Diablo Mining Company

[DiabloD3]

I've only referred to mining here - not to running a data-centre.  That's because this apaprently is (or was supposed to be) a mining company.

Read the op.

[1715051899]

1715051899

[1715051899]

1715051899

[greyhawk]

Diablo is just an idiot and highly incompetent. I wouldn't give him the prestige of a scammer.

No, he's an example on why you do not let "technical guys" run a business, no matter how brilliant they are in their field of expertise.

Diablo may be a genius when it comes to building miners and optimizing them for various GPUs, but he's not a businessman.

And I'm not even talking about the destruction of value showcased here, but the real reason why this could happen at all: a severe lack of communication skills.

[BadBear]

I remember one of the very first posts when he brought this idea up being to get someone more business savvy to help him out, which he declined. Probably would've been a good idea.

[markm]

From the sound of it his biggest mistake was to issue his shares on a platform that forces everything to be denominated in, and traded in, bitcoins.

His goal seems to be to build something of real actual usefulness type of value, not to play exchange-rate games to make things look useful by looking at them only from the viewpoint of the bottom lin e of one single currency's accounting of the venture.

Bitcoin seems to be a particularly bad unit of account to be using in fact, because it is itself an investment that is likely to out-perform most markets. It is quite likely that simply buying and holding bitcoins is better than almost any investment other than ones in which someone has been talked, convinced, fooled or suckered into using bitcoins as a unit of account thus ends up owing the investors more bitcoins than were invested rather than merely more buying power than was invested.

In fact his overall operation seems like the kind of thing where the "sysbucks" I used in my Internet Provider Utilities toolkit could be useful, as the "sysbucks" serve as a currency specific to the range of goods and services provided by the provider independent of how many of some other currency the sales staff manage to sell "sysbucks" for at any particular point in time.

-MarkM-

[MPOE-PR]

Bitcoin seems to be a particularly bad unit of account to be using in fact, because it is itself an investment that is likely to out-perform most markets. It is quite likely that simply buying and holding bitcoins is better than almost any investment other than ones in which someone has been talked, convinced, fooled or suckered into using bitcoins as a unit of account thus ends up owing the investors more [b[bitcoins[/b] than were invested rather than merely more buying power than was invested.

Look into s.mpoe, s.dice etc. There's plenty of real businesses making 100s and k's of bitcoins every month.

[Monster Tent]

Bitcoin seems to be a particularly bad unit of account to be using in fact, because it is itself an investment that is likely to out-perform most markets. It is quite likely that simply buying and holding bitcoins is better than almost any investment other than ones in which someone has been talked, convinced, fooled or suckered into using bitcoins as a unit of account thus ends up owing the investors more [b[bitcoins[/b] than were invested rather than merely more buying power than was invested.

Look into s.mpoe, s.dice etc. There's plenty of real businesses making 100s and k's of bitcoins every month.

Buying shares in s.dice will take 10 years to payoff.

[DiabloD3]

I remember one of the very first posts when he brought this idea up being to get someone more business savvy to help him out, which he declined. Probably would've been a good idea.

Its not that I refused, I would have loved to have been the technical cofounder of this and let someone else take on the full time job of Chief Ego Officer, but the community simply doesn't have such people, and there have been wildly successful businesses that have been ran by technical solo founders.

The community is going to have to figure out how to run a successful company, but destroying DMC in the name of greed isn't going to help things.

[DiabloD3]

From the sound of it his biggest mistake was to issue his shares on a platform that forces everything to be denominated in, and traded in, bitcoins.

His goal seems to be to build something of real actual usefulness type of value, not to play exchange-rate games to make things look useful by looking at them only from the viewpoint of the bottom line of one single currency's accounting of the venture.

Bitcoin seems to be a particularly bad unit of account to be using in fact, because it is itself an investment that is likely to out-perform most markets. It is quite likely that simply buying and holding bitcoins is better than almost any investment other than ones in which someone has been talked, convinced, fooled or suckered into using bitcoins as a unit of account thus ends up owing the investors more bitcoins than were invested rather than merely more buying power than was invested.

In fact his overall operation seems like the kind of thing where the "sysbucks" I used in my Internet Provider Utilities toolkit could be useful, as the "sysbucks" serve as a currency specific to the range of goods and services provided by the provider independent of how many of some other currency the sales staff manage to sell "sysbucks" for at any particular point in time.

-MarkM-

qft.

[MPOE-PR]

Buying shares in s.dice will take 10 years to payoff.

Last dividend was ~7k for the whole thing, it only is selling for ~350k, so your math fails on that score.
Further, after 10 years you'd have both the shares in their original, pristine, mint condition and the dividends paid during the 120 months. What "pay off" are you talking about?

[SebastianJu]

@markm... what are you speaking of? Of course BTC in itself is an investment. But investors of glbse are aware of this. So normally you have btc, invest them and you earn money from the investment. But on top of it you earn $ because the BTC are getting a higher value. And when diablo would have build a mining rig from the start, like he stated in the contract, then he would had the chance to make 100% ROI after 10-11months. Thats the rate pyramining.com has, a real mining project.
So no... btc isnt a bad investment currency. In fact its a good one because you earn 2 ways when you make sure you have more BTC after you are out of investment.

