[BTC-TC] CIPHERMINE-PT - Industrial Mining & High Performance Computing

[dexX7]

Dear potential shareholders,

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

I'm happy to present a pass-through issued by myself in cooperation with CipherMine, a
cryptocoin mining company which is listed on the Litecoin Global Exchange.

This security is listed on the BTC Virtual Stock Exchange:

https://btct.co/security/CIPHERMINE-PT

To learn more about CipherMine and this security, please take a look at the prospectus below.

Feel free to contact me here on the forums or via e-mail (ciphermine@bitmarkets.net). From
time to time I'm also available on freenode.net (IRC) with the nick dexX7.

Cheers!


DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

1. Executive Summary

This security represents a depositary receipt/pass-through of the CIPHERMINE security.

Listed on the virtual stock exchange BTC Trading Corp. Stock Exchange this security can be
found under the ticker symbol CIPHERMINE-PT:

https://btct.co/security/CIPHERMINE-PT

Underlying shares are issued by the cryptocoin mining company CipherMine which is quoted on
the virtual stock exchange Litecoin Global Exchange under the ticker symbol CIPHERMINE:

https://www.litecoinglobal.com/security/CIPHERMINE

CipherMine maintains a forum thread on LitecoinTalk:

https://forum.litecoin.net/index.php/topic,4582.0.html

According to CipherMine, the company mines scrypt and SHA256 based cryptocoins with a
combination of heavily discounted CPU resources, GPU rigs, FPGAs and ASICs. Although the
focus lies on Bitcoin and Litecoin, mining clusters are diverted to other cryptocoins based on
profitability. Highly automated coin switching and trading is used to maximize performance.

Incoming profits are distributed to shareholders in form of dividends and partially used as re-
investment. To maximize an early-mover advantage, CipherMine aggressively invests in cutting-
edge technology like ASIC mining hardware.

This security acts as an extension of the underlying security CIPHERMINE and provides potential
users of the BTC Trading Corp. Stock Exchange a way to participate in trading virtual shares of
the cryptocoin mining company CipherMine nominated in Bitcoin.

Benefits of underlying shares will be passed through to shareholders of this security as defined
in the Shareholder Agreement.

2. Business Description

CipherMine, the basis of this depositary receipt/pass-through, is a growth-oriented virtual
mining company which specializes in cryptocoin mining as well as high-performance computing.

Formed in June 2012, CipherMine was established by leading British IT entrepreneur Kate Craig-
Wood in partnership with Giles Russel, Ross Martyn and Simon Weald, two systems
administrators from Memset Ltd., and Jan, a DevOps specialist.

What started out as a hobby for Craig-Wood, has seen her set up a virtual company whose stellar
debut grabbed headlines around the world as shares soared 500 % following their initial public
offering on June 24 2013 on the virtual stock exchange LTC-GLOBAL.

Recognizing that there was room for an alternate cryptocoin, CipherMine believes that Litecoin
is that alternate.

More information about CipherMine can be found on http://www.ciphermine.com.

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

3. Definition of the Market

Mining cryptocurrencies strengthens the underlying infrastructure and can be highly rewarding.

Because of the fast growth of this sector constant expansion and improvement is needed to stay
profitable and competitive. CipherMine, the company from which this security is derived, offers
a way for potential investors to benefit from mining and provides an option for all those who
like to take part in cryptocoin mining without the needs of larger initial investments or
maintaining own hardware.

This virtual security is directed to potential shareholders of the CipherMine security
CIPHERMINE and users of BTC-TC who wish to participate in trading CIPHERMINE shares
nominated in Bitcoin without the need of using another exchange.

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

4. Products and Services

The operator is offering a redemption and deposit service which allows shareholders to
exchange CIPHERMINE and CIPHERMINE-PT shares.

How to redeem CIPHERMINE-PT shares on BTC-TC to CIPHERMINE shares on LTC-GLOBAL?

1. Contact the operator of this security via an appropriate medium (e-mail or private message on
bitcointalk.org) and submit the exact number of CIPHERMINE-PT shares to redeem, the account
name on BTC-TC from which shares to redeem are sent and the account name on LTC-GLOBAL
to which shares should be transferred. Please also include the e-mail address used for the
registration on BTC-TC.

2. Transfer the exact amount (as stated in the message) of CIPHERMINE-PT shares to the BTC-TC
account CipherMineTransfer via the Internal Asset Transfer mechanism within approximately 360
minutes after the request message has been sent.

How to deposit CIPHERMINE shares from LTC-GLOBAL to CIPHERMINE-PT shares on BTC-TC?

1. Contact the operator of this security via an appropriate medium (e-mail or private message on
bitcointalk.org) and submit the exact number of CIPHERMINE shares to deposit, the account
name on LTC-GLOBAL from which shares to redeem are sent and the account name on BTC-TC
to which shares should be transferred. Please also include the e-mail address used for the
registration on LTC-GLOBAL.

2. Transfer the exact amount (as stated in the message) of CIPHERMINE shares to the LTC-
GLOBAL account CipherMineTransfer via the Internal Asset Transfer mechanism within approximately
360 minutes after the request message has been sent.

No confirmation from the operator is necessary to initiate the share transfer.

Following the instructions given by the operator is mandatory for a successful share transfer
and shares received by the operator due to other means will be returned to the original sender.

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

5. Organization and Management

This virtual security is managed by dexX7, a bitcointalk.org member. He acts as pass-through
operator and is approved by CipherMine.
https://bitcointalk.org/index.php?action=profile;u=104899

Kate Craig-Wood is the principal founder of CipherMine, the underlying of this security. Her
principal responsibilities in CipherMine are business administration, finance and software
development.
https://bitcointalk.org/index.php?action=profile;u=99792

Giles Russell is CipherMine’s ASIC rig builder and general mining hardware expert.
https://bitcointalk.org/index.php?action=profile;u=98209

Jan Heinicke-Clemm is the mining software specialist of CipherMine and maintains systems such
as CipherMine's private pools and Primecoin mining grid.
https://bitcointalk.org/index.php?action=profile;u=91526

The CipherMine team consists furthermore of the following experts:

Richard West (as diversification services developer), Ross Martyn and Simon Weald (as systems
administrators at Memset Ltd.), Katie Olver (as CipherMine's press relations agent) and Liam
Devany (a developer who is responsible for maintaining ciphermine.com as well as the planned
industrial-computing.com sites).

More details about the CipherMine team can be found on http://www.ciphermine.com.

6. Marketing Strategy

Promotion of this virtual security and the underlying CipherMine is mainly done through word-
of-mouth marketing and advertisement on related cryptocoin forums and websites.

Katie Olver (CipherMine's PR agent) also obtained wide attention including coverage in the
Guardian's blog, as well as Forbes online and the Wall Street Journal.

The Guardian:
http://www.theguardian.com/technology/blog/2013/jul/01/bitcoin-virtual-fortune-crypto-currency

Forbes:
http://www.forbes.com/sites/timworstall/2013/07/02/further-evidence-that-bitcoins-in-a-bubble

Wall Street Journal:
http://blogs.wsj.com/moneybeat/2013/07/08/forget-bitcoins-litecoins-are-the-next-big-thing

7. Financial Management

Detailed information about the financial management and estimated returns of the underlying
CipherMine can be found in the current version of CipherMine’s business plan and business
model.

The related documents are updated frequently and available at http://docs.ciphermine.com.

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

8. Shareholder Agreement

PLEASE MAKE SURE TO READ AND UNDERSTAND THE TERMS OF SERVICE OF THE
VIRTUAL STOCK EXCHANGE "BTC TRADING CORP. STOCK EXCHANGE" TO BE FAMILIAR
WITH ALL DEFINITIONS USED THROUGHOUT THIS SHAREHOLDER AGREEMENT AND
RELATED TERMS OF SERVICE.

This virtual security ("CIPHERMINE-PT") represents a DEPOSITARY RECEIPT/PASS-THROUGH
of the underlying CIPHERMINE security.

CIPHERMINE shares are issued by the cryptocoin mining company CipherMine which is quoted
on the virtual stock exchange Litecoin Global Exchange ("LTC-GLOBAL"):

https://www.litecoinglobal.com/security/CIPHERMINE

8.1 Terminology

The term "CIPHERMINE-PT" (upper case) is used for this security.

"CIPHERMINE" (upper case) is used for the underlying security of this depositary receipt/pass-
through which is traded on LTC-GLOBAL.

"CipherMine" (camel case) refers to the virtual mining company CipherMine lead by British IT
entrepreneur Kate Craig-Wood. CipherMine is the issuer of CIPHERMINE shares.

The terms (potential) "INVESTORS" and (potential) "SHAREHOLDERS" are used to address
POTENTIAL USERS and USERS of BTC-TC, LTC-GLOBAL and potential users and users of the
virtual securities CIPHERMINE and CIPHERMINE-PT.

8.2 Shares

Virtual shares of this security are nominated in BITCOIN and listed on the virtual stock exchange
BTC TRADING CORP. STOCK EXCHANGE ("BTC-TC") under the ticker symbol CIPHERMINE-PT:

https://btct.co/security/CIPHERMINE-PT

Each CIPHERMINE-PT share represents one underlying CIPHERMINE share on LTC-GLOBAL.

CIPHERMINE-PT shares are backed by at least the same amount of CIPHERMINE shares held in
the account "CipherMinePT" on LTC-GLOBAL by the operator of this security.

The operator may increase the number of outstanding CIPHERMINE-PT shares, if the number of
CIPHERMINE shares in the account "CipherMinePT" on LTC-GLOBAL is higher than the number
of outstanding CIPHERMINE-PT shares on BTC-TC.

The number of underlying CIPHERMINE shares held by the operator is verifiable through a
public portfolio on LTC-GLOBAL:

https://www.litecoinglobal.com/portfolio/f781Cg==

8.3 Voting Rights

The operator uses the mechanism provided on BTC-TC to raise motions.

Shareholders are eligible to participate in voting whereby each CIPHERMINE-PT share held by a
shareholder represents the weight of one voting right.

A motion is considered as approved on a majority of more than 50 % of approval votes.

The content of an approved motion will be adopted as soon as possible.

Within approximately 48 hours after a motion has been raised by CipherMine on LTC-GLOBAL,
the operator puts up a motion with a similar content on BTC-TC to extend his voting rights of
CIPHERMINE shares to shareholders of CIPHERMINE-PT.

Shareholders will be notified in advance, if the operator may be unable to forward a motion
within approximately 48 hours.

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

8.4 Dividends

Shareholders of CIPHERMINE-PT may receive virtual dividends on a regular or irregular basis in
form of Bitcoin through the mechanism provided by BTC-TC.

Dividends issued by CipherMine and received by the operator on LTC-GLOBAL are passed
through to shareholders of CIPHERMINE-PT to an amount of 95 % of its converted value in
Bitcoin within approximately 48 hours.

In the case of a foreseeable event that the operator is unable to forward a dividend within this
timeframe, shareholders will be notified in advance and the dividend payout will be rescheduled
accordingly.

BTC-E (https://btc-e.com) is used to determine the value of Litecoin. A trade within
approximately 60 minutes will be used as reference to calculate the conversion factor from
Litecoin to Bitcoin after a dividend has been received on LTC-GLOBAL.

8.5 Fees and Operating Cost

An amount of 5 % of dividends received from CipherMine are retained by the operator as fee.

95 % of dividends are passed through to shareholders of this security based on the conversion
factor from Litecoin to Bitcoin determined as defined in the section Dividends.

No additional costs for potential transaction, conversion or withdrawal fees are imposed.

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

8.6 Share Transfers

The operator is offering a redemption and deposit service which allows shareholders to
exchange CIPHERMINE and CIPHERMINE-PT shares.

For further information about the process share transfer process, please take a look at the
section Products and Services.

Shareholders are eligible to use this service twice every week.

The exchange is processed by the operator within approximately 48 hours.

Should the operator be unable to guarantee this timeframe or execute this service, shareholders
will be notified in advance.

No confirmation from the operator is necessary to initiate the share transfer.

Following the instructions given by the operator is mandatory for a successful share transfer
and shares received by the operator due to other means will be returned to the original sender.

Fraudulent attempts to hijack the share transfer process may result in an exclusion of the
malicious user from this service and will be announced publicly by the operator for the sake of
transparency.

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

8.7 Communication

The operator uses the Asset News channel of BTC-TC to publish important announcements or
information for shareholders of CIPHERMINE-PT.

The preferred medium of communication for public matters between shareholders and the
operator is bitcointalk.org. A dedicated thread shall be used for additional announcements,
information and discussion directly related to CIPHERMINE-PT, CIPHERMINE or CipherMine.

Shareholders may contact the operator via e-mail or the private message mechanism on
bitcointalk.org. Content discussed in non-public channels shall be treated confidently.

Shareholders will be notified in advance, if the operator may be unavailable longer than
approximately 72 hours.

Should BTC-TC become inaccessible or unusable by any means, the operator is going to use
bitcointalk.org to communicate with shareholders and may further try to reach out to
shareholders via e-mail.

8.8 Dissolution

In the event that the operator chooses to or is forced to close this security for any reason, the
following methods will be used for dissolution:

1. A new operator may be chosen by the operator to take over this security. Shareholders of
CIPHERMINE-PT are eligible to approve/disapprove the new operator by a motion.

2. Shareholders of CIPHERMINE-PT have the right to exchange CIPHERMINE-PT shares for
CIPHERMINE shares on LTC-GLOBAL. If applicable, this right is granted for at least four weeks.

3. All remaining underlying shares of CIPHERMINE will be sold on LTC-GLOBAL and the
proceeds will be distributed to the remaining CIPHERMINE-PT shares as a final dividend. This
option is to be considered as unfavorable and only applicable, if the other two options yield no
sufficient result and no other solution has been determined by a consensus of the operator and
shareholders.

DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.

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[dexX7]

Reserved.

[inspiredinvestor]

great to see, glad this has been set up, I'll brought and will continue to buy mostly in litecoins, but this will encourage more opportunities to buy a quality stock!

[dexX7]

Dear potential shareholders,

a few minutes ago I initiated the approval process on BTC-TC. After the admin lock has been
removed, shareholders of LTC-GLOBAL are eligible to approve CIPHERMINE-PT:

https://www.btct.co/security/CIPHERMINE-PT

I will announce the official start of trading with a leadtime of at least 24 hours.

Cheers!

[SebastianJu]

Are there coins that can be profitable with cpu-mining and the power usage of it?

And how about using techniques like multipool or this other pool are using? I would invest probably. But mining bitcoins doesnt sound good for that hardware.

[dexX7]

Are there coins that can be profitable with cpu-mining and the power usage of it?

CipherMine is in the special position to use spare VM hosts of the UK hosting provider Memset Ltd to mine Primecoin (bitcoinmagazine.com on XPM) which are traded on Cryptsy. Currently CPU mining is the only way to generate XPM, though I can't provide exact numbers on profitability.

And how about using techniques like multipool or this other pool are using? I would invest probably. But mining bitcoins doesnt sound good for that hardware.

CipherMine uses different mining pools based on what cryptocoin is mined. Basically the CPU rigs/VMs are used to mine XPM at the moment, GPUs are focused on scrypt coins (like Litecoin) and ASICs and FPGAs are used to mine SHA256 coins (like Bitcoin).

Page 6 and following of CM's business plan provides some more details about coin selection, hardware and mining pools:

http://docs.ciphermine.com/CipherMine%20Plan%20v2.11.pdf

[woodrake]

First off, just to validate this does have my support and I have been working with dexX7 on this for a little while now.

Are there coins that can be profitable with cpu-mining and the power usage of it?

And how about using techniques like multipool or this other pool are using? I would invest probably. But mining bitcoins doesnt sound good for that hardware.

We see BTC mining as a near-term opportunity. The longer term and more interesting opportunities are undoubtedly in CPU and GPU mining. We also hope to put the skills gained to use in renting out, in effect, a specialised high-performance cloud (GPU and potentially FPGA - we wish to test the market for the latter). To that end we've been doing quite a bit of R&D into things like how to get GPU and FPGA rigs into a rack-mountable format which can be housed in a data centre (ie. no wood/plastic etc - not good for fire risk).

Once we've finished building the last few (had some supplier issues) we will have nine quintuple S7950VX GPU rigs (~3 MHz each) and more are planned. We also have a good stock of FPGA hardware but I don't want to buy more until we've proven the business case for renting them out - for now they are earning their keep BTC mining.

We don't use multipools since we have our own intelligent mining and trading software called CipherMine. I am the principal author. It automatically applies our mining estate to the best coin in any given minute. It then also automatically sells the coins to BTC or LTC, though we are soon implementing a more intelligent algorithm so that it holds the alt-coins if they are rising (this is rare so it has not cost us much to date). We also intelligently go short or long on BTC or LTC depending on market trajectory. Currently CipherMiner has the capability to mine about 40 different coins and we're adding more.

