[XCP] Adeally IPO Monday April 28

[LiteBit]

ADEALLY^TM
Adeally is an immersive entertainment shopping experience, featuring gaming mechanics, crowd sourcing and brilliantly honest deals.



COMPANY OVERVIEW

Statement of Purpose | excerpt from BUSINESS PLAN -  adeal.ly/NjuDP  Password: Garfield
ADEALLY, LLC (Adeally), an Ohio Limited Liability Company (LLC) established in 2014, is an online retail and auction services company that will serve customers across the United States with deals on consumer electronics, appliances, outdoor gear, mining equipment, precious metals and gift cards. The Company is seeking investment capital in the amount of $2,325,000 in exchange for a 30% equity position in Adeally. Equity share offerings will be sold in stages and the working capital raised will allow the Company to hire key personnel and consultants in preparation for a late August 2014 launch date of adeally.com.

Mission Statement
Adeally engages customers within an immersive online retail environment. By layering gaming mechanics together with crowd sourcing, social engagement and deep discounts we are creating the ultimate fun, exciting and risk-free shopping experience that we believe is the future of online commerce. Designed with a joint auction platform and conventional ecommerce platform, customers will be able to buy the hottest new products, comment about auctions in real-time, enjoy free shipping, earn rewards, compete against other bargain hunters and potentially walk away with up to 98% savings over retail prices.

Business Introduction
At the heart of Adeally is an ecommerce company selling most products at wholesale prices in combination with listing the same products in auctions at starting prices far below wholesale prices. Customers shopping on adeally.com have opportunities every day to save up to 98% off retail prices. A unique aspect of our auction platform is it socially engages customers to “crowd source” deals. When bids are placed from multiple bidders the savings increases exponentially.

The Company will carry zero (0%) inventory, instead relying on our network of distributors to provide fulfillment services. Over 50% of our products will be sourced from wholesale distributors, 20% will be provided by our B2B partners and the remaining 30% will be our bid packages known as Play Packs. Adeally provides free shipping for every product we sell and offers continuous ways to earn free bids and rewards for constant non-stop bargain hunting and plenty of reasons to continue coming back again and again.

Great lengths have been taken in this Business Plan to create a phased growth plan that factors in numerous parameters presented in this document. Months of research and planning took place before any numbers were even generated. Our key was to stay consistent and create a robust set of tools along the way that interact with each other and provide a logical projection of unknown future events.



OFFERING SUMMARY | excerpt from PROSPECTUS -  adeal.ly/NOnhi  Password: Ulysses

The Issuer
Adeally, LLC

Securities being offered
Up to 300,000 equity shares. Our equity shares are described in further detail in the section of the prospectus titled “Description of Securities – Equity Shares.”

Per Share Price
0.00685BTC ~$3.33

Un-Regulated Market
There is no regulated market for our equity shares. We cannot give any assurance that the shares being offered will have a market value, or that they can be resold at the offered price if the listing exchange (Counterparty) gets taken offline. The absence of a public market for our stock could make it difficult to sell your shares. If in the future a regulated public market does exist for our securities, it is likely to be highly illiquid and sporadic.

Upon successful completion of this funding round, Adeally will seek to file Form 15c211 with FINRA for listing approval on the OTC Link. The ticker symbol the company will request will be: DEAL

Duration of Offering
This offering will terminate upon the earlier to occur of (i) 180 days after this registration statement becomes effective with the Securities and Exchange Commission, and (ii) the date on which all 300,000 shares registered hereunder have been sold; provided, however, that we may, at our discretion, extend the offering for an additional 90 days. In the event that we extend the offering an additional 90 days, we will notify investors by filing a post-effective amendment to our registration statement.

Number of Shares Outstanding Before the Offering
There are 1,400,000 shares of equity issued and outstanding as of the date of the prospectus. Our sole officer and director, Mr. Paul Schmitzer, owns an aggregate of 100% of the equity shares of our company.

Total Number of Shares Outstanding After the Offering
There will be 1,700,000 shares of equity issued and outstanding upon 100% completion of the offering. Upon a successful completion, all corporate officers and directors will own an aggregate of 85% of the issued equity shares. Ultimately, this offering is the seed round of a 3 round series seeking to secure a total of $2,325,000 for a 30% aggregate equity share in the Company.

