Moderators: I'd like to bring to your attention that my post may have been inadvertently relocated from the 'Bitcoin project development' category to 'lending'. As I'm actively seeking seed funding for a novel investment opportunity, rather than soliciting a traditional collateralized loan, could someone assist me in clarifying whether this placement was an error? I'm unsure if 'Bitcoin projects' was the correct place for my post; however, categorizing it under 'lending' seems inaccurate as well.
With that many requirements for investors, I'd expect you to share what makes you an interesting project for them to invest in. Especially when you say no paperwork and so on. I'd be surprised if any investor would look at your proposal and say, "this looks good". At least tell us who you are, what your history is, and so on. Kinda lost how many times I saw a similar thread where the OP got so defensive when someone asked them about those questions.
The terms are terrible for investor side. I also not sure what exactly will OP do with investor money. Cracking/brute-force address that generated with seed?
I understand your reservations regarding the terms and transparency of this project. Your questions about what I plan to do with the funds are well-founded, and I'd like to take a moment to provide some clarification.
1. Investor Protections.You are both correct that the lack of incorporation and formal paperwork may be a significant concern for potential investors.
To address this, I'd like to provide some additional clarity: despite the absence of traditional corporate protections, there will be robust technical controls in place to govern the distribution of funds. Specifically, the seed investment ($250k to $2 million) will be locked into secure escrow mechanisms, such as HTLCs or multisig wallets, and disbursed in a phased manner tied to objective project milestones. I will make sure to update the original post with this information.
While I'm open to exploring lump sum payment arrangements, I recognize that investors typically require additional safeguards. In hindsight, I probably should have been clearer about the plans to implement smart contract-based escrow mechanisms for seed funding.
2. Investor Requirements.I concur that only a select few will find this project appealing. I must emphasize that I'm seeking an exceptional investor with a unique mindset.
I'm looking for investors like those who shorted the US housing market in 2008 or bought rubles after the Ukraine invasion - the kind who know how to profit in the aftermath of chaos.
There are approximately 300,000 individuals globally who meet the net worth threshold, of which one in twenty have a substantial crypto portfolio. Only about one in a hundred of these high-net-worth crypto holders possess a truly contrarian spirit - a ruthless willingness to bet on something that others see as a long shot.
There are about 150 such people on the planet.
I would appreciate an introduction to one of them.
3. Credentials and Project Details.The reason I'm unable to publicly disclose my credentials or details about the project is due to the inherent risks associated with facilitating introductions in a trustless environment.
When a referrer introduces an investor to me, their primary concern is ensuring they receive compensation for their services. However, if the investor can subsequently track me down and contact me directly, either through online research or other means, they can bypass the referrer and avoid paying their fee.
To prevent this from happening, I must maintain confidentiality regarding my background and project details. Without this protection, talented referrers would be reluctant to work with me.
4. GovernanceThe crux of the issue isn't my trustworthiness with the seed funding, but rather whether I can plausibly refuse to distribute agreed-upon shares of short-term profits to the investor without jeopardizing my long-term prospects.
In this instance, our goals are aligned in the sense that both parties require each other to achieve maximum returns in the
long term. However, while this creates some incentive for me to behave cooperatively, it falls short of providing a sufficient disincentive against acting counter to the investor's interests in the
short term (i.e., withholding their agreed share of the initial profits over the first 1-3 years).
While I've attempted to design the deal with aligned incentives, I acknowledge that this aspect still requires further refinement. Specifically, I'm open to discussing how to structure the agreement so that mutual losses become a certainty if either party attempts to exploit the other, thereby ensuring our interests remain inextricably linked.
As an aside: HTLCs are not only utilized during the seed stage, but also play a crucial role in the long-term infrastructure, serving as a foundational component of the overall architecture.
Ultimately, the question remains: why should you entrust me with your time and consideration?Given the unconventional nature of this proposal, I acknowledge that skepticism is warranted. In the absence of traditional credentials or project details, I recognize the need to provide a compelling reason for referrers and investors to engage with me in earnest.
My offer to anyone reading this is as follows: if you know an individual with $5-50 million USD in net worth, I will offer up-front compensation for your time, separate from the introduction fee, specifically to offset half the opportunity cost of listening to my investment proposal. That opportunity cost will be calculated using the method outlined below.
Let V represent the value of your crypto assets; R denote the 20-year mean S&P 500 return; P signify your cryptocurrency's proportion to your total net worth; and H equate to standard full-time work hours.
I will use the following assumptions:
R = 10%
P = 25%
H = 2000
C = (V*(R/P))/H
C denotes your opportunity cost per hour. Assuming my time has zero value, compensating you at half your calculated hourly opportunity cost (C/2) will ensure we are at least conversing as economic equals.
For instance: if you possess knowledge of the ideal candidate and can demonstrate control over $1 million in decentralized assets, I am willing to compensate you
$100 USD per hour, paid in Bitcoin, for reviewing my proposal via email. This calculation assumes a reading speed equivalent to 25 words per minute. If we engage in a subsequent verbal discussion, I will time its duration with a stopwatch and compensate you at the same rate for your listening time.
If you disagree with this calculation as a fair representation of your time's value, feel free to reply here or email me proposing an alternative formula.
I am willing to compensate both referrers
and investors for their time; if you hear me out and you know someone with $50 million in on-chain assets, I will
separately pay them
$5000 USD per hour for the same courtesy.
Conditions:Please note that any up front compensation offered for discussion is made with no obligations attached. If you choose not to pursue an introduction or if the investor declines, please consider the money a gesture of goodwill.
I will request that if you do receive payment, you take a moment to publicly acknowledge this on the thread by posting a brief update. This will help maintain transparency and serve as evidence that I honor my commitments. Furthermore, if after discussing the project with me, you believe it warrants consideration from others in your network, please share this thread with them.
I must emphasize that this initiative has a finite scope and cannot be sustained indefinitely. Considering the magnitude of the investment, preference will be given to those with substantial cryptocurrency holdings or established merit on Bitcoin Talk.
Note: before considering any upfront compensation, I'll need some basic confirmation from you - simply to ensure we're on the same page.
Skin in the game:Again, I understand that skepticism is warranted, and I expect it. To further demonstrate my commitment, I'm willing to put some skin in the game.
In addition to all of the above, as a symbolic gesture, I can arrange for some money to be burned via a publicly visible transaction - with the project's name encoded therein. This would serve as a tangible demonstration of my commitment.
If I'm willing to burn a couple hundred dollars as a gesture of good faith, it should speak volumes about the sincerity of my intentions and my willingness to put my words into action.
Alternatively, as a simpler solution, I can just give away a sum of money to users with "legendary" status on this forum (i.e. real people, not fake accounts). In return, all I ask is that they share an update on this thread confirming receipt.
Either way, the end result is the same. So... ABCBits, joniboini: if you're both amenable to this proposal, I'd like to send each of you $100 in Bitcoin.
