Opinion on Dgex.com's IPO

[markus1000]

Dgex.com recently announced  their IPO

http://dgex.com/news.htm

They are already in the 2nd phase and offer one share for 125 NXT / share.
The detailed prospectus is linked below.

https://dgex.com/pvo/dgex-prospectus-v2.pdf

Calculation

1) $Value of the Dividend per year

They are projecting a 0.0302 BTC dividend week per 1000 shares, given the current BTC price that is around 1$ per year per share.

0.0302*52 /1000 *660 = 1.036

2) Price of the stock in $

The current value of one Nxt times the amount you have to pay for one stock


0.052 *125 = 6.5

3) Price and exp. dividend

For an investment of 6.5$ you receive around 1$ dividend per year, doesn't sound too bad right?


4) Risk factors and

- exchange is getting hacked
- competition
- Nxt will fail
-...

Dgex.com is only offering Nxt at the moment and more and more exchanges adding Nxt. More exchanges means more competition.
Their security is not very sophisticated, I couldn't find an option for two-factor authorization for example.

=> High risk

5) Competitive advantage

The problem is the one product market. They have lowered fees again but that's not enough to compete.
They are also offering a Nxt Client but there are already several competitors out there.

Nxt price and volume over time:
http://www.cryptocoincharts.info/period-charts.php?period=alltime&resolution=day&pair=nxt-btc&market=dgex


=> They don't have a clear competitive advantage and their success is very depended on Nxt's

5) Result

Due to several huge risk factors (security, growth), we are dealing with a company with that has the risk characteristics of a startup. But return characteristics of a company in a competitive market (chances of huge growth are very slim).

You can plugin some numbers into the http://en.wikipedia.org/wiki/Dividend_discount_model and see for yourself, that this is investment is probably not worth it.

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[Msile]

Bought 40, thanks for the math.

[radfuk]

1 share=125nxt.
1000 shares=125000nxt, that are ~0.00008btc*125000nxt=10btc.
---
1000 shares will give me ~0.03*4weeks=0.12btc per month;
---
So payment for 10btc will give me 0.12btc per month. Am I right?
So Neptune miner will give more profit under the same risks.

[markus1000]

more like 0.13 per month.
But these are not certain profits, they could be lower or higher in the future.

Mining bitcoin has a very different risk profile, difficulty and price are the major variables. Whereas BTC certainly has an effect on other cryptocurrencies like Nxt. But you also have the company risk and the risk in the Nxt market.

[Nxtblg]

Myself, I bought in heavily because I wanted to hold a lot of Nxt anyway. Throwing my Nxt into Dgex's IPO was a way of putting my Nxt to work.

I'm registered for 263 feeshares.

[SaveForrest]

more like 0.13 per month.
But these are not certain profits, they could be lower or higher in the future.

Mining bitcoin has a very different risk profile, difficulty and price are the major variables. Whereas BTC certainly has an effect on other cryptocurrencies like Nxt. But you also have the company risk and the risk in the Nxt market.

personally I have bad experience with shares - last time I tried MCXnow shares but the owner pumped shares to the value of 1 btc per share and then he dumped his and his friends shares.
MCXnow owner made two IPOs - first he made small amount of shares and than a lot more new shares. than he pumped the price from 0.05 or something low to more than 1 btc per share and then it plumped down again and finally he decided to close the exchange for a couple of months... I didnot expected it, he reopened the exchange but you can see how much are shares now.

personally I dont like it - because it is totally unregulated business, owner of dgex can anytime to go away with money, dgex itself can be closed anytime and what I can do with the fucking shares then?? If altcoins are risky because they are totally unregulated, this is even one more level - in other words you are giving the real value eg a new car or small house for VAGUE promises = eg you are giving your fiat money to the owner of Dgex (because you buy BTC for fiat money and than exchange it for NXT and then you buy shares).
you are giving your money in exchange of what? the owner doesnot guarantee you anything !!!! only vague promises that you may earn - but this is extremely delicious - one bad news in magazines or anything could happen and the shares are worthless
what if the owner of the dgex will be hacked or loose money or just decide not to be good guy and disappeear? you will not get anything

dont forget, the creator of that web made webpages like ponzischeme.com or poker web etc prior to creating Dgex in december last year!!! he seems like being capable of doing anything if it brings him the money!!!!
if he is selling 108 900 shares he gets more than 10 mil NXT !!!
oh my gosh!!!
half a million USD at current prices or at least 10 mil USD in future if ho doesnot dump NXT today!!

why the hell so many shares?? MCXnow was more known but even realsolid wasnot so crazy to try to squeeze to get so much money from his IPO?
My reaction on this is thinking about selling part of my NXT and going away with my money from Dgex because I dont feel good trading on that site. I wouldnot wonder if this could be last shot of that geezer from Germany who has to cover some loses and before he closes his shop he decides to make some pocket money to start new life at Bahamas.