Listing Fees
We estimate our total costs relating to the registration of the securities offered herein shall be approximately $10,000.

Distribution of Offered Shares
This offering will be listed out on a private exchange (Counterparty) providing issuer backing in Bitcoin. No registered broker dealer will be involved in the distribution of the equity shares made available in this offering.

Net Proceeds to the Company
The Company is offering 300,000 shares of equity, at an offering price of $3.33 per share, for potential gross proceeds to the Company of $1,000,000 and potential net proceeds of $990,000. The full subscription price will be payable at the time of subscription and accordingly, funds received from subscribers in this offering will be released to the Company when subscriptions are received and accepted.
If less than 100% of funds is raised under this offering, Adeally will refund subscriber’s funds and suspend all current operations until additional capital from alternate sources becomes available to execute our Business Plan. No assurance can be given that the net proceeds from the total number of shares offered hereby or any lesser net amount will be sufficient to accomplish our goals.

Use of Proceeds
We will use the proceeds for general working capital, administrative expenses and for the implementation of our business growth strategy. However, there is no guarantee that we will receive any proceeds in connection with this offering.

Need for Additional Financing
Adeally will need to raise additional capital in the future in addition to the $1,000,000 we hope to raise through this offering. We believe that the full proceeds from this offering in addition to our existing cash on hand will satisfy our cash requirements for up to approximately 6 months, provided that we are not be able to expand our operations and grow increase our net profit. If we are unable to produce a favorable gross margin in order to grow our cash reserves and if we are unable to obtain additional financing, our future growth, once the additional capital from this funding is exhausted, could be impaired.

Risk Factors
Any investment in our equity shares involves a high degree of risk. You should carefully consider the risk factors set forth under “Risk Factors” and the other information contained in the prospectus, or any other accompanying documents, before making an investment decision regarding our equity shares.



MORE INFORMATION

We encourage any investors looking for more in-depth information to review the Business Plan (70 pages) and Prospectus (40 pages) below. The Business Plan includes a 3 year projection for the Company and much more. The Prospectus addresses many of the risks associated with this type of offering and is specific to the offering summarized above. Subsequent prospectus will be drafted for the remaining 2 rounds of funding, if necessary.

SEC Filing | adeal.ly/nnfkG
Counterparty Asset Listing | BOMB
Business Plan rev 2.2.0 | adeal.ly/NjuDP  Password: Garfield
Prospectus rev 1.4.0 | adeal.ly/NOnhi  Password: Ulysses



OFFERING RULES

This offering is being made available on the Bitcoin, Litecoin and Counterparty forums. We will not be responding publically (on this thread) until the offering is successful or the duration of the offering (as described above) is complete. Whichever occurs first. This is to stay compliant with Regulation D filing rules for Rule 506(b) by the US Securities and Exchange Commission. Any questions regarding this offering can be directed to the contact person listed above.

Schedule
The full amount of shares (300,000) will be available for purchase on Monday, April 28th 2014 @ 12:00pm EST.
We will be issuing blocks of shares (50,000) each day leading up to that Monday. The full 300,000 will have been loaded by noon on Monday the 28th. We feel this is a fair way to allow investors to digest the offering we are presenting and limit the amount of investors that could be shut out due to potential rush of investors if all 300,000 shares are listed at once.

Platform
We are offering this on the Counterparty platform which is a decentralized exchange built on the Bitcoin blockchain. The easiest way for investors to purchase Adeally BOMB shares is to use the Counterwallet web interface found at counterwallet.co. For investors already using this amazing platform we suggest you read this announcement by Counterwallet regarding recent security fixes. Counterwallet Security Notice



CONTACT

ADEALLY, LLC.
ATTN: MR. PAUL SCHMITZER
2282 BIRCH BARK TRL
GROVE CITY, OHIO 43123
TEL: 765-ADEALLY (233-2559)
EMAIL: VIP [AT] ADEALLY [DOT] COM



DISCLAIMER

You should rely only on the information contained or incorporated by reference to this offering in deciding whether to purchase our equity shares. We have not authorized anyone to provide you with information different from that contained in this offering. Under no circumstances should the delivery to you of this offering or any sale made pursuant to this offering create any implication that the information contained in this offering is correct as of any time after the date of this offering. To the extent that any facts or events arising after the date of this offering, individually or in the aggregate, represent a fundamental change in the information presented in this offering, this offering will be updated to the extent required by law.