As dexX7 mentioned, I am in the unique position of having an arsenal of cheap compute resource available as well. Our Miniserver VM hosts rarely run at more than 10-20% CPU and I've devised a system where we can apply the spare compute to XPM mining - or any other profitable compute-intensive activity that comes along. We're currently running at about 150k primes per sec across ~500 2 GHz Xeon cores.

Owning a hosting company has other advantages too like access to rather cheap power. I cannot go into full details yet since Memset (my company) has not released them, but we are doing something pretty special in this space which also benefits CipherMine. To give you a hint; in the UK I'm a nationally renowned expert in ultra-efficient and environmentally-friendly computing systems (that's also largely what my PhD is about ).

Kate.

PS. Please note that the financial forecasts in the business plan are now quite out of date. I am waiting for LTC Global to let me update the security's details (for which we had a successful motion) before bringing it more up-to-date. However, please do have a look at the static version of the business model at docs.ciphermine.com (the .ods spreadsheet).

[inspiredinvestor]

Owning a hosting company has other advantages too like access to rather cheap power. I cannot go into full details yet since Memset (my company) has not released them, but we are doing something pretty special in this space which also benefits CipherMine. To give you a hint; in the UK I'm a nationally renowned expert in ultra-efficient and environmentally-friendly computing systems (that's also largely what my PhD is about ).

Good to hear CipherMine has goals beyond Bitcoin. there is definitely alot of opportunity

At some piont, once you are able to relax abit on the Ciphermine front (LOL, you don't strike me as a relaxing type). You could put some of your technical skills regarding  "ultra-efficient and environmentally-friendly computing systems" into a little free guide/series of posts for smaller miners and individuals hobbists. Even bigger miners can benefit I am sure.

this would be a great community legacy to create.

[dexX7]

Kissing? I think you meant "word of mouth".

It is not clear which parts refer to CIPHERMINE and which parts refer to CIPHERMINE-PT. You seem to switch back and forth as if they are the same thing. Can you make it more clear?

Thanks for the input!

I differentiate between "CIPHERMINE-PT" (the pass-through), "CIPHERMINE" (the security on LTC-GLOBAL) and "CipherMine" (the company). I added passage 8.1 Terminology which is an extension of the former passage Users to state this explicitly. Mostly all references to the company CipherMine and the underlying security are updated and addressed as external instances to a greater degree now.

Furthermore the passage 8.5 Fees and Operating Cost was added as requested.

[woodrake]

At some piont, once you are able to relax abit on the Ciphermine front (LOL, you don't strike me as a relaxing type). You could put some of your technical skills regarding  "ultra-efficient and environmentally-friendly computing systems" into a little free guide/series of posts for smaller miners and individuals hobbists. Even bigger miners can benefit I am sure.

this would be a great community legacy to create.

You're right, I should! I have been lax on the blogging front lately and I now have a wealth of knowledge in this space. It is also very relevant to my PhD (I'm researching the rebound effect / Jevon's paradox in relation to ICT ability to decarbonise society, hopefully without itself becoming a major emitter) and I see mining as an excellent microcosm example of the rebound effect in action.

Kate.

[dexX7]

Open for votes

This security is in the process of approval on BTC-TC and now open for moderator votes:

https://btct.co/security/CIPHERMINE-PT

Please take your time to review this security, any comment is appreciated.

I will announce the official start of trading with a leadtime of at least 24 hours.

[zefyr0s]

Good luck dex! Looks like you've got 4. no? 4 on asset page, 3 on awaiting approval page.

[dexX7]

Good luck dex! Looks like you've got 4. no? 4 on asset page, 3 on awaiting approval page.

Thanks zefyr0s! The 4th vote came in a few minutes ago, I assume the approval overview is cached.

Edit: it's there now.

[shadallion]

Glad I'll be able to use BTC to purchase CiperMine now, instead of the laborious (and fee-drenched) process of sending BTC to BTC-e, converting to Litecoin, then back to LTCGlobal.com. 

This security has been a rollercoaster, but I'm holding until at least Novemeber to see what kind of dividends they can churn out when everything starts humming along.

[dexX7]

Hi all,

I was asked per e-mail about the initial selling price of CIPHERMINE-PT shares and if potential investors are better off to buy shares right now on the Litecoin Global Exchange or wait till CIPHERMINE-PT starts on btct.co.

For transparency reasons, I'll give you a headsup here as well:

I will do an announcement 24 hours before the official trading of CIPHERMINE-PT on btct.co starts, including the price for which an initial batch of 1000+ CIPHERMINE-PT shares are placed for sale. I will use the price on Litecoin Global as orientation, though I can say right now it will have a small premium to the current price to induce arbitrage oppertunities.

​Please keep in mind that there is a three day withdrawal limitation on BTC-E and you need an active account there, if you do want to do blind arbitrage and want to use BTC-E to buy Litecoin.

Cheers!

[Rannasha]

​Please keep in mind that there is a three day withdrawal limitation on BTC-E and you need an active account there, if you do want to do blind arbitrage and want to use BTC-E to buy Litecoin.

Alternatively, investors can use Cryptsy to exchange BTC for LTC. Currently the ask price for LTC differs about 0.1% between the two exchanges (in favour of BTC-E), but this can obviously fluctuate. As far as I know, Cryptsy doesn't have limitations for withdrawal of cryptocurrencies.

[dexX7]

Alternatively, investors can use Cryptsy to exchange BTC for LTC. Currently the ask price for LTC differs about 0.1% between the two exchanges (in favour of BTC-E), but this can obviously fluctuate. As far as I know, Cryptsy doesn't have limitations for withdrawal of cryptocurrencies.

Thanks for the tip!


Kate posted an update via the asset news channel on Litecoin Global a few minutes ago. I think I'll make it a habit and forward relevant news in the future on regular basis.

Bond successful

Dear Shareholders,

I'm delighted to be able to tell you that our bond issuance was successful (see CIPHERMINE.B1 on BTC TC). As in that security's news thread, in the end I decided to issue all 100k bonds since we can effectively insure ourselves against difficulty with HashFast's (my preferred supplier) Miner Protection Programe.

I have this morning spent the first 600 BTC on four 1.2 TH/s Sierra batch 2 units, due to begin shipping end of November and an additional two 400 GH/s BitFury full mining kits, due to ship next month.

I have also submitted a refund request for the 3,250 Avalon ASICs so although we will not longer get that early boost to hashrates we can at least hopefully spend the funds elsewhere. In summary we now have:

• 9 x 400 GHs BitFuries & 2 x 400 GHs KNCs due in October - 4.4 TH/s total
• 8 x 400 GHs HashFast BabyJets due to ship 20th-30th October - 3.2 TH/s total
• 4 x 1,200 GHs HashFast Sierras due to start shipping 30th November - 4.8 TH/s total

That gives us a grand total of 12.4 TH/s due to arrive in the next 1-3 months. The vast majority of that is also protected by HashFast's MPP, which means that if difficulty is more like my worst-case scenario, we potentially quintuple our total hashrate (in other words, if diff rises slowly we're good and if diff rises fast we're good).

I will be updating our asset register and providing proof of purchases in due course. I am also finalising a new version of the business model that takes an economics approach to predicting difficulty, and I think I now have a robust best- and worst-case scenario model (predicting where computing efficiency will go in response to price-elasticity and market demand is essentially the topic of my PhD so I am determined to come up with an adeqate model!).

I am also considering another bond similar to CIPHERMINE.B1 but in LTC on this exchange (Litecoin Global). As with BTC and SHA256 mining, we would be insured against LTC's appreciation by the productivity of the purchased hardware (in this case GPU rigs) improving beyond that. I shall be carefully modelling this before taking action and also wish to wait until any volatility in LTC's price as a result of Goxification has passed.

Kate.

[FloatesMcgoates]

So when are you going to be putting the shares up for sale?

[zefyr0s]

So when are you going to be putting the shares up for sale?

24 hours after he announces.

[dexX7]

I'm very pleased to officially announce the successful listing of this pass-through!

Trading will start on 2013-09-13 at 16:00 UTC (that's 12:00 EDT [2013-09-13], 00:00 CST [2013-09-14]) and I will place an initial amount of 1000 CIPHERMINE-PT shares for sale for 0.06 Bitcoin per share. Please be aware that bids placed on or higher than 0.06 Bitcoin will be filled immediately.

Queued share transfers will be processed in both ways manually 6 hours later (22:00 UTC [2013-09-13], 18:00 EDT [2013-09-13], 06:00 CST [2013-09-14]) in the order "first-come, first-served". I hope this is fair for all time zones and satisfies both short-term investors, arbitrageurs as well as those who already hold CIPHERMINE shares on LTC-GLOBAL.

To transfer shares in or out please send me a private message here on bitcointalk.org or an e-mail to ciphermine@bitmarkets.net. Please include the following information: amount of shares to be transferred, account name from where shares are sent, account name to where shares should be transferred and the e-mail address used for the registration on LTC-GLOBAL/BTC-TC.

After the request message has been sent, please transfer the exact amount of shares to the LTC-GLOBAL/BTC-TC account CipherMineTransfer via the internal transfer mechanism.

For the case that you are wondering, why I chose exactly this time for the trading start..



P.S.: Thanks to all LTCG moderators for the fast approval!

[FloatesMcgoates]

Buyers please be aware that .06 Btc/share at an exchange rate of 49.5 Litecoins: 1 Bitcoin you are looking at purchasing shares of ciphermine at 2.97 litecoins, which is 20.7% higher than the current highest bid on LTC-Global (https://www.litecoinglobal.com/security/CIPHERMINE) (2.46). Would have been cool if dex didnt try to jimmer potential investors but heh. In any case, use due diligence before investing.

[yufu571]

Buyers please be aware that .06 Btc/share at an exchange rate of 49.5 Litecoins: 1 Bitcoin you are looking at purchasing shares of ciphermine at 2.97 litecoins, which is 20.7% higher than the current highest bid on LTC-Global (https://www.litecoinglobal.com/security/CIPHERMINE) (2.46). Would have been cool if dex didnt try to jimmer potential investors but heh. In any case, use due diligence before investing.

yep, the price of CIP at BTCT is too high. 0.05B is more reasonable.

[ThickAsThieves]

I'm going to chime in here, somewhat in the issuer's defense.


First, you do not know what he paid for his shares (I wouldn't be surprised if he's already taking a loss at .06).

Second, people vastly underestimate the costs and time involved in running a security, and running one properly.

Third, if you factor the overhead of time and expense (and LTC exchange rate risks in this case), then consider that the issuer is indeed doing this to turn a profit, it becomes clear that the public would have a tough time agreeing on and understanding what a fair price is.

Fourth, consider that the shares on LTCG may be mispriced themselves due to low volume or such.

Fifth, consider buying the shares on LTCG if you think they are a better price.

Sixth, no one has to buy shares they feel are overpiced, on any exchange.


Happy trading!

[superduh]

good points TAT
shares at at 3ltc on ltcglobal now with a 2000 bid at 2.75 - i think it's all "priced" accurately for time being

[dexX7]

The higher volume and depth on BTCT justifies a premium on it's own and a living example for this is ActiveMining on BitFunder vs. BTCT, but actually there is another reason to raise the price slightly above the trading price in Litecoin which might not be that obvious at first:

Let's reverse the scenario and assume I would choose a price significantly lower than the price on Litecoin Global. A profitable move for current holders (on LTCG) would be to sell some of their shares at the higher price and buy back-in with a discount on BTCT. With a higher price on another exchange the transfer out of BTCT also becomes more favorable. Of course it's not that static in reality, but I think it's obivous that the outcome in this scenario would be exactly the oppsite of what I like to induce.

The explicit announcement of the initial selling price as well as the leadtime is intended to achive something similar, but the other way around, as well as the limitation of share transfers in the first hours to prevent an oversaturation.

I'd happy about any discussion and further input is very welcome.

Cheers!

P.S.: Thanks TAT!

[dexX7]

Trading of CIPHERMINE-PT starts in approximately 10 minutes:

https://btct.co/security/CIPHERMINE-PT

[zefyr0s]

So am I correct in interpreting that posted Bids won't be put through until 6* hours? And only ASK orders will be filled?

e: or is that transfers between here and the other exchange for Cipher?

[medicine]

So am I correct in interpreting that posted Bids won't be put through until 6* hours? And only ASK orders will be filled?

e: or is that transfers between here and the other exchange for Cipher?

The pass through is live now.  If your bid matches an ask, your bid will be filled immediately.  The BTC TC home page reads: Queued share transfers will be processed in both ways manually 6 hours later.  So if you wish to transfer shares or PT shares between exchanges dexX7 will be manually processing them 6 hours later. 

[dexX7]

So am I correct in interpreting that posted Bids won't be put through until 6* hours? And only ASK orders will be filled?

e: or is that transfers between here and the other exchange for Cipher?

I will process transfers in approximately 6 hours, till than there are only 1000 shares to trade and it's out of my hand how things evolve.

Thanks to everyone, the last ask was filled at 16:01:37 UTC, which basically means the initial PT batch of 1000 shares was sold in less than two minutes.

[shadallion]

Great start!

[dexX7]

All share transfers in queue have been processed and the total number of outstanding shares is 3018 6086.

[dexX7]

Dear shareholders and potential shareholders,

it has been two days since CIPHERMINE-PT started on BTCT and I want to give you an overview of the past days and what is to expect in the nearer future. I'm not sure yet about the format, but I want to publish similar shareholder reports frequently.


Where we are now:

The "IPO" was a success and within less than 2 minutes all 1000 shares found a buyer. They say pictures are worth more than 1000 words, thus I'll leave you with some charts for an overview of recent trading activity:

LTC/USD, source: BTC-E via Cryptocoin Charts


BTC/USD, source: BTC-E via Cryptocoin Charts


BTC/LTC, source: BTC-E via Cryptocoin Charts


CIPHERMINE, source: Litecoin-Global


CIPHERMINE-PT, source: BTC Trading Corp.

Edit: There seems to be a minor displacement due to a different timezone used in NinjaTrader.


Dividend:

The first dividend was issued some minutes ago with an exchange rate of 0.02031 BTC/LTC. A fee of 5 % or 0.7738 LTC has been withheld. Actually it's a double dividend this time and I'm sure Kate will address this soon.

Dividend received on Litecoin-Global:


Dividend issued on BTC-TC:



Share transfers:

5144 shares were transferred in and 58 shares were transferred out. I strongly support arbitrage and I will try to process share transfers as fast as I can, but right now I'm doing this manually. In a shorter timeframe, but rather sooner than later, I'm looking forward to set up a share transfer bot to provide a way to exchange CIPHERMINE and CIPHERMINE-PT shares instantaneously and to build a constant bridge between the Bitcoin and Litecoin worlds. Though I'm not interested in delivering a sloppy solution and when I hand over the control over the transfers (and related accounts) to a bot, I want to be absolutely sure that everything behaves as expected and the risk of unwanted behaviour is minimized.


Volume and spread:

While the IPO went off very smooth and fast, I'm not satisfied with the trading volume and the gap between bids and asks is quite huge. This has been a problem on Litecoin Global also, though CIPHERMINE is one of the most traded securities over there. I hope we will gain more attention on BTCT in the future and offering an autonomous share transfer serivice might be a niche to achive this. Any suggestion and comment regarding this topic is very welcome.


Public Q&A:

It has been asked before and I discussed it with Kate:

We will do a public "question and answer" session soon, most likely on IRC. More details and a fixed date and time will be announced with a sufficient leadtime.


Cheers!

[dexX7]

Message from Kate to CIPHERMINE shareholders on Litecoin-Global:

Dividend error, moving rigs, bond and pass-thru

Dear Investors,

Dividend report

We have seen continued difficulty rises across the board recently, as well falling XPM revenues. This has been compounded by difficulties with the GPU rigs recently (see below). However, I rushed last night's dividend payment (I had been out all weekend and only returned Sunday evening) and as a result made mistakes. Profits for the period were €652, so the dividend payment should have been LTC 174, not LTC 135. This error was due to me putting in a USD/LTC rate in the EUR/LTC field.

The other obvious error was that the dividend was sent twice. I'm not sure how this happened since I remember it appearing to fail the first time. Again, I should have been more careful. This sort of error is normally unlikely to happen since I normally only transfer exactly the amount +0.1 LTC into CipherMine's LTC Global account, but being in a hurry I had sent 300 so I could run the calcs while waiting for the deposit to confirm, intending to withdraw the balance today.

