Here is a quote from BTCJam to explain some things:
Hello. I want to present unusual mining startup.
As you know SHA256 mining is almost dead, even with an ASIC, taking into account ASIC price, and difficulty.
Scrypt mining on GPU is almost dead too (Same reasons. In addition, a doubtful reputation of chip manufacturers. As it happened before (BFL, Avalon) most likely, that manufacturers will be the only ones who will take profits. And dont forget about shipping time.).
Considering all this, I was looking for ways to make profit from mining last months. We have a small seam of former and present students. Unlike ASIC manufactures, our goal is not a loud statement or collection of pre-orders, but the actual mining in small scale. Here is our plan:
One of our members agreed to make his graduation project in collaboration with AMD, where he is going to work after university. This allows as to get limited access to AMDs GPU production and documentation. (Under the AMDs program of support of higher education institutions.)
We are going to get reference PCB design of 7990 card or any other suitable, remove all useless parts (HDMI, DVI, some logics) and request a small batch (15-25) of this cards. They will be as-is without radiators and fans. Then we are going to mine on this cards.
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Why this will be profitable?
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Thats because without useless parts, warranty, package and taxes cost of each GPU will be 10-15% of stock prices. Also, we will get GPUs without cooling system. To solve this problem weve decided to use oil cooling system in the aquarium. Ive done some tests by myself this allows even better overclocking than with regular fans. Most of PSUs and motherboards will be used ones and we will get them at no cost.
It is certainly better than waiting for a new (possible unreal) Scrypt ASICs, especially knowing their prices. I think this project looks mostly like ASICMINER, but without shares (Because of small size of this project). I am nearly a director of this project, but this is real startup everyone can influence decisions.
For example one of us (working programmer) wants to fix well known sgminer core quarkcoin.cl to mine SecureCoin (SRC). (Unfortunately, he wants money for it. Maybe we will collect funds for this idea too, but separately.)
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Well, it is profitable. Why not to invest 100% by myself?
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Thirst of all - University will pay a ridiculous amount of money for this diploma project (As you can see, this is a project of double purpose in fact :) ). Also, a small amount of money will be collected from our team. Anyway, we need much bigger amount. There will be no IPO or shares or so, as I said. (This project is just not up to it.). So, I offer you to invest and get good profit.
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Why we can trust you (its personal loan despite that it is a group project)?
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What about my reliability I think its A grade (I dont know why administration still didnt change my grade. They speak about machine learning system
May be some politics in fact.)
1. Identity Verification - (Accepted).
2. Address Verification - (Accepted).
3. Phone Verification - (Accepted).
4. Income Verification - (Accepted).
5. PayPal (about 6 years) account connection - (Accepted).
6. eBay (about 6 years) account connection - (Accepted).
7. facebook account connection - (Accepted).
8. bitcointalk.org account connection - (Accepted).
9. Online Wallet (Coinbase) connection - (Accepted).
10. I heave 100% positive feedback and personal references.
11. I have More than 1 year of good history here. I have 73 followers I've made 55.12 BTC payments.
12. I had no overdue loans of even single payments.
13. I have 100.00% positive feedback on eBay, Amazon.
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Who soon and how much we will get back?
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Well, we think that we need 1 month to figure out organization and engineering problems and get boards. ROI of these boards will be less than 1 month. So nearly in 7 weeks, we will get profits. For security reasons this loan will be repaired in 3 months. We expect the yield of 120% per month, but there will be rise of difficulty and overhead expenses. I cant promise you that we will pay more than promised in this loan, but if we decide to expand mining we will rise payments to get people interested.