This document may only be used where it is legal to sell these securities. Certain jurisdictions may restrict the distribution of these documents and the offering of these securities. We require persons receiving these documents to inform themselves about and to observe any such restrictions. We have not taken any action that would permit an offering of these securities or the distribution of these documents in any jurisdiction that requires such action.

Unless otherwise indicated, information contained in this offering concerning our industry, including our market opportunity, is based on information from independent industry analysts, third-party sources and management estimates. Management estimates are derived from publicly-available information released by independent industry analysts and third party sources, as well as data from our internal research, and are based on assumptions made by us using data and our knowledge of such industry and market, which we believe to be reasonable. In addition, while we believe the market opportunity information included in this offering is generally reliable and is based on reasonable assumptions, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed under the heading “Timing of Market Entry - Risk Factors.”

[Adeally]

How do I buy shares?

XCP Ticker | BOMB
BOMB/BTC rate | 145.985401

1. Open a Counterwallet account via https://counterwallet.co/
2. Deposit funds into your account
3. Place order for BOMB via "Buy & Sell" tab
4. Orders will be match automatically and transfer to your wallet.

Video tutorial | https://www.youtube.com/watch?v=ZziQ2Ns8314

BOMB shares are only being sold for BTC at a price of BTC0.00685 per share.
When you place your order use the BOMB/BTC rate of 145.985401

We can pay dividends in BTC using Counterwallet and a list of public addresses, etc.. associated with the BOMB asset can be found here: http://blockscan.com/assetInfo.aspx?q=BOMB

When can I buy shares?

Schedule
The full amount of shares (300,000) will be available for purchase on Monday, April 28th 2014 @ 12:00pm EST.
We will be issuing blocks of shares (50,000) each day leading up to that Monday. The full 300,000 will have been loaded by noon on Monday the 28th. We feel this is a fair way to allow investors to digest the offering we are presenting and limit the amount of investors that could be shut out due to potential rush of investors if all 300,000 shares are listed at once.

Updates:
BOMB shares are available to purchase in the order book.

200,000 shares have been release to the order book so far. An additional 50,000 will be released tomorrow and Monday when the full 300,000 shares are in the order book by 12:00 EST.

[twentyseventy]

You're not really valuing this at $7.75 Million on $0.00 sales, are you?

[stereotype]

The business plan has had alot of work go into it. Good so far, but that valuation would get you thrown out of Dragons Den, at this stage of the game. Will follow with interest though. 

[theMiracle]

You're not really valuing this at $7.75 Million on $0.00 sales, are you?

B...but immersive entertainment shopping experience, featuring gaming mechanics, crowd sourcing and brilliantly honest deals... [?]

[Mrrr]

You're not really valuing this at $7.75 Million on $0.00 sales, are you?

B...but immersive entertainment shopping experience, featuring gaming mechanics, crowd sourcing and brilliantly honest deals... [?]

Don't forget the Bid Bomb (TM).

But all jokes aside. I like the name. And I like the balls you just showed by issuing this through Counterparty. Good luck, and I'm buying. 299.999 to go

[helloge]

wait to see and test!

[halfcab123]

Very smart move issuing this on Counterparty. 

[mikaeldice]

Rule 506(b) of Regulation D

Section 4(a)(2) of the Securities Act exempts from registration “transactions by an issuer not involving any public offering.”  Rule 506(b) is a rule under Regulation D that provides conditions that an issuer may rely on to meet the requirements of the Section 4(a)(2) exemption.  One of these conditions is that an issuer must not use general solicitation to market the securities.

“General solicitation” includes advertisements published in newspapers and magazines, public websites, communications broadcasted over television and radio, and seminars where attendees have been invited by general solicitation or general advertising.  In addition, the use of an unrestricted, and therefore publicly available, website constitutes general solicitation.  The solicitation must be an “offer” of securities, but solicitations that condition the market for an offering of securities may be considered to be offers.

