly because people were placing bids early?

[001sonkit]

The future of mining is equipment selling. Bullish only a few months sounds like pump and dump.

I was simply trying to say that if they don't keep up with the hash rate with their reinvestment, you can always sell your position.  How do you pump and dump an IPO that has 65,000 btc worth of shares left to sell?

Sounds like a dump and dump rather than yours. By the way is it possible to trust someone from nowhere 0.5% of the whole network's coins?!

Labcoin Vs. CryptX, lets see who is more troll

[cryptx]

Hello All,

We received the 5 necessary moderator 'yes' votes and are ready to open our IPO to the public!