Cryptsy Fee Shares

[tokyoghetto]

Shares held publicly   1,625

still a long way to go

BigVern mentions that in 30 days they will pull the unsold shares...you may never see these prices again.

[kelsey]

What do you guys think?

By Big Vern's  own write up the shares will give full return of investment within 1 year based on a wooping 20 fold increase in trading    (so 20 years for full return based on the current real world trading figures).

Now if there was such a masive 20 fold increase in trading then picking the right alt on their site would give a much much much greater return then the shares.

(Granted thats in reality and doesnt include that average noob around here paying way too much for cryptsy shares after the 100 000 get sold).


Also if that 20 fold increase in trading is a 20 fold increase in miners dumping scamcoins....well then we are all in trouble

[QuantPlus]

How can you say these are overvalued when mcxnow shares are valued even higher

Cryptsy doesn't have a known scammer running the show either.

what does cryptsy's share price being overvalued have to do with mcxnow?

mcxnow's shares pay 5x as much with 15x more volume in case you forgot. i doubt you did because youre just as obsessed as us mcxnow users apparently.

XPM relies on XPM trades mostly, so..

The MCX IPO was based on actual revenues...
And the current price October 23 in USD is 12 times the IPO price...
Reflecting a dramatic increase in volume and revenues..
So the value of MCX has gone from $1 million to $12 million USD.

I can assure you that virtually all of the 1000s of MCX investors/traders...
Have read all the dirt that RS has been CARPET-BOMBED with here.

People whining about some $1,000 deal in 2011...
Completely ignore $12 million in wealth brilliantly created by RS...
It's always the USUAL SUSPECTS who I'm sure are still grinding $1,000 deals.

The Cryptsy IPO, on the other hand...
Is based ENTIRELY on fabricated, hypothetical numbers...
Such as the pulled-out-of-random-ass "revenues will increase 20-fold"...
When Cryptsy becomes "licensed" and heavily regulated in many US states.

Of course this will require a MASSIVE bureaucracy to fulfill...
It's well known that CampBX pays 60-70% of revenues in regulatory costs.
  
So Cryptsy will flush $1,000,000 down the toilet to sleep with the US government...
Specifically, they are now #1 on a list of FIAT exchanges to be shut down on some fine random day.

People can speculate on whether MCX will end up a scam eventually...
But using completely fake numbers to launch a desperate, dodgy Business Plan = Swindle of the Year.

[kelsey]

So Cryptsy will flush $1,000,000 down the toilet to sleep with the US government...
Specifically, they are now #1 on a list of FIAT exchanges to be shut down on some fine random day.

Point 1: False

Point 2: True (well not no 1, but going Fiat and Crypto in the USA well you know the drill).

[Goatboy]

     There are very, very limited options to get financing to grow a business as a cryptocurrency exchange.  You would have to give up a big chunk of ownership to an angel investor, or sell unregulated company shares on unregulated markets.  The limited option of selling guaranteed-rate shares of future transaction revenue seems like a great idea for Cryptsy.

      As an investor, however, I see that my upside is somewhat limited by realistic trade volume growth coupled with more competition overseas, and in the U.S.  The bottom could fall out at any time due to regulatory issues.  There is an opportunity cost.  Barring picking the magic ten-bagger out of the pile of altcoins, is it worth the risk in comparison to buying and holding and equivalent amount of BTC? 

     I'm batting this around in my head. This is something with a high probability of loss, but if it works out, it would be one hell of an asset.  I would love to own .0002% of any big brokerage revenue stream. I suppose it comes down to belief in management (BigVern), and belief that the company can grow dramatically in a U.S. regulated environment, while the landscape of cryptocurrency doesn't render the exchange obsolete in less time than it takes to make a good profit.  I'd bet my money on Cryptsy's ownership and people, and their ability to fill new market needs going forward.  The future of altcoins as a whole, however, is as clear as mud.

     The claim is 10 to 20 times increase in fee generation once fiat is accepted.  Given that there will be fees from fiat to coin and back, it is reasonable to bet that fee income would increase several-fold immediately. Let's say I believe that fee income will average 1500 BTC per month over the year following fiat currency on Cryptsy (Based on 15x current income of "over 100 BTC per month" from provided description:

           1500 BTC x .0002% (that's .000002) = 0.003 BTC  revenue per share, per month. 

           Assuming a valuation of $180 USD per BTC, that is  54 cents per month, per share.

