Alydian bankrupt

[dogie]

http://techcrunch.com/2013/11/05/coinlabs-incubated-startup-alydian-files-for-bankruptcy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29

Three months ago Coinlab, an up-and-coming Bitcoin incubator, announced its first spin-off company, Alydian. Yesterday the company filed for Chapter 11 bankruptcy.

The company, which aimed to offer outsourced Bitcoin mining by allowing users to buy mining rigs and host them at their facility, closed with less than $50,000 in assets and over $3 million in debt. Wrote the former CEO, Hans Olson, “Alydian has developed an enterprise-scale Bitcoin mining system over the past year and we are excited to announce our capabilities today. The system, based on our first generation 65 nm custom ASIC technology, will enable non-technical customers to participate in terahash and petahash-scale Bitcoin mining without worry or technical expertise. Alydian will begin at-scale operation and hosting in late August.”

In the interim period Olson seems to have been replaced by CEO Peter Vessenes who led the bankruptcy in Seattle.

“Coinlab is a bit of a black box, but it looks like they were attempting to pivot from exchange-enabler to a bitcoin incubator. Incubators are definitely viable in the Bitcoin space, but I’d argue the risk is almost greater here than other areas of disruptive tech,” said Adam Levine, Editor-in-Chief at LetsTalkBitcoin.com. “ASIC mining has gone from being a joke of an industry to a highly competitive meatgrinder. Business models are being smashed every week, it’s not surprising they decided to pull the plug.”

As of this writing the company page is still live and Coinlab and Alydian have not replied to requests for interviews.

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[Threader]

I read the article but it is unclear whether they were developing their own chips or got stiffed delayed by BFL (65nm)?

[dogie]

Don't know. Hopefully that 3m of debts is VC and not public money.

[DeathAndTaxes]

Curious on what exactly they burned $3M in funding on in a mere three months.  I mean even for hookers and blow we are talking $33K per day.

[plasmoske]

I wonder who's up next

A better article here:

http://www.coindesk.com/coinlabs-alydian-bankruptcy-debt-3-6m/

[Paladin69]

I'm glad they failed.  Peter Vessenes is a jerk.  Alydian was trying to cater to "old money" hoping they would jump on board and squeeze the rest of us out for Peter's own selfish gain.

At the end of the day, I'm sure their debts can be paid off easily if they can draw the bankruptcy out for a while.  I'm sure Peter has more than enough BTC to cover the loss if the spot price goes higher.

[DeathAndTaxes]

I'm glad they failed.  Peter Vessenes is a jerk.  Alydian was trying to cater to "old money" hoping they would jump on board and squeeze the rest of us out for Peter's own selfish gain.

At the end of the day, I'm sure their debts can be paid off easily if they can draw the bankruptcy out for a while.  I'm sure Peter has more than enough BTC to cover the loss if the spot price goes higher.

Why would he do that? He likes giving away his personal wealth?  It is a corporation.  Baring fraud on the part of the CEO the investors claim is with the corporation, which according to the report has $50,000 in assets for $3.6M in debt.

Maybe in the future they will make wiser investments.  Note it was a major VC firm it isn't like they aren't capable of due diligence.

[Paladin69]

I'm glad they failed.  Peter Vessenes is a jerk.  Alydian was trying to cater to "old money" hoping they would jump on board and squeeze the rest of us out for Peter's own selfish gain.

At the end of the day, I'm sure their debts can be paid off easily if they can draw the bankruptcy out for a while.  I'm sure Peter has more than enough BTC to cover the loss if the spot price goes higher.

Why would he do that? He likes giving away his personal wealth?  It is a corporation.  Baring fraud on the part of the CEO the investors claim is with the corporation, which according to the report has $50,000 in assets for $3.6M in debt.

Maybe in the future they will make wiser investments.  Note it was a major VC firm it isn't like they aren't capable of due diligence.

He has more than $50K I bet.  That is probably equipment.  He's probably hiding his BTC value from the court.  Hopefully it is pursued.

[DeathAndTaxes]

Um do you not get the concept of a corporation.  I am sure he does have more $50K in personal wealth.  What does that have to do with the price of tea in China?

The CORPORATION has $50K in assets and the CORPORATION has 3.6M in debt.  Baring proof of fraud on the part of employees (piercing the corporate shield) the assets of the employees of a corporation are not part of the bankruptcy of a corporation.  