The net result is that dividends have been overpaid by LTC 96. I cannot reclaim the overpayment nor do I feel it is fair to deduct it from next week's dividend so I will take this from my own cut of the CIPHERMINE dividends and put it down as a learning experience. This is my third crypto-cockup in a week (first selling 25 BTC of personally purchased CIPHERMINE.B1 at 0.3 BTC, second sending 3k ANC to a XPM address :/) and I'm hoping the "bad things come in threes" rule applies!

Moving and rig instability

Memset recently moved offices from Guildford to Dunsfold Aerodrome where we have lots of very cheap, renewable power. The new data centre is behind schedule so the rigs are not in there yet but we could not put them in even if we wanted to because our excessively paranoid SIRO wrote the security policies such that nothing combustible be allowed in it, including things like GPU rigs in wooden frames or plastic crates. Yes, I'm the SIRO - hoisted by my own petard! FYI, at the old offices we had an unused secure server room which is where the CipherMine gear was living; we had anticipated the new DC (which is in the ground floor of Memset's new building) being ready by the time we moved the offices (on the first floor).

That doesn't matter since we don't need much cooling just yet and the offices are massive so we have the gear safely stashed with good cooling and now mostly renewables-powered! :) In order to minimise downtime for the mining gear the office move the lads actually brought CipherMine's equipment to my home first, is only 1.5 miles away from the old offices, so I could look after it while the inevitably chaotic move happened. I didn't mention this before because I preferred not to advertise that I temporarily had tens of thousands of Euros worth of kit at my home!. ;) While I have good security measures they are vastly inferior to Memset's. Anyway, that bit of the downtime was minimal. Last week we then moved them to Dunsfold which only involved about an hour in total.

However, during the moves three of the rigs became unstable. In the end Ross and Simon completely dismantled the faulty ones and rebuilt them, and they now appear to be stable again. This has meant they were offline for a while, but it was a worthwhile investment of downtime. We are going to rebuild them again soon using aluminium frames using some bits from our friendly competitors BUY-A-HASH (extra-long PCIE risers) and S.OPENRIGS (they make adaptors to allow rigs to be built using aluminium tubing). This downtime did not help last week's numbers.

Partly as a result of this we've not had time to properly assess mtrlt's not-very-good GPU miner. Our cursory examinations led us to conclude that it was not worth switching all the GPU rigs over to it in a panic, but investigation continues. Unfortunately it may be completely useless. Jan should be deploying the next update of primecoind to the VM grid in the next couple of days too (HP10 I believe).

Bonds

Our pre-IPO investor has delivered the remaining 400 BTC for CIPHERMINE.B1 earlier than agreed, so we have collected all 1,000 BTC as planned. I spent most of it immediately at a price of around $120 (including some losses during conversion). Total proceeds were €89,900 (it is approximate since some of the spend was in BTC). The proceeds have been spent as follows:

2 x 400 GHs BitFuries (due October) @ €6,500 each -> €13,100 (CM-BF-03)
8 x 400 GHs HashFast BabyJets w MPP (20th-30th October) @ €4,120 each -> €33,550 (CM-HF-01, CM-HF-02)
4 x 1,200 GHs HashFast Sierras w MPP (late November) @ €10,490 each -> €41,950 (CM-HF-03)

Total: €88,600, reminder €1,300 (added to the hardware reinvestment fund).

Pass-thru

Finally, I'm delighted to announce that a pass-thru has been created and now approved on BTC Trading Co (CIPHERMINE-PT). If you should wish to move some of your LTC Global CIPHERMINE shares onto BTC Trading Co now you can. I'd like to take this opportunity to thank Dexx for his work, both to date and ongoing, in making this pass-thru for us.

Kate.

Cheers!


Edit:

I decided to forward the double dividend and I will do it in the future again, if something similar happens. CIPHERMINE-PT shareholders are equal to CIPHERMINE shareholders and I think it would be unfair to not do it or even to delay the dividend till someone posts an explanation. Any form of "gentlemans agreement" (like there is an accidently overpayment of 100x and shareholders decide to return a fraction) would have to be discussed and negotiated with each shareholder, but not with the operator. It's not my role to take a special position or to intervene here on my own. Please let me know, if you disagree. ;)

[dexX7]

Hi all, just wanted to share the latest announcement from KnCMiner:

KnCMiner chip news

All,

You have all been waiting for an update on our chips and we can today announce that the Fabrication process has finished and the wafers are on their way to the packing assembly house right now. They will be in the assembly house for a few days before they make their way to us in Sweden  and of course via the fastest method possible.

While it’s going to be a tight and we always knew it was. Time to market is everything in this business after all. We have also broken a few speed records in this business to bring a design to market in the fastest time possible.  But we are still on track to have Jupiter/Saturn shipping this month.

We will update this news site as often as we can with news. We will even have some videos this week from our Swedish assembly factory as some of our smaller parts begin to be assembled ready for full production the minute the chips arrive.

We would also like to take this opportunity to say that while we have remained as silent as possible on our simulations and only promised figures that we know we can meet. we will not down clock our chips to 400 we will release all our machines with the greatest hashing power we can. So yes the rumors are true Jupiter will be greater than 400 by a significant margin as a free gift from us to all our loyal customers. The first chips off of the production line we will run at full speed in our launch video so you can all see exactly how fast we can make Jupiter run.


Thanks

KnCMiner Team

Source: https://www.kncminer.com/news/news-36


Why am I posting this?

CipherMine has two earlier orders for KnCMiner Jupiter - to be more specific one made on 2013-07-24 and the other one ordered on 2013-08-04. The order confirmations can be found here: CM-KNC-01 + CM-KNC-02

Cheers!

[woodrake]

Hey folks,

I've just offered 500 CIPHERMINE-PT (some of my personal shares) at a knock-down price of 0.05 BTC/share. I personally remain convinced that CipherMine's share price will recover to its earlier levels within the next month or two as our armada of ASICs get rolled out so this is a good chance for you to get in on the action. I don't intend to do many offerings like this at below market rate, but I see it as in my interests as main shareholder to boost liquidity and make the pass-thru a success.

ION, we've had our refund for the Avalon chips (95% of 3,250 x 0.086 BTC, so ~$33k - currently) but I'm sitting on those funds for the moment (ie. it is safely stashed in our BitStamp account being controlled by Richard's rather successful bot). I'm trying to determine how close Alpha Tech are to their GPGPU and, if possible, want to get in with a chunky pre-order. My updated forecasts (using an economics-based model to predict difficulty) which I'll release soon suggest that the profitability of BTC mining will be good but short-lived, so I'm keen to ensure CipherMine has something solid to take up the slack.

If it does not look like Alpha Tech or another GPGPU is going to be ready before November I'll probably just invest the Avalon refund in more ASIC mining gear. After thorough investigation of Cointerra and discussions with several people, both employees and customers, I have decided they are legit and would be a good place to put an order. KNC are also looking good now with the above news. I shall keep you posted!

Kate.

[ThickAsThieves]

Hey folks,

I've just offered 500 CIPHERMINE-PT (some of my personal shares) at a knock-down price of 0.05 BTC/share. I personally remain convinced that CipherMine's share price will recover to its earlier levels within the next month or two as our armada of ASICs get rolled out so this is a good chance for you to get in on the action. I don't intend to do many offerings like this at below market rate, but I see it as in my interests as main shareholder to boost liquidity and make the pass-thru a success.

ION, we've had our refund for the Avalon chips but I'm sitting on those funds for the moment. I'm trying to determine how close Alpha Tech are to their GPGPU and, if possible, want to get in with a chunky pre-order. My updated forecasts (using an economics-based model to predict difficulty) which I'll release soon suggest that the profitability of BTC mining will be good but short-lived, so I'm keen to ensure CipherMine has something solid to take up the slack. Further, I'm not sure that just buying more BTC mining hardware is going to be the best plan. Indeed, that recent purchase may have been our last; the next purchases will probably be more GPU rigs which we can usefully apply in a number of ways (and then, hopefully, lots of scrypt GPGPUs).

Kate.

Y'know, I like Dexx7 from what I know of him, and I appreciate the professional manner in which you attempt to do business, Kate.... but this post is absurd.

If anyone really needs me to detail why, I will, but I really hope anyone paying attention can see through it.

[zefyr0s]

Kind of in agreement with TAT, maybe you could have cleared some of the positions trading near IPO so as not to remove their liquidity?

[dexX7]

I've just offered 500 CIPHERMINE-PT (some of my personal shares) at a knock-down price of 0.05 BTC/share. I personally remain convinced that CipherMine's share price will recover to its earlier levels within the next month or two as our armada of ASICs get rolled out so this is a good chance for you to get in on the action. I don't intend to do many offerings like this at below market rate, but I see it as in my interests as main shareholder to boost liquidity and make the pass-thru a success.

Hey Kate,

thanks for the update, your effort and openness.

I have no objection against selling shares per se - every shareholder shall trade shares freely as he wishes, though there is an issue in my opinion that might need clarification:

The business plan of CipherMine (available here) on page 15, section "6.4 IPO plan and share structure" states:

Having now had three rounds of funding we believe we should stop and consolidate. We do not therefore intend to make any additional share offerings until the current orders of equipment, including the planned BitFury hardware, has been delivered and is in operation. Further, we will not issue additional shares without a vote from the existing shareholders to approve it (see “Voting” below), and following discontent from some shareholders Kate will waive her right to vote in
favour of motions which will result in dilution in future.

I assume that offering shares in this context refers to issuing new shares by increasing the number of outstanding shares to more than 110000. Is that correct?

Furthermore it is written:

In order to maximise the accessibility of our shares we have divided the value of CryptoCoin into 110,000 shares. (...) The shares have been allocated as follows. Please note that many of us have sold or bought shares since this initial allocation so the numbers only represent the starting values. Kate, for example, has sold a few thousand shares with most of that money going back into the company in the form of gifted mining hardware.

Do you define "personal shares" as a (sub) set of those 58.2% listed in the table above?

My concern right now is that I see a conflict of interest here. As shareholder your goal might be to maximize (your own) profit (by selling shares or gaming the market in general), but that contradicts your position as founder of CipherMine whose goal should be to maximize profit of CipherMine's shareholders. This is especially an issue, if the amount of "personal shares" is far greater than half of CipherMine's float. The share structure is nothing new, but I think it's a good time to bring up this topic now, because you started to offer shares.

I feel like there is some need for clarification, so that shareholders of CIPHERMINE and thus CIPHERMINE-PT have a clear understanding on this topic. Would be great, if you could elaborate your role as major shareholder a bit.

Cheers!

[dexX7]

Weekly dividend

We received a total dividend of Ł 4.4169014 for 6125 CIPHERMINE shares. The dividend on BTCT will be initiated shortly with an exchange rate of 0.01968 BTC/LTC. A fee of 5 % or 0.22084507 LTC has been withheld.

Kate published the following statement to CIPHERMINE shareholders on Litecoin-Global:

Dividend

Dear All,

There has been good and bad news this week.

• BTC yields are down again, mainly due to difficulty but also because BTC Guild have had a particularly unlucky week it seems. ghash.io (BitFury's private pool) has been stealing the goodness. Still, on the plus side it does appear that they are delivering!
• XPM yields have had a small boost thanks to the deployment of primecoind-hp11, but total revenues are still well down in large part to XPM's price falling. On the plus side, the GPU miner looks unworkable so our CPU mining remains cost-effective. We did have some downtime on some of the grid which we are investigating so we will have a clearer picture of how much more effective HP11 is next week.
• I have an inside track on some of the AnonCoin activities and got word of the pump that happened this week well ahead of time. As a result I locked our miners to ANC and then sold out at the peak (>0.004 BTC/ANC). This has given us a significant boost to scrypt-based revenues. However, this was obviously a one-off and scrypt difficulties continue to generally rise. Our auto-switching should continue to keep us ahead of the curve though.
• Finally, this week the interest payment on CIPHERBOND (€340) kicks in. This does hit our dividends as expected.
  In summary, total revenues were €1,281 with power costs of €353 and depreciation of €317. Less the bond interest that comes to €273 profit, 50% of which is dividends so at €1.78/LTC that's 76.80 LTC. €452 has been added to the reinvestment fund.

One bit of good news is that we have stabilised the GPU mining rigs again. They have been rock-solid since we gave them a little TLC following the move.

The other bit of good news is that we have had our 95% refund on the Avalon chips. I have not decided where to spend those funds yet since I want to understand the state of Alpha Tech's GPGPU solution. I am also still enhancing the model/forecast to help decide whether buying more SHA256 ASIC hardware will likely be a good investment at this point, or whether we should go for more GPU/scrypt capabilities (I'm pretty sure we want to do at least some more GPU gear).

Kate.

[dexX7]

IMPORTANT NOTICE TO ALL CIPHERMINE-PT SHAREHOLDERS

Due to the closure of BTCT and Litecoin-Global I'm forced to close this pass-through. Please read the announcement made by burnside here.

I urge every shareholder to update their email address and public withdrawal address immediately.

Asset issuers receive a list of all email and public withdrawal addresses frequently and I will forward those to Kate after BTCT has closed.

All share transfers to Litecoin-Global will be processed as fast as possible and as long as both websites allow.

I will contact Kate now to see what is going to happen next.

More to be announced soon.

[iCEBREAKER]

Looking forward to seeing CIPHER trading on Bitfunder!   

BF is very LTC friendly BTW.  Direct transfer in/out, no WX needed.

[dexX7]

Notice from evilscoop on the Litecoin Forums:

We are discussing our best course of action in regards to the news from burnside.
And will post more as we sort through it...

Regards

[dexX7]

Notice from Kate on the Litecoin Forums:

Dear All,

This turn of events is unexpected and I shall not lie: almost certainly pretty bad for most of our shareholders.

As Giles said, we are looking at options as to how to proceed. The options under consideration are (in no particular order):

a) Move to a friedcat-style direct share ownership scheme
b) Migrate to a different exchange such as crypto-trade or Havelock
c) Create a new exchange (can't go into details right now but this is a possibility)
d) Forcibly buy back all shares (at a rate decided by the major shareholders, ie. me, Giles and a couple of others)

However, I must forewarn you that I do not think it is going to be practical to give all shareholders the same levels of attention in this transition. I am committed to looking after our major shareholders (eg. those with >500 or perhaps >1,000 share) but it may not be practical to switch to a friedcat-like system of direct share ownership with the large numbers of shareholders we have, nor to migrate all of you to a new exchange.

I therefore encourage those of you with a small number of shares to take what you can over the next week to get some value from the shares you have (ie. sell them) to avoid potentially being left with nothing at all should we end up in a situation where we cannot look after you all.

To be blunt, this experience has resulted in me getting royally screwed (I have significant holdings in addition to CipherMine on these exchanges). I am angry that this has come to pass and am tempted to take steps to close the door, taking CipherMine in-house with a very small number of investors. In practice, it would be simplest for us to walk away at this point (and with the exchange closing one could deem our contract as coming to a natural end) but I am going to take at least some steps to make good.

Anyway, the above is just me sharing some early, probably emotional, thoughts. I will be discussing the matter with our major investors (both in CIPHERMINE and CIPHERMINE.B1 the BTC bond) in due course. Unfortunately I have other pressing matters to attend to for the next 48 hours so please excuse a lack of comms in the mean time.

Kate.

[evilscoop]

bitfunder is one we are looking at...

I know kate is busy, but I am around a fair bit on both forums

[snowdropfore]

f**k, i have 76 CIPHERMINE shares,  kate ,you tell me to sell at 0.75. i have left nothing~~~~.

[dexX7]

bitfunder is one we are looking at...

I know kate is busy, but I am around a fair bit on both forums

Thanks. Very appreciated!

I'm around for the next hours also. All potential transfers will be proceeded immediately. Trading is intended to be open till 2013-10-07 (the day BTCT halts trading), though I reserve to stop this pass-through earlier to convert all remaining shares to CIPHERMINE shares and sell them on the open market and distribute the proceeds as final dividend as described in the shareholder contract:

8. Dissolution

In the event that the operator chooses to or is forced to close this security for any reason, the
following methods will be used for dissolution:

1. A new operator may be chosen by the operator to take over this security. Shareholders of
CIPHERMINE-PT are eligible to approve/disapprove the new operator by a motion.

2. Shareholders of CIPHERMINE-PT have the right to exchange CIPHERMINE-PT shares for
CIPHERMINE shares on LTC-GLOBAL. If applicable, this right is granted for at least four weeks.

3. All remaining underlying shares of CIPHERMINE will be sold on LTC-GLOBAL and the
proceeds will be distributed to the remaining CIPHERMINE-PT shares as a final dividend. This
option is to be considered as unfavorable and only applicable, if the other two options yield no
sufficient result and no other solution has been determined by a consensus of the operator and
shareholders.