           At a cost of 0.05  BTC per share:   (0.003 BTC revenue x 12 months) =  0.036 BTC annually, which is around $6.50 USD.

     So, my investment of .05 BTC or about $9 USD gets me a 72% annual return based on a midpoint between Cryptsy's high and low estimates. Additionally, if the asset is performing, a market will exist to sell it.


TLDR:  Cryptsy is operated by trustworthy people, and is capable of growing and adapting. Considerably more risky than buying and holding BTC.  Illiquid.  Probability of high returns are dependent on BTC value AND U.S. law.  Neither are stable.
         
          Analysis:  High risk of loss. Possibility for long term speculation. Invest gambling money only.

[stas]

time will tell.

[MaGNeT]

Great news!

https://twitter.com/intent/user?original_referer=https%3A%2F%2Fwww.cryptsy.com%2F&profile_id=1383414554&screen_name=cryptsy&tw_i=393392082817011712&tw_p=embeddedtimeline&tw_w=336259778026278912

BigVern @cryptsy
1st dividend payout tomorrow. I will increase the payout to early buyers for Oct 25th only.  Full allocated 20% will be split to sold shares

BigVern @cryptsy
Payout tomorrow will cover fees collected from Oct 18th - Oct 25th.    Go get them now so you can get your dividend.

I bought 99 shares yesterday, might pick up some more today

[SpeedDemon13]

Got 2 shares so far, just to try it out. Looks promising and hope they succeed.

[NUFCrichard]

It seems like a good idea and I would like to buy some, but they just aren't as tradeable as I would like.
The MCXfees trade like a coin so I don't need to mess around moving btc around, I guess that is why so few Cryptsy fees have been sold...

[like]

没交易量了吧，又想个办法来骗人了，没诚信的平台，黑了我的NAN币，不想赔偿就找一大堆的理由来推卸自己的责任，可恶！

[viboracecata]

Could buy some shares and have a try.

[sumantso]

Seems a tad overpriced, comparing with mcx's original offering of 0.1 BTC for a larger percentage.

With the site still struggling - during the volatility yesterday my cancelled BTC went missing again - not sure if its worth anywhere near. Will keep an eye and see how it goes.

[shakezula]

 
TLDR:  Cryptsy is operated by trustworthy people, and is capable of growing and adapting. Considerably more risky than buying and holding BTC.  Illiquid.  Probability of high returns are dependent on BTC value AND U.S. law.  Neither are stable.
         
          Analysis:  High risk of loss. Possibility for long term speculation. Invest gambling money only.

While this is true, Paul is a good trustworthy guy who knows business and covers his Ts and dots his Is, the fact remains that nearly every coin on Cryptsy was created with the specific purpose of fleecing someone out of a few bits of their change. Not terribly confidence instilling. Even the coins that weren't created with that idea in mind end up being used as such once they get listed.

I'd wager IPO will likely go something like any other, up up, then down down, then stabilize somewhere around 25% of value, leaving plenty of room for people to bitch. Personally I see little to no future in most of the alt-coins on Cryptsy and as such I wouldn't invest USD even if it were easier than BTC. Next point would be regulation, once USD is involved, there'll be plenty--but that's for another thread.

You can all take a look back at sports cards in the 90s to see where this ends. Once a few people were able to successfully bring a product out of the woodwork and sell it for a profit (FTC, CHN, ?) the multitiude of available choices that have arisen have simply saturated the market to the point of worthless. Remember stock piling John Smoltz and Ken Griffey Jr. Rookie Cards to put your kids through college?

[kelsey]

 
TLDR:  Cryptsy is operated by trustworthy people, and is capable of growing and adapting. Considerably more risky than buying and holding BTC.  Illiquid.  Probability of high returns are dependent on BTC value AND U.S. law.  Neither are stable.
         
          Analysis:  High risk of loss. Possibility for long term speculation. Invest gambling money only.

While this is true, Paul is a good trustworthy guy who knows business and covers his Ts and dots his Is, the fact remains that nearly every coin on Cryptsy was created with the specific purpose of fleecing someone out of a few bits of their change. Not terribly confidence instilling. Even the coins that weren't created with that idea in mind end up being used as such once they get listed.

