[GLBSE] FOO.PPPPT - Perpetual Pure Pirate Pass-Through Bonds - 7% weekly

[bitfoo]

Yesterday's coupon payment went off smoothly. Still travelling though. Bond sales temporarily suspended until I get back and figure out what my standing with BS&T will be in August.

[piotr_n]

The rate has been lowered in the title, without any explanation, from 7% to 6.67%...
The bonds are being traded today for even below 1.0 BTC...

What does it mean?

[Asunder8]

The rate has been lowered in the title, without any explanation, from 7% to 6.67%...
The bonds are being traded today for even below 1.0 BTC...

What does it mean?

The title change was done a while back (as in a couple of weeks ago) to reflect the return on the lowest sale price from the issuer.

0.07/1.05 = 6.67%

Troll harder please.

[humanitee]

I didn't realize not catching some information in a thread was trolling.   

[piotr_n]

The rate has been lowered in the title, without any explanation, from 7% to 6.67%...
The bonds are being traded today for even below 1.0 BTC...

What does it mean?

The title change was done a while back (as in a couple of weeks ago) to reflect the return on the lowest sale price from the issuer.

0.07/1.05 = 6.67%

Troll harder please.

I would have thanked you if you didn't answer like an ass

I still don't understand why people are selling below 1.00, if they can just use the buyback and get 1.07 on Monday.

[bitfoo]

The rate has been lowered in the title, without any explanation, from 7% to 6.67%...

Bonds have a face value of 1 BTC, but were being sold for 1.05 BTC, with a 0.07 BTC weekly coupon. I didn't want to be accused of false advertising. People who bought in at 1 BTC got (and are still getting) a 7% return.

The bonds are being traded today for even below 1.0 BTC...

I'm still waiting on pirate to give me information about my trust account status, so that I can continue at 7%. The two other options are - send the funds through another pass-through for 7% (ugh), or buy-back at the end of July. I suspended my own bond sales until I can figure this out, which seemingly triggered some panic.

Either way, bonds on sale at GLBSE are quite cheap now: buy buy buy!

[piotr_n]

Either way, bonds on sale at GLBSE are quite cheap now: buy buy buy!

Yeah. I wish I still had some money

[Asunder8]

I didn't realize not catching some information in a thread was trolling.   

Based on the poster's other replies, he/she is trying to reduce confidence in BTCST/PPTs as it is. Hence, it's rather convenient that he/she noticed just now.

The market has reduced confidence on its own. It appears people want their money out now before another "Did Pirate pay?" Monday rolls around, hence sub-1 BTC sales. Great time to purchase PPT shares if you're into em.

[bitfoo]

I still don't understand why people are selling below 1.00, if they can just use the buyback and get 1.07 on Monday.

I don't intend to fuel the panic fire, but I can only do limited buy-backs now because the minimum balance for a trust account is 5000 BTC, and we are barely above this level.

[humanitee]

Thanks for the information!

[piotr_n]

Based on the poster's other replies, he/she is trying to reduce confidence in BTCST/PPTs as it is.

Does anyone who says things, which you just don't understand is trying to reduce confidence in BTCST/PPTs?

I'm guessing you are jumping onto me because I dared to explain why the PPT.x bonds' insurance is not a real insurance but only an illusion, so there is no real reason why their interest should be so much lower from the other PPT bonds.
Well I can repeat it: it's not a real insurance and if you don't get it then I'm sorry for you - not going to educate you further.

[bitfoo]

PS: If bond-holders have liked this service and feel like they trust me, feel free to give me a rating on -otc, as a good WoT rating is one of the criteria for trust accounts.

[waltmarkers]

PS: If bond-holders have liked this service and feel like they trust me, feel free to give me a rating on -otc, as a good WoT rating is one of the criteria for trust accounts.

If you meet the WoT rating, can you confirm you will be able to continue the 7%?

[piotr_n]

PS: If bond-holders have liked this service and feel like they trust me, feel free to give me a rating on -otc, as a good WoT rating is one of the criteria for trust accounts.

If you meet the WoT rating, can you confirm you will be able to continue the 7%?