Should 8.3 be applied, a notification will be issued with a leadtime of at least 48 hours.

[powpow]

I have some of your shares on btctc.  The problem is I do not trade (or have an account) on the LTC site.  I also, can't create an account -- because creating new users is disabled.  So, I can't transfer my shares.  Please keep this in mind as other users may be in the same situation.

[medicine]

f**k, i have 76 CIPHERMINE shares,  kate ,you tell me to sell at 0.75. i have left nothing~~~~.

I assume your talking in LTC.  Just be patient, it's hard not to get emotional when news like this hits.  But the price is already climbing back over 1.5LTC.
If Kate sees the support her company is receiving I hope it will encourage her not to choose option "d"
In fact, maybe we need to create a nickname for "option d"
Any suggestions?
Peace

[dexX7]

I have some of your shares on btctc.  The problem is I do not trade (or have an account) on the LTC site.  I also, can't create an account -- because creating new users is disabled.  So, I can't transfer my shares.  Please keep this in mind as other users may be in the same situation.

Very good point.

I will try to mirror the bids on Litecoin Global with small orders on BTCT. If the order is filled, I'll set up a new one. Prices will be adjusted from time to time to reflect BTC/LTC exchange rate, selling price as well as the depth on LTCG. I will keep this up for the next hours. If you have any additional ideas, please don't hesitate.

Right now I see no other solution to solve this.

[snowdropfore]

f**k, i have 76 CIPHERMINE shares,  kate ,you tell me to sell at 0.75. i have left nothing~~~~.

I assume your talking in LTC.  Just be patient, it's hard not to get emotional when news like this hits.  But the price is already climbing back over 1.5LTC.
If Kate sees the support her company is receiving I hope it will encourage her not to choose option "d"
In fact, maybe we need to create a nickname for "option d"
Any suggestions?
Peace

okay, you are right.i am sorry for that.

[powpow]

I have some of your shares on btctc.  The problem is I do not trade (or have an account) on the LTC site.  I also, can't create an account -- because creating new users is disabled.  So, I can't transfer my shares.  Please keep this in mind as other users may be in the same situation.

Very good point.

I will try to mirror the bids on Litecoin Global with small orders on BTCT. If the order is filled, I'll set up a new one. Prices will be adjusted from time to time to reflect BTC/LTC exchange rate, selling price as well as the depth on LTCG. I will keep this up for the next hours. If you have any additional ideas, please don't hesitate.

Right now I see no other solution to solve this.

I tried to sell, trading frozen?

[Rannasha]

I have some of your shares on btctc.  The problem is I do not trade (or have an account) on the LTC site.  I also, can't create an account -- because creating new users is disabled.  So, I can't transfer my shares.  Please keep this in mind as other users may be in the same situation.

Very good point.

I will try to mirror the bids on Litecoin Global with small orders on BTCT. If the order is filled, I'll set up a new one. Prices will be adjusted from time to time to reflect BTC/LTC exchange rate, selling price as well as the depth on LTCG. I will keep this up for the next hours. If you have any additional ideas, please don't hesitate.

Right now I see no other solution to solve this.

I tried to sell, trading frozen?

You have to set up a public BTC address in your account first. It's a security measure, so issuers can identify shareholders when the site goes down. This requirement was added recently and was, in retrospect, a sign of things to come.

[powpow]

I have some of your shares on btctc.  The problem is I do not trade (or have an account) on the LTC site.  I also, can't create an account -- because creating new users is disabled.  So, I can't transfer my shares.  Please keep this in mind as other users may be in the same situation.

Very good point.

I will try to mirror the bids on Litecoin Global with small orders on BTCT. If the order is filled, I'll set up a new one. Prices will be adjusted from time to time to reflect BTC/LTC exchange rate, selling price as well as the depth on LTCG. I will keep this up for the next hours. If you have any additional ideas, please don't hesitate.

Right now I see no other solution to solve this.

I tried to sell, trading frozen?

You have to set up a public BTC address in your account first. It's a security measure, so issuers can identify shareholders when the site goes down. This requirement was added recently and was, in retrospect, a sign of things to come.

Ah, thanks.  Horrible situation.  Lost about 50% value of investment.  Luckily, didn't have too much invested.  This is going to really hurt for some folks...

[superduh]

kate-
telling people to sell is just wrong. if you plan on closing everything down and leaving shareholders with NOTHING then wtf.
sell to WHO, you? who the hell would want to  this stock that will be worth exactly 0 in a month.
your response seems to be filled with anger and hate.
keep in mind that anything short of either a fair buyback at 4ltc (your last round) is stealing.
i advice you to CALM down for a few days and then proceed to do something that is legal and fair.

[dexX7]

I was shocked, too. But I'm sure it was a very emotional response and I also know team CipherMine tries it's best at the moment to evaluate different options to come up with something fitting.

If your interested, I suggest to follow the thread on the Litecoin Forums:

https://forum.litecoin.net/index.php/topic,4582.465.html

But to be clear: I'll forward important inforamation as soon as possible anyway.

[superduh]

I was shocked, too. But I'm sure it was a very emotional response and I also know team CipherMine tries it's best at the moment to evaluate different options to come up with something fitting.

If your interested, I suggest to follow the thread on the Litecoin Forums:

https://forum.litecoin.net/index.php/topic,4582.465.html

But to be clear: I'll forward important inforamation as soon as possible anyway.

ya, looks like more debate going on there.

[iCEBREAKER]

Notice from Kate on the Litecoin Forums:

Dear All,

This turn of events is unexpected and I shall not lie: almost certainly pretty bad for most of our shareholders.

As Giles said, we are looking at options as to how to proceed. The options under consideration are (in no particular order):

a) Move to a friedcat-style direct share ownership scheme
b) Migrate to a different exchange such as crypto-trade or Havelock
c) Create a new exchange (can't go into details right now but this is a possibility)
d) Forcibly buy back all shares (at a rate decided by the major shareholders, ie. me, Giles and a couple of others)

However, I must forewarn you that I do not think it is going to be practical to give all shareholders the same levels of attention in this transition. I am committed to looking after our major shareholders (eg. those with >500 or perhaps >1,000 share) but it may not be practical to switch to a friedcat-like system of direct share ownership with the large numbers of shareholders we have, nor to migrate all of you to a new exchange.

I therefore encourage those of you with a small number of shares to take what you can over the next week to get some value from the shares you have (ie. sell them) to avoid potentially being left with nothing at all should we end up in a situation where we cannot look after you all.

To be blunt, this experience has resulted in me getting royally screwed (I have significant holdings in addition to CipherMine on these exchanges). I am angry that this has come to pass and am tempted to take steps to close the door, taking CipherMine in-house with a very small number of investors. In practice, it would be simplest for us to walk away at this point (and with the exchange closing one could deem our contract as coming to a natural end) but I am going to take at least some steps to make good.

Anyway, the above is just me sharing some early, probably emotional, thoughts. I will be discussing the matter with our major investors (both in CIPHERMINE and CIPHERMINE.B1 the BTC bond) in due course. Unfortunately I have other pressing matters to attend to for the next 48 hours so please excuse a lack of comms in the mean time.

Kate.

What is so difficult about relisting on Bitfunder, Havelock, and/or MPEX?

Kate needs to separate her hard feelings about failed investment in LTCGLOBAL from CIPHER, a perfectly viable ongoing enterprise.

Especially troubling is the declaration of "commitment to major shareholders" immediately followed by a 100% variance on exactly what that means.

500 shares?  1000 shares?  That's a very large range, and a moving target for anyone wishing to accumulate shares sufficient for being considered important.

This site is currently in beta. Nothing is verified. Everything is virtual.

^^^Appears at the top of EVERY SINGE PAGE on BTCT and LTCG.^^^

Expecting any different outcome from the one just achieved was naive in the extreme.

I accept responsibility for risking my LTC on a self-declared fake/toy/joke/experiment exchange, and Kate needs to accept responsibility for listing our security there.

It was a conflict of interest for the asset issuer to also be a large shareholder in that asset's exchange.

That conflict of interest is now raising it's bloody head.

With some script magic, Bitfunder should be able to pay out dividends in Litecoin.  It has built-in LTC send/store/receive capability.

[dexX7]

Looks like everything has calmed down a bit.

Message from Kate to all shareholders, posted on Litecoin Global:

Dear Shareholders,

Obviously today's news that LTC Global is closing down by the end of the month is very distressing.

We have not yet decided exactly what to do going forwards but are exploring a number of options, the most obvious of which is to simply bring all shares in-house and run them direct so you all continue to get dividend payments but to the public payment address you have set here (which does mean you must set it if you have not!).

If we were to do that it would prevent automated trading of the shares, and at this time we don't have the resources to administer trades manually. The security would therefore become illiquid for a time. We would likely therefore wish to move the security to a new exchange, and indeed we are exploring some options there too.

Another option is a forced buy-back of shares at the weighted average of the original issue prices (i-e. 1.62 LTC/share), but we don't have the necessary funds to do that in reality. Further, what funds we do have (mostly from the Avalon refund) I am more inclined to offer as a discounted, or possibly forced, buy-back of CIPHERMINE.B1 (the bond issued on BTC TC). At least 50% of the bondholders are investment funds who will likely want their money ASAP; I can't see how their funds can survive this unfortunately.

In the mean time please be assured that we are going to try to look after you, our shareholders, and that does include those of you with small stakes (my somewhat ill-considered forum post earlier should largely be ignored). CipherMine remains a viable business and will continue regardless.

I will be in touch in the couple of days with a clear plan. In the mean time, don't panic!

Kate.

[dexX7]

IMPORTANT NOTICE TO ALL CIPHERMINE-PT SHAREHOLDERS AND USERS OF BTCT AND LITECOIN GLOBAL IN GENERAL

Please set your public withdrawal address on BTCT and Litecoin-Global.

In case you didn't do it already, please head over to your account settings on BTCT and Litecoin Global and go to "Settings". There is a field with the label "Public Withdrawal Address". It is extremely important that you enter a Bitcoin and Litecoin address that you own and control. You may need to sign a message with that address and a shared wallet address (e.g. Bitstamp deposit address) is not sufficient. Please see this picture for instructions:




Why is this important?

Asset issuers receive a list containing all public witthdrawal addresses as well as the amount of shares you hold frequently. After the shutdown of BTCT and Litecoin Global this address will be used to identify you as shareholder and to map the amount of CIPHERMINE/CIPHERMINE-PT shares you hold. If you miss this step, you run into the risk that CipherMine is unable to map your shares to you. You might need to proof that you are the owner of this address.


How can you be sure that you are able to proof the ownership of your withdrawal address?

Ownership of an address can be shown by signing a message with your Bitcoin/Litecoin address. Only the one with control over the private key (or wallet) is able to generate a valid signature for this address. With the stock Bitcoin QT client, you can sign a message by clicking on "Receive" and then right click on the address you'd like to use to sign a message with. If you want to try it yourself, please choose "Sign Message" as shown in the following picture:




Please make sure that you chose the correct address which you'd like to sign a message with (3). After entering a message (4), you can click on "Sign Message" (5) and a signature for this specific address and exactly this message you have entered will be generated.




You now have the following data:

Code:

Address: 13AK4qMJh1fon7e2SpJ3bmm6mDUaq2kqQU
Message: Hello, this is dexX7 and I'm the owner of the BTCT address "13AK4qMJh1fon7e2SpJ3bmm6mDUaq2kqQU". I will use this address to proof ownership and claim my CIPHERMINE shares.
Signature: H7K+KXAwzpxy1thK1bi9uL7KySNIngH7jT6OnxZx4quBA65JKiOuvDqQLf2ODEwoqrOKgCYzFxo5Ps7CelBaKf0=

A signature can be verified in the section "Verify Message" in the Bitcoin QT client. You can also head over to http://brainwallet.org/#verify and verify a signature. The following picture shows this process for http://brainwallet.org/#verify:




TL;TR: please make sure you set your public withdrawal address on BTCT and Litecoin Global and you are in control of this address. Team CipherMine and other asset issuers on BTCT and Litecoin-Global may ask you to provide proof of ownership of this address by signing a message. This is necessary to identify you as shareholder after BTCT and Litecoin Global have been shut down. Please don't hesitate to ask, if you need assistance in this process.

[dexX7]

According to Kate we should receive an update on CipherMine's future with 24 hours.

[dexX7]

Message from Kate to CIPHERMINE shareholders on Litecoin-Global:

This week and the future

Dear Investors,

There is good news and bad news this week. The bad news is that a) as you'll have heard this exchange is closing and b) we've had a rubbish week due to continuing to rise difficulty on all fronts. We actually made a very small loss this week after power, depreciation and the bond interest payments. The net contribution to the hardware fund was €306 so we are still net positive, it is just all going into reinvestment. I am not overly concerned by this since we have always been geared towards being hardware-reinvestment intensive.

However, my forecasts are looking a little more doubtful for scrypt mining given recent rises in difficulty. Further, I am not entirely satisfied that we will get good value for money from money invested in SHA256 ASICs either right now. Therefore I have decided not to reinvest the Avalon refund in more hardware. Instead I we are going to use this money to advance some of our diversification plans, the most notable of which is a gambit to purchase Burnside's code and re-launch this exchange and BTC Trading Co (some details here), which is the good news. For this purpose we will setup a new virtual security most likely and CIPHERMINE shareholders shall get a proportional number of shares in the new entity(ies). I feel it best to keep clearly different business operations separate. It should also be noted that I have personally contributed at least that amount to CipherMine's hardware estate out of my own pocket, so I feel that redirecting those funds is not innappropraite (and it will likely benefit you all more).

Finally, thanks to the aforementioned plans, CipherMine shall continue as a virtual security. The business itself is strong and we have significant ASIC pre-orders coming through in the next weeks and months. It is likely that there may be a period where the security is illiquid and not on an exchange. During that time we will continue to pay dividends to your public withdrawal address (please do make sure you've set this!). My aspiration is that we will have a new exchange operational for the start of December; ie. only one month of illiquidity (this exchange closes at the end of next month).

Finally, please also ensure that you have set an active and secure email address as your LTC Global email account. When reconstituting shares on the new exchange we will be using those email addresses (I have records of them from the shareholder reports .csv sent twice daily). If you are using an insecure or out-of-date email address then you will likely lose your holdings during the trasition!

Kate.

[Luckybit]

Message from Kate to CIPHERMINE shareholders on Litecoin-Global:

This week and the future

Dear Investors,

There is good news and bad news this week. The bad news is that a) as you'll have heard this exchange is closing and b) we've had a rubbish week due to continuing to rise difficulty on all fronts. We actually made a very small loss this week after power, depreciation and the bond interest payments. The net contribution to the hardware fund was €306 so we are still net positive, it is just all going into reinvestment. I am not overly concerned by this since we have always been geared towards being hardware-reinvestment intensive.

However, my forecasts are looking a little more doubtful for scrypt mining given recent rises in difficulty. Further, I am not entirely satisfied that we will get good value for money from money invested in SHA256 ASICs either right now. Therefore I have decided not to reinvest the Avalon refund in more hardware. Instead I we are going to use this money to advance some of our diversification plans, the most notable of which is a gambit to purchase Burnside's code and re-launch this exchange and BTC Trading Co (some details here), which is the good news. For this purpose we will setup a new virtual security most likely and CIPHERMINE shareholders shall get a proportional number of shares in the new entity(ies). I feel it best to keep clearly different business operations separate. It should also be noted that I have personally contributed at least that amount to CipherMine's hardware estate out of my own pocket, so I feel that redirecting those funds is not innappropraite (and it will likely benefit you all more).

Finally, thanks to the aforementioned plans, CipherMine shall continue as a virtual security. The business itself is strong and we have significant ASIC pre-orders coming through in the next weeks and months. It is likely that there may be a period where the security is illiquid and not on an exchange. During that time we will continue to pay dividends to your public withdrawal address (please do make sure you've set this!). My aspiration is that we will have a new exchange operational for the start of December; ie. only one month of illiquidity (this exchange closes at the end of next month).

Finally, please also ensure that you have set an active and secure email address as your LTC Global email account. When reconstituting shares on the new exchange we will be using those email addresses (I have records of them from the shareholder reports .csv sent twice daily). If you are using an insecure or out-of-date email address then you will likely lose your holdings during the trasition!

Kate.

Kate should create a Ciphercoin and let people trade that to fund Ciphermine's trading engine development. Using Avalon refund money is fine but I doubt its going to be enough.

When the engine is done then Ciphermine shareholders should own shares of it.

[evilscoop]

please dont give her idea's lol.....
And agree'd on the latter

[dexX7]

Just a quick reminder: I will freeze trading at 20:00 UTC. The state of the shareholder list will then be final. Please finalize all trades before this time.

