[CLOSED] S.DICE - SatoshiDICE 100% Dividend-Paying Asset on MPEx

[boonies4u]

Do you understand what the purpose of a numeraire is? Bitcoin is a horrible numeraire because, as stated earlier, the capital pools are so limited and the extreme volatility. Bitcoin is nowhere near being developed enough as a monetary instrument to be using it reliably as a numeraire. There is no other instrument comparable to the USD's or EUR's depth of capital pools.

Using USD or EUR as a base presentation currency for investments that operate only in crypto is not very difficult; just look at IAS 1. There are plenty of reasons people may invest in SD, mining operations, etc. instead of Bitcoin and that is because of the potential returns when using a solid numeriare like USD or EUR.

I'm not saying that people didn't lose. I'm confused, are you saying that people who invested in Satoshi Dice expected/hoped to get a certain return in USD, despite the obvious volatility of bitcoin? Or are you just observing that if someone bought bitcoins with USD to purchase Satoshi Dice shares within a certain range of dates that would net them a loss in terms of USD.

I just don't see how someone could have invested in Satoshi Dice without realizing that their USD profits would be impacted by bitcoins' volatility.

I understand how people could invest in certain businesses/industries related to bitcoin and expecting return in USD. I also realize that depending on the business/industry they choose their profits with be impacted by volatility.

Edit : The point I'm trying to make is that the volatility of bitcoin has an effect on whether or not investing in Satoshi Dice was a good idea in the end. (this of course depends on how/when/at what price people acquired their bitcoin to invest in Satoshi Dice. However just because bitcoin is volatile does not mean that Erik has wronged anyone by forcing this buyback.

[throwaway123]

Congrats 

[MPOE-PR]

I highly value and respect the trust you have placed in me, and I hope this outcome reciprocates that respect.

It is important to keep in mind that, since the IPO, 73865 satoshi per share has been paid out - a 23% return for the first block of shares. All IPO shares will have at least broken even with this sale.

I can't imagine the sale was particularly easy to push through, so this is an impressive result overall. Considering the tight spot that SD has found itself in recently, the outcome is reasonably equitable.

For those who profited, bravo. To those who lost, know that we all have at some point - learn and move on with that knowledge; you'll be that much better in future dealings. I am glad to have witnessed another chapter in the Bitcoin saga come to a close.

Especially seeing how this'd be the first happy end in history.

Love how what has ended up as one of the biggest scams in bitcoin history, ends up with half the people applauding and saying 'well done'.

Love how when people act honestly, follow and even exceed the requirements of mutually agreed contracts, and take care of investors above themselves, there are still internet trolls to call it a scam.

If there weren't, would't you suspect you're on the wrong Internet?

[Jobe7]

Gratz Erik and others involved (unfortunately not me).

The outcome is amazingly good, you're always going to have haters unfortunately (even if you cure all cancer/aids/world hunger, etc), you will still have haters.

Not to be a biatch, but people should look outside their box and see what happens in the real world and then look at what Erik's done, and realise he's been damn great about it.

[wachtwoord]

Congratulations Erik. One of the people I think really deserves this.

[GeoRW]

As IPO investor I'm glad for this happy ending, though I planned to hold the shares for much longer. It was a nice ride. Thanks Eric and good luck in your future endeavors.

[phelix]

As IPO investor I'm glad for this happy ending, though I planned to hold the shares for much longer. It was a nice ride. Thanks Eric and good luck in your future endeavors.

this

I hope you will continue as a patron advocating Bitcoin. 

[Rampion]

Congrats Erik. You did a good job despite of the trolls.

[lebing]

As someone who "lost" more than most on this deal, I'm still happy for Erik and will be happy to see him focus on other efforts like coinapult (international numbers soon, kthx!)

Congrats Erik, if there was ever a time to scream this and mean it, its now: http://www.youtube.com/watch?v=Rs6kT_0H1MI

[[email protected]]

Well done Erik! I hope you will have the same success with coinapult.

Regards,
Michael

[greyhawk]

Congrats on finding your long lost invisible twin brother Eri, and I do hope he will keep running sdice as efficiently as ever.

[k]

SatoshiDice is being sold, in full, to a new company that will take over all ownership, operations, and management.  The total sale price is 126,315 BTC, or 0.00126315 BTC per share.

Just curious, did you receive payment in bitcoins or in some other currency (e.g. USD)?