OFFERING RULES

This offering is being made available on the Bitcoin, Litecoin and Counterparty forums. We will not be responding publically (on this thread) until the offering is successful or the duration of the offering (as described above) is complete. Whichever occurs first. This is to stay compliant with Regulation D filing rules for Rule 506(b) by the US Securities and Exchange Commission. Any questions regarding this offering can be directed to the contact person listed above.

As friendly advice, you really are not covering yourself by not responding publicly.  You've already posted the offering and the damage is done.  

Listing Fees
We estimate our total costs relating to the registration of the securities offered herein shall be approximately $10,000.

You didn't register the securities.  You filed a form claiming an exemption to registration.  Also, the fees for an exempt filing are nowhere near that high.  

In your SEC filing, you claimed that the minimum amount accepted from any outside investor is $5,000 USD.  Does Counterparty even have a mechanism in place to enforce this?  Can it enforce the restriction to sell only to 'accredited investors'?

Also, why are you using beta software as the shareholder ledger for your company?

[sparky999]

That valuation though . . . lol

[JimmyJazz]

Use of Proceeds
We will use the proceeds for general working capital, administrative expenses and for the implementation of our business growth strategy. However, there is no guarantee that we will receive any proceeds in connection with this offering.

[sporket]

You're not really valuing this at $7.75 Million on $0.00 sales, are you?

B...but immersive entertainment shopping experience, featuring gaming mechanics, crowd sourcing and brilliantly honest deals... [?]

"By layering gaming mechanics together with crowd sourcing, social engagement and deep discounts we are creating the ultimate fun, exciting and risk-free shopping experience that we believe is the future of online commerce."



*Misread "social engagement" (wtf is that? a party?) as "social engineering."

[LiteBit]

You're not really valuing this at $7.75 Million on $0.00 sales, are you?

The following can be found within our Prospectus:

DETERMINATION OF OFFERING PRICE
 
The offering price for the shares in this offering was arbitrarily determined by our management. In determining the initial public offering price of the shares we considered several factors including the following:
-   Our status of business development
-   Our new business structure and operations as well as lack of a significant client base
-   Prevailing market conditions, including the history and prospects for our industry
-   Our future prospects and the experience of our management
-   Our capital structure.

Therefore, the public offering price of the shares does not necessarily bear any relationship to established valuation criteria and may not be indicative of prices that may prevail at any time or from time to time in the private market for the equity shares. While trading of the shares of equity can take place with Counterparty you cannot be sure that a regulated public market for any of our securities will develop and continue or that the securities will ever trade at a price at or higher than the offering price in this offering.

As friendly advice, you really are not covering yourself by not responding publicly.  You've already posted the offering and the damage is done.  

We appreciate your view on this and agree that the ball is already in play.

Listing Fees
We estimate our total costs relating to the registration of the securities offered herein shall be approximately $10,000.

You didn't register the securities.  You filed a form claiming an exemption to registration.  Also, the fees for an exempt filing are nowhere near that high.  

The $10,000 Listing Fee is regarding the 1% fee within Counterwallet to issue shares. We apologize for the confusion. This is explained in more detail within the Prospectus.

You are correctly stating that exempt filing fees are nowhere near that high. Filing a Form D exemption is free once a CIK is obtained.

In your SEC filing, you claimed that the minimum amount accepted from any outside investor is $5,000 USD.  Does Counterparty even have a mechanism in place to enforce this?  Can it enforce the restriction to sell only to 'accredited investors'?

We can file amendments to this document. The initial filing was filed around 1 month ago in anticipation of this offering and to show our investors the seriousness of our plans for fundraising. Full details had obviously not been worked out. The filing says we had yet to make the offering. Once the offering is complete we will file an amendment stating the date of the final sale, funds raised, funds not raised, minimum amount, etc.

Regarding 'accredited investors': This is really a 2 way street. Investors are responsible for their decisions and Issuers are responsible for theirs. Counterparty does not have a mechanism for limiting amounts investors can invest per asset. Nor does it have a mechanism for restricting sale to individuals based on local, state or federal rules and regulations.