I'd wager IPO will likely go something like any other, up up, then down down, then stabilize somewhere around 25% of value, leaving plenty of room for people to bitch. Personally I see little to no future in most of the alt-coins on Cryptsy and as such I wouldn't invest USD even if it were easier than BTC. Next point would be regulation, once USD is involved, there'll be plenty--but that's for another thread.

You can all take a look back at sports cards in the 90s to see where this ends. Once a few people were able to successfully bring a product out of the woodwork and sell it for a profit (FTC, CHN, ?) the multitiude of available choices that have arisen have simply saturated the market to the point of worthless. Remember stock piling John Smoltz and Ken Griffey Jr. Rookie Cards to put your kids through college?

Agree somewhat.
 I do feel there is upto 20 decent alts on cryptsy, but many are lost amongst the crapcoins.

 I think if the shares get sold they'll increase in value, and despite being rather critical, I myself have bought a few (more out of curiousty then any investment).

I do think cryptsy, although adding some value to alts, is currently doing all decent alts a huge dis-service by listing so many crapcoins. while the whole lets add any coins people want to trade policy works shortterm, well longterm it'll bit them.

Also go USD and the regulators may have a field day on the number of scams played out via cryptsy.

[murraypaul]

    The claim is 10 to 20 times increase in fee generation once fiat is accepted.  Given that there will be fees from fiat to coin and back, it is reasonable to bet that fee income would increase several-fold immediately. Let's say I believe that fee income will average 1500 BTC per month over the year following fiat currency on Cryptsy (Based on 15x current income of "over 100 BTC per month" from provided description:

           1500 BTC x .0002% (that's .000002) = 0.003 BTC  revenue per share, per month.  

           Assuming a valuation of $180 USD per BTC, that is  54 cents per month, per share.

           At a cost of 0.05  BTC per share:   (0.003 BTC revenue x 12 months) =  0.036 BTC annually, which is around $6.50 USD.

     So, my investment of .05 BTC or about $9 USD gets me a 72% annual return based on a midpoint between Cryptsy's high and low estimates. Additionally, if the asset is performing, a market will exist to sell it.

A more pessimistic way of looking at it:
On current revenues, each share will return 0.0002 BTC per month, or 0.0024 per year.
Cryptostocks charges a fee of 0.01 BTC ($1.80) per withdrawal.
So if you only withdraw once per year, if you bought 10 shares, you would earn 0.024, but pay 0.01 in fees.
To get the fee loss below 5%, you'd need to buy 80 shares.
If revenue increases to 1000 BTC per month (which is pretty optimistic), your 10 shares would earn 0.24, and you would pay ~4% in fees.
But unless there is something else on Cryptostocks you are happy to invest in, that means leaving your returns sitting doing nothing all year.

TR;DL: 0.01 BTC per withdrawal is a pretty punitive fee, and a discouragement to smaller investors.
(Although oddly it looks like you could change to LTC first and transfer out at only about 10% of the fee?)

[shakezula]

Just a peeve, but it's "Caveat emptor," not 'empore.'

[MaGNeT]

Difference between RealSolid and BigVern: RealSolid is "untraceable", tries to hide. BigVern is "traceable" and open.

Looking at the steady growth of Cryptsy, recent upgrades, their future plans and familiar faces like Mullick, Pr9me and BitJohn who are always willing to help you (unless you start to troll), I put my money on Cryptsy.

As for everything you do in this scene: don't put more money in it than you are willing to lose.
But how much risk is it to hold 1 BTC worth of shares? (or in my case, 5 BTC)

We can all make calculations on how it will fail or succeed, in the end only time will tell... Look at where Cryptsy was 4 months ago... Look at where it is right now...

If, in one year, my investment "fails", please come back and laugh at me

[jdebunt]

fee dividends are being paid out later today, looking forward to it

[MaGNeT]

fee dividends are being paid out later today, looking forward to it

Dear user104,
Cryptsy.com Exchange Fee Shares (CRYPTSY) has paid a dividend of 0.00082695 BTC per share. You own 99.0 shares and have received a total dividend payment of 0.08186805 BTC

[murraypaul]

Next few dividend payments also likely to be bumped up:

BigVern: Fees paid out this period was for the entire allocated to 100k, but shared only amoung the 5k sold. I will likely do this for the next couple payouts. I have had some outside interest in this program this well, so if those deals occur I would reduce the available shares for sale accordingly