As far as I'm aware, your FeeShares generate ShareCoin interest just as holding ShareCoin does. So 1 FeeShare will generate 6,000 ShareCoin's in the first year (potentially 12,000 if they generate 60% in year one because they are held in the exchange). You will also get 0.001% of SharexCoin's profits paid to you in BTC.


So the downside of buying FeeShares is that you can't sell them (at least not yet), so you can't dump the 20,000 coins you put in. It basically forces you to hold your coins.

The upside is that you get the same interest as everyone else holding 20,000 ShareCoins in the exchange, but you also get a share of the exchange's profits.

If FeeShares we own do become tradable, then there will be no reason not to purchase FeeShares as you will get the same benefits as owning ShareCoins but also a share of the exchange profits. Well actually, the only downside would be if the ShareCoin value changed at a different rate to FeeShare value.

But then, didn't the multipool pay out through using the FeeShare sale money? If so, what coins are actually generating the interest for FeeShares?

Urg my head hurts.

Not everyone got their coins for free. Some people invest more into the coin using BTC which they got from elsewhere... Myself included. Just because the initial distribution of the coin was completely free, other people are putting resources into mining the multipool, or buying the coins that are being sold.

People have a right to question aspects of the coin, including motives. There is real money on the line and only dumb people go into something blindly without asking questions.

Not sure if that is a positive or negative post

Well I've had a forum account for a while but never really needed to post anything on these forums. Saw a lot of potential with this coin and then saw some flaws in the FeeShare concept.
But I'm learning new information about the coin each time and thought I'd share what I learn.

What I just learnt was that FeeShares gain POS interest just like ShareCoins which means that if you're planning to hold ShareCoins for a while, you might as well hold them as FeeShares (the only downside being that you can't sell FeeShares at the moment (and not sure if there are plans to enable it later)).

Interesting times with this coin

so if someone owns 1 FeeShare, they will get the same interest that someone would have for 20,000 ShareCoins stored in the exchange?
so they get 12,000 ShareCoins in a year (for the first year)?

So 12,000 SHARE + 0.001% of ShareXcoin's profits?

It will be the people who placed BTC directly into the multipool hoping that the first round of payments would come in at 1 satoshi per ShareCoin (as the dev did mention early on in this thread (he said he would start at 1 satoshi and increase the price)).

A lot of people thought by placing a few BTC in the multipool, they would get a large number of ShareCoins at 1 satoshi each, and dump them instantly gaining a huge profit (if the coin rose to 2 satoshi per ShareCoin, you would double your investment). However the dev didn't sell them to the multipool at that price and so people are just selling at around the price they paid for them just to get their BTC back.

That's my theory anyway.

I mean technically, FeeShares are very good for the life of the coin. It is much better to invest in ShareCoins than FeeShares because if the price of ShareCoins ever drops really low, lots of people will buy the cheap ShareCoins and buy FeeShares. Then the ShareCoin price will rise again.

This makes ShareCoin VERY good... but FeeShares are just a terrible investment right now, unless the exchange becomes a world leader, or changes are made to the system (which the dev said isn't going to happen).

50% return in one year? ShareXCoin would need to process 19178 BTC in transactions EVERY DAY. That means Bitcoins worth $7,671,200 will need to be transferred in the exchange (so SharexCoin earns 0.1% transaction fee) every day, for one year.

How many bitcoin exchanges do you think process that number of transactions (adding up to that volume of BTC)? This exchange will have to be bigger than virtually every exchange in existence just to earn the coins back from buying the FeeShares at this current price...

That's the point. With ShareCoins at 350 satoshis each, it's actually really stupid to purchase FeeShares because it would take you years to get the same BTC back that you would spend in FeeShares. I bought FeeShares as soon as I could and then did the maths and realised my huge mistake. I can't see the 3 FeeShares I own being able to make 0.2 BTC by the end of this year unless the system changes.

If ShareCoins are 1 satoshi each, SharexCoin would only need 54.79 BTC Transaction volume a year to get your investment back. You would actually make quite a lot of satoshis over a year in this scenario assuming SharexCoin gets quite popular.

I still think the best suggestion made on this forum to do with FeeShare is to share the percentage between all purchase FeeShares (not between 5,000 where 4,800 aren't purchased but between the 200 who have purchased). That would encourage more people to buy FeeShares as the exchange grows.

