Quote from: mikemikemike on May 18, 2014, 11:30:39 PM

Please read all of the below if you are thinking about investing in this project. It would be nice if someone who isn't so infatuated with this stock could back up my claims as the extortion strategy is apparent, and can be seen by the facts. This can simply be done by checking the projections against the facts. Even if you don't want to read all the below, please just look at the projections and read the first few paragraphs of this post.

Please don't say in a few months you wern't warned.

Firstly, let me explain my situation. I was a stanch supporter of PETA-MINE but over the last few days have become aparant to their true intentions, and as such, feel it is necessary to vindicate myself by letting people know exactly what is going on. Since I have started doing this they have clearly ignored all of my questions, as they know as well as I do they uncover the truth behind their project. Now, they have deleted all my posts and made false accusations about character and bribery requests, both which are utterly false. I will post at the bottom in full the actual PM that was sent, and not just a cut out that suits their agenda.

Please understand, I'm trying to help the community here by alerting them to an attempt to extort them. I will post below the most recent messages that were deleted that highlight their incompetence at covering it up. I am open to all and any questions.

Here is a quick overview of what they are doing.

Firstly, they have purchased a large number of shares off a big holder, they have then created a fancy prospectus and are now IPOing those same shares at a 30% increase. Fine, whatever. I can let that slide.

Second, they own a solar power company that collects the fees from this project, this is how they make money.

Thirdly, They have posted utterly false projections about the increase in hashrate, using a linear increase of 6+ PH every ten days for this next year. these figures are utterly misleading, and ill get to why they have done this. please see below for the projections, and please see the bottom of this thread for a backup if and when they delete them to cover their tracks.

Fourthly, they have committed 90% of all revenue for reinvestment on a sliding scale of 4% downwards every ten days. Now for those that arn't putting this all together, this means that all the early funds will be used to get new machines, while all the later funds will be used for dividends. But as they know, the network will increase at allot more than 6 PH every ten days, meaning dividends at a later scale will be worth significantly less than dividends at early stages.

Why have they done this? To maximise the number of machines they are hosting, ultimately, to funnel money from the capital that is given to them by investors, into their hosting and solar power company.

Here are the projections where you can see for yourself.

https://docs.google.com/spreadsheet/lv?key=0AjI5bgsiFJAidHgwa0UyTHNEVG1lbDdvN2FMTExvOHc&usp=drive_web

Below I will post the most recent posts that got deleted, and at the bottom I will post the PM I sent, which while outlines my pissed off nature at the way they have done business, moreso outlines what they are trying to achieve.

Quote from: cryptx on May 18, 2014, 11:00:28 PM

Quote from: kenmomotaro on May 18, 2014, 10:49:08 PM

Let's make this simple.
We are now 0.6% of total network hashrate.
If this ipo goes the worst scenario, not a single share be sold.
Then we will have to halt all dividends until July.

Let's assume that difficulty rises 15% each stage.
By the time of July, total network hashrate would be around 135PH/s.
And with our 1.5PH/s , we own over 1% of total network hashrate, which is better than now.
That's why I didn't sell my shares.

If we can buy those Bitfury machines in small amount as reinvestment part now, and stop the new ipo would be even better. Cheesy

You are totally correct.

Only the last sentence does not add up. At 500 TH/s we cannot mine the 3,650 BTC needed from now until July for the 1,000TH/s extra hardware. This were the IPO comes in.

But ken, what you are missing is that although the total hashrate is allot higher, your holdings as an investor are less, because the shares have been diluted, you are also missing that because of the 30% higher share price, your return on investment is allot lower, and on top for that, the dividends at July will only be a 30% payout, instead of the current 50. So while everything appears better because of the increased hashrate, in reality, as an investor, you are allot worse off.

Quote from: Anonymousg64 on May 18, 2014, 07:10:43 AM

Quote from: mikemikemike on May 18, 2014, 06:57:06 AM

Quote from: Anonymousg64 on May 18, 2014, 06:52:27 AM

if you think you have any rights as a btc investor, you are in the wrong place.
also its in investors interest to help PETA succeed, so thats why other people will help them make more money.

this is not the type of stock that gives you voting rights per share, cryptx can do as needed to secure future profitability without needing your opinion.

the only reason your on here to rant negatively and give threats is because you are butthurt you exited at the wrong time and lost the game. PETA still stands as the best investment option on havelock, regardless of the outcome of the current plans, which can only be positive.

Exited at the wrong time? I sold the majority of my long term shares yesterday at 0.093. If your talking about my trading shares then yes, I invested in Scrypt, and FYI, and as at now, 80% of the trades over the past forty eight hours have been mine.