To access btct.co on a Windows machine:

1. Edit the file: \Windows\System32\drivers\etc\hosts
2. Add the following line: 141.101.113.21 btct.co
3. Save and you're done.

Edit: Thanks Rannasha!

[Rannasha]

Just a quick reminder: I will freeze trading at 20:00 UTC. The state of the shareholder list will then be final. Please finalize all trades before this time.

To access btct.co on a Windows machine:

1. Edit the file: \Windows\System32\drivers\etc\hosts
2. Add the following line: 141.101.113.21 btct.co
3. Save and you're done.

Fixed a minor mistake in the name of the file to edit.

Also make sure to open the file as administrator.

[dexX7]

Repost of the announcement I made on Octobre 4th during bitcointalk.org's downtime:

Closure of BTCT and Litecoin-Global:

On October 7th, 2013 (2013-10-07) all trading activities of BTCT and Litecoin-Global will be halted. In case this is news to you, please read the official announcements of BTCT or Litecoin-Global for further information:

• BTCT: https://btct.co/
• Litecoin-Global: https://www.litecoinglobal.com/

bitcointalk.org hacked and defaced:

On Wednesday (2013-10-02) hackers - calling themselves "The Hole Seekers" - were able to deface bitcointalk.org. It is unclear, if they gained access to the database of bitcointalk.org.

It is strongly advised to change your password, if you use the same password on other websites. This is solely an additional security measure, despite the fact that passwords are hashed using sha256crypt with 7500 rounds and are not stored in clear text.

Softpedia.com published an article about the hack here. theymos (the admin of bitcointalk.org) commented on the hack on Reddit and offers a bounty of 50 Bitcoin for the first one who is able to reconstruct the hack.

Please be aware that the rumors about 150.000 emails and hashed passwords being offered for 25 Bitcoin are false. theymos analyzed the data sample and came to the conclusion that it is fake.

bitcointalk.org will stay offline until theymos knows how the hack was done.

The future of CIPHERMINE and CIPHERMINE-PT:

Due to the closure of BTCT and Litecoin-Global CipherMine has decided to continue with direct shares, at least for the time being. I also decided to continue this pass-through and until a solution is found for CIPHERMINE, I will go the direct share route as well.

This means CipherMine will not be traded on an exchange after the 7th October and dividends will be send to your Litecoin or Bitcoin address directly. Share transfers will be possible and further instructions on how to transfer direct shares will be published in the next days. I will also update the prospectus and shareholder contract accordingly soon.

What are your options?

Till Monday, October 7th, 2014 (2013-10-07) you are able to freely trade CIPHERMINE-PT shares on BTCT and CIPHERMINE shares on Litecoin-Global. But it is advised to finalize all trades before this date, because it is unknown when trading will be halted exactly. I will process all share transfers from BTCT to Litecoin-Global and vice versa till Sunday, October 6th, 2013 (2013-10-06) at 20:00 UTC. Please take a look at “Products and Services” under the tab “Details” on the BTCT listing of CIPHERMINE-PT for instructions on how to transfer shares.

On Monday, October 7th, 2014 (2013-10-07) at 20:00 UTC I will extract a list with all shareholders and use this list as basis for direct shares. Please make sure your public withdrawal address is correct. It will be used to identify you as shareholder and dividends will be send to this address also.

Please understand that I'm unable to verify your status as shareholder otherwise.

Positive news:

Kate announced the following on Litecoin-Global:

Excitingly, we've today had news that our first three 400 GH/s BitFury miners have shipped! They are from order #525 - actually our second BFSB order. I'm not sure why it has happened before #498, but I've emailed them to ask. We don't have an expected delivery date yet but it should be within the next few days.

KnCMiner also announced that they started to ship units. A video of this announcement can be found here: http://www.youtube.com/watch?v=JFOcI8nK2xI

To give you an overview, the following hardware is currently hashing for CipherMine:

• 1 x Batch 1 60 GH/s Avalon miner
• 1 x Batch 3 60 GH/s Avalon miner
• 100 x Ztex 1.15y clones
• 10 x Quad 1.15y Ztex
• 6 x Cairnsmore CM1s
• 6 x Quintuple Sapphire 7950 Vapor-X GPU rigs
• 2 x Quad Sapphire 7950 Dual-X GPU rigs
• 1 x Quad Gigabye 7970 GPU rigs
• 1 x Quad mix GPU rig

Those units are on order:

• 9 x 400 GH/s BitFury units
• 2 x KNC Jupiter units
• 8 x HashFast BabyJet with Miner Protection Program
• 2 x HashFast Sierra with Miner Protection Program

Receipts for open orders can be found here: http://docs.ciphermine.com/orders/

Shareholder communication:

Until bitcointalk.org is online again, I will communicate all updates via the asset news channel on BTCT. I also created a backup thread for this pass-through on the Litecoin forums:

https://forum.litecoin.net/index.php/topic,6255.0.html

I'm also available via email at dexx@bitwatch.co or under the nick dexX7 on Freenode (IRC).

Please feel free to ask questions, if anything needs further clarification.

[dexX7]

Message from Kate to CIPHERMINE shareholders on Litecoin-Global:

Dear Shareholders,

Apologies for not being in touch over the weekend; I was getting married.

We made a small loss again this week (~EUR 50, ~EUR 300 into the reinvestment fund), but we have seven 400 GH/s BitFuries on the way which should change our fortunes! I emailed them about why we'd only had a notification about our second order and the response is below.

We have not yet had tracking numbers from them but will let you know when we do. Giles got his little BF about one week after he got the tracking number so hopefully we'll have them some time next week.

Kate.

On 03/10/2013 13:00, Niko Punin wrote:

You should get a tracking number soon


On 3.10.2013, at 23:16, Kate Craig-Wood <kate@wood-tech.biz> wrote:

Thanks. :)

Is there any reason why this order, #525, is shipping before our first order, #498?

Kate.


On 05/10/2013 07:51, Niko Punin wrote:

Hello Kate, They were so close together that they were built simultaneously, but getting 4 full rigs done took more time than getting 3 full rigs and it didn't make it in time for shipment that day. Thank you for your understanding.

[dexX7]

First three BitFuries received!

CipherMine has received the first three BitFuries today. Four more should be delivered very soon, as well as the KnCMiners.



BTC Guild team ranking, here we come!

CipherMine is currently hashing at BTC Guild, which is verifiable via the team ranking:

https://www.btcguild.com/index.php?page=rankings&section=teams

Kate said further:

Giles and I have been rather distracted by sorting out how we're going to keep the security liquid and tradeable post-LTCG close down, and Ross and Simon have had to rebuild three of the GPU rigs recently (two randomly melted their main motherboard connectors - still not 100% sure why - and another has an as-yet undiagnosed fault), so we've not had time to sort out live hashrates for the GPU rigs yet (sorry!). Things are actually looking quite positive on the new exchange front and I'll have more news soon; there are a number of options being explored, and we will continue to pay dividends regardless.

[dexX7]

First direct dividend issued

Kate sent out some test payments to test the the direct dividend payout. We received 11.13140127 LTC, which equal 0.16390988 BTC, given an exchange rate of 0.0155 LTC/BTC and a 0.556570302 LTC fee. I initiated a payout of 0.16390988 BTC for 5369* shares. You should receive approximately 0.000030415 BTC x amount of shares you hold. Please contact me, if something went wrong.

* Due to the minimum transaction amount of 5430 satoshi I doubled the share amount for this payout for four user, which only hold one share, thus the dividend was technically distributed to 5373 shares. This was only a work-around and I don't intend to do something similar again in the future.

Addresses to keep an eye one

Dividends issued by CipherMine go to this Litecoin address:

LKvW3g9EQyuk8B3GjYqqfFTAAQGshJYVj6

I will distribute the Bitcoin nominated dividend from this address:

1CiPhERsFPjVS1DyBUgFjndaigUGKbErXD

Cheers!

[medicine]

I guess I am one of those four people with only one PT share.  Ha ha ha, sorry for the inconvenience. I will initiate the transfer process because I don't think there is any reason to hold PT shares at this time.  

Is there a reason to hold onto a PT share?
Peace.

[dexX7]

2.8 TH/s (stock) out of 12.5 TH/s hashing

Dear All,

Our next four BitFuries arrived this afternoon! Simon and Ross are both away this weekend but I certainly didn't want those babies to be sitting idle so I've been busily building them this evening. We've now got 6/7 running and we're nipping at Avalon's heels on the BTC Guild team rankings!

In case you're curious, the BitFuries are very power efficient, as expected. I'm getting 1,120 Watts at the plug for three 400 GHs units (48 boards in total, including three fans - Seasonic 1,250W PSUs), and most of the units are doing about 450 GH/s rather than the billed rate. That makes it an impressive 0.83 Watts/GHs.

I'll hopefully have the final miner operational tonight too. Probably going to have to canabalise one of our GPU for spare PSU rigs but its not running ay the moment anyway.

One of the six live miners is misbehaving a bit (sitting at 300 GH/s not 450 like the rest) but Giles will sort it out tomorrow so we're getting the full goodness; diagnosing these units beyond re-seating boards is a bit beyond me I'm afraid!

Kate.

https://forum.litecoin.net/index.php/topic,4582.msg49290.html#msg49290

Including FPGAs our total paid-for hashrate is about 12.5 TH/s. We've currently got 2.8 TH/s (officially - its actually running at a good 10% more than that) so we've still got 78% to come.

We need to decide where to spend more cash on hardware too. Please see the Where to invest next? thread.

Kate.

https://forum.litecoin.net/index.php/topic,6354.0.html

Where to invest next?

This is for CipherMine shareholders. We currently have about €4,500 in the hardware reinvestment fund and it is about to start growing quite rapidly now that the BitFuries have started arriving; probably at least another €1k by the end of this week.

I would value your collective input on where we should invest those funds. I plan to share with you all my updated economics-based forecast of difficulty which suggests that we will be able to maintain fairly healthy profits of €30-40k/month by continuing to invest in the ever-cheaper ASIC mining gear on the market then switching to scrypt GPGPUs when they become a reality. However, there are some permutations we could do instead. Some options:

1) For now put all the reinvestment fund into SHA256 ASICs as per the current plan. This is probably the most obvious course of action for now. If we do stick with this the question is which vendor? BitFury are the most expensive per GHs, but they are delivering and their gear seems pretty stable (though we've only been running it for a day). KNC are reportedly having capacitor explosion issues which doesn't inspire confidence. I like HashFast since their CEO is a mate of a mate and I think their Miner Protection Program is pretty good, but they are looking expensive now compared to CoinTerra. I was skeptical about CT but having done a lot of digging and speaking to people I think they are legit, but spending money now on stuff that won't arrive until January makes me twitchy, even at their amazing prices.

2) Put some or all of the fund into more GPU rigs. This has the benefit that they will have residual value, but to be frank GPU rigs are proving to be a bit of a nightmare. That said, our new rackable design should help - we're moving to 4 GPUs/rig due to the constant issues we've been facing. However, with LTC diff over 1,100 (and other scrypt coins only offering 10-20% above that) their profitability is getting quite slim.

3) We save up for GPGPUs so we can splash out €10-€30k once they become available and really get the full advantage of that first wave.

4) Use the fund to pay off some of CIPHERMINE.B1 (the bond) early.

There are other options too. As previously mentioned I'm using the Avalon refund to help with setting up a new exchange, hopefully buying Burnside's code. We could "go large" on that and put the h/w fund into that new venture if we feel the outlook for mining is just not good enough; in that scenario you'd all get a larger share of the new venture as CIPHERMINE shareholders.

Equally, we could switch to 100% profit mode. This would double dividends in the short-term but we'd effectively become a perpetual mining bond. Our revenues would steadily decline and in the longer term my models suggest that this would be less profitable than continuing to invest. It is very contingent on GPGPUs becoming a reality though.

Anyway, just wanted to float this out there and get your collective feedback. I'll post a new public version of the business model at the weekend.

Kate.

PS. 4 BTC in the last 24 hours with just 10% of our expected total hashrate - we're cooking on gas now!

https://forum.litecoin.net/index.php/topic,6354.0.html

If you have anything to add, I'll forward your opinion.

[inspiredinvestor]

  great hear, we Ciphermine is cooking with gas!
so glad i held on thru the exchange tornado

[dexX7]

This weeks dividend

We received 19.00723618 LTC dividend for 5369 shares. This results in 0.27807587 BTC dividend for this pass-through, given an exchange rate of 0.0154 LTC/BTC and a 0.95036181 LTC fee. I will initiate the payout within approximately four hours, when I'm back at home.

Message from Kate to CIPHERMINE shareholders:

Dear Shareholders,

Our first seven BitFuries arrived towards the end of last week and have been happily mining since. As a result revenues this week were €2,370, and a profit of €1,225, so a dividend of 389 LTC. €1,030 is going to the hardware reinvestment fund taking our total to €6,160. There is a debate as to what our reinvestment strategy should be going forwards here. You can see our BTC hashrate on the BTC Guild team rankings page (we're currently about 12th). I'm anticipating that revenues for the coming week will be over €5k.

Edit:

Dividend sent: cbf3ac5a1df7bef659dd668aa23fed19381176a2f5a812064b114d369be62edd

[dexX7]

I would suggest increase the interval of dividend payments as too much small transections will incure fees to the receiver.

Actually that's fine, I think. The last transaction fee was 0.0002 BTC and transported a value of 0.27857587 BTC, that's less than 0.1 % and the dividend should go higher for the next weeks also.

[iCEBREAKER]

Any word on our KnCs?

[dexX7]

Any word on our KnCs?

Not really. Our orders have order id #4442 and #5119. AFox maintains a list with order ids, dates and shipping time and looks like this whole range is still not yet shipped. The clock is ticking though..

All current paid orders will be shipped no later than October 15th.

https://www.kncminer.com/news/news-33

[dexX7]

This weeks dividend

From Kate on the Litecoin forums:

Hashrate fluctuations

The hashrate fluctuations are due to two things:

1) Me experimenting with multipool and switching some miners to other SHA256 coins (we've got a couple of the BitFuries running bfgminer now)

2) Some down time in the last few days. For some reason the rigs were randomly shutting down. The PSU was behaving as though it had been tripped despite the power meter at the wall saying 1,100 watts (they are Seasonic 1,250 W gold, so top end). Having reshuffled the PSUs and restarting them by disconnecting the motherboard connector (which goes nowhere - just to link the boot pins) they appear to be stable. Keeping an eye on them to try and figure out what the issue is, but they have been stable for the last 24 hours.

Dividends

Revenues this week: €5,800.
Profits: €4,580
Dividend: €2,290 -> 1,712 LTC
H/W reinvestment: €2,730 (now €8,890)

Hardware reinvestment

Following the discussions on the other thread, and having confirmed that it would not change the Miner Protection Program, I have placed orders for an additional 8 HashFast Golden Nonce chips for our BabyJets. They all have an additional socket, and at $1,500 per 400 GH/s chip it was too good value to ignore. That brings our hardware reinvestment fund down to -$314 (there was a $500 shipping charge).

Since it is quite a lot of LTC to buy and volumes are slack on BTC-E on a Sunday evening, I'm leaving the trade to complete overnight so we get a better price and will send the dividends tomorrow.

Kate.

I'll send out the BTC nominated dividend, after Kate sent out the dividend, to be sure the number of 1,712 LTC is accurate.

[dexX7]

This weeks dividend II

We received a total of 83.56116364 LTC for 5369 shares. This results in 0.78271742 BTC dividend for this pass-through, given an exchange rate of 0.00986 LTC/BTC and a 4.17805818 LTC fee.

Transaction: 682cde2e5b96fa8196733fbca11532eeea7bc317f06ee05b1d127593ef574e5a

[dexX7]

KnCMiners arrived yesterday

The KNCMiners arrived yesterday and team Ciphermine is now hashing with approx. 4.6 TH/s. Potential fluctuations on BTC Guild are probably due to power issues. According to analbeard some of the BitFuries are moved tomorrow, so expect our hashrate to drop for a couple of hours from around 1500-1600 GMT.



Exchange situation

According to Kate there is some progress related to the exchange situation:

We are in the late stages of creating a new exchange in partnership with a few other major issuers.

Neo also announced that they started investigations into launching their own regulated securities exchange:

We have spent time investigating the legal requirements and viability of establishing our own regulated securities exchange (CySEC), we have decided that this is something that we will now pursue further down the line once Neo & Bee has achieved sustainable growth as this is our highest priority. This is a viable business that can be open to US investors once certain barriers have been removed (JOBS act), certain barriers would still exist for US based investors but we would address them closer to the time.