Note this line: "TOTAL BTC spent on FeeShares is the BTC Value of the ShareCoins you used."
The point is, you can sell those ShareCoins and make money, so we are giving them a value, even if you gained them for free. The fact that you didn't pay for them doesn't change the fact that you would still be investing something with value.

If you spend 60,000 SHARES on FeeShare, then at 350 satoshis per SHARE your investment is 0.21 BTC, because you can always go ahead and get that BTC now... as it is yours.

So it turns out I've been doing the maths wrong. Very wrong. It's much easier to calculate.
TOTAL BTC spent on FeeShares is the BTC Value of the ShareCoins you used.

((Total BTC spent on FeeShares x 100,000) x 1000) / Number of FeeShares Owned = Daily Transaction volume SharexCoin needs to earn your investment back in one day.

(((Total BTC spent on FeeShares x 100,000) x 1000) / 30) / Number of FeeShares Owned = Daily Transaction volume SharexCoin needs to earn your investment back in one month.

(((Total BTC spent on FeeShares x 100,000) x 1000) / 365) / Number of FeeShares Owned = Daily Transaction volume SharexCoin needs to earn your investment back in one year.


So if you purchase 1 FeeShare for 0.07 BTC (ShareCoins valued at 350 satoshi each).

7,000,000 BTC Daily Transaction volume SharexCoin needs to earn YOU 0.07 BTC back in one day
233333.33 BTC Daily Transaction volume SharexCoin needs to earn YOU 0.07 BTC back in one month
19178.08 BTC Daily Transaction volume SharexCoin needs to earn YOU 0.07 BTC back in one year

Well that answers that! The maths do not add up to make FeeShares a viable investment for anyone who didn't get coins for free in the initial distribution, and even those who did, they get the choice of dumping their coins to make 0.2 BTC, or they can get 3 FeeShares and wait for the exchange to start pulling in 2000 BTC profit just to break even. I don't know how long it will take SharexCoin to make $882,100 profit, but I imagine it's going to be quite a while.

The strategy makes perfect sense. They are giving away 10% of the profits for the exchange, but people are using the exchange and promoting it for them (because they get a cut). It's just like any Sales job where you pay your staff commission for securing a sale.

The coin is designed to promote the exchange and then exchange is meant to kick start the coin. If they are not careful with the connection between the two (FeeShare) then people will walk away from the coin, and interest in the exchange will drop dramatically.

And yes, he's right. ShareCoins are far more valuable than FeeShares right now. That is going to be a problem as a lot of people are only interested in this coin / exchange because of the FeeShare aspect.

The coin itself is doing very well right now, but it is dropping in price because one of its major selling points is turning out to be pointless at the moment.

Here's a summary of the issues:

1) We need tradeable FeeShares.

2) We need a lower price on FeeShares or ShareCoins need to devalue before FeeShares become viable (something no one here wants).

3) We need to address how the ShareCoins used for purchasing FeeShares are going back into the system (in detail).

---------------------------------------------

Let's pretend ShareCoin does not exist and the owners of an exchange offer us this deal:

"If you pay us 0.06 BTC, we will give you 0.001% of our exchange profits."
So to get my 0.06 BTC back, the exchange must make 6000 BTC in profit.

It's not a very attractive investment that is going to build the hype needed for this new exchange to thrive. How much do we realistically think this exchange is going to make and how long will it take? To get my investment up to 1 BTC, the exchange would need to make around 100,000 BTC profit (or $40,000,000 USD).

That 0.06 BTC I started with is the current cost of 20,000 ShareCoins, so it's the same deal.


You can't argue that "we got these coins for free", because I could go and sell the 65000 ShareCoins right now and get 0.2 BTC for them. For me to get 0.2 BTC back through the FreeShares, the exchange would need to make around 18,000 BTC in profit.

Anyway, Dev will probably be asleep right now, so I wouldn't panic sell your coins yet. I'm sure some changes will be made in the near future.

I have no doubt the developers of this coin have put a lot of work in and have nothing but good intentions for this coin. Obviously they are out to make some money (as we all are). I believe the exchange is their end game goal. Popular exchanges make a lot of money which is why they do not need to gain anything from the ShareCoins themselves. There is nothing wrong with this strategy, in fact this is better for us, because it means we get a fair coin distribution and they get an active exchange.

It is win-win for all of us.