Have you even looked at the projections?

The reason your butthurt is because I'm calling this out for what it is. If your too stupid or blind to realise that, that's your problem. But don't get this wrong, the profitability you are talking about, is profitability for them, not you. I'm actually trying to help you. But whatever.

i have looked

your concerns are that of someone butthurt, nothing more
everything you buy has a confabulated amount of profit that can be adjusted, this is what the hosting fee is,
they are probably paying less then 0.05$/kwh, i get 0.09$/kwh at residential rates
they are splitting the collocation cost between PETA and SCRYPTX
the bandwidth costs are probably not that much

They arn't splitting any costs. There are probably near zero variable costs. All I'm going to say is do your research. The projections are purposefully misleading so they can take an opportunity to maximise their own profits. If you do your research properly you will realise what's going on here.

And the fact you've actually seen the projections and are still coming here to argue speaks volumes about your state of mind allot more than it does mine.

Here's the projections for anyone that is interested. I'm expecting someone to put all the pieces together shortly.

https://docs.google.com/spreadsheet/lv?key=0AjI5bgsiFJAidHgwa0UyTHNEVG1lbDdvN2FMTExvOHc&usp=drive_web

Anyone who actually does some research will know exactly how they are going to bleed this project to death, using capital your going to give them. Your basicly going to pay for their retirement while everyone else here is going to be left bag holding a dying stock.

It shouldn't take a former analyst to work this out. All the facts are well within your reach, I'm just giving you a push in the right direction.

Hint. LinkedIn.

If they don't restructure this project in a way that has benefit for their investors and not just them I'm going to make another thread and post actual projections that have some basis with reality, along with how their going to make money, why they have structured this the way they have, and what's going to happen to investors. People who arn't so infatuated with this stock will understand exactly where I'm coming from.

Edit: FYI, editing your post to defame me is pointless. The facts will speak for themselves. I am doing this because I was a huge supporter of this project, someone who has told people countless times this is a good investment and they should trust these people, and I'm not going to sit here why they turn this into a way of lining their pockets and screwing investors. I'm doing this because its the right thing to do.

Please understand, I'm 2000% up since late November day trading securities like this, the money I didn't make over the past 48 hours is equivalent to what I'd spend on a good night out at the casinos. So you can stop with the whole butthurt argument. This is about doing the right thing and writing my wrongs, not some silly trying to make myself feel better by destroying other people's investments. I'm not that sort of person.

Please, just do your research, make your own projections, and take an unbiased view. If you do that and still come back thinking this is a good investment then you should probably just buy and hold. I'm hoping by bring this to everyone's attentions cryptX will drastically change their strategy. I'm doing this for your benefit, not mine.

Quote from: cryptx on May 18, 2014, 08:56:49 PM

I think there is a lot of confusion going on about the latest developments. Let me try to elaborate on this.

First we want to clear some misunderstandings:

?You bought 14,500 units and now you sell them at a higher price in the IPO to make a profit for yourself?.

The money that is raised at the IPO will go to the purchase of 1000 TH/s of mining equipment, which costs about 3,760 BTC. Financial breakdown to deploy 1PH/s:

Cost: 3,760 BTC
Income:

* 33,794 shares at IPO: 3,313 BTC
   * Current reinvestment funds: 150 BTC
   * Mining revenue (16-31 May): 300 BTC

?do you think you could tell us what that 1000BTC will be spent on cryptx? Shares or what??

We will pre-finance the 1000 BTC to be able to purchase up to 1000 TH/s after the IPO. This means it is a loan from us to the PetaMine. The more shares are sold in the IPO, the less has to be pre-financed and paid back in dividends.

?Why are dividends withheld for a few weeks??

This is a joint effort of current investors, new investors and CryptX. Investing in new hardware now will have a much better impact in the long run on both unit value and dividends.

?But they are misleading people so they can maximize their own profits. The first few months will be the most profitable, but instead of pumping out dividends then are going to use it to reinvest so they can have more machines, which makes them more money. ?

We can tell all of you that we have already invested over 1,000,000$ of our own private money into this project. This money has been spent on:

?   Datacenter: Electric installation, cooling, infrastructure, alarms, network, etc
?   Shipping costs: We have paid all the express shipping from US (Cointerra), from Switzerland (Bitmine), from China (Dragon miners, custom miners).
?   PSU: we have bought about 200 psu?s so the Coincraft desk could be delivered faster.
?   Custom miners: Apart from the chips, we have paid the full production of 250 miners.
?   Custom designs
?   Labor costs
?   Etc

We have a margin on hosting costs, so it is in our interest that PetaMine grows. We have cut hosting from 0.45$/kwh to 0.25$/kwh because we believe in the project for the long term and want it to have every chance to succeed.

