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Author Topic: [GLBSE] FOO.PPPPT - Perpetual Pure Pirate Pass-Through Bonds - 7% weekly  (Read 11721 times)
bitfoo
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May 22, 2012, 07:07:19 PM
 #1

UPDATE: FOO.PPPPT is now owned and managed by brendio: see this thread for details. Most of the information below is likely to be outdated.

Original post:



Since Pirate Pass-through bonds are the flavor of the month, I'm rolling out my own. Announcing FOO.PPPPT: the "Perpetual Pure Pirate Pass-Through" bond. Here is the asset on GLBSE: https://glbse.com/asset/view/FOO.PPPPT

Each bond represents 1 BTC invested in Bitcoin Savings & Trust.

tl;dr: Pirate bonds, weekly 7% coupon payments. No fees, no commissions, no frantic bidding every week, no insurance, just pure Pirate! This is as close as it gets to the real deal (maybe even better).

The story is simple: I currently have 500 BTC with Pirate/BTCST, earning 5.6% a week. I want to bump up my interest rate. Hence I am auctioning off the remaining space in my account through GLBSE. I will sell 1500 bonds at 1 BTC each on the 28th of May, 2012 at 11:00 EDT (GLBSE time).

A total of 2000 bonds will be issued, and I will keep 500 myself, to represent my portion of the investment. Our interest rate will always be the interest that would be received at BTCST by the total value of bonds issued. Currently this means that I will pay out 7% a week, even if all bonds do not sell during IPO. I will always publicly disclose the total number of issued bonds. The address at which BTCST pays our interest will also be disclosed. I reserve the right to sell the bonds I hold at any time, buy more bonds from the open market, or deposit more money with BTCST and issue myself bonds for the same.

I will do pre-IPO sales of minimum 100 bonds at 1 BTC each. At least 750 bonds will be reserved for sale during the IPO itself. All pre-IPO bonds have been reserved.



FAQ:

Pirate? BTCST? WTF are you talking about?

https://bitcointalk.org/index.php?topic=50822.0
https://bitcointalk.org/index.php?topic=82849.0

What's in it for you?

  • Increased interest rate with BTCST.
  • Increased liquidity for my BTCST investment: I (and all of you) can increase or decrease our level of BTCST investment as we wish by trading these bonds on the open market, while still maintaining the highest interest rate possible.

Aren't you losing money by doing this with no commissions?

A little bit. There's the IPO fee of 8 BTC, and the trade fee on 1500 bonds is 7.5 BTC. However, the potentially increased interest rates from BTCST means that I can recover this loss in 2 weeks, and then gain further out. This keeps the interest pass-through simple (and "pure") as opposed to taking a cut off the initial bond sale or interest payments like the other bond issuers. If you're paying any kind of fee to deposit coins with pirate, you should be demanding some insurance as well. Which leads me to...

Do you offer any insurance?

No. If BTCST defaults and runs away with our money, we lose everything. If pirate returns a portion of our coins, I will buy back the bonds for exactly the fraction of principal that is returned.

When do you pay interest / coupons?

Almost always the same day, never more than 24 hours after BTCST pays out. Currently, interest payments from BTCST are due every Monday at 13:00 EDT. Since the IPO is 2 hours before this date, you will lose 2 hours of interest for the first week, this gives me enough time to move the money into BTCST. You have to be holding the bond at the time of coupon payment, i.e. payments are not pro-rated.

How many more bonds will you issue?

I am currently only issuing enough bonds (1500) to get to the next interest rate tier. I do not intend to issue any further bonds, unless I feel there is significant demand, in which case any further bonds issued will be priced slightly higher. This one-time issuance keeps my overhead low, allowing me to pass through all the interest to you. Of course, if BTCST's interest rate tiers change, I will always strive to reach the top interest rate offered by issuing more bonds.

Will you buy back my bonds if I want out?

For the moment, no. Withdrawing money from the account would cause a drop in interest rates. If you PM me, I might be able to do it using my own BTC liquidity. However, this cannot be guaranteed, especially for large amounts. Buy this bond if you want to deposit some BTC and receive steady payments. Of course, the benefit of GLBSE is that you can put your bonds up for sale at any time, I'm sure people will grab them if the price is right.

Who are you, why should I trust you?

