Quote from: Germican on October 01, 2014, 08:32:08 PM

I see this more as an out for those who do not want to continue with the fund. SF1 has been a very different model than most offerings and provided a service that isn't a short term dividend producing security. The price of the security is based on the market price and most people getting involved didn't realize this was a very long term security. The company has distributed most of their funds however one company fell through and no note to what is being done with that funding has been made public.

However look up the companies they funded talk to their owners and you will see that Seedcoin has been very active in providing the service they stated they would offer. From the moment the terms were agreed upon and fund distributed each share represented an unknown amount of equity. That equity hasn't changed( at least to public knowledge) but the market tanked. Why? Because bitcoin securities have such small markets that even one large sell off will tank it and hurt confidence in the market. If you look at how much volume has gone through SFI on Havelock. There hasn't been a ton over the months while bitcoin has gone through major changes. Some people didn't realize this would tie up their bitcoins for so long but a reasonable amount of research on the fund at the beginning would have shown that.

Now for the buy back price 0.00045 Yup its low as thats for more than 0.00075 bitcoins (0.0009 if you add in undistributed funds) that have been distributed your losing a lot however before today or even months ago you couldn't sell out any large quantity at that price. If you read their wording they state that if they made an offer to buy back for that price would you? They are not doing a forced buyback in the way they have phrased this. This is offering those who want their bitcoins out a reasonable offer based on the market. They get cheap shares of their fund and the seller gets instant access to bitcoins. Your only other option was to wait.

If they forced you to sell back then yes I would be very very pissed but right now I think it's just to allow those buyers who want out the ability to get out. They could literally do nothing and let the market go even lower or even just start buying shares at the lowest price points but instead they are looking at offering a deal to at a minimum help the market.

I think the issue is too many investors evaluated the security improperly and had very different expectations than what has happened. I think this is because a lot of bitcoin investors have very little knowledge or training in real investments. I invested in the ipo and slowly have been acquiring more as I personally still see this as a solid long term investment. The only thing I wish we could know is what level of equity is held by the fund in each company. Since we don't know that it leaves a big variable open.

But seriously hit up the companies they have funded on Twitter or email them to verify they are doing what was stated in the ipo which is funding and providing business assistance/consultation to build these into large global companies.

Edit: I'm holding and may consider the second option depending on the terms so long as the offer is reasonable compared to IPO and I don't have to convert all my shares as it's a fair means to diversify and I personally have confidence in the group running it.

We don't know if this is a forced buyback or not - that was never stated. If the offer is made, and participating in the buyback is voluntary, I don't see that as an issue. I agree that a lot of people probably got in to the fund without any idea of how long it might take to pay back, and this would give those investors an out.

zapeta

Posts

Merits