“ @François-Guillaume RIDEAU
I feel the need to dispel multiple misconceptions in your comment. See below…
What is the ICO pricing ?
Veritas is priced at 0.033 eth, with a sliding discount scale.
51Million VER issued out of 100Million? is it an auction ?
Yes, that is the amount, and it is not an auction. It is a software sale.
in the Veritaseum token tutorial it says that "One VERI Token costs 0.0333 Ether. so for one Ether you get 30 VERI Tokens!". i see nowhere else mention on this price. How do we know for sure this is going to be the exchange rate ? when submitting the sale through ETH wallet
The tutorial gives you the price, and it als gives you the smart contract address, which gives you the exchange rate pricing. There is also a link to the github where the contract code s stored, so you can actually review the code yourself if you desire.
BTW, based on a ETH token price of 50 USD, that means the valuation of VER is 100 * 50 / 30 = 166M USD. and that you are trying to sell 51% of it, around 85M USD.
You cannot value the software in such a linear and simplistic fashion. This is not a stock or securities sale and you cannot take the pricing of Veritas available for sale and extrapolate it to the total in existence to come with what looks like to some would be an enterprise value. Again, we are selling software, not securities. Think of attempting to “value” Microsoft Excel by using this simplistic formula. In 2010, Microsoft alleged that a billion copies of Office installed across the globe. With an average price of $150, that would value just the installed base at $150 billion, but what you are doing distorts this number further. You are applying that sales multiple to unsold copies of the software. Thus if MSFT planned on selling another billion copies of Office, you are literally extrapolating that number to say that MSFT is worth $300 billion on just its office software - ignoring its arguably larger Windows, licensing, cloud and other franchises. Adding just some of those in, you get an even larger number for Windows, say $400 billion, servers and software, $300 billion, cloud services and other, $250 billion. Add this up, and you get $1.25 trillion for a company (derived solely from guessing what software may be sold in the future and attempting to place an equity-like value on it) with a market cap of about $529 billion today. I go through this exercise in an attempt to illustrate the futility of trying to extrapolate software sales into some type of equity valuation. To be clear and to reiterate once again, we are selling software, not securities!
Excuse me, but thats a very bubbly valuation for a "token", not even shares, so with very vague rights, for a software product which doesn't exist anywhere else than a beta version, so effectively 0 paying customers. How many lines of codes ? is it on GitHub ?
Once again, it is not a valuation, it’s a price for software. There are no rights other than the right to access software that has yet to be completed or ported, and to redeem for our analytical services. These rights are definitively not that of those who would buy and hold securities, and Veritas is not being sold nor marketed as such.
Lines of code have nothing to do with the value of the project, but we have many, many thousands - 5 people have been working on this for 3.5 years. Our GitHub is available by search for Veritaseum, but the repositories are private.
Some tokens for "decentralized prediction markets" have a higher valuation of that, but thats because of market speculation. They weren't able to sell that much in the ICO... Actually GNOSIS ICO is going on (at a crazy valuation) but they're selling only 10-20M at a time....
Those figures are irrelevant. The amount of software that we are making available is to sate demand for years, not for a short term pop. You are, again, attempting to look at this as an IPO-like transaction, and not a software sale. If you were to actually attempt to value these projects, you should be factoring in IP ownership, IP protection and patents/patents pending, existing codebase, the team, addressable market, etc. Instead, it appears as if you are trying to extrapolate token prices. There is a distinct difference between price and value, alas I’m drifting off topic since the premise of this entire communication is that we are selling software.
Because we are allowing the buyers of our software to resell the software at will (just as you can a Microsoft Excel product), there will be fluctuations in price that are outside of our control. What has happened in many historical instances was the purposeful restriction of supply to squeeze the perception of demand, causing 3rd party transactions to see a strong pop in price (not necessarily value). This is a trick that has been used in many tech company IPOs, to reward early speculators - resulting in very volatile trading and unstable prices until additional supply has been added to the market reference Risk in Low-Float Stocks - Global Economic Intersection
and Asset Float and Speculative Bubbles - Princeton University. This also goes very far in confusing and blurring the line regarding what is being offered (in regards to the ICO sales).
Since we are planning for the long term and are not dealing with securities (or investments), we are not taking this path.
btw, i see no buzz at all in reddit/ethtrader which gives some temperature of ICOs, i see also that as worrying.
While we will happily take, and will pursue, the interest of those on Reddit and Ethtrader, we are aiming our resources at developing the interest of buyside Wall Street institutions - hence the need for ample supply to sate the need of the world’s largest consumers of capital services should that need be successfully stimulated. ”