Quote from: evoorhees on August 21, 2012, 07:39:57 PM

Quote from: btcx on August 21, 2012, 05:27:28 PM

2. I can't tell if this is actually a registered legal entity, nor whether the paperwork has been properly done to allow investment and protect investors.

It is not a registered legal entity. Its a website. Im not sure what properly allow investment means. The terms are stated, they are clear, and I have signed them with provable identification. Bitcoin is a free market, and this is a voluntary contract. I understand most of the world does not operate in this way, but thats part of the problem, and Im spending my life fighting it. Not by protesting with signs and letters to congressmen, but by building alternatives and living by my principles.

I can't claim to have extensive experience regarding this, but my advice to you is to create a legal entity. Someone such as an LLC which creates a proper structure could be very beneficial for both you, as well as investors. If something were to occur in which you were unable to perform your duties, what would happen? Also, using an LLC, you can protect yourself from certain legal issues. I highly urge you to look into your options. Regardless if your website is worth $30,000, $300,000, or $3,000,000 or even more, I think getting yourself and investors protected legally is quite important.

Quote from: evoorhees on August 21, 2012, 07:39:57 PM

Quote from: btcx on August 21, 2012, 05:27:28 PM

4. Is Erik actively involved in growing the business full time or is he devoting the majority of his time to other projects?

Full time, no, but yes Im actively involved in growing it. Everyone reading this knows about SD because Ive grown it and I will continue to do so (it would be quite silly to work on a site of which I own 100% only to stop working upon owning 90%). And indeed, the site doesnt require full time management. Part of its charm is the low overhead in time resources. My full time job is with BitInstant. SD is one of a handful of projects I work on.

Could you provide specific projects, methods, and forms of implementation which will lead to future growth? In my mind, your growth prospects are one of the largest variables in attempting to justify the IPO pricing. Getting a clearer picture of future plans and potential would be much appreciated.

Quote from: evoorhees on August 21, 2012, 07:39:57 PM

Quote from: btcx on August 21, 2012, 05:27:28 PM

5. It sounds like the company hasn't been keeping any reserves so if it does get hit with a big lawsuit or other expense, what happens? Does Erik come out of pocket?

This is false, the company has over 7k BTC in reserves currently. If there were legal challenges to SatoshiDICE, it would be deducted from net profits. Lets remember here that the site currently earns 33k BTC per year in net profits, and can certainly afford legal assistance if needed, but if harmful legal attention was brought to SatoshiDICE wed probably have bigger problems within the BTC world as a whole. Legal risk is part of the business though investors in this IPO are not liable for anything, other than potential lost profits.

Does the reserved BTC sit in a wallet, or is a portion of it invested? If it is partially invested, could you provide please provide a holdings statement?

Quote from: evoorhees on August 21, 2012, 07:39:57 PM

Quote from: btcx on August 21, 2012, 05:27:28 PM

8. If Bitcoin goes bust, what of value is left for the shareholders? Does the business have any revenue streams not entirely dependent on Bitcoin?

If Bitcoin goes bust and is not replaced by another cryptocurrency, SD is probably worthless but so are the BTC you chose not to invest, no?
If Bitcoin goes bust and another cryptocurrency arrives, SD would almost certainly adopt it and continue on (and this is fundamentally why Bitcoin, or the Bitcoin concept at least, will almost inevitably win against its competition).

This is one of the points that makes me feel that the x10 P/E ratio for the IPO is a bit lofty. We can agree that BTC is volatile and has a very uncertain future. Any company that deals primarily (or completely) in an unstable currency carries that same risk. Other than an extremely unstable currency, there are many other differences between Satoshi Dice and majorly listed companies:

-Shares have 0 voting rights
-Shares are issued by a single individual, not a legal entity (much higher risk to investors)
-Very short existence so far vs traditional investments (despite short-term success, I would not say Satoshi Dice is 'proven')
-In comparison, very little information and transparency compared to major companies
-The majority of the raised funds aren't even being reinvested into the company (99% of IPOs are raised to further fund operations and growth)

Applying a traditional valuation of x10 P/E is unwarranted.

The fact is, the majority of even the best managed and transparent BTC ventures trade for less than x2 P/E (and some under x1 P/E), simply because there are great risks. I think you have a great website and growth potential, but to be honest, even a x3 P/E seems lofty for something like this.