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Author Topic: [ANN] CryptoPlay: Selling Shares  (Read 3428 times)

NxtChg

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[ANN] CryptoPlay: Selling Shares
« on: January 22, 2015, 08:54:21 pm »
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Company

While making the bomberman game I've realized that I work most productively when I have a side-project to switch to from time to time.

So me and Titulaer are forming a virtual company called CryptoPlay, which will focus on making games that use cryptocurrencies as game money.

(Don't mind his brand new account, he was around since at least 2009, same as me, it's just that this project requires a bit more anonymity due to its semi-legal status).

The good news is, we're selling shares: https://cryptoplay.net/xchg/

We considered doing it on some other platform, but doing it in-house allows us to pay dividends automatically, maybe even daily!

Projects

We have two upcoming projects – one smaller and one bigger. Both are browser-based, so they share a lot of code. We hired professional graphic designers to do the graphics and Titulaer paid them out of his own pocket. He also writes most of the code under my close supervision.

The smaller project will be announced soon, after the initial sale is over. The bigger one will take a few months to complete.

Dividends

10% of all profits will go to charities. 90% will be paid out as dividends.

We do not have salaries, instead we grant ourselves 50% of all the shares (yeah, that's what being a start-up founder gets you :) ) and will be paid the same way as everybody else.

Distribution

There will be total 100,000 shares.

4,000 will be distributed among existing simcoin stakeholders proportional to their stake, as a token of gratitude for their patience :)
You can login to the new exchange using your simxchg user id and password and see what you've got (the snapshot was taken on January 16th).

Remaining 46,000 shares will be auctioned on the exchange. We will sell them in, say, 1-2 weeks.

The money raised will be used solely for company needs: additional development, hosting, promotions, etc.

In case of the company sale the money will be distributed to all shareholders proportionally (for example, if it's sold for 10 M and you have just 1 share, you'll get a 100 bucks).

This IPO gives you an opportunity to both speculate on share price and be a long-term investor.
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NxtChg

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #1 on: January 23, 2015, 09:07:26 am »
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Really? Simcoin is far away from launching und you start the next project?

a) this is not a "next project"

b) my involvement is very limited, I mostly just answer Titulaer's questions about how to do something best and review his code to make sure he's on the right track

c) when I occasionally do write code, I try to work on something that will be useful in Simcoin too, like the WebSockets server I did

d) a side project helps when you run out of ideas - you do something different for a while and then come back with new ones; there's no reason to just sit and stare at the wall...

I've been working on Simcoin for the past 9 months, believe me, I want it finished more than anybody else ;D
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NxtChg

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #2 on: January 23, 2015, 09:08:11 am »
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Somebody already grabbed the starting 1,000 shares for 1 BTC I put there? That was quick :)

The point of the auction is price discovery. So set your buy order to some small price. Then somebody will place his order above you. Then you either cancel and set a new order higher or just wait.

I will check the exchange few times a day and dump to highest bidders.

Our goal is to raise as much money as possible, your goal is to get shares as cheaply as possible :)

At some point we will meet.
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NxtChg

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #3 on: January 23, 2015, 09:08:34 am »
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UPDATE:

We sold 5,000 shares so far and raised almost 5 BTC.

41,000 shares are still for sale.
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bitcoinpaul

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #4 on: January 23, 2015, 10:31:00 am »
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Nice.

NxtChg

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #5 on: February 03, 2015, 03:32:14 pm »
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We have exactly 40,000 shares left. Our goal is to raise about 120 BTC, so the target price for us is about 0.003.

Why so much?

Quote
The casino industry commissioned a report into the casino gaming reserve by Professor Bill Eadington of the University of Nevada.  The report addressed the mathematics of the volatility of casino games in order to estimate the maximum risk exposure of the casino to losses.

Professor Eadington concluded that the gaming reserve's requirement of a figure of 5,000 times the maximum bet for roulette ‘fulfils its purposes in protecting against short term adverse volatility’...

Since our first two projects are gambling-based, we need a lot of reserves. The more reserves we have, the higher bets we can accept.

Higher bets mean higher payouts. And higher payouts attract more people and thus increase profits.

We will also need to buy ads and other forms of promotion to attract players.

So we are not in any hurry to sell and might continue selling even after the start of the beta-testing of Project A.

Of course, if we fail to generate enough interest, eventually we will have to sell at whatever price the market has to offer.
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grandpa_seth

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #6 on: February 03, 2015, 11:01:25 pm »
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We have exactly 40,000 shares left. Our goal is to raise about 120 BTC, so the target price for us is about 0.003.

