F.DERP December 2014 Statement

Wednesday, 07 January, Year 7 d.Tr. | Author: Mircea Popescu
F.DERP incoming and outgoing
Incoming Outgoing
Description Value Description Value
Stock sales 27.09258396 --
Total 27.09258396 Total 0
    F.DERP assets
    Account 01.12.2014 Net change 31.12.2014
    Cash 7`475.38390784 27.09258396 7`502.4764918
    Tangibles 0 0 0
    Intangibles and goodwill 0 0 0
    Total assets 7`502.4764918
    F.DERP liabilities
    Account 01.12.2014 Net change 31.12.2014
    Coverage 94.55389229 27.09258396 121.64647625
    Shareholder equity 7`380.83001555 0 7`380.83001555
    Total liabilities 7`502.4764918

      F.DERP has a total of 227`452`389 authorised shares outstanding. The total assets per share implied value is thus 0.00003245 BTC. The cash+tangible assets per share implied value is thus 0.00003245 BTC.

      F.DERP realised no operating revenue this period. The P/E implied value per share is thus 0 BTC.


      It is a matter of great consternation to me that in spite of continuing depreciation in the BTC/USD pair, the volume of these shares bought on the open market increases at a glacial pace : barely 20% over last month. If you think about it, the BTC trades today for less than half what it did back when these contracts were created. So : either the BTC value as presented by the "exchanges" carries virtually no weight in the eyes of investors, or else the perspectives of a Bitcoin company scale more or less directly with the exchange rate. Or who knows, other factors. I would be interested to hear other takes on this topic.

      In any case, since the present low price levels fail to attract much business if at all, I will increase the asking price across the board by 100%, to more or less reflect the "value" of the original "investment" in these things. Curious what that does more than anything.

      Category: F.DERP
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      2 Responses

      1. Peter Lambert`s avatar
        Peter Lambert 
        Wednesday, 7 January 2015

        In the DERP contracts, for example BitPay, "If BitPay IPOs on a legitimate Bitcoin exchange (such as MPEx), holders of D.BPAY are entitled to one share in the IPO for each D.BPAY share they hold". Does this assume that the company will be split into an equal number of shares as the D.derp issues? Or is it going to be proportional to the number of shares issued in the IPO? So if BitPay has an IPO with only 100`000 shares, is each D.BPAY share then worth 1 share of BitPay IPO or would it require 10 D.BPAY to get 1 BitPayIPO?

      2. Mircea Popescu`s avatar
        Mircea Popescu 
        Thursday, 8 January 2015

        It's going to be proportional. So to understand each other with an imaginary example :

        Day 1. DERP receives 10`000 dollars investment.
        Day 2. D.DERP is created, on MPEx, 100 shares.
        Day 3.a. DERP lists, and is priced (by market, as described) at 28`753 dollars. D.DERP is then worth 287.53 dollars a share
        Day 3.b. DERP takes a further 10`000 investment.
        Day 4.b. DERP lists, and is priced (by market, as described) at 28`753 dollars. D.DERP is then worth 143.765 dollars per share.
        Day 3.c. DERP behaves fraudulently (as described). D.DERP is worth 0 per share and closes.

        Make sense ?

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