Steps we are taking on our end: (contained within Prospectus)

PLAN OF DISTRIBUTION (exerpt)
If applicable, the shares may not be offered or sold in certain jurisdictions unless they are registered or otherwise comply with the applicable securities laws of such jurisdictions by exemption, qualification or otherwise. We reserve the right to deny and/or buy back equity shares from purchasers not complying with these statutes.

Right to Reject Subscriptions
We have the right to accept or reject subscriptions in whole or in part, for any reason or for no reason. All monies from rejected subscriptions will be returned immediately by us to the subscriber, without interest or deductions.

Also, why are you using beta software as the shareholder ledger for your company?

"Counterparty is built on top of the Bitcoin blockchain and network storing its protocol data in regular Bitcoin transactions." -https://www.counterparty.co/about/

Counterwallet is already a powerful web UI that allows us to sell shares, buy back shares, issue dividends in multiple currencies and more. Essentially giving us the same control as Havelock or eventually CipherTrade. We actually have distributed versions of our Business Plan and Prospectus to both Havelock Investments and CipherTrade the previous 2 weeks. They are the earlier revisions of both documents on http://spark.adeally.com/ respectively. Havelock listing fees are 5% or $50,000 for our offering and Ciphertrade listing fees are 2% for listing and 2% for withdrawal or $40,000. When it came down to it we felt that if there was a new Bitcoin 2.0 interface far enough along, with active support and a bright future we would give it a shot. Why not cut out the middle man and offer our shares on a marketplace that has an amazing potential upside. In fact a number of companies, Rockminer (https://bitcointalk.org/index.php?topic=528464.msg6351120#msg6351120)and Let's Talk Bitcoin (http://ltbcoin.com/ltbcoin-for-new-users), are also using the platform in the same way and for similar reasons.

Use of Proceeds
We will use the proceeds for general working capital, administrative expenses and for the implementation of our business growth strategy. However, there is no guarantee that we will receive any proceeds in connection with this offering.

This is just a blanket statement stating that even though we are trying to raise funds we may not be able to raise funds for this offering. Sorry for any confusion.

*Misread "social engagement" (wtf is that? a party?) as "social engineering."

This is another word for community involvement or anything socially related. For example:
- Integrating chat functions through Facebook or Twitter within each product auction listing.
- Reward systems involving sharing and posting via social networks

I like that "a party?". That would be great.

[NotLambchop]

You're not really valuing this at $7.75 Million on $0.00 sales, are you?

...
TL;DR: The offering price for the shares in this offering was arbitrarily determined by our management.
...
...

In your SEC filing, you claimed that the minimum amount accepted from any outside investor is $5,000 USD.  Does Counterparty even have a mechanism in place to enforce this?  Can it enforce the restriction to sell only to 'accredited investors'?

...
TL;DR: Full details had obviously not been worked out. ...
Regarding 'accredited investors': This is really a 2 way street. Investors are responsible for their decisions and Issuers are responsible for theirs.
...

No.  It is not a 2-way street.  You have no mechanism in place to limit your offering to qualified investors, and thus are running afoul of relevant regulations.

Also, why are you using beta software as the shareholder ledger for your company?

...
TL;DR: Yeah.
...

Use of Proceeds
We will use the proceeds for general working capital, administrative expenses and for the implementation of our business growth strategy. However, there is no guarantee that we will receive any proceeds in connection with this offering.

This is just a blanket statement stating that even though we are trying to raise funds we may not be able to raise funds for this offering. Sorry for any confusion.

*Misread "social engagement" (wtf is that? a party?) as "social engineering."

This is another word for community involvement or anything socially related. For example:
- Integrating chat functions through Facebook or Twitter within each product auction listing.
- Reward systems involving sharing and posting via social networks

I like that "a party?". That would be great.

Gotcha.  Gotta keep up with the neologisms.  So you're basically putting these things up. right?

+trollbox?
Sounds solid.

[FatherBob]

How will your busineess differ from other penny auction sites, like http://www.ibid2save.com ?
Sounds real 2011...


http://www.google.com/trends/explore#q=penny%20auction%20

[twentyseventy]

You're not really valuing this at $7.75 Million on $0.00 sales, are you?

