[BitFunder][BtcQuick]US investers can sell at future higher price.

[BitThink]

A proposal to help US investors of BtcQuick:

As we know, this stock, unlike most others, has sound foundation and solid dividend. If not for the BF issue, the share price will be well above 0.0003. US investors, however, have to sell this stock at current market price, which is pretty unfair if they believe the price will rise after everything calms down. They could at least lose much less if they could stay in the market for two to three months.

So how about instead of selling shares at current market price, US investors (or other investors don't want to submit documents) sell a contract to verified investors. By selling the contract, he could benefit a higher return if the share price recovers in certain period.

The contract includes the following elements (amount, current price, target price, expire date, commission). Then
1) The buyer sends BTC (amount * target price - commission) to an escrow service.
2) The seller transfers the shares to the buyer.
3) Once buyer receives the shares, she/he releases (amount * current price) in the escrow to the seller.
4) If the market price exceeds (strictly larger than) the target price any time before the expire date, the rest in escrow will be released to the seller.
5) Otherwise, the rest in the escrow will be returned back to the buyer on the expire date.

This proposal has various advantage.
1) It's like an option escrowed out of the stock market, so once the contract is sold, the seller can safely leave the BF.
2) The seller does not need to trust the buyer, vice versa.
3) This is a one-time contract without future trading so it is much easier than a private proxy service, which is too complex for an escrow service.
4) Since this is a one-to-one one-time contract, there should be much less legal issues compared with a proxy service.

Any thoughts? If you are US investors (or other investors don't want to stay in BF), are you interested in this contract?

For example, personally I can accept buying a contract as (60000, 0.0001, 0.00025, Jan 10 2014, 0.9BTC) if I pass the verification of Weexchange.  Target price can be any value between 0.0002 to 0.0004 as long as the commission = 10% * amount * (target price - current price).

[1715032073]

1715032073

[1715032073]

1715032073

[Deprived]

So run by me again why a registered investor would prefer to jump through hoops and pay more to obtain the shares privately rather than just buy them cheaper on the market?  If the registered investor is feeling charitable it would be easier for him to just buy some shares on the market then donate BTC to US investors.  Either way he's giving away money - so may as well do it the easiest way.

Registered investor is paying market price plus a possibility of paying extra later.  By definition that's higher than market price.

And haven't you considered that the fall in price may not be solely because Bitfunder is closing to US residents - but, at least in part, because the issuer is also from the US so may have legal problems of his own on the horizon.  An exchange restricting access/closing shouldn't, of itself, cause a crash in the price of a stock (unless that stock invests in other securities) - some small adjustment to reflect loss of liquidity is, however, reasonable.

[BitThink]

So run by me again why a registered investor would prefer to jump through hoops and pay more to obtain the shares privately rather than just buy them cheaper on the market?  If the registered investor is feeling charitable it would be easier for him to just buy some shares on the market then donate BTC to US investors.  Either way he's giving away money - so may as well do it the easiest way.

Registered investor is paying market price plus a possibility of paying extra later.  By definition that's higher than market price.

Thanks a lot for your comments, Deprived.

First, the current price (maybe misleading in the name, it is not the current market price but the price the buyer wants to pay immediately)  in the contract needs to be lower than the current market price. For example, currently there's a lot bids over 0.0001 so it is very difficult for me to buy at that price. With some potential gain from the future price, sellers may agree to sacrifice a little bit in current price.

Second, the buyer does not give extra money than paying the 'current price', because what they can do is just put a ask at the target price immediately after buying this contract. So whenever the price exceeds the target price, the buyer gets everything back from the market, plus the commission and dividends up to that time. If the price never exceed the target price before expiring date, he actually get all the rest in the escrow back.

Therefore, the registered user can buy some shares at a price lower than the market price. The cost is they have to put some extra money in escrow. That part of money is either be returned after expire date, or returned by selling the shares at the target price and get commissions (10 percent in my offer) and dividends as the reward.

Another question is why not the registered users just buy cheaper shares when the US investors panic selling their shares. First, even in a zero-sum game, I prefer fair play. Personally I feel not so easy if I earn money from people have no other choices but to sell all shares against their will. Second, ethical reason aside, in my proposal, the part stay in the escrow will have a chance to earn 10% commission without risk (or only the 0 interest-rate risk). In the current market condition, I think many people may want some safe investment options.

And haven't you considered that the fall in price may not be solely because Bitfunder is closing to US residents - but, at least in part, because the issuer is also from the US so may have legal problems of his own on the horizon.  An exchange restricting access/closing shouldn't, of itself, cause a crash in the price of a stock (unless that stock invests in other securities) - some small adjustment to reflect loss of liquidity is, however, reasonable.

Yes, that's also my concern. People are worrying about that it may be delisted from BF. The contract buyer has to take this risk, but my plan still has lower risk than just buying more shares with all the money. There're some reasons, however, to make the buyer more confident in the future of this stock than many others in the market. That's also the reason why I just proposed this to BtcQuick rather than all stocks in BF.

1) The issuer has no right to force buyback the shares (stated in the contract). So the issuer cannot force buy back all shares at the IPO price if he respects the contract.

2) This stock pays solid dividend. I guess the dividend of the following months can keep stable at 300-400 satoshis (assume revenue increase compensates the BTC appreciation). That equals to 50% - 72% ROI considering the current share price. So even all shares become direct shares, and no trade is possible for a certain period, the investors can still get decent reward just by dividends. (Of course, we have to assume the company is not force closed by the government. If that happens, no one can help us. Invest as much as you can afford losing it).

3) The price was around 0.00033-0.00035 before the announcement of BitFunder, but jumped down to 0.0013 at that news. Nothing significantly is changed with the company itself (BTCQuick is not even an exchange. It is just a place to buy BTC. Crowdfunding is their only weakness, but once US investors are excluded, the risk is significantly reduced). Therefore, if everything about the market settles down, it's not totally unreasonable to expect its price bounds back to around 0.0002.

Any more comments are welcome and really appreciated.

[SebastianJu]

I was asked by BitThink to provide Escrow for this service. I can do this for everyone interested.

[BitThink]

Since Ascension hasn't given any update after more than one week (most other issuers have already had a solution or at least trying), the risk Deprived mentioned about the company itself increases in my opinion. As a result, I personally don't think holding it for long time is safe any more unless Ascension gives a positive announcement. So let's wait for his update and don't let my propose to affect your decision. I know most likely nobody pays attention to this post, but even there's only one person is interested, I don't want he/she is misled by my previous post. Good luck with all the investors.