Mining Bitcoin By Buying Mining Power With A Special Token, In An Upcoming ICO
First and foremost, the company behind this project is called Cryptonomous. Why do I even care? Well, because it sounds very close to Cryptonomex, which, in case you don't know, is the company hired by @ned to bring to life the vision of Steemit. Or, in other words, it's @dan's company. I admit that when I first saw the news I thought it was some of @dan's projects, but when I read more carefully, I realized it's just a similarity, nothing more (I didn't find any mention about Dan Larimer in the team also).
So, what is this mining-ICO-bitcoin-token combo? It's a strange structure even for somebody who claims to know the world of crypto fairly well.
In short, it's a hosting facility, specially catered to mining, in which you have the option to pay for your mining power with a token issued by the company owning the mining facility. I told you it's complicated. Let's try to break it down.
the mining facility aims to have very, very low cost of electricity. Being located in US, that seems a bit unrealistic to me. Iceland or China can bring the cost close to zero, as we all know, by placing the facilities in the proximity of hydro or steam power plants. If they can do that as well in the US, it's plausible.
there are a few plans for the mining power, with prices starting at $9.58 up to $28. The profits for these layers are also a bit unrealistic to me. For instance, at the $9 plan, you pay around $3 and you can get around $6 in profit. Not impossible, in theory, but highly unlikely
there will be an ICO for a token called Giga Watt Token (symbol WTT) issued as a means to pay for the mining power
the initial price of a WTT is $1
token holders do not pay renting fees for the hosting equipment
even more, these tokens can be rented in a marketplace to somebody else who want to use them for mining
the token cap will be 30 millions WTT, starting at $1 in the first week and going up to $1.2 in the ninth (last) week of the ICO (don't know exactly when the ICO will start, if you want to stay updated you can subscribe for news on their website)
for each 100 WTT sold, 10 WTT will be issued and allocated to developers and owners and 5 WTT to advisors. It's a 15% inflation percentage which is not higher nor lower than usual ICOs
All in all, this seems like an interesting project and the team behind it seems solid. But then again, the crypto world is bubbling hard and nobody really knows how long this will really hold.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Golos you may stay updated by following me @dragos.