Interesting times ahead.

[dexX7]

This weeks dividend

CipherMine sent out 1,661.9909 LTC as dividend. We received a total of 81.04309091 LTC for 5369 shares. This results in 0.90729305 BTC dividend for this pass-through, given an exchange rate of 0.0118 LTC/BTC and a 4.05215454 LTC fee.

Transaction: 823a4daf757ca1fd603d97d391b63a8550c8d5522157c1ece747600ce9c148aa

[dexX7]

Hi all,

just wanted to give you a no-update. I'm still waiting for the dividend and it will be sent out as soon as possible.

Sorry guys, with the gear being in Memset's datacentre and Kate being away, both Ross and I are the only ones who have access to it and both of us have been away this weekend.

https://forum.litecoin.net/index.php/topic,4582.msg51932.html#msg51932

[shadallion]

Thanks!  Litecoin doubling this week can only be good for CipherMine shareholders!

[dexX7]

Thanks!  Litecoin doubling this week can only be good for CipherMine shareholders!

A good chuck of CIPHER's income are probably SHA coins like Bitcoin, but I agree! Though my biggest fear is that the coins were converted to fiat. Kate has this bad habbit and seems to prefer it over coins, but of course that's just a very wild guess and without any indication or basis.

I'll keep you updated, when I hear something.

[n00bwastaken]

Hi folks,

I was away for a few months, and came to know about BTCT and Litecoin global closedown only during the last few days.

Could someone please explain how I can get my CIPERMINE shares on BTCT and Litecoin Global?

Thanks!

[dexX7]

Dividend

Kate is back and we received a total dividend of 108.10237455 LTC for 5369 shares. This results in 1.02324808 BTC dividend for this pass-through, given an exchange rate of 0.010098 LTC/BTC and a 5.40511872 LTC fee.

Transaction: e5d5d08e446df24b12481b193bf0ed5d1d61f6e50a7760b1e53ee1131da30b71

This is what Kate said:

Dear All,

I'm back in the UK from my honeymoon, but fly out to Berlin this afternoon. I intend to do the two delayed dividends before I depart.

Apologies in advance but I don't have time to respond to all the comments while I've been away. I have had the zeitgeist update from my team though.

To those that have been patient, thank you. To those that have not, I remind you that a) I was abundantly clear that there would be a hiatus; b) the contract terms actually states that we shall do dividend payments at least once a month. That I do them weekly is merely being generous to you all, and in our many months of operation there have only been three occasions when I have not made a weekly payment on or near the usual time of Sunday evening. Given that it still requires some manual effort and we don't have the convenience of an exchange to do it, the easy route would have been for me to revert to monthly payments during this transition. That is not in your interests, so you should be grateful I have not done so.

I will have more news about the new exchange (CipherTrade.com) soon and hope to be able to make a big announcement at the weekend. Be assured that work has continued apace and CIPHERMINE and CIPHERMINE.B1 will soon be liquid and tradable again.

Apologies re. the power outages. In part this was a bizarre issue with the BitFuries causing their PSUs to shut down inexplicably, and partly due to a major power outage at our new Memset offices. Our new data centre there is not complete; the UPSes and generators are on-site but not yet wired up. The offices will soon be powered from that resilient infrastructure. Unfortunately we cannot put the BitFuries in our current facility mainly because they are very delicate and require constant fiddling (reseating boards and such). They are not data centre compatible hardware. To minimise impact we have split the infrastructure between two geographically diverse sites though so that an outage at either won't take us completely offline.

More soon re. divi payments soon. Need a cup of tea now!

Kate.

[dexX7]

Additional information

I decided to roll the two deferred weeks (week to 3rd Nov and week to 11th Nov) into one so that the dividends got the benefit of rising BTC prices in the calculations. CipherMine has benefited from the rising price (our bot has been holding of course) so that seemed fair.

During the period we generated a total of 67 BTC, and using the BTC price last Sunday that's a revenue of €16,470. This was lower than it should have been, mainly due to the aforementioned power issues. Less depreciation, power/hosting and bond interest costs leaves a profit of €14,835, 50% of which is dividends.

At a price of €3.00/LTC that made 2,214.80 LTC in dividends. A further €8,100 has been added to the hardware reinvestment fund, which we're leaving in the hands of our BTC trading bot for the time being rather than spending.

For more information on how dividends are calculated please refer to the business plan / shareholder contract or previous explanations in this thread.

I've not yet caught up with everything post-honeymoon so don't know the state of play re. GPGPUs.

Kate.

Cheers!

[shadallion]

Dex, could you give us your opinion of where CipherMine will be in 6 months?   

On a scale of 1 to 10, where are we right now in terms of our mining capacity vs where we want to be when all of our rigs that have bee pre-ordered are online and hashing away?

[dexX7]

Dex, could you give us your opinion of where CipherMine will be in 6 months?  

On a scale of 1 to 10, where are we right now in terms of our mining capacity vs where we want to be when all of our rigs that have bee pre-ordered are online and hashing away?

Oh, I'm very sorry, I missed that post. But it's a tough question to be honest..

I really can't foresee a timespan of six months and probably not even one month. Bitcoin is on the rise and still very far away from being "mainstream" or "widely used", but things like Bitcoin ATMs for example are huge in my opinion and in 2014 we will probably see more and more of them, which is a good thing for regular users. Mining is still a niche - preorders and shipping delays are very common and there are not many producers. I think the trend of a very rapidly rising difficulty will go on, because where money can be made, people will try to make money. ASRock announced two funny mainboard for GPU mining recently, which might be a precursor for "well known" hardware producers to step in.



CipherMine has more than 10 TH on order and it looks like that HashFast is finally making progress.

The list is probably not complete, but to give you an overview:

Miners hashing:

• 1 x 60 GH/s Batch 1 Avalon miner
• 1 x 60 GH/s Batch 3 Avalon miner
• 100 x Ztex 1.15y clones
• 10 x Quad 1.15y Ztex
• 6 x Cairnsmore CM1s
• 6 x Quintuple Sapphire 7950 Vapor-X GPU rigs
• 2 x Quad Sapphire 7950 Dual-X GPU rigs
• 1 x Quad Gigabye 7970 GPU rigs
• 1 x Quad mix GPU rig
• 9 x 400 GH/s BitFury units
• 2 x 550 GH/s KNC Jupiter units

Those units are on order:

• 8 x 400 GH/s HashFast BabyJet with Miner Protection Program
• 8 x 400 GH/s HashFast BabyJet Upgrades
• 4 x 1200 GH/s HashFast Sierra with Miner Protection Program

Hope I'm not mistaken. The list was constructed based on previous posts and docs.ciphermine.com/orders.

I'll send the dividend in a few minutes with a summary of the recent events.

[dexX7]

This weeks dividend

We received a total dividend of 65.35927745 LTC for 5369 shares. This results in 0.54642697 BTC dividend for this pass-through, given an exchange rate of 0.00880038 LTC/BTC and a 3.26796387 LTC fee.

Transaction: 78a33753219aa0722379902623ab00d591ed00927b2fe51f92ac839a75de2ac2

Posted on the Litecoin forums:

Dear All,

This week we brought in a total of 29.44 BTC, or €10,034. After costs; power/hosting €423, bond interest €505 and depreciation of €747; that leaves a profit of £8,360. That has bees paid out as 1,339 LTC (€3.12/LTC).

€4,926 has been added to the hardware reinvestment fund, which now stands at a grand total of €13,090.

GPGPUs are still not looking like they will be ready imminently, and in the mean time BTC's meteoric value increase has made SHA256 mining again look very appealing. I therefore believe we should spend our reinvestment fund on more ASIC mining gear for the time being.

HashFast are still my preference, but they are no longer offering their Miner Protection Programme (which, by the way, we stand to profit extremely handsomely from - all 8 x 400 GH/s BabyJets and 4 x 1.2 TH/s Sierras we have on order were bought with MPP) and CoinTerra's pricing is looking much more appealing (and their delivery dates are not much different).

I have therefore done some due dilligence on CoinTerra and have satisfied myself that they are a solid bet. They are therefore where we will most likely spend the h/w reinvestment fund. I'm giving HashFast until tomorrow evening to respond to a request for a special deal.

Kate.

CipherTrade news

More information about CipherMine's exchange are revealed. I highly suggest to check out the following thread:

Request for input on CIPHERTRADE, a new multi-coin securities exchange
https://forum.litecoin.net/index.php/topic,7176.0.html

[shadallion]

Great info, thanks dex.

Very cool news about the CipherTrade exchange plan, this sounds very promising.

[DrGregMulhauser]

More information about CipherMine's exchange are revealed. I highly suggest to check out the following thread:

Actually, dexX7, that brings up a question that's been floating around behind the scenes for quite awhile now: is there some reason you're still running a pass-through at all, rather than converting these all to direct shares?

After all, the purpose of a pass-through is to add some sort of value, usually in the form of access via a different exchange, or occasionally to provide fractional shares, etc. However, in this case, the pass-through is not providing additional value via a presence on a different exchange, and I'm guessing that holders of the pass-through aren't holding it just to have someone else convert LTC to BTC for them. Is there some other raison d'etre that I've just plain missed along the way?

If Kate is as successful in sorting out the morass of legal issues as she says she will be, and manages to list her security on her own exchange, there would obviously be little point in a pass-through -- unless you actually have plans to pass-through to somewhere else relevant... Is that the rationale for keeping it going?

(For context, I mention all this as someone who wound up his own 2000 BTC fund swiftly in the aftermath of the exchange closures, specifically because I felt that was the right thing to do for participants. Now I get that you've been very public in bizarrely ridiculing me, my competence, and the very fact I ran a fund at all -- without the courtesy of ever speaking with me directly, or making any actual arguments, or even levelling your ridicule while I happened to be present. If that's your thing, that's your thing -- but I hope you will take this specific question about the pass-through as a critical but constructive one, and answer it directly, rather than merely taking another opportunity to dump on me personally.)

[Ytterbium]

Mining is still a niche - preorders and shipping delays are very common and there are not many producers. I think the trend of a very rapidly rising difficulty will go, because where money can be made, people will try to make money. ASRock announced two funny mainboard for GPU mining recently, which might be a precursor for "well known" hardware producers to step in.

Hahah, I feel kind of bad for Asrock, they probably started work on that thing 9,10 months ago when GPU mining was a realistic option.

It's still pretty useful for litecoin mining though, someone should let them know about it so they can market it there.

[dexX7]

Hi Greg!

After all, the purpose of a pass-through is to add some sort of value, usually in the form of access via a different exchange, or occasionally to provide fractional shares, etc. However, in this case, the pass-through is not providing additional value via a presence on a different exchange, and I'm guessing that holders of the pass-through aren't holding it just to have someone else convert LTC to BTC for them. Is there some other raison d'etre that I've just plain missed along the way?

I started this PT to offer BTCT users a way to invest into CM and my initial plan was to establish an autonomous share transfer system between the PT and the underlying, to build a bridge between LTCG and BTCT. After the announcement of BTCT's closure my first impulsive thought was to shut down this PT and suggested that people move over to LTCG. Though there were some users without an LTLG account and very soon later CM decided to go the direct share route. Some transfered their shares, others did not. At that point I decided to simply continue with direct shares as well and see where it all leads to. The PT is small and therefore the fee is marginal, but it's not a big deal and I like the idea of being involved. There is non hidden agenda or similar.

Does this answer your question?

For context, I mention all this as someone who wound up his own 2000 BTC fund swiftly in the aftermath of the exchange closures, specifically because I felt that was the right thing to do for participants. Now I get that you've been very public in bizarrely ridiculing me, my competence, and the very fact I ran a fund at all -- without the courtesy of ever speaking with me directly, or making any actual arguments, or even levelling your ridicule while I happened to be present. If that's your thing, that's your thing -- but I hope you will take this specific question about the pass-through as a critical but constructive one, and answer it directly, rather than merely taking another opportunity to dump on me personally.

I'm shocked. This forum, Reddit and IRC are the only channels I use to communicate about something Bitcoin related. I crawled through my posts to see, if there is something that might be interpreted in a negative way, but I only stumbled this post I made in one of your threads where you asked about ways to "short mining". I followed your IPO passively, but stopped reading the thread after some time and with that you spaced out of my center of attention, so to speak. I never engaged knowingly in ridiculing or dumping on you and I'm confused now, so may I ask: what are you talking about or referring to?

To make this clear, I never had or have a negative grudge against you and also I think most of your posts have a high amout of valuable information. I'm happy to clear any misunderstandings, if there are any.

Edit: feel free to contact me via PM or email at dexx@bitwatch.co, if you prefer those.

[DrGregMulhauser]

I started this PT to offer BTCT users a way to invest into CM...

...CM decided to go the direct share route... I decided to simply continue with direct shares as well...

Yes, that was exactly the puzzle, since a "direct" pass-through is something of an oxymoron. As far as I can tell, holders of the pass-through get all the disadvantages of holding a pass-through (expense, counterparty risk, etc.) and none of the advantages of the sort of structure that would usually be dubbed a pass-through (namely, the feature of actually passing through from somewhere, such as another exchange).

I'm shocked. This forum, Reddit and IRC are the only channels I use to communicate about something Bitcoin related. I crawled through my posts to see, if there is something that might be interpreted in a negative way

Maybe it was a different user named 'dexX7' who was hobnobbing with TAT, Mircea Popescu and others on IRC in the midst of the BTC Growth IPO? (If so, I do apologise for assuming you were that dexX7.) The comically ill-informed condescension from the hobnobbers so thick you could cut it with a knife. I seem to remember the 'dexX7' user ridiculing those participating in the BTC Growth fund -- oh, and even unearthing a deliberately obscure (and obscured) Facebook page and thinking it was somehow relevant. (Gaaawwwwd I despise Facebook.) In retrospect, it's quite funny how some of the folks laughed at those selling ASICMiner to buy into BTC Growth, given that at the end of the day, those who adopted exactly that strategy wound up with roughly 275% as much money in their accounts than those who stuck with the former darling of the mining world.

...post I made in one of your threads where you asked about ways to "short mining".

I can assure you I didn't need to ask how to establish a short position. You were responding to someone else's question in the thread.

...I never engaged knowingly in ridiculing or dumping on you and I'm confused now, so may I ask: what are you talking about or referring to?

Okey dokey -- must have been a different 'dexX7', so I must apologise again for assuming the handle in two completely different contexts was owned by the same user. (Heck, for all I know there could be someone posing as me on IRC, since I have about as much interest in spending time on IRC as I have in Facebook -- there ya go, scammers, there's your opportunity to pretend to be me...) And in fact my original parenthetical comment for context risks hijacking your thread, so sorry about that too!

[dexX7]

I'd apprechiate, if you drop that sarcastic tone, but if that's your thing, that's your thing. My intention was not and is not to attack or ridicule you.

My IRC nick is registred and dexX7 is indeed me and not someone else.

I think I found the logs to the conversation you are referring to, so let's reflect on what was said on that day during your IPO. Everything I said in context of BTC Growth or you as person is included, nicknames shortened and non-relevant comments from others inbetween were removed due to their non-relevance and to make it easier to focus:

dexX7: hey guise. i liquidated all my amethyst shares to buy btcgrowth. who's with me? [1]
T: i'm holding amethyst til the end!
(... completely different topics for some hours ...)
N: Ok, so there's btcgrowth.com which has the same design and everything as mulhauser.net/psychologicalinvestor.com, BUT, albeit mulhauser.net links to the other websites of the network, it doesn't link to btcgrowth.com
N: Was any proof provided the guy is indeed the guy from mulhauser.net?
dexX7: he claims his id was verified by a ltc mod
N: The actual guy has been around long before the Bitcoin era according to domain registration. People seem to like his articles on finances. IF he can provide proofs of who he is, I guess 1500 BTC isn't too ridiculous.
N: But an exchange mod is no proof.
dexX7: what would you accept as proof of id?
M: dexX7 it's trivial to verify you're X if x is well known.
M: http://mytherapist.com/greg/about-counsellor.html
dexX7: should be him
dexX7: http://companycheck.co.uk/company/04455464 The latest Annual Accounts submitted to Companies House for the year up to 30/11/2012 reported 'cash at bank' of £1,708, 'liabilities' worth £10,696, 'net worth' of £-3,317 and 'assets' worth £4,926.    Mulhauser Consulting Ltd's risk score was amended on 13/02/2013.
dexX7: https://www.facebook.com/xxxxxxxxxxxxxx?ref=br_rs&fref=browse_search [2] << that's him [3]
N: btcgrowth.com is hosted on the same IP as mulhauser.net and psychologicalinvestor.com
J: unless someone used his photo for the profile, it's 100% him [4]
dexX7: all domains registred via name.com
dexX7: 3 people like his "offical" facebook page, a reverse search dumped 2 results.. one was a greg mulhauser. hm... :p [5]

Notes:
[1] Reference to the greatest BTC security ever
[2] Link censored
[3] Facebook profile without picture
[4] Sarcasm, because the profile has no picture
[5] The justification of why I'm sure that it's the correct profile, even without a picture

Is this what you are referring to?

