I write this with sadness in my heart as it has not been an easy decision to make. I have decided to close Gamma Bitcoin Fund.
This decision is something I have thought of over a long time now and is a decision I have been avoiding.
I have decided to close the fund now for several reasons,
I don't have the time anymore to run the fund at a standard which I would like to have, I don't have time to actively look for deals and investment anymore which has started to show in the profits. This is partly due to the increase of pressure from both my school and my part time job. I love working with Bitcoins and I have absolutely loved working with and for Gamma Bitcoin Fund, I have learnt a lot and gained tons of experience and knowledge, as well as met tons of great people and made some good friends. One year has now gone since I first started the fund in small scale, it has turned from a small hobby project into a massive investment fund. I regret nothing and I hope that you as investor have been happy with having me as the manager of your funds. It's sad that it had to end at such a sad note. As said time is scarce and I feel that I can no longer provide a service that anyone would be interested in hence it has lost it's value and I should stop offering it.
It is not only a matter of time and my private life but also about how the market and the community has changed. Almost all the lenders has closed shop or defaulted, there has been a great sense of recklessness and disrespect towards the Bitcoins the lenders were managing, taking huge risks without considering the consequences. This has led to a lending/security negative community with very aggressive members, which I dislike. I understand this reaction, but it should never be aggressive, the best is to be critical and discuss/debate with the issuer/manager not attack that person. I don't feel like I am ready for the potential consequences of masses of angry investors invading my private sphere, so I am going to be moving into more private investments with people I feel that I know and trust. Though I must say most of you have been very nice to me and I have gotten a great amount of trust and respect, for this I am forever grateful and I hope you don't feel let down. I must say though that with all of this lending and security chaos I think we can learn something, the idea of critically analysis and transparency. I think it's a lesson we all must learn, we must strive towards openness and transparency, open books and open investments. It's the only way to regulate and maintain a manageable risk level.
I feel after the recent events I can't trust any other lender to do my job or to take care of parts of my investment and with the development of SEC and GLBSE, I am not sure if I can even trust GLBSE anymore. The risks are just too high, as I can't know the risks and I can't control them, I feel that it's better to close down shop now before something happens. I knew that running a Bitcoin fund might be a gray zone are but as that gray zone seem to get darker and darker, I feel like it might be time to get out before someone decides to close down on all the issuers and lenders, for now I will be a bystander until the situation has cleared up regarding the legal aspect of running a fund.
I will not run nor hide, if anyone is angry,sad etc then I will be here to answer your questions and discuss this with you all, I care about you all and I thank you for the trust you have given me. The least I can do is to listen and talk to you all
Sorry about this whole thing, and the way it had to end. It was not planned but I believe that as the circumstances are as they are, it's best for us all to wrap it up.
Don't fear though, I will still be around and I will be working on my different projects. The Arbitrage will keep running and will keep being developed, so will the venture fund (which is really starting to take shape) and GSDPT. Whenever I can I will try to open up my projects to share my profit and my work with the community and of course you guys, for whoever wants to join, but this will probably be further into the future when things are clearer and I have more time on my hands.
So how to close things down?
This is just a plan as always I appreciate your comments and feedback,
The plan is to slowly liquidate to reduce losses, by only accepting sales at the higher end of the spread on GLBSE. As previously done. This liquidates about 5% a week (so far of course this depends on what assets are held), as well as close all accounts and settle all illiquid debt. I don't want to rush this process as that would mean larger loses, so the plan is that majority of the assets will be liquidated within a couple of months. This I think is both reasonable and realistic. The payouts will be proportional to the amount of BTC you have in GBF and will be paid once a threshold is reached, say 5-10%. Meanwhile the Bitcoins will be held in our margin/arbitrage bot, to generate some profit to negate the loses.
This means that everyone that has requested withdraws so far unfortunately is going to have to wait and be paid proportionally, this is the reason why I have not paid out withdraws this week as it would be unfair to the people that still had their BTC in the fund, I know this is going to cause a lot of anger, but I think it's fairest this way.
The logbooks will not be daily but weekly and will reflect the amount liquidated, payouts will keep being on weekends.
Please note that the amount paid it will be done by the following forumla:
account balance/total balance * amount liquidated, this might not equal to account balance.