The following can be found within our Prospectus:

DETERMINATION OF OFFERING PRICE
 
The offering price for the shares in this offering was arbitrarily determined by our management. In determining the initial public offering price of the shares we considered several factors including the following:
-   Our status of business development
-   Our new business structure and operations as well as lack of a significant client base
-   Prevailing market conditions, including the history and prospects for our industry
-   Our future prospects and the experience of our management
-   Our capital structure.

Therefore, the public offering price of the shares does not necessarily bear any relationship to established valuation criteria and may not be indicative of prices that may prevail at any time or from time to time in the private market for the equity shares. While trading of the shares of equity can take place with Counterparty you cannot be sure that a regulated public market for any of our securities will develop and continue or that the securities will ever trade at a price at or higher than the offering price in this offering.

Hahahahaha - yes, I know the valuation was arbitrarily determined by your management.

At least you're honest that you're completely pulling your valuation and share pricing out of your ass.

[LiteBit]

How will your busineess differ from other penny auction sites, like http://www.ibid2save.com ?
Sounds real 2011...


http://www.google.com/trends/explore#q=penny%20auction%20

In short our business model revolves around bid pack sales (Play Packs) and drop shipping products. This is what separates us from the majority of other penny auction sites.  Everything below is also explained in the Business Plan

Play Packs cost zero to manufacture and zero to deliver. While our 3 year projection conservatively estimates 50% or so of our revenue from Play Pack sales we would multiply profit margins substantially as that number increases to as high as 90%. Drop shipping products takes the burden of inventory and staff, etc. from bogging down our profit. The majority of other penny auction sites instead develop a business model around product listings and in turn live or die by the number of customers bidding on the site and gross margin % between bid revenue and COGS. Ultimately, this is their downfall because people get bored and leave and sites relying on lots of customers that all of a sudden lose them close their doors shortly after.

2 examples of blown opportunities because of a faulty business model:
1) Penny Auction Solutions. Google it: Penny Auction Solutions
Their business plan: PDF
It was flawed from the start for a number of reasons (MLM) but the main reason was no safeguards in the beginning phases of existence and the business model revolved around product listings instead of bid pack sales.
They even got $10 million in funding (talk about crazy valuation with $0 sales!) via Kodiak Capital Group, LLC  They have zero to show for all of this less than 4 years later.

2) Swoopo. Arguably the pioneer of penny auction sites in 2008 and the biggest at the time of it's bankruptcy filing. "Overall, Swoopo operated a flawed business model as it relied on creating value (for itself and the 1% of winners) at the expense of the majority of its customers.  For more on this, check out http://t.co/O78595H"

We feel like this is our successful business model that will separate us from many other companies operating in this environment and provide stable growth year after year. It's the only sustainable model in this industry.

Yes, back in 2011 anyone could open up a penny auction site and they were very lucrative. Unfortunately, the history of companies in this industry is littered with questionably operators and unethical bidding practices. The past 3 years has seen upwards of 2000 "penny auction" sites created and currently less than 200 operational. Do a web search for penny auctions and the terms "scam", "cheat" and many more litter the page results. Customer complaints are mostly valid relating to deceased sites and even some still in operation. While Adeally does use the same auction platform as these sites it is much more than “just another penny auction site.”

Buy-It-Now
One game-changer the helped right the ship if you will was the creation of the Buy It Now option. Adeally will have this on every auction and it's explained in depth in the Business Plan. Essentially it's available to losers of auctions as a way to get their bids back and have a good experience on the site. Before this innovation was created the industry had a bad reputation and customers were rightfully pissed off because they didn't win anything and lost money to boot! Still, more than half the other penny auction sites out there do not offer this option to their customers.

As explained in our Business Plan regarding our 3 year projections, we ran 120 scenarios over 3+ years to determine our phased growth numbers. Below is an example of our numbers 1) disregarding the Buy It option and our customer's feelings and 2) our numbers with Buy It factored in and our customer experience.

http://adeal.ly/Npwja This is an excel file.
EDIT: Disclaimer
This document does not represent our full financial projections. The 2 values that are represented in the totals are related to auction listings and ecommerce listings only. The accounting terminology was for in-house purposes because these values are static copies of in-house documents used to project the next 3 years of the Company as laid out in detail in the "Financials Section" of our Business Plan. G&A, payroll, overhead, etc. are not included in this document.

