Quote from: icojaka on December 11, 2016, 10:31:02 AM

Quote from: Daparski on December 11, 2016, 09:13:48 AM

Quote from: MalReynolds on December 10, 2016, 11:58:24 PM

Jaka, I thank you for this answer, it helps me understand a lot.

You have been talking about weekly dividends so I thought you were going to evaluate profit for each ICNP coin position on a week-by-week basis and distribute dividends accordingly. Instead, ICNP may go for months or even years before liquidating its position in a given coin, calculating the profit ONE TIME based on that close-out sale, and THEN distributing profit dividends on the position. So there could be many weeks where no ICNP dividend is distributed because no closures of ICNP coin positions occur during that week. And so in weeks where there are no ICNP position closures, any profits / dividends would come only from ICNX or other fees. Correct?

If this is correct, it is a big deal.

Unrealized profits can grow larger and larger on ICNP investments until those investments are finally cashed out and distributed as dividends, pushing the "fundamentals" price of ICN up week after week as investment profits accumulate before cashout and distribution.

Deferred ICNP dividends should immediately show up as a rise in ICN price. Roughly speaking, future increases in ICN price should always be at least 20% of ICNP pre-cashout profits - more, maybe much more, if speculative frenzy kicks in. As the ICNP Fund grows in size, ICN price could take off like a rocket.

HODL !

Mal, I don't quite understand that part you wrote:

Quote

Unrealized profits can grow larger and larger on ICNP investments until those investments are finally cashed out and distributed as dividends

As far as I understand there is only realized profits. If you don't sell your holdings, you don't have profits. How can unrealized profits go larger on ICNP investments? Do you mean speculations?

Daparski, I think he meant that in some cases (most?) value of ICN token would go up even before ICNP realized a profit with closing its investments.

We have said, that we will announce into which ICO the ICNP will invest (after ICO closes, not before to prevent speculations).
So lets illustrate with example of ICO XYZ, into which ICNP invests $500k.
Everyone knows what was the ICO price per token.
3 months later XYZ's tokens are worth 200%, and project seems solid and keeps on growing, so ICNP does not yet close the investment ...
Since everyone knows how much ICNP invested into XYZ, they also can calculate the unrealized value of that investment (~doubled)...
Hence this unrealized profit could be speculatively accounted into the price of ICN token (or at least some part of "20% fee"*** on profits)...

I hope my illustration was clear to understand. From my experience this is how things work in the stock market world...
Please note that I am NOT claming that this will happen

as ICO world is clearly a lot different than old economy...

*** please note that fees are not yet set, so 20% is just an illustration

Jaka

yepp, that makes sense. Good old Mal.