[markm]

Its good for mining and bitcoin-gambling and of course "gold games" aka HYIPs.

But for Diablo's plan, of building a datacentre with a solar power farm, it is not so good.

Although conceivably had he put it all into mining as cost-effectively as possible from the start, in a couple of years when bitcoins are worth thousands of dollars each it could have picked up the datacentre and solar out of the amount the mined coins appreciated if at the right time he had stopped putting it all into mining gear and instead just started hoarding the mined coins...

-MarkM-

[SebastianJu]

Yes, youre right... it should have been a mining project reading from the contract. In fact the second part about hardware that is supporting mining i wouldnt have thought of a solarfarm. Simply because such a farm has a 100% roi after 10-12 years. Thats, compared with simple mining, a real bad roi. So i wouldnt have thought he would invest in such thing.
At the end it became a investingproject with many bad decisions that dropped the course near zero.

[Bitcoin Oz]

Buying shares in s.dice will take 10 years to payoff.

Last dividend was ~7k for the whole thing, it only is selling for ~350k, so your math fails on that score.
Further, after 10 years you'd have both the shares in their original, pristine, mint condition and the dividends paid during the 120 months. What "pay off" are you talking about?

I doubt MPEx would still be there in 10 years is what I really mean.

The operator is basically anonymous and runs a porn site on the same server.

Anonymous entities and bitcoin financial services  has proven in the past to be a bad combination and people would be nuts to send any coins to such services.By urging people to invest in such services you are actually doing the community a disservice and teaching people bad habits. People should boycott anonymous financial services not encourage them. 

Either identify yourself or GTFO.

[DiabloD3]

In a suprising turn of events, Diablo-D3 has agreed to hire me, usagi, as his representative in this issue.

I will speak on behalf of Diablo-D3 and represent him in this issue. My fee is 5 btc. Diablo has expressly authorized me to field all questions on behalf of the GLBSE, investors, and the public on this issue.

We are issuing a statement: Things have gotten blown out of proportion. Everyone wants what is best for DMC and for investors. Therefore we are prepared to make an offer. The DMC contract will be modified as follows:

1. Diablo-D3 will modify his contract to state his business plan:
a) Buying shares of mining issues on GLBSE.
b) Buying hardware (when appropriate) for the datacenter.
c) Buying solar power (possibly before mining hardware) and possibly reselling solar power into the grid should surplus exist.
d) Selling dedicated hosting/web hosting if there is spare datacenter capacity
e) Other sources of income, from time to time, to be passed through shareholder approval via binding motion.

2. Seeing as how if the business he runs can't exist if it can't pay him a reasonable amount, the dividend structure will be changed as follows:
a) Out of all the money DMC recieves as income (excluding sale of shares), Diablo will recieve 20%.
b) The remaining 80% will be used to cover operational expenses.
c) Of the money remaining after operating expenses, half will be paid as dividend each month, and
d) the remainder will be used to expand and grow the company.

3. Diablo-D3 will hire smickles of S2 capital management to do accounting for DMC (effective immediately).

This simple 3-step plan shows that Diablo-D3 is competent enough to manage DMC and is the best person for the job.

I will be speaking with Nefario immediately to vet this and see if we can't turn this situation around.

I knew I should I have bought that giant red USB button they had on ThinkGeek.

[Bitcoin Oz]

In a suprising turn of events, Diablo-D3 has agreed to hire me, usagi, as his representative in this issue.

I will speak on behalf of Diablo-D3 and represent him in this issue. My fee is 5 btc. Diablo has expressly authorized me to field all questions on behalf of the GLBSE, investors, and the public on this issue.

We are issuing a statement: Things have gotten blown out of proportion. Everyone wants what is best for DMC and for investors. Therefore we are prepared to make an offer. The DMC contract will be modified as follows:

1. Diablo-D3 will modify his contract to state his business plan:
a) Buying shares of mining issues on GLBSE.
b) Buying hardware (when appropriate) for the datacenter.
c) Buying solar power (possibly before mining hardware) and possibly reselling solar power into the grid should surplus exist.
d) Selling dedicated hosting/web hosting if there is spare datacenter capacity
e) Other sources of income, from time to time, to be passed through shareholder approval via binding motion.

2. Seeing as how if the business he runs can't exist if it can't pay him a reasonable amount, the dividend structure will be changed as follows:
a) Out of all the money DMC recieves as income (excluding sale of shares), Diablo will recieve 20%.
b) The remaining 80% will be used to cover operational expenses.
c) Of the money remaining after operating expenses, half will be paid as dividend each month, and
d) the remainder will be used to expand and grow the company.

3. Diablo-D3 will hire smickles of S2 capital management to do accounting for DMC (effective immediately).

This simple 3-step plan shows that Diablo-D3 is competent enough to manage DMC and is the best person for the job.