Bitcoinmax and TYGRR.BOND-P have already announced that they are going to keep the rate unchanged, so I guess it's a matter of size to stay at 7%.
And, of course, the "security deposit"...

[bitfoo]

If you meet the WoT rating, can you confirm you will be able to continue the 7%?

I can confirm 7% if (1) I get the trust account, and (2) the total amount invested (including any security deposit) attracts >= 7%. If needed, I will sell/buyback bonds only once a month to ensure a stable balance. If I end up getting more than 7% due to bonuses / whatever, all benefits will be passed through (it's in the contract!)

I'm unsure of the exact mechanics of how these things work, because I missed the IRC meeting about this while I was away. Pirate has promised to send me logs of this meeting, so I'm still waiting on that.

[btharper]

My impression has always been that you'll pay your bonds out at whatever rate you're able to get so I'm just hoping you'll be able to get at or above the older 7%.

I am curious if you've heard whether or not the security deposit will receive interest or not as this could change the effective interest rate everyone receives. Any word on this yet?

[bitfoo]

My impression has always been that you'll pay your bonds out at whatever rate you're able to get so I'm just hoping you'll be able to get at or above the older 7%.

This is correct: according to the contract, I'm only liable to pay out whatever I get. But it turns out that 5832 BTC is nowhere near close to the amount that's required to even get the 7% interest rate (unless someone wants to buy 20000 bonds wholesale right now). Dropping interest rates down to 3.9% (savings account) or 5% (trust account tier 1) at this stage is out of the question - if it comes down to that, I think invoking the buyback clause and closing the fund is probably a better deal for everyone because 7% or close to it is being offered by other bond issuers. However, I am currently in discussions with other trust account holders to get a 7% sub-account. I will update when I get full confirmation of the various options available to me.

[btharper]

Here's to another week watching for pirate to throw interest to bitfoo before it gets doled out to everyone else.

By the way @bitfoo, any update over the past week as to what's going to happen with the fund in about two weeks?

Also, if the fund closes, I'm assuming there will there be a coupon payment on the 30th still as normal?

[bitfoo]

Sorry for the late update, but hopefully we've worked out something that should be good news for all.

Pirate's new account tiers strongly encourage consolidation. Smaller accounts simply cannot compete any more. Operating this fund under a subaccount of another trust account holder usually ends up being a conflict of interest. So here is the plan:

FOO.PPPPT is being taken over by brendio's Bitcoin Investment Bank. The next two interest payments (Jul 23rd and 30th) will be paid out by me, after which brendio will take over. The fund will keep the same ticker, and will continue to pay out 0.07 BTC per bond at least for the forseeable future. We will soon publish a signed statement documenting this transfer of ownership and liability. To be clear, after the Jul 30th takeover, brendio will be fully responsible for managing the fund and paying out coupons. I will have no relationship with FOO.PPPPT apart from holding some bonds myself.

Brendio and the BIB have been managing many funds on GLBSE much larger than mine, and should be at least as trusted, if not more, than I am. But this takeover still involves a change in counterparty risk for this fund. Due to this, I will provide a buy-back option for the next two weeks, without any fees. The procedure will be the same as documented in the OP: send me the bonds by Monday 02:00 AM GLBSE time, and I will credit 1.07 BTC per bond as soon as pirate sends back the funds. All funds remaining in my account after interest payment on Jul 30th will be transferred to brendio's BS&T account. I assume brendio will provide more details about how the fund will be operated after the transfer.

More details will come as we work them out. Feel free to shoot questions or concerns in the mean time.

[Sukrim]

Have you made sure that brendio will honor the "FOO.PPPPT will always pay out the full amount of interest available" clause? Meaning, if he earns more than 7%, he has to pay even more than 0.07 BTC/week?

I invested in this, as it is the highest (even highest possible) yielding PPT on the market and I hope it stays that way!

Edit:
Do you pay out 1.07 BTC as soon as you got them even if I send you shares this monday right AFTER the interest payment or do you wait until the next monday?
Edit2:
Rechecked, seems you wait until the next monday.