[nubbins]

I am going to develop my own dice game better than sdice anyoen interested

Oddly, no

[Lohoris]

I am going to develop my own dice game better than sdice anyoen interested

Oddly, no

LMAO gg

[amunrara]

niet

[zebedee]

[...]
SatoshiDice is being sold, in full, to a new company that will take over all ownership, operations, and management.  The total sale price is 126,315 BTC, or 0.00126315 BTC per share.

According to the MPEX Agreement, MPEX holders are entitled to receive 0.00126315 BTC per share, alongside other private owners. However, for the good of the MPEX holders and for the sake of the general Bitcoin community, which the site always has intended to support and nurture, SatoshiDice has arranged to pay MPEX holders an additional .00223685 BTC per share bringing the total to 0.0035 BTC per share.
[...]

Hmm.  The "new company" thing is kind of vague; including whether Mr Voorhees has any stake in it.  Given the numbers below I think it's almost certain he is getting such a stake.  But ignoring that for now and assuming he doesn't....

Let's guess that Erik holds 80% of shares, IPO was 10%, others unknown own the remaining 10% of which some was subsequently sold publicly.

The way I read this is that Erik has willingly cashed out 80% for 0.00126 per share, when it was trading above 0.0020 per share in the open market.  Let's assume he's compensated the whole 20%, not just the publicly traded part, as disclosed above.

He receives 80m * 0.00126 = 101,052 BTC.  However he's paying out a premium (ignoring minor refunds he mentions in his post) 20m * .00223685 or 44,737 BTC.

So he's pocketing only 56,315 BTC net for 80m shares, or 0.00070394 BTC per share.

This is clearly ridiculous, even given tough competition like Just Dice, given that he could undoubtedly successfully offer another 20m shares at say 0.002 BTC each given the market price (40k BTC total) and still be left with 60m.

So this looks to me like 2 things: a) an opportunity to reduce his stake, given the lack of focus and increasingly tough competition, and b) at the same time retain significant, but substantially reduced, interest via a stake in the "new company".

Shareholders should consider themselves lucky, I really doubt it would have ever reached something like 0.0035 BTC again on the open market.

[zebedee]

This all feels very rushed and, honestly, coming from someone like Erik who completely understand the Bitcoin economy and the side-effects such a sudden move might have on the market, it seems rather careless and distant from any kind of long term commitment towards Bitcoin. It's a market move.

Where is this idea coming from that Bitcoin is being sold for fiat?

He's speculating that holders of SDICE will sell their BTC after the cash out.

Yeah, and the new company buyer just got his BTC from ... thin air right?

[wtfvanity]

Oh no. What will MPEx do now? They don't have anything real on their exchange now.

[zebedee]

I was also wondering if Erik is a holder of the new company. I think part of his motivation would be to hid that fact that he as an American is running an online gambling site. Something the USA does go after.

Seems like he just wanted out and did so at a crazy low price. I'm sure there is more to this than we know.

I'm sure that both a) he has a significant interest in the new company, and b) he didn't get out at a crazy low price, because of a).

I suspect he has effectively sold 30-50% interest somewhere between -30% and +10% of the prevailing market price (0.0021 BTC say).

[zy02264]

Seriously??? I am really shocked to see most of you are so happy with this ending.

Apparently, Erik really know finance and really good at misleading people by his knowledge. What happened here is someone took over Erik's shares at a discount price - 0.00126315. Then Erik told us that your share is worth 0.00126315 but I will add another 0.00223685 because I am responsible. Come on! Look at MPEX, the past 30 days average is around 0.0025. I believe this is how they value shares at real life stock market.

This is not the only one. When Erik tried to offer the shares at first, the shares are valued at 8 P/E ratio. Afterward when people start to losing money and blame Erik, he was like - don't too focus on price movement, please look at
annualized return, the P/E ratio is 8! Now when he try to buy back those shares, he seems forget to mention P/E at all - its time to look back to price! Wow! What a generous guy! If we give the 8 on current earning, the price will be at least 0.0045.

Is this fair???

If we ignore all the noises - the buyout thing, the 0.00126315 and the new owner - no one know if they are really exist. What we are 100% sure is Erik issued shares at around 0.0035. Now he buy back at same price. What he got? A business with public recognition through IPO. What shareholders got? Nothing.

Is this fair???