Good question. I have been in the Bitcoin community for a year now. Almost 20 of those 365 days have been spent on this forum (*gulp*). I also lurk on a bunch of bitcoin IRC channels. Come Friday, I will be verified with GLBSE. I will gladly disclose (and can prove) my real identity in PM (if you're planning to buy bonds pre-IPO). My real-world job involves doing research with tax-payer money, and publishing papers. In this field, reputation is everything and I wouldn't do anything to tarnish it.

Is pirateat40 ok with having millions of pass-through bond issuers?

I don't know about millions, but I have his personal blessing to issue this bond.

How old is your account with BTCST?

December 15, 2011.



All discussions, comments, and brickbats welcome. I will update the OP to clarify. Contract terms are coming up in the following post.

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bitfoo
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May 22, 2012, 07:09:11 PM
 #2

Contract, signed with my -otc gpg key (0xDF0E3996):

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

FOO.PPPPT Contract / Terms and conditions:

At least 1 BTC per bond sold will be deposited with the issuer's account in Bitcoin Savings and Trust (BTCST) (https://bitcointalk.org/index.php?topic=50822.0). Each bond will be paid out a weekly coupon not later than 24 hours after BTCST pays out interest on the account. The value of the weekly coupon will be exactly x% of 1 BTC, where x is the interest rate that the total value of bonds issued receives from the underlying investment. If interest rates or tiers change in the future, I will make every effort (i.e., issue enough bonds) to attract the highest interest rate possible from BTCST. The current amount invested, and corresponding interest rate will always be published on the bitcointalk.org forum thread for this bond (https://bitcointalk.org/index.php?topic=83013.0). If BTCST defaults on the loan, or otherwise returns the funds for any reason, the bonds will be bought back for exactly the fraction of principal that is returned, if any. No on-demand buyback option will be provided. I reserve the right to call for a buy back of all outstanding bonds at a rate of 1 BTC + one week's worth of interest at any time. I do not assume any liability or provide any insurance for loss of these funds by BTCST. Please do your own due diligence before investing, and never invest more than you can afford to lose!
-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.4.11 (GNU/Linux)
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=7VSq
-----END PGP SIGNATURE-----

jackmaninov
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May 22, 2012, 07:30:25 PM
 #3

Please don't forget there will be trade fees associated with selling your IPO shares (as you will be a taker). This just caused a lot of confusion with the TYGRR-P IPO.

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bitfoo
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May 22, 2012, 07:34:17 PM
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Please don't forget there will be trade fees associated with selling your IPO shares (as you will be a taker). This just caused a lot of confusion with the TYGRR-P IPO.

Thanks, this is already mentioned in the FAQ. I will absorb any trade fees for simplicity, since I can recover this in a week (and another week for the IPO fees).

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May 22, 2012, 07:38:42 PM
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* jackmaninov puts foot in mouth Wink

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May 22, 2012, 07:47:01 PM
 #6

Got to love the competition in a free market

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BinaryMage
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May 23, 2012, 12:41:00 AM
 #7

Are you planning to reserve a certain number of the bonds for actual sale on exchange, or might all the bonds be sold pre-sale?

-- BinaryMage -- | OTC | PGP
bitfoo
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May 23, 2012, 03:56:53 AM
 #8

Are you planning to reserve a certain number of the bonds for actual sale on exchange, or might all the bonds be sold pre-sale?

Good point. I will ensure that at least 500 bonds are available during the IPO.

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May 23, 2012, 04:11:53 AM
 #9

Will you buy back my bonds if I want out?

For the moment, no. Withdrawing money from the account would cause a drop in interest rates. If you PM me, I might be able to do it using my own BTC liquidity. However, this cannot be guaranteed, especially for large amounts. Buy this bond if you want to deposit some BTC and receive steady payments. Of course, the benefit of GLBSE is that you can put your bonds up for sale at any time, I'm sure people will grab them if the price is right.

Brendio's Bitcoin Investment Bank will buy back bonds at 0.95 BTC up to 100 BTC, subject to there being at the time no material change in BS&T terms, for anyone who wants out. PM me to take this up and then you can transfer or sell on market (seller to pay fees). Minimum of 20 bonds.

Offer stands until I revoke it here.

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May 23, 2012, 04:43:32 AM
 #10

Will you buy back my bonds if I want out?

For the moment, no. Withdrawing money from the account would cause a drop in interest rates. If you PM me, I might be able to do it using my own BTC liquidity. However, this cannot be guaranteed, especially for large amounts. Buy this bond if you want to deposit some BTC and receive steady payments. Of course, the benefit of GLBSE is that you can put your bonds up for sale at any time, I'm sure people will grab them if the price is right.