if he has regular business and wants to make IPO of this size and prices he would have to comply with many rules, laws, pays consultants to be listed on exchange, pay lawyers......  and here he got half a milluion USD and doesnot has to do anything and can go away with the money. If putting money on MtGox was risky this is even more riskier....
I was thinking about the whole thing but the only way how to earn on the shares is betting on price pumping in the beginning - which is hardly possible - but of course it is possible - and selling your shares to even bigger idiot than you for higher price - holding BTC directly is much better and less risky from long term

[Nxtblg]

personally I have bad experience with shares - last time I tried MCXnow shares but the owner pumped shares to the value of 1 btc per share and then he dumped his and his friends shares.
MCXnow owner made two IPOs - first he made small amount of shares and than a lot more new shares. than he pumped the price from 0.05 or something low to more than 1 btc per share ...

Jeezus. Makes penny stocks look like utilities...

personally I dont like it - because it is totally unregulated business, owner of dgex can anytime to go away with money, dgex itself can be closed anytime and what I can do with the fucking shares then?? If altcoins are risky because they are totally unregulated, this is even one more level - in other words you are giving the real value eg a new car or small house for VAGUE promises = eg you are giving your fiat money to the owner of Dgex (because you buy BTC for fiat money and than exchange it for NXT and then you buy shares).

It is a risk, but we're discovering techniques that used to be part of the stock-market toolkit a century ago. Like: don't invest before sizing up the owner or CEO. I sized up Graviton (Dgex's owner) and found him trustworthy. Call me gullible, but I've yet to hand over any BTC to a scamPO. Even when I was intrigued. As I indicated in my earlier post, I trust Graviton and have invested more than two BTC's worth of Nxt in his IPO. Of course, that's my call and only my call. YMMV. DYODD. ETC 

If the feeshares scene gets more hairy, an even more guarded decision rule will come into play: "Don't invest a satoshi unless you are friends with the issuer and have been friends beforehand."   

if he has regular business and wants to make IPO of this size and prices he would have to comply with many rules, laws, pays consultants to be listed on exchange, pay lawyers...... 

Which would cost six figures, even for a micro-IPO on the Canadian junior exchange. Seven figures in the States, if you add SEC registration costs.

And that means there would be no IPO, part of which is funding for a gateway to buy NXT with fiat and sell for fiat. Were Graviton obliged to jump through those loops, there would be no fiat gateway coming anytime soon - and Dgex would remain as it is. 

Feeshare is a leaky boat, but it's the only boat we can afford.

One more thing: if Dgex builds the infrastructure and adds to Nxt's value, you'll benefit even if you don't invest one thin Nxt in his IPO. All you have to do is hold onto yours, securely. 

[flounderella]

What is the formal relationship between Dgex and NXT, same developers, same investors?, monetary benefits, any conflicts of interest.

Asking just for my info.

[ShawnLeary]

I read the prospectus.  I have read hundreds of prospectus for all sort of companies big and small.  It was written with some intelligence however sophomoric at times.  Graviton never states total revenues.  He affords us a sample day of revenue stream and calls it a typical day.  Why not release all of the first two months?  Total revenues and totL profits for the first two months may or may not be misleading.  He does state profits after heavy startup deductions, but why not release that as well? 

He does put forth a valid argument for the investment.  The reason any company has an IPO is to raise capital for projects they cannot currently afford on their own.  Their goal of an integrated exchange in Offspring is a big undertaking creating a "decentralized asset exchange" where they control the software.

I am bullish on NXT and it is my largest investment along with BitCoin and Karmacoin.  Not sure I am convinced based on the prospectus that my gains would be that much more than just holding NXT.  How liquid will the company tokens be?  I am definitely interested and will continue to watch it unfold, maybe even get in on the 6% second round if I miss the first round. 

[markus1000]

just look at the volume of the different exchanges at http://coinmarketcap.com/volume.html#nxt

dgex had only a market share of 10%, a constant down move over the last weeks. Due to the problem of more competition and only offering one product.

[sirnoah]

thanks for your input...just bought 100 DGEX

[williamevanl]

I did not buy into it only because my NXT were tied up in an exchange. I will say though that the developer for that project in particular is probably the most promising of any I've seen. I suspect we will see a lot of great things from him over the next couple of years. If he were to go solo and leave NXT; I'd jump behind that project with everything I have invested.

[NWO]

I feel sorry for those people who bought into this IPO. Blatant cash grab by the admin who cannot provide any value to his customers. Dgex is sinking....

[npham]

don't be sorry, its our money right? so why feel sorry?....

bought more by the way...

[NotoriousBIT]

Any updates on this?  Is the IPO still going?

[GCInc.]

The IVPO closed two weeks ago after all allocated shares were sold. Public trading began on the DGEX platform yesterday.

https://dgex.com/trading.cgi?acro=DGEX