This is why I have faith that the developers will look into the connection between the coins and the exchange, which currently does not work for anyone. People are interested in the future potential of the coin because of the connection with the coin exchange. The connection is the FeeShares.

The FeeShares' value needs to increase or decrease based on the value of the exchange (not the value of ShareCoins). They need to be on a market where the price increases or drops just like any other coin. People may sell their feeShares for a profit if the exchange starts growing, or they may sell FeeShares at a loss if the exchange is in decline. The FeeShares also need to start on the market at a viable price. it makes no difference to the Devs if the FeeShares sell out at a cheap price as it is the regular punters who will be fighting to buy / sell the FeeShares between ourselves. Someone buys the shares for cheap, the exchange value rises and they sell the shares to someone for a profit. The new owner is happy because they are getting a sustained income from the exchange and the old owner is happy because they made a profit on the shares themselves. This is in the Dev's interest as it means the exchange becomes much more popular.

As it stands, the people who have bought into FeeShares will realistically never see a profit, and the FeeShares will never get sold out unless the coin is devalued all the way down to 1 satoshi (and even then they will struggle to sell). The ratio of coins to FeeShares is all wrong. The price is wrong. The inability to exchange FeeShares means that once someone is invested, they are stuck there for good.

I'm sticking around to see how this coin goes as the Dev's have been spot on up until this point. I just hope they know how to react to things like this correctly or they will end up with a dead exchange as we end up with a dead coin.

Well, it is up to them.

I just don't see how the community is going to invest 5605 BTC (at current coin prices) to purchase 50,000 FeeShares and then wait for the exchange to make 112,100 BTC in profit to just break even. For the exchange to make 112,100 BTC in profit with a 1% fee they would need to have a trade volume or 11,210,000 BTC.

Considering there are 12,742,100 BTC (or close to) in existence, it would mean the exchange would need to have the equivilent of 88% of all the bitcoins in existance pass through SharexCoin for the FeeShare investors to make back more money than they would by simply selling the ShareCoins at their current value.

Call me a pessimist but...

If the revenue from a single FeeShare was increased from 0.001% to 0.01% and the number of FeeShares decreased from 100,000 to 10,000, the rough 9am morning maths would look as follows:

Cost to buy 3 FeeShares: 0.3363 BTC
To break even on that investment, the Exchange would need to make 3,630 BTC in profit, or $1,500,000 USD.

Even that still seems quite high but a hell of a lot more realistic.

I genuinely thought the cost of a FeeShare would be nearer to 1000 - 5000 ShareCoins each, with the FeeShares being bought out almost immediately and then appearing on the market allowing the community to effectively decide the value of 5% of the business.

If they were priced at 1000 ShareCoins each, it means that the 50,000 FeeShares available could be bought out by 769 people's shares from the initial distribution (or around half). Some people would place these FeeShares on the market and the value of them would rise and fall depending on how well the exchange is doing, but currently if FeeShares were able to be placed on the exchange markets (and made unavailable from the exchange), I think I'd struggle to sell them at a huge loss.

Anyway, it's all up to the devs, but I think they've made a misjudgment on this one. It will be interesting to see how adaptable they are from their initial plans as I can't see this one working for many people.

To put it into another perspective:
Cost to buy 3 FeeShares: 0.3363 BTC
To break even on that investment, the Exchange would need to make 33,630 BTC in profit, or $15,000,000 USD.

This doesn't seem realistic to me. The coin's value would need to drop significantly for the FeeShare purchases and then rise significantly for this to be a realistic investment. That's also assuming the exchange grows to become a major player in the cryptocurrency trading market.. and I mean MAJOR.

Feeshare price is too high and I fear it will devalue the coin as people will associate ShareCoin's value with the FeeShare price.

As it stands, 0.001% of the exchange's income is worth $50. This means the value of the 100,000 FeeShares is set at $5,000,000 and that in turn would value the exchange as a  $50,000,000 business. I think a lot of people wanted to invest in this coin because of the FeeShares and to make that a viable and realistic investment the value of the exchange would need to be a figure ten times less than it is now (or even more). The coin price would need to drop to around 50 satoshis or beyond.

It's early in the morning so I hope that makes sense, but I still think you're going to need to drop a decimal place on the cost of the feeshares, or move up a decimal point on the FeeShare revenue percentage and knock a zero off the max number of FeeShares.