Sounds like a solid plan. Even the house has to account for variance with a sufficient bankroll.
The problem as I see it is you initially dumped 5k shares mostly around .001 but even went as low as 1k shares for .0006.
Maybe minions now have that price range as their max and the majority have set it in their minds not to pay much more than that?


gs02xzz

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #7 on: February 04, 2015, 02:39:36 am »
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I suggest you try the ladder priced sale. You can break down the 40k to 4 to 8 blocks and set different price from low to high for each block. For instance, if breaking down to 8 blocks, each block will have 5k shares and the prices are 0.001, 0.002, 0.003, 0.004, 0.005, 0.006, and 0.007.

By this way, the early investors will get shares with lower price becasue the the risk is higher at this stage. While the project makes progress, more investors will come and they will be willing to pay higher prices because the risk become lower. Hopefully you can sell all the 40k shares and collect enough BTC you need before the launch.

NxtChg

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #8 on: February 04, 2015, 10:11:25 am »
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I suggest you try the ladder priced sale. You can break down the 40k to 4 to 8 blocks and set different price from low to high for each block. For instance, if breaking down to 8 blocks, each block will have 5k shares and the prices are 0.001, 0.002, 0.003, 0.004, 0.005, 0.006, and 0.007.

It works nicely, assuming people will continue buying at higher prices. But it's a big assumption. To be profitable at those prices there needs to be a huge amount of bets wagered each month and that just might not happen in near future. So relying on this scheme is risky. But it might happen this way, anyway :) We'll see.
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grandpa_seth

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #9 on: February 04, 2015, 05:55:01 pm »
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I like the ladder approach but you are being way optimistic. Interest is small in this project and is not going to explode all of a sudden.
The best way to get the money is to convince those already interested to give it.

In addition to new interest, you need to give all the guys bidding way under .001 a reason to pay more.
Maybe a sense of urgency like compromising on your .003 goal and make a sell wall for all 40k shares at .002?

You'd have to make it clear that this is the price and you will not sell for less. If anything it may go up.
This way the lowballers will be put in a position where they either pay .002 or miss the boat completely.
It will still be hard and take a while to get but at least if successful, you will have 80 btc.

If you continue as originally planned its my opinion you will never see .003 let alone 40k shares at .003 (only because you've already set a low price precedence with the first dump) and if the day comes that you are forced to dump to the market, you will end up with way less than 80 btc. Probably less than 40.

Even at .002 I have my doubts you will be able to sell all the shares but you probably can't accept less than that.
This is how I see it and just throwing my thoughts out there.

I would love to own a part of a successful crypto gambling company.
I don't mind paying more than the people before me as long as I'm assured nobody after me will pay a lot less.

NxtChg

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #10 on: February 04, 2015, 06:22:33 pm »
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Interest is small in this project and is not going to explode all of a sudden.

Interest is small, you are right. That's why we are taking the "wait and see" approach.

We will be releasing more and more information to generate more interest, maybe even continue selling after the beta-testing or first dividend (however small).

Maybe even start posting artwork from Project B (by the way, yesterday we received the last big piece, now only small items remain).

So I am optimistic :)
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grandpa_seth

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #11 on: February 04, 2015, 06:52:03 pm »
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Its certainly possible to garner more interest especially the more along cryptoplay becomes.

I'm sure you were hoping for more than 120 btc so I don't fault the strategy.

It only scared me the thought of having to dump 20k shares at .0005 and accept peanuts months from now.

Okay, I am optimistic again now.

NxtChg

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #12 on: February 04, 2015, 07:04:24 pm »
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It only scared me the thought of having to dump 20k shares at .0005 and accept peanuts months from now.

This can only happen if we fail both projects completely (and any other) :)

Gambling is usually not that hard to make profitable.

Granted, the first project is rather small and simple, but the second one should be really interesting, good-looking and fresh, even though it's also gambling-based.

And we won't stop there, the more code and assets we create, the easier it becomes to make more games. I have a feeling crypto-gaming will be a pretty big thing soon ;)
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grandpa_seth

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #13 on: February 04, 2015, 10:15:50 pm »
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I have a feeling crypto-gaming will be a pretty big thing soon ;)

I very much agree. Its a golden opportunity. And the creator of Simcoin is getting involved in it? No brainer, invest!


grandpa_seth

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Re: [ANN] CryptoPlay: Selling Shares
« Reply #14 on: February 04, 2015, 10:35:21 pm »
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Incidentally, I'm willing to get the ball rolling by way overpaying the current bid price at .002 for 580 shares if you're tempted.