No need to apologize. The way you expressed your feelings shows that you have a strong interest in taking about this, especially given the fact, that the above quoted conversation took place more than three months ago. Your claim is somewhat strong and offending and therefore I like to represent my point of view, too.

[DrGregMulhauser]

I'd apprechiate, if you drop that sarcastic tone...

Huh?

Everything I said in context of BTC Growth or you as person is included, nicknames shortened and non-relevant comments from others inbetween were removed due to their non-relevance...

...The way you expressed your feelings shows that you have a strong interest in taking about this...Your claim is somewhat strong and offending and therefore I like to represent my point of view, too.

On the contrary, I have no interest at all in rehashing selectively quoted snippets of your discussion with TAT, Mircea Popescu and others. If I was entirely mistaken, and you weren't really talking with them at all but were merely contemporaneously poring through low-grade information sources to try and verify my identity, then clearly I had the wrong impression, and I certainly do apologise.

(Remember I only mentioned this at all because I hesitated even to raise a question in your thread, given the flavour of those previous discussions and my preference not to experience a "shoot the messenger" reaction.)

The main point here is not a "he said, she said". The main point is the oddity of an ongoing "direct pass-through". That's far more worth the time to discuss, don't you think?

[medicine]

I welcomed this pass through when it was first introduced and was happy with DexX7 quick responses and turn around time.  BTC-TC abrupt shut down made it difficult if not impossible to shut this pass through down completely and thus it is still operating.  When Ciphertrade gets up and running it would be convenient to have this PT continuing to serve BTC investors on a second exchange.

I think DexX7 adequately explained the purpose of this PT earlier in this very thread.

I don't see any thing odd here.

[DrGregMulhauser]

...When Ciphertrade gets up and running it would be convenient to have this PT continuing to serve BTC investors on a second exchange.

I think DexX7 adequately explained the purpose of this PT earlier in this very thread.

That was actually the point: the original purpose of the PT is not and cannot be the purpose now. There is no second exchange on the horizon; there is not even a first exchange. Since the whole point of a PT is typically to provide a bridge from what is available on one exchange to what is available on another, when you take away not just one exchange but both, it's hard to understand why there's still a bridge.

(Suppose, for the sake of argument, that a "first exchange" were to appear. Would there be some reason to keep holding and paying for an illiquid "direct pass-through" while waiting for a mysterious "second exchange" to appear somewhere, just so you could avoid using the first exchange? We're not talking about LTC versus BTC, of course, since there is no exchange at all, whether denominated in LTC, BTC, or Fruit Roll-Ups...)

I took it that the "bridge going nowhere" aspect would be fairly uncontroversial and had assumed there must be some other compelling rationale behind it that I just couldn't figure out. From dexX7's original reply, however (before all the "he said, she said"), I take it that actually, no, there isn't any other additional rationale.

[Progressive]

Greg, there is an exchange on the horizon - the UK one, CipherTrade (with both BTC and LTC). Should be run by woodrake with Deprived and others. More info: https://forum.litecoin.net/index.php/topic,7176.0.html

[DrGregMulhauser]

Greg, there is an exchange on the horizon - the UK one, CipherTrade (with both BTC and LTC)...

Yep, I get that. I even referred to it in my original question.

What I don't get is why there is still a pass-through that isn't adding any passing through.

Generally speaking, for a pass-through to offer some value, one needs two exchanges: a primary exchange, where an asset itself is listed, and a secondary exchange where the pass-through is listed. The secondary exchange is, for whatever reason, more valuable to some segment of the population than the primary exchange where an asset is listed. For example, the secondary exchange might be denominated in a different currency, it might offer a different interface, or it might provide better liquidity. (There are other scenarios where a PT might be appropriate, but bridging two exchanges is the main one.) So, once you take away the secondary exchange, a PT loses its reason for being.

Suppose I said to you "hey, I'm going to run a new 'direct' pass-through for ASICMiner, so you can now get shares of ASICMiner directly from Friedcat, or you can get pass-through shares directly from me". Why on Earth would you buy them from me? Suppose someone now said "hey, did you know ASICMiner is finally going to be listed on an exchange again?" Then the question becomes even more pressing: why on Earth would you buy them from me instead?

[dexX7]

Suppose I said to you "hey, I'm going to run a new 'direct' pass-through for ASICMiner, so you can now get shares of ASICMiner directly from Friedcat, or you can get pass-through shares directly from me". Why on Earth would you buy them from me? Suppose someone now said "hey, did you know ASICMiner is finally going to be listed on an exchange again?" Then the question becomes even more pressing: why on Earth would you buy them from me instead?

Ah, that's actually a great example.

First off, I think the broader question is "what are potential reasons to justify a second instance" rather than focusing on the need of two exchanges. Generalized I would answer this with "whenever there is a difference between the two instances, there might be a justification". This also applies to direct shares, especially when the operator fulfills some roles of an exchange.

As mentioned before, the current form of this PT is not the one I intended to create in the first place, but the result of the LTCG/BTCT shutdown. I decided to continue simply (but not only) because there were shareholders left who didn't convert to CM. From my point of view that's justification enough, even if you think there is "no need to". I'm not the one who makes that call, but shareholders do, based on their own reasoning and the given circumstances.

It's also worth to mention that this PT is tradable in the sense that I do process transfers from one user to another, which CM as direct share provider never did and never will with the note that users should wait for CipherTrade. By the way, I'm happy about any meaningful suggestion, if you like to contribute.

[medicine]

DexX7, are you saying the PT can be traded now?

[dexX7]

DexX7, are you saying the PT can be traded now?

CM <> CM-PT is still not possible and will probably not be before CipherTrade goes live according to Kate's statements, but if you are asking about CM-PT <> CM-PT, then yes, that's possible.

If you prefer Litecoin over Bitcoin I can make another proposal though. Would you like to receive your dividend rather in Litecoin?

[inspiredinvestor]

DexX7, are you saying the PT can be traded now?

CM <> CM-PT is still not possible and will probably not be before CipherTrade goes live according to Kate's statements, but if you are asking about CM-PT <> CM-PT, then yes, that's possible.

If you prefer Litecoin over Bitcoin I can make another proposal though. Would you like to receive your dividend rather in Litecoin?

I'm excited about the announcement of the new excahgne, I don't think I'll be selling anything but I like the idea it's housed somewhere people can sell and of course buy.

good times 

[medicine]

DexX7, are you saying the PT can be traded now?

CM <> CM-PT is still not possible and will probably not be before CipherTrade goes live according to Kate's statements, but if you are asking about CM-PT <> CM-PT, then yes, that's possible.

If you prefer Litecoin over Bitcoin I can make another proposal though. Would you like to receive your dividend rather in Litecoin?

No, I don't want my dividend in LTC.  I don't need special treatment.   Was just curious if PT <> PT was tradable.
Thanks

[DrGregMulhauser]

It's also worth to mention that this PT is trabable in the sense that I do process transfers from one user to another, which CM as direct share provider never did and never will with the note that users should wait for CipherTrade...

Ah, bingo -- there is value being added here, because you're providing trading between PT shares. And I hadn't quite twigged that Kate's reactions to the whole situation had gone so far as to include forced lock-in by freezing the shareholder register altogether.

Surely folks have to wonder: why on Earth didn't CM convert the entire shareholder base to your PT -- or, alternatively, hand over management of their shareholder register to you while dropping the PT altogether -- since you're apparently offering their shareholders something that they themselves refuse to offer?

(I'm not looking for an answer -- just marvelling at this latest reminder of the eccentricities of CM management.)

CM <> CM-PT is still not possible and will probably not be before CipherTrade goes live according to Kate's statements, but if you are asking about CM-PT <> CM-PT, then yes, that's possible.

PT shares which are not redeemable for the underlying...only in CM-land...

[medicine]

Dude what's your problem?  You need to put your mind to something else.

[DrGregMulhauser]

Dude what's your problem?  You need to put your mind to something else.

Gosh, there's a warm and inclusive welcome. 

[medicine]

Dude what's your problem?  You need to put your mind to something else.

Gosh, there's a warm and inclusive welcome. 

Sorry, see PM. 

[DrGregMulhauser]

Sorry, see PM. 

Yep, received with thanks -- and no problem at all. 

[dexX7]

This weeks dividend

We received a total dividend of 45.79854618 LTC for 5369 shares. This results in 24.45688429 LTC and 0.25567152 BTC dividend for this pass-through, given an exchange rate of 0.01341986 LTC/BTC and a 2.28992730 LTC fee. I know it may be strange, but if you prefer to receive your dividend in LTC, I'm fine with that.

Transaction: b6ff3ce080c9db62fe5bf4afcb1dc5a1e7ac981643fda0d1822879ff61648a03

What Kate said on the Litecoin forums:

Evening All,

This week our revenues were €16,956, mainly from BTC mining. After depreciation, power/hosting and bond interest that leaves a profit of €15,228. 50% of this has been distributed as a dividend payment of €7,614 in the form of 938.32 LTC (@ €8.10/LTC - derived from BitStamp's BTC/USD price, BTC-E's BTC/LTC price and xe.com).

After the CoinTerra purchases last week the hardware fund was on €-1,010. This week we have added €8,361 to the fund, so we have a net total of €7,351. I'm going to discuss whether we should be spending this or hoarding it waiting for GPGPUs (as previously agreed) with Giles (evilscoop) next week. The recent price increases have changed things rather, assuming they will remain at this level, and as Benny pointed out there remains skepticism as to whether the "LTC ASICs" are real.

Kate.

[z3r0]

> late 2013
> mining

rofl.

[dexX7]

> late 2013
> mining

rofl.

With the recent price rise mining seems to be very profitable, which immediently resulted in a sharp rise in (Litecoin's) hashrate.



In most online stores the prominent GPUs (7950/7970) are not available anymore or are up for sale with a premium of 50-100 EUR, almost all market place subboards in forums (and not only here or in the Litecoin forum) are filled with "looking for GPU x". My guess is that there is more incoming.

This weeks dividend

We received a total dividend of 19.38941136 LTC for 5369 shares. This results in 10.35414067 LTC and 0.29227723 BTC dividend for this pass-through, given an exchange rate of 0.0362614 LTC/BTC and a 0.96947056 LTC fee.

Transaction: 31bf49c14e2b27283b2c4fa92e55ecabd8794d1cf322360eb62c3b3df32d8133

The incoming dividend more than halfed in terms of Litecoins compared to last week (45.8 LTC vs. 19.39 LTC), but the recent Litecoin price rise affected the LTC/BTC exchange rate very positively (0.0134 vs. 0.0362).

[dexX7]

According to evilscoop this weeks dividend shall be distributed soon.

Kate is rather ill atm, we'll get dividends sorted shortly, dont worry you will get them...

I believe kate is going to make special effort to crawl out of her death bed to sort dividends today...

This does highlight again a need for someone else to be able to pay dividends should kate be mia, which I shall raise with her.

Update:

Kate is still ill and meds are knocking her sideway.
She apologizes profusely but will roll the 2 weeks together on sunday.

[yufu571]

i still get no dividends since Oct, 2013.
kate, can you explain why?

[dexX7]

i still get no dividends since Oct, 2013.
kate, can you explain why?

According to evilscope (#1, #2 and #3) there was a family related incidend and she will be back next week. Kate is solely in control of any dividends.

Will be forwarded ASAP.

[dexX7]

Hardware

CipherMine received the first two out of eight ordered HashFast BabyJets. The miners are set up and running stable. It also appears that CoinTerra started to ship it's first units, see an article on coindesk.com or theregister.co.uk.




The state of CipherMine, dividends and Kate

Due to the recent, temporary absence of Kate dividend payments are somewhat delayed. I politely raised my concerns in the CipherMine thread on litecointalk.org regarding this issue. Giles aka. evilscope stepped up and mentioned that he currently acts as operation manager. According to him CipherMine does not relay on Kate and dividend payments are sorted out as soon as possible. Ongoing hardware shippings are also not affected. This was further confirmed by another Wood Technology staff member.

As what regards CipherTrade, it's currently in an ongoing beta and access can be obtained on beta.ciphertrade.com. There is a dedicated forum to submit bug reports, feature requests and comments.

[MPOE-PR]

Due to the recent, temporary absence of Kate dividend payments are somewhat delayed. I politely raised my concerns in the CipherMine thread on litecointalk.org regarding this issue. Giles aka. evilscope stepped up and mentioned that he currently acts as operation manager. According to him CipherMine does not relay on Kate and dividend payments are sorted out as soon as possible. Ongoing hardware shippings are also not affected. This was further confirmed by another Wood Technology staff member.

As what regards CipherTrade, it's currently in an ongoing beta and access can be obtained on beta.ciphertrade.com. There is a dedicated forum to submit bug reports, feature requests and comments.

No signatures, no nothing, people just step up? Next goat is going to step up for this forum, or what, phantomscamcircuit is going to step up for mtgox.

What sense does this make! One post contradicts the next, look at it!

[dexX7]

No signatures, no nothing, people just step up?

Well, it's not like some random litecointalk.org user just appeared out of nowhere and made a statement.

To clarify: Giles aka. evilscope is executive officer / operations manager and Kate's original partner in CipherMine. (source: CM plan p. 5)

[inspiredinvestor]

Hardware

CipherMine received the first two out of eight ordered HashFast BabyJets. The miners are set up and running stable. It also appears that CoinTerra started to ship it's first units, see an article on coindesk.com or theregister.co.uk.




The state of CipherMine, dividends and Kate

Due to the recent, temporary absence of Kate dividend payments are somewhat delayed. I politely raised my concerns in the CipherMine thread on litecointalk.org regarding this issue. Giles aka. evilscope stepped up and mentioned that he currently acts as operation manager. According to him CipherMine does not relay on Kate and dividend payments are sorted out as soon as possible. Ongoing hardware shippings are also not affected. This was further confirmed by another Wood Technology staff member.

As what regards CipherTrade, it's currently in an ongoing beta and access can be obtained on beta.ciphertrade.com. There is a dedicated forum to submit bug reports, feature requests and comments.

looking forward to the babyjets! being set up!

[dexX7]

Kate finally returned.

TL;DR: Sorry, and I've not vanished.

Dear All,

I am really sorry about my extended period of absence from the community. Unfortunately I have had to deal with some personal tragedy recently which affected me and my loved ones very badly. Having had an acute period of depression in the past, experience has taught me that the most expeditious way out is to completely disconnect from work and other stress-inducing activities while I deal with the illness through intensive daily therapy. In the past I have attempted to combine that with work, but I've found it just drags out the acute period and during it I'm pretty useless and prone to errors of judgment.

I apologise that I felt unable to communicate this to you sooner. It was simpler with my core work at Memset since I just needed to let my assistants know I had to vanish for a while. I recognise now that my unexpected absence has caused this community, in particular the CIPHERMINE shareholders and bondholders, some concern. It is unlikely that I'm going to get anything worse thrown at me here on in, Gods forbid, but I shall be putting in place better measures to deal with me becoming ill etc. for CipherMine and CipherTrade. The timing was unfortunate since I was mid-handover of several components to Giles (evilscoop), Si (Sims) and the rest of the team.

CipherTrade will take care of the dividends issues; once its up the process will no longer rely on me. While we are doing dividends manually it has been simpler to continue with me doing them, and I will be issuing another round soon. Apologies for their irregularity. The CIPHERMINE.B1 dividends are held back by a technical issue; the size of the payments for individual bondholders is now below the the transaction size limit for BTC, even after having allowed them to accumulate for a while. As an aside, I think this bodes very well for alt-coins. BTC's minimum transaction size is now more than $0.01, making it a poor choice for micro-transactions.

Anyway, I'm on the mend and will be getting back up to speed with my work responsibilities and our various projects over the next couple of weeks. I have planned a staged return on the advice of my doctors so won't be operating at full capacity just yet. Thank you all for your patience and understanding during this very difficult period.

Kate.

