Quote from: fractastical on July 01, 2014, 09:35:42 AM

Quote from: BitSlapper on July 01, 2014, 03:07:27 AM

Hmmm well I think it goes more like this...

Facebook only received $500,000 in it's first round of funding by the way. The "Rounds" were at least a year apart not a month...

Good point. It's a bit complicated in that traditional fundraising models allow multiple raises with dilution of shares. With a locked cryptoasset, you have the security that no new coins will be issued, but you generally have only one shot to fundraise.

That said, we've just launched a new proposal (http://blog.swarmcorp.com/2014/06/29/swarm-proposal-1/) to postpone the second round until we have a fully operational product.

This is more line with the distributed governance whitepaper I released in January, in that it includes multiple rounds and blockchain-based voting.

Keep in mind that the funds for the second round were to fund related coins, not simply to build the product. We also anticipate substantially above average legal fees given the complexity of cryptoequity.

Quote

ok now we can continue...

Don't think any of the rest of what you wrote is applicable. Among other things we aren't forcing people to take investment via Swarm.

Really? So...

3. Give said users a 100% pre-mined coin.

4. Try to make a Kickstarter website that only uses this new SWARM coin and hope the crypto community uses it, because no one else will.

So this isn't true or applicable?

What about this?

6. The funded user gets the majority of the SWARM coin but that's all.

7. The funded user DUMPS all of their SWARM on the first exchange they can find to fund the project, crippling the SWARM price on the market.

How is someone supposed to fund their project or business on SWARM alone? Without dumping all of their newly obtained SWARM coins in exchange for BTC which can actually be exchanged for cash then how exactly are they supposed to move forward with their plans?

If it's the case that they don't actually need BTC or FIAT to fund a business or project and they will only need SWARM then why don't you just use SWARM to fund the SWARM site?

I may have been a little harsh and somewhat sarcastic in the list of items I proposed but that doesn't make them irrelevant.

Simply ignoring the rest of the items because you don't want to answer how a system like yours actually raises a value of a coin rather than causes massive dumping every time a project or business is funded doesn't make them "not applicable".

Of course no one is FORCED to invest in this. No one is forced to invest in anything here but plenty of people are still scammed or buy into an idea which wasn't fully thought out.

If you weren't asking for such a ridiculous amount of money to begin with then maybe I could give you the benefit of the doubt and assume you just didn't think this idea fully through before proposing it to potential investors.

However, since you were still looking for upwards of $14 Million USD before my post and now since have revised it to staying with $2.7 Million USD to launch the website it seems even more questionable.

How could you possibly be able to launch with that much less in funding now? One does not simply overestimate $11.3 Million USD in funding for a business.

Even if the "Legal Fees" where over estimated your not providing actual shares of a company to crowd funders, which is where massive legal fees would come from.

Your providing a percentage of a Crypto Coin, you made, that was collected as fees from a user launching a project on your site, correct? You've completely avoided the legal issue in the USA with crowd funding.

Don't ignore valid concerns raised, that is a clear sign of a scam. Every scam that has come through this forum uses the "No one is forced to invest" line instead of answering glaring problems.