Brendio's Bitcoin Investment Bank will buy back bonds at 0.95 BTC up to 100 BTC, subject to there being at the time no material change in BS&T terms, for anyone who wants out. PM me to take this up and then you can transfer or sell on market (seller to pay fees). Minimum of 20 bonds.

Offer stands until I revoke it here.

Why are you posting this in another bond's thread? No insult intended; it just seems a bit strange.

-- BinaryMage -- | OTC | PGP
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May 23, 2012, 04:57:49 AM
 #11

Why are you posting this in another bond's thread? No insult intended; it just seems a bit strange.
Because BIB is interested in buying FOO.PPPPT bonds for 0.95 BTC each. The seems like the logical place to post.

bitfoo
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May 23, 2012, 05:03:42 AM
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Because BIB is interested in buying FOO.PPPPT bonds for 0.95 BTC each. The seems like the logical place to post.

And the offer is welcome here. Additional liquidity never hurt anyone.

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May 23, 2012, 05:07:30 AM
 #13

Why are you posting this in another bond's thread? No insult intended; it just seems a bit strange.
Because BIB is interested in buying FOO.PPPPT bonds for 0.95 BTC each. The seems like the logical place to post.

Oh, you're buying these bonds. Sorry, my bad, I assumed you were discussing buying back your own bonds. I stand corrected.

-- BinaryMage -- | OTC | PGP
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May 23, 2012, 05:26:20 AM
 #14

Why are you posting this in another bond's thread? No insult intended; it just seems a bit strange.
Because BIB is interested in buying FOO.PPPPT bonds for 0.95 BTC each. The seems like the logical place to post.

Oh, you're buying these bonds. Sorry, my bad, I assumed you were discussing buying back your own bonds. I stand corrected.
The Bitcoin Investment Bank has many operations. Bond issuance, brokerage services, market making/prop trading, lending, investing, short-selling, arbitrage, IPO underwriting. Margin lending coming soon.

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May 23, 2012, 05:34:30 AM
 #15

Sub. Was going to grab some TYGRR-P bonds until I saw this!

1GLADMZ5tL4HkS6BAWPfJLeZJCDHAd9Fr3 - LQ6Zx8v7fHVBiDX5Lmhbp6oEDB7dUFjANu
GPG 0xF219D5BB3C467E12 - Litecoin Forum
bitfoo
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May 23, 2012, 06:07:37 AM
 #16

I'm currently unable to create the asset at GLBSE, and GLBSE support is working with me on this. As a matter of fact, I'm not even able to log in to GLBSE any more. Pre-IPO sales will have to wait until these issues are resolved. Thank you for your patience.

bitfoo
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May 23, 2012, 05:22:42 PM
 #17

Updates:

  • GLBSE issues have been worked out, waiting for asset approval and verification.
  • Contract terms updated: I reserve the right to call for a buy back of all outstanding bonds at a rate of 1 BTC + one week's worth of interest at any time. (which at current interest rates would be 1.07 BTC per bond).
  • Interest rate will be determined by total bonds issued, not number of bonds sold. This means that at IPO, since I am issuing a total of 2000 bonds, I will pay out 7% weekly, even if I don't sell all bonds and my interest from BTCST ends up being only 5.6%. Tying the interest to the number of bonds sold creates a weird dilemma for early bond buyers.
  • I will reserve 750 bonds for IPO, and 750 for pre-IPO. 530 of the pre-IPO bonds have already been taken (reserved).

bitfoo
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May 23, 2012, 06:09:23 PM
 #18

All 750 pre-IPO shares have been reserved! I will hand out a bitcoin address to each pre-IPO buyer. You can deposit funds there at any time, up to one hour before the IPO time (May 28th, 11:00 EDT / GLBSE time). This way you don't have to lose any interest in the remaining 4-5 days (and I can't offer that either: it's more accounting than I wish to handle at this point). I'll also need your GLBSE username. Shares will be transferred to you immediately after the IPO sale.

Thank you for your support.

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May 24, 2012, 12:44:52 AM
 #19

Just got a call from Nefario. ID verification is done, you can see it on the asset page: https://glbse.com/asset/view/FOO.PPPPT

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May 24, 2012, 03:18:54 AM
 #20

Just got a call from Nefario. ID verification is done, you can see it on the asset page: https://glbse.com/asset/view/FOO.PPPPT
Dang. I got a missed call from the UK at the same time. That'd be the second time I've missed Nefario's verification call.

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