PS. To confirm, we received our second batch of 5 HashFast BabyJets today! That brings our total to 7 BabyJets. We have another order of 3 pending (9 in total), and 8 upgrades (a second 400 GHs Golden Nonce chip for the BJ's). I'm not sure why I ordered 8 rather than 9 upgrades, perhaps it was all we could afford at the time. We also have 4 HashFast Sierras (1.2 TH/s) on order, and 3 x 2 TH/s Cointerra units to come. Although there has been controversy around HashFast, their kit is arriving and it appears rock-solid in terms of performance so I'm unconcerned there. We will be investigating the status of the Miner Protection Programme though since it should pay out handsomely for us!

https://litecointalk.org/index.php?topic=4582.msg122978#msg122978

[dexX7]

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

MESSAGE TO ALL CIPHERMINE-PT SHAREHOLDERS:

CipherMine's exchange: CipherTrade.com opened it's doors to beta users
and is available under: https://beta.ciphertrade.com/

Trading of CIPHERMINE and CIPHERBOND shares is scheduled to start on
Friday 28th March 2014.

Within the next days I will release a request form to facilitate the
redemption of CIPHERMINE-PT shares to CIPHERMINE shares on
CipherTrade.com. The delay is caused because CipherTrade.com does not
support confirmed share transfers at the very moment.

You will be asked to provide the registration data of your BTC-TC
account that was associated with CIPHERMINE-PT shares. This step is
necessary to map your redemption request to an user in the shareholder
database.

Please make sure you are able to provide the following data to redeem
your shares:

 - The e-mail address that you used on BTC-TC
 - The Bitcoin or Litecoin address associated with your CM-PT shares
 - The number of CM-PT shares you are holding
 - The signature to a message with the content "CipherMine" signed by
your BTC or LTC address associated with CM-PT shares

For instructions about message signing take a look at:
https://bitcointalk.org/index.php?topic=283947.msg3233637#msg3233637

You will need to be registred on CipherTrade.com before you are able to
finalize the redemption process.

To register on CipherTrade.com please visit: https://beta.ciphertrade.com/

Please note: I'm unable to deal with any problems related
CipherTrade.com or the registration process.

If you face any problems, please submit your feedback in the CipherTrade
thread on litecointalk.org:
https://litecointalk.org/index.php?topic=7176.225

After you successfully registred on CipherTrade.com, you may finalize
the request and submit your e-mail address used for the registration on
CipherTrade.com.

Share redemption requests will be verified manually and you should
receive your CIPHERMINE shares on CipherTrade.com within approximetaly
24 hours.

A copy of this message was sent to the e-mail addresses provided by
BTC-TC and associated to CIPHERMINE-PT shares from the e-mail account
dexx at bitwatch dot co.

This message is signed with my GPG key:

http://bitcoin-otc.com/viewgpg.php?nick=dexX7 (fingerprint:
0xF43718054C3E7C5CFB33E8257675E31CF5719832)

Another notice will be posted here on bitcointalk.org as well as
forwarded via e-mail after the redemption process actually started.

-----BEGIN PGP SIGNATURE-----
Version: GnuPG v2.0.22 (MingW32)

iQIcBAEBAgAGBQJTKzJHAAoJEHZ14xz1cZgyuAcQAKSwdFzfrnpBdsSux+b4Nfbl
4sxnrQfojOh9+Ws4wCpegyh7DSJ+e23AnprDrKCa5FWHx5WjW0mAb9wHUZhSBYrI
Rp5KWCCczsA5J2eFg95R8GRPE+VbmsmySaE8ZhxW26iKUAUGraxIOlzTH7CTdVpR
BsB4nLEYK3M7f4l/nqbh1hOn/tFS8MSTEon+Dhybqe1npcQYYsdCXVzakOyDhku4
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Gd1yYdgsMlYO+ix/gAcLtBGHcCJxEdN46ukeePJ+7ADWW3MmOOOw0qrC9MIFWh/v
/c8s3CLzrwSrw7QG2AmTtYTEzBz2969kmiAo/WFu63ygxfP3u6HS4vEkfIJ9JOfK
jtadfRhU6+M9BzY1mV2a
=POEZ
-----END PGP SIGNATURE-----

[medicine]

I am curious how to verify your pgp signature with your public key?  I have a mac and am running GPG keychain access.  I did get your public key from the link in your email, but how do I go about verifying the signature? 
I'm not questioning whether the message is from you, I am just curious going forward here.

If you could explain that would be great.
Peace

[DrGregMulhauser]

I am curious how to verify your pgp signature with your public key?  I have a mac and am running GPG keychain access.  I did get your public key from the link in your email, but how do I go about verifying the signature? 
I'm not questioning whether the message is from you, I am just curious going forward here.

As a fellow Mac guy, I can drop in a quick note here.

For validating files in general, you can just right click on the file in question and choose "OpenPGP: Validate" from the "Services" menu. That's it, with no need to launch GPG Keychain Access, except to grab the key in the first place. So, in this particular case, you can select the body of the post in your web browser -- everything from "-----BEGIN PGP SIGNED MESSAGE-----" to "-----END PGP SIGNATURE-----" and drag that to the desktop, which will create a text clipping document. Right click on that newly created document, select validate, and you're good to go.

(Of course, the "Services" menu is available globally and so will provide encryption-related services wherever they're relevant and supported by GPG; I just mention file-specific validation because it's quick and handy and avoids potential flakiness when using it within some apps.)

[medicine]

I am curious how to verify your pgp signature with your public key?  I have a mac and am running GPG keychain access.  I did get your public key from the link in your email, but how do I go about verifying the signature?  
I'm not questioning whether the message is from you, I am just curious going forward here.

As a fellow Mac guy, I can drop in a quick note here.

For validating files in general, you can just right click on the file in question and choose "OpenPGP: Validate" from the "Services" menu. That's it, with no need to launch GPG Keychain Access, except to grab the key in the first place. So, in this particular case, you can select the body of the post in your web browser -- everything from "-----BEGIN PGP SIGNED MESSAGE-----" to "-----END PGP SIGNATURE-----" and drag that to the desktop, which will create a text clipping document. Right click on that newly created document, select validate, and you're good to go.

(Of course, the "Services" menu is available globally and so will provide encryption-related services wherever they're relevant and supported by GPG; I just mention file-specific validation because it's quick and handy and avoids potential flakiness when using it within some apps.)

Thanks for this quick description.  I did try this will both the email and the message posted by dexX7 above (twice each) and I get a message "verification failed: no signature found."  That seems strange to me because I can see the signature clearly at the end of the message.  
Not sure what I'm doing wrong?

[DrGregMulhauser]

Thanks for this quick description.  I did try this will both the email and the message posted by dexX7 above (twice each) and I get a message "verification failed: no signature found."  That seems strange to me because I can see the signature clearly at the end of the message.  
Not sure what I'm doing wrong?

Egad, right you are! There's a limitation created by the file type, which I didn't pick up on. The ".textClipping" file type supports formatted text, which means it does not contain just the text you selected in your browser, but also extra information for formatting, such as the boldfacing. GPG will cough on that.

If you instead save the text to be checked to an ordinary text file (e.g., paste into Text Edit, set as plain text, and save) rather than trying to validate directly on the ".textClipping" file, then at last you'll be good to go.

[medicine]

Thanks for this quick description.  I did try this will both the email and the message posted by dexX7 above (twice each) and I get a message "verification failed: no signature found."  That seems strange to me because I can see the signature clearly at the end of the message.  
Not sure what I'm doing wrong?

Egad, right you are! There's a limitation created by the file type, which I didn't pick up on. The ".textClipping" file type supports formatted text, which means it does not contain just the text you selected in your browser, but also extra information for formatting, such as the boldfacing. GPG will cough on that.

If you instead save the text to be checked to an ordinary text file (e.g., paste into Text Edit, set as plain text, and save) rather than trying to validate directly on the ".textClipping" file, then at last you'll be good to go.

Ok after a few more tries I did verify the file.  Thanks for your help DrGregMulhauser.  I need to watch a few more videos and read a few more webpages before I have the hang of this.

[DrGregMulhauser]

Ok after a few more tries I did verify the file.  Thanks for your help DrGregMulhauser.  I need to watch a few more videos and read a few more webpages before I have the hang of this.

No problem at all. My suggestion to verify the text clipping directly sent you down the wrong path because GPG/PGP needs to be fed a single stream of characters, and it will validate based on that single stream of characters. If you feed it something with extra gubbins in it -- especially something like a text clipping file, where the actual data are stored in the resource fork/extended attributes -- then it may not even be able to find the signature in the first place, let alone verify it. It's somewhat analogous to trying to validate a Bitcoin signature of a piece of text by looking at a piece of HTML which will display the text: yes, the original text is in there, but the signature is only valid for the text itself, not for the text + HTML gubbins.

[dexX7]

As a fellow Mac guy, I can drop in a quick note here.

Thanks! To be honest, I'm a newbie related to these things and never really used a Mac, so your description was indeed very helpful!

It's somewhat analogous to trying to validate a Bitcoin signature of a piece of text by looking at a piece of HTML which will display the text: yes, the original text is in there, but the signature is only valid for the text itself, not for the text + HTML gubbins.

Correct. I sent out the email an plain text, so this is not an issue, but if anyone has a problem verifying the message here on the forum, it may help to copy it into a plain text document without any forum or HTML tags.


This is the latest from sims, a CM member related to "share transfer confirmations":

I'm going to be coding this tomorrow and it will be live by Tuesday. We'll also PGP sign the message for those who use PGP and want to be sure it's from us!

I want to explain what the current issue is, so everyone understands my decision to not send out the shares right now:

Currently a "transfer share" option within CipherTrade is available, but once sent the sender has no information or log entry about the transfer itself. This would mean in my case: I'll send out the shares, but I have no "proof" that the shares were indeed transfered.

Of couse I don't doubt the honesty of any shareholder, but say there is a glitch within the CT system: the shares would be subtracted from my share balance and the receiver may not receive any. Without a confirmation from CipherTrade about the transfer, I would have a difficult time to get the shares back - in the worst case.

Given that trading starts on March 28th and transfers should be done until then, I hope this is fine for everyone involved.


FYI: 11.68645293 LTC were issued as dividend on CipherTrade for our 5369 shares. I will send them out as usual to your LTC/BTC address in the next hours.

Edit: done!

LTC: 4c45f413ef918f2158bfdc82e1dc3b778a7f6957e8e0d017989051c079c4b4ae (blockr.io mirror)
BTC: 9e575ffc126b339c81f5bcf511d23f5ae24ce1a7f961aeade1e2afe54ef30808 (blockr.io mirror)

[dexX7]

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

DEAR CIPHERMINE-PT SHAREHOLDERS:

CipherTrade will very soon be able to issue confirmations for share
transfers. Right after this is live I will send out an email
with detailed instructions about the redemption process.

If you did not receive the email with the announcement of the share
redemption process (sent out on March 20th, subject: 'CipherTrade.com
beta started'), please get in contact with me via PM or email (dexx at
bitwatch dot co) and include the following details: email address used
on BTC-TC, BTC or LTC address associated with your shares, number of
shares and if you have a guess why you did not receive the email,
please include the reason. In case you changed your email address and
are unable to access the email account associated with your shares,
please state this explicitly.

I will publish another post after the emails were sent. If you do not
receive an email within two hours after this post, please also get in
contact with me.

-----BEGIN PGP SIGNATURE-----
Version: GnuPG v2.0.22 (MingW32)

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7U5HVLSZJvN6aGHo0EBr
=naP9
-----END PGP SIGNATURE-----

[dexX7]

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

All emails sent.

In the case you did not receive one or don't like Google forms, please
send me an email to dexx at bitwatch co or via PM on bitcointalk.org
including the following details:

1. Shareholder identification

The email address that you used on BTC-TC
The Bitcoin or Litecoin address associated with your CM-PT shares
The number of CM-PT shares you are holding
The verification token that was sent to you via email
If you are unable to provide the requested data, please submit a
description of the circumstances you are facing

2. CipherTrade account information

The email address that you are using on CipherTrade.com
The account handle or username that you are using on CipherTrade.com

3. Finalization of the redemption process

Share redemption requests will be verified manually within approximately
24 hours. CipherTrade.com will issue a signed confirmation of the share
transfer which will be sent to the email address that you used to
register on CipherTrade.com. The issuance of the share transfer
confirmation will finalize the share redemption process.

The contract once agreed upon on BTC-TC between the issuer and
shareholder will be terminated naturally with the finalization of the
share redemption process and all liabilities and responsibilities shift
back to underlying issuer Cipher Mine.

-----BEGIN PGP SIGNATURE-----
Version: GnuPG v2.0.22 (MingW32)

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=ad0L
-----END PGP SIGNATURE-----

[hephaist0s]

Shares received! And that took about, what, 30 minutes?! Holy cow! Thanks, dexX7.

[dexX7]

The following came in via email few minutes ago:

URGENT
STRICTLY CONFIDENTIAL
FOR ADDRESSEE ONLY

Dear CipherMine 'shareholder',

We write to you in your capacity as a 'shareholder' of CipherMine ('CM'). This is an important communication sent to you by Wood Technology LLP ('WT'). As CM's Business Plan indicated, Kate Craig-Wood has at all times acted through WT. WT is also the legal owner of the mining hardware referred to below (see section 4.2 of CM's Business Plan).

You may wish to take legal advice on this communication and its implications for you.


The purpose of this communication
---------------------------------

The purpose of this communication is: (1) to inform you that CM is unlikely to be in a position to meet its liabilities; and (2) to propose a way forward with a view to minimising any potential exposure of CM 'shareholders' such as yourself.

This communication therefore requires a response from you by midnight (GMT) on 15 September 2014.


CM's assets and liabilities
---------------------------

CM's assets consist of:

 1. The mining hardware purchased with the proceeds of the CM B1'bond' (the 'Bond') which was issued last year. Due to rising mining difficulty, that hardware is estimated to have a residual resale value of approximately EUR 10,000;

 2. A 'share' in the start-up crowdfunding platform CipherTrade ('CT Share') based on a contribution at the relevant time by CM of USD $20,000; and

 3. Any remaining cryptocurrency mined since the last payments to CM 'shareholders' and 'bondholders'. At the date of this communication, this is estimated to have value of approximately EUR 7,500.

CM's principal liability consists of the Bond, which has a total redemption value of approximately EUR 360,000. The maturity date of the 'Bond' is 9 September 2014.


Early redemption requests/ 'Bond' maturity
------------------------------------------

Some requests for early redemption have been received but it has not been possible to settle those requests. On 9 September 2014, CM is unlikely to be in a position to meet its liabilities. No further payments will therefore be made, either to CM 'shareholders' or 'bondholders'.


CM's failure
------------

>From the start, CM's failure was a possibility which was highlighted in various sections of CM's Business Plan.  CM's Business Plan contained a number of warnings to that effect.

CM's failure is the result of an exponential increase in mining difficultly. The situation was further aggravated by the fact that the value of BTC has increased six-fold over the last year or so, and by HashFast LLC, a major supplier of hardware to CM, going out of business (please see http://docs.ciphermine.com/HashFast%20bankruptcy%20notice.pdf).


Your potential liability
------------------------

CM was described as a "virtual company” by LTC-Global (and accordingly referred to as such in the CM Business Plan). However, as a matter of English law, CM may be considered a general partnership. If that is the case, then the 'shareholders' of CM - which includes yourself - would all be considered partners. As partners, they would all be jointly and severally liable for CM's debts, including the 'Bond'. It is therefore possible that 'bondholders' may seek to take legal action against CM's 'shareholders', including yourself, to seek to recover that debt. However, if 'bondholders' accept the restructure plan proposed below, that risk might be mitigated.


The restructure plan
--------------------

The following restructure plan is proposed:
1. Incorporate a new limited liability company ('New Company');
2. Transfer the CT Share to the New Company;
3. Make shares in the New Company available to 'bondholders' on a pro rata basis;
4. Sell CM's mining assets and make the proceeds of sale available to the 'bondholders' on a pro rata basis, along with any remaining cryptocurrency mined since the last payments to  CM 'shareholders' and 'bondholders'.


Next steps
----------

If a majority of the votes agree (one vote per share - see section 6.6 of CM's Business Plan), then this restructure plan can be proposed to 'bondholders'. Consent to this restructure plan will then be sought from a majority of 'bondholders'. However there is no guarantee that this restructure plan will be approved by them. The 'bondholders' may chose to reject the proposed re-structure and seek to enforce the debt against all CM's 'shareholders'.

Please note that if 'bondholders' seek instead to enforce their rights against WT (through which Kate Craig-Wood acted at all times), it is necessary for WT to reserve its right to seek an indemnity from CM's 'shareholders', which includes yourself.

Please confirm if you are for or against the proposed restructure plan by sending an email, by midnight (GMT) on 15 September 2014, to legal@ciphermine.com with your full name, the email address you used to register with LTC Global (litecoinglobal.com) quoting the original public withdrawal address given, or CipherTrade and your vote by indicating 'Yes' or 'No' in the subject line.


Yours faithfully,

Wood Technology LLP