Old situation:

We were hashing at about 500 TH/s with 80,760 units. What would have happened if we did not make some drastic changes?

First we would pay the last part of the Bitmine contract and we would be in the same situation like before. We would have to wait on the RIG?s to be delivered. In best case, all RIG?s would be deployed in a couple of weeks and we would hash at 700 TH/s with 80,760 units outstanding. This would have meant 8.67 GH/share.

Second every week the dividend payments would have gone down and the hosting fees would have gone up.

The overall result would have been that the PetaMine would produce less and less dividend until costs became higher than revenue. The consequences would have been a dropping unit price and a dropping dividend.

New situation:

We have cut the hosting fee from 0.45$/kwh to 0.25$/kwh. In other words we gave up a large portion of our income to the PetaMine project. We could have left it at 0.45$ and receive a lot more hosting for the coming months. Instead we want the project to thrive and become one of the larger players in the Bitcoin mining place.
We bought back about 14,500 shares with the money we otherwise had to spend on Bitmine for our second part of the contract. We did this because we are convinced that we could use these shares to take the PetaMine to another level.

What will be the overall result?

Plain and simple, if the IPO is successful PetaMine will be much larger and the unit holders will be owner of 15 GH/s per share instead of 8.68 GH/s per share. On top of this the costs of the mine are almost halved.
We are convinced that we all have to look at this project with our long term glasses on. Big dividends in the short run will result in a dead project in the long run. PetaMine cannot simultaneously grow exponentially and pay large dividends at the same time. We want to become and stay one of the large players in Bitcoin mining.

Not that you'll answer my questions but whatever,

1) why have you tried to mislead investors with false projections? Is it not true you have greatly exaggerated investor returns to try and push people into buying an IPO?

2) you say you want the project to succeed in the long-term, but you must know mining hardware has a shelf-life of about six months, why are you trying to stretch it out for as long as possible, instead of paying an optimum dividends strategy that would give investors a better return? Is it not to pay yourselves the most amount of fees?

3) this is a good one, you said before you changed the fees in PETA before because of Scrypt taking the costs, now it's become apart this wasn't true, you have changed your tone and admitted this is where you make money, why didnt you just come clean about this in the first place?

4) you say investors will be better off as its 15 GH/s, but you are allocating the first few months, which are the most profitable, to reinvestment, is it not true that the way you have split reinvestment costs, investors will never see this benefit? And by the time reinvestment percentage hits acceptable levels the hashrate would have gone up so much that dividends will dry up and the only thing that will stabilise is the fees? Going back to question 1 but is it not true you have tried to cover this up with utterly misleading projections? Projections you know are false? To make the most amount of profit for yourselves?

5) is it not true that when question 4 is realised, and people find out they are paying nearly double for their shares, and dividends are less than a third of what they are now, the share price will take a catastrophic fall?

6) do you honestly value this company at 8000 BTC? I mean, if I have a 1TH/s mine, but I'm only paying out 10-20% of that's assets income as dividends on a rising scale, and the asset value is decreasing at a rate of 40% a month, is it not true that while that asset might be worth the 8000 BTC at the beginning, because of the decreasing value, the company itself as a business proposition is only worth the value that can be extracted from that asset? So in this case, less than 2500BTC to investors, while the rest is paid to you guys in fees? Why are you valuing this at 8000 BTC when as a business proposition it is actually worth allot less? Is this whole mess not because you are trying to extract as much value possible out of the asset for yourselves instead of paying it to investors?

7) why have you not fixed the projections?

Look, I know the answer to all of those questions, so do you, but I don't expect you to come back with an honest answer to any of them. The answer to number 7 is to try and hide the answers to all of the other questions. You can try and BS your way through this, but the facts speak for themselves. You do realise after a few months you will be outcasts in this community the same way mark karpless and Danny Brewster are? The only difference is some people would argue this was down to incompetence while you will seem as cold hearted extortionists?

With all your public information, including your LinkedIn profiles out in the open, do you not think the blowback is going to be allot bigger than the money you can skim from investors?

Not that ill get an answer but whatever. If you could just answer question one or seven that would be great.

Just let you know the only mistake I've made in calculation is if the ipo doesn't sell even 1 share, PETA would be 990TH/s by the end of May, not 1.5PH/s. That's all.
Shareholders would not get diluted in this case.

And no matter what percentage this ipo sold. Each share stands for 15gh/s. And by the time of July, each share still stand more % of total network compare to now we stand if the difficulty rises at 15% each stage.

So, make it short. New investors only need to consider whether 0.0063 ghs/btc is cheap or expensive.