I will be speaking with Nefario immediately to vet this and see if we can't turn this situation around.

I knew I should I have bought that giant red USB button they had on ThinkGeek.

Good job and it proves there is a glimmer of hope in this mess 

[novusordo]

In a suprising turn of events, Diablo-D3 has agreed to hire me, usagi, as his representative in this issue.

I will speak on behalf of Diablo-D3 and represent him in this issue. My fee is 5 btc. Diablo has expressly authorized me to field all questions on behalf of the GLBSE, investors, and the public on this issue.

We are issuing a statement: Things have gotten blown out of proportion. Everyone wants what is best for DMC and for investors. Therefore we are prepared to make an offer. The DMC contract will be modified as follows:

1. Diablo-D3 will modify his contract to state his business plan:
a) Buying shares of mining issues on GLBSE.
b) Buying hardware (when appropriate) for the datacenter.
c) Buying solar power (possibly before mining hardware) and possibly reselling solar power into the grid should surplus exist.
d) Selling dedicated hosting/web hosting if there is spare datacenter capacity
e) Other sources of income, from time to time, to be passed through shareholder approval via binding motion.

2. Seeing as how if the business he runs can't exist if it can't pay him a reasonable amount, the dividend structure will be changed as follows:
a) Out of all the money DMC recieves as income (excluding sale of shares), Diablo will recieve 20%.
b) The remaining 80% will be used to cover operational expenses.
c) Of the money remaining after operating expenses, half will be paid as dividend each month, and
d) the remainder will be used to expand and grow the company.

3. Diablo-D3 will hire smickles of S2 capital management to do accounting for DMC (effective immediately).

This simple 3-step plan shows that Diablo-D3 is competent enough to manage DMC and is the best person for the job.

I will be speaking with Nefario immediately to vet this and see if we can't turn this situation around.

This is great news! A huge thanks to Diablo, Usagi and Smickles for working towards fixing this mess.

[Puppet]

a) Out of all the money DMC recieves as income (excluding sale of shares), Diablo will recieve 20%.

Wait.. WHAT?
So Diablo took everyones money, wasted most of it on rubbish bonds that have no resale value, and rather than working towards returning shareholder equity he will now get 20% of all dividends of the bonds he bought? Regardless of how worthless these bonds have or will soon become? And people think this is a good idea? LOL. What this basically comes down to is that you give Diablo your bitcoins and let him trade with it and you pay a 20% tax for Diablo's legendary trading skills, regardless of what ROI he achieves. Who in their right minds would think thats a good idea? Thats theft. A 20% bonus on actual  profits might be reasonable, but getting 20% of revenue is ridiculous and in this case, insulting.

[EskimoBob]

As I said before, if nefario succeeds, then shareholders cannot be paid dividends because I will not send one more BTC to GLBSE and nefario will refuse to release a list of shareholders and their number of shares.
...

DiabloD3, divs from DMC holdings are paid to DMC account and  not to your PERSONAL account in GLBSE.
You haven't show ANY proof of ownership of any assets outside of GLBSE that pay dividends or have generated any income. (if you have, can you post a link to it. I must have missed it)
Today you told me, that you have not transferred any coins out from DMC account in GLBSE.

EskimoBob | Diablo-D3: how much BTC did you transferred out for your assets outside of GLBSE?
EskimoBob | I am just trying to figure out what's the value of the portfolio
Diablo-D3 | EskimoBob: none
Diablo-D3 | EskimoBob: infact, until this nefario-bomb, I had assets waiting to be transferred into dmc's hands

Smell like a attempt of manipulation.

[EskimoBob]

a) Out of all the money DMC recieves as income (excluding sale of shares), Diablo will recieve 20%.

Wait.. WHAT?
So Diablo took everyones money, wasted most of it on rubbish bonds that have no resale value, and rather than working towards returning shareholder equity he will now get 20% of all dividends of the bonds he bought? Regardless of how worthless these bonds have or will soon become? And people think this is a good idea? LOL. What this basically comes down to is that you give Diablo your bitcoins and let him trade with it and you pay a 20% tax for Diablo's legendary trading skills, regardless of what ROI he achieves. Who in their right minds would think thats a good idea? Thats theft. A 20% bonus on actual  profits might be reasonable, but getting 20% of revenue is ridiculous and in this case, insulting.

+10

Investors gave him coin so he can grow hes "business" - that's hes reward. As simple as that.
If he (D3) wants income form DMC, he can buy the DMC shares like everyone else has.

No fkn way I am voting "yes" on BS like that.
 
 

[Puppet]

Diablo spent most of his investors money  buying mining bonds. These bonds lose value faster than snow melts in the sahara, which is why they pay such high coupons. These coupon payment already dont offset the value loss (which is what makes them bad investments), and now diablo will pocket 20% on top of that. You have to be kidding. THere is no chance in hell shareholders can ever make a positive ROI, even if Diablo had any clue about what he was doing.

Usagi, please tell me you didnt think this through.