Compare the Total Revenue numbers for each year above and below and you can see how lucrative this business model can become with shady operators. Every investor would love to earn 3 x more profit every year, but we kept ourselves grounded in a conservative phased growth model explained in detail in the Business Plan.



Here's more on how we're different from the majority of other penny auction sites:

Dual selling platform: conventional ecommerce and online auction platforms
While 100% of penny auction sites do penny auctions, only a few also have an integrated ecommerce platform. Adeally will have both. We realize that a good portion of our customers could care less about the gaming mechanics and social rewards we will build into the site. They just want to buy a product at the best price out there and get free shipping. We get it. So all of our products are available for purchase directly using our Buy It option.

Fulfillment
A large portion of other penny auctions carry inventory of at least gift cards and sometimes smaller electronics and such. That adds extra costs on the company. Adeally will carry zero (0%) inventory, instead relying on our network of distributors to provide fulfillment services. Only about 20% of our products will be from other B2B partners like Amazon or Best Buy. If we list Apple products or Precious Metals or Mining Equipment we'll form partnerships with companies to list their products on our site and the prices we list will be identical to the Apple product on bestbuy.com. 50% will be from our wholesale distributors and our prices are competitive with Amazon (which seller's are only making 5-10% over wholesale on most listings). The remaining 30% will be our Play Pack items which cost zero to make, zero to ship.

Safeguards
The majority of penny auction sites fail before they even get started because customers bleed them dry. They are at the mercy of aggressive bidding clans without a large customer base, which a site just starting doesn't have. Without proper safeguards in place before launch they might as well not start. Without the safeguards listed in our Business Plan and below we just might as well not even start. We wouldn't if we didn't develop these during our business creation stage. Every Adeally auction will have these safeguards.

Lockout Auctions - JUMPING - Prevents the tactic of a customer waiting until rest of the bidders have exhausted their bids and "jumping" in with a single bid to win the product.

2% Retail Reserve Price - TAGGING - Prevents the tactic of 1 customer placing the first bid (tagging) and all of their friends agreeing not to bid on the product.

Scrambled user names - COLLUSION, TAGGING - Prevents the tactic of a group of bidders forcing out other bidders and then stopping their bids so one of them wins.


Smart Currency
The Company is also partnering with Counterparty to make our on-site currency (bids) “smart”. Customers will be able to take their unspent bids off the adeally.com site and trade them for other things within the Counterparty marketplace. This is a first of its kind concept for our industry and a huge value to our customers that want to take their bought virtual goods (bids) to other vendors.

We are very excite about this because it's revolutionary in the industry. No other penny auction site, ecommerce site, online auction site has a site currency that can be taken off the site by the rightful owners, the customers. Typically it has to be abandoned if the customer doesn't want to shop there anymore. With Counterparty assets we can integrate our bids (Plays and Tokens) into the system and allow customers to leave with it if they are done shopping.

Plays we will sell on site and within Counterwallet. Tokens we will give away as rewards on site and within Counterwallet. They both have a $0.55 nominal value to start but can now be open to the free market.

Plays (paid bids) - http://www.blockscan.com/assetInfo.aspx?q=PLAYS
Tokens (reward bids) - http://www.blockscan.com/assetInfo.aspx?q=TOKENS

[sporket]

...
In short our business model revolves around bid pack sales (Play Packs) and drop shipping products. This is what separates us from the majority of other penny auction sites. ...

By "Play Packs," I assume you mean something like http://www.quibids.com ?  Just about everything you describe has already been done -- now mostly abandoned.  Adding crypto to the mix is just another marketing gimmick.

[Benny1985]

Grove City, hunh?

I've sent the contact E-mail a message for a request for personal meeting. I live 15mi from the address listed. For what its worth, I can verify this company and its legitimacy if I can schedule a meeting.

[Hullabaloo]

Make every bid possible only using a valid wallet address that's visible on a blockchain.  Otherwise you are just a scam that's made even worse by pretending you are doing anything new.

None of the things you say actually prevent the 2 biggest cheats in penny bid sites: someone bidding on everything at a loss and chasing away every other bidder and insider bidding bots.  Using real wallets might improve this a little as people might get an idea of how human their opponents are, at least.