That is kinda the whole purpose of a corporation.  The CEO never listed his personal assets, he wouldn't be expected to list his personal assets, the bankruptcy has nothing to do with his personal assets.

[dogie]

I'm glad they failed.  Peter Vessenes is a jerk.  Alydian was trying to cater to "old money" hoping they would jump on board and squeeze the rest of us out for Peter's own selfish gain.

At the end of the day, I'm sure their debts can be paid off easily if they can draw the bankruptcy out for a while.  I'm sure Peter has more than enough BTC to cover the loss if the spot price goes higher.

Why would he do that? He likes giving away his personal wealth?  It is a corporation.  Baring fraud on the part of the CEO the investors claim is with the corporation, which according to the report has $50,000 in assets for $3.6M in debt.

Maybe in the future they will make wiser investments.  Note it was a major VC firm it isn't like they aren't capable of due diligence.

He has more than $50K I bet.  That is probably equipment.  He's probably hiding his BTC value from the court.  Hopefully it is pursued.

+1. How do you magically burn through SO much cash, without anyone saying "guys hang on, something is going horrifically wrong", and then CONTINUE burning through so much cash.

[Paladin69]

Um do you not get the concept of a corporation.  I am sure he does have more $50K in personal wealth.  What does that have to do with the price of tea in China?

The CORPORATION has $50K in assets and the CORPORATION has 3.6M in debt.  Baring proof of fraud on the part of employees (piercing the corporate shield) the assets of the employees of a corporation are not part of the bankruptcy of a corporation.  

That is kinda the whole purpose of a corporation.  The CEO never listed his personal assets, he wouldn't be expected to list his personal assets, the bankruptcy has nothing to do with his personal assets.

No I exactly get the point of a corporation.  Privatize gains and subsidize losses.  Bankruptcy court should be illegal.  Suck up your own debt can quit trying to leech from others.  The sad part is that Peter probably considers himself a Libertarian.  What a hypocrite.

[dogie]

Um do you not get the concept of a corporation.  I am sure he does have more $50K in personal wealth.  What does that have to do with the price of tea in China?

The CORPORATION has $50K in assets and the CORPORATION has 3.6M in debt.  Baring proof of fraud on the part of employees (piercing the corporate shield) the assets of the employees of a corporation are not part of the bankruptcy of a corporation. 

That is kinda the whole purpose of a corporation.  The CEO never listed his personal assets, he wouldn't be expected to list his personal assets, the bankruptcy has nothing to do with his personal assets.

No I exactly get the point of a corporation.  Privatize gains and subsidize losses.  Bankruptcy court should be illegal.  Suck up your own debt can quit trying to leech from others.  The sad part is that Peter probably considers himself a Libertarian.  What a hypocrite.

There is always a need for Ltd/LLC companies. It wasn't long ago that if your business failed, they came and took EVERYTHING you owned, everything. It left families homeless and destitute.

[DeathAndTaxes]

What losses are being subsidized?  The investors lost, if the corporation did well the investors would gain.  Nobody forced them to invest and they a VC firm with a tens of millions so they better than just about anyone should know the risks of startups. 

Your opinions aside not sure why you claimed he is "hiding his BTC from the courts" or that is should be perused.  He doesn't have to hide anything because his personal assets aren't at issue.  The court isn't even going to ask him about his personal assets.  The company is going into bankruptcy not him.

[Paladin69]

What losses are being subsidized?  The investors lost

Ultimately it is anyone that trades in US Dollars who loses.  Where do investors get their money?  Usually from bank lending, which is subsidized through inflation.  And every large loan that is taken out increases the money supply by 9x.  Fractional reserve banking.

[DeathAndTaxes]

Yeah banks don't lend to VC firms.  If banks wanted that kind of risk they would just invest in startups, except they don't so they don't.

[Paladin69]

Yeah banks don't lend to VC firms.  If banks wanted that kind of risk they would just invest in startups, except they don't so they don't.

I'm quite positive there are special banks that do.  But they may not be tied to the FDIC so you may be right.

[dogie]

Yeah banks don't lend to VC firms.  If banks wanted that kind of risk they would just invest in startups, except they don't so they don't.

Banks do invest in startups, at least in the UK. I've seen a few structured deals that start as a loan but can transition to PE.