42 bitcoins sought for cyber•Fund project

Hey guys! We are looking for 42 bitcoins to boost development of the first investment platform for cryptoassets — cyber•Fund! Check cryptographic proof!

tl;dr: https://cyber.fund/invest

We are going private! What? Not public? Yes, not yet!

How do you think what was the most anticipated feature for cyber•Fund?
I bet you’ll never guess! People who are addicted to cyber•Fund want to have its tokens. They want to be a part of something where they can find relevant and up-to-date information of all decentralized systems that exist today and build and monitor their investment portfolios!

To be honest, we didn’t want to do crowdfunding. But we were told that this move could be very useful.

See for yourself:

1. We’d like to know how you actually value what we are doing. Thus, you will define a price of our tokens
2. We’d like to treat our first and most engaged users as partners
3. And, yes, we want to get funding to keep going and improving our service

One more reason for crowdsale is that traditional investors still don’t believe in tokens. They just don’t know how to cast them as magic spells. Bad for them! We’ll show them how it could be done and who knows maybe we won’t ever need them what would be the best outcome!

Open Letter to Future Partners

November 12, 2015, live update is here.

The existing blockchain economy has market capitalization of 17.6M bitcoins or 7.14B US dollars. It is a result of the evaluation of 130 decentralized systems and of 30 decentralized applications that are built upon them. We call this new blockchain economy cybernomics. This economy is permissionless, global, tax-free, and could be programmed to perform autonomously and at low costs any operations. Any type of values could be created in it, any kind of organizations could be programmed. The traditional world economy has more than 1B business entities. The blockchain technology could be easily adopted by majority of them in 10 years as there is no need for special hardware, and adoption costs are low. The low-level similar to public infrastructure blockchain systems such as Ethereum, BitShares and Factom have been launched recently. SAFE Network is coming. Private blockchains are to take off.

In 3 years we expect an explosive interest to decentralized systems and decentralized applications from developers and investors. This will open doors to huge investment opportunities that have never existed before. We think that now a market share of blockchain investment services is roughly 1/200 of cybernomics that is 88k bitcoins. However, there is a huge growth potential. Today there is no entities that focus on professional services in this niche. Meanwhile, we think that in the future all existing public companies that are listed on traditional exchanges and have a cap of roughly $100T (yeah, we like huge sums) will be re-engineered using blockchains. That is approximately $500B niche of investment services that we want to serve and that doesn’t exist yet. Today cyber•Fund cap is unknown but if we reach our goal that will be not more 1/100 of the existing niche. The proportion reflects a potential for our growth in case of doing what we like — providing superior services to our users — in the best and most efficient manner.

cyber•Fund founders have unique experience in blockchain investments. Two of us as many of you were early bitcoin miners in 2011. In 2013 we decided to invest our bitcoins into promising blockchain projects. Since then we created first and unique private crypto-equity funds — Satoshi•Fund 2013 and Satoshi•Fund 2014. This year we have been working on cyber•Fund, the investment service, that are designed and built to solve problems of those who invested in cryptoassets, blockchain systems and applications.

In the next 6 months we are going to focus on lean, open source development of the tools for blockchain developers as we want to give investors in cryptoassets the most relevant, and high quality data that will enable them to make smart investment decisions. We will deliver accurate, real-time and exhausted data and provide individual recommendations. If our assumptions prove viable we will focus on developing a decentralized investment protocol on top of the existing service and community. It will be time for us to make a public offering.

Eventually we are dreaming of backing all analytical data by advanced machine intelligence that will use a decentralized computational network which will maximize earnings for you.

So we decides to sale some of our tokens!

The terms could be found here. The terms are signed by founders and have a math notary proof thanks to guys from Keybase and Proof-of-Existence! These companies created something that was not possible before :

Our team has signed all documents with a blockchain proof!

Now we are able to use a full power of modern cryptography to make deals on the Internet and it is a new third-side free level.

What have we done so far?

• Parsed market data for majority of blockchain systems
• Parsed supply for majority of tokens
• Built open source front-end App that allows to get information and track different cryptoassets
• Built open source chaingear library with a static manually adjusted info about the most promising blockchain systems.
• Created showcases for portfolio managers: @satoshifund 2013 and 2014, @doremoo1, @dadealra and more.
• 50+ people use our App and more than half of them show their portfolios of cyberassets to everybody! That is new!

To be honest we are doing our best to create a generalized user-friendly and useful service for your values with profitability in mind.

Our App could be used by any organization to report on cryptoassets that they manage and/or own:

• Foundations
• Non-Profits
• Closed-end Funds
• Mutual Funds
• Exchanges
• Suggest your ideas. Technology is as generalized as possible.

Also it will be very useful for individuals that invest in cryptoassets and especially for blockchain angels and traders.

It is not an exhausted list, but these users already have a need for services that we provide as they want to know how rich they are and what to do to become richer. If organizations don’t want to report on cryptoassets that they own in the unusual for traditional economy but totally transparent way you should doubt their trustworthiness.

We are going to create the totally new thing:

Open Values

It is similar to Open Source but defined for the assets to make them verifiable , and easily-calculated in real-time without permissions and costly audit, without any dependencies on any blockchains relying only on public/private key magic. We do believe that it is the right moment for Open Values.

And remember a key principle of our service:

All you need is to put your address

We are aiming at making everything else for you.

Ok, let’s get down to business!

cyber•Fund development is a separate topic. I will elaborate on technological challenges in the next post. However, developers of the blockchain systems and applications are the most critical audience for our project!

What does a shareholder get?

• Everything in accordance with the Genesis Agreement
• Access to Slack channel if you want to chat with the founders on a daily basis
• Access to Github organization if you want to build a code
• Access to Google Analytics if you want to look at different metrics
• Access to Segment if you want to engineer a business

• Access to Mixpanel if you want to understand our business

• Access to Intercom if you want to test your investment consultants

We hope to integrate this soon.

• Access to DigitalOcean if you want to help us with infrastructure

• Opportunity to work on development of evaluation methodology that will be implemented using open source code. This should be a new unique proposal that could change profoundly a way we think about money.
• Opportunity to become a moderator of cyber•Talks. To be honest we do not have a lot of time for this type of work, so we will be happy to find community builders!

Please read this 1 page document carefully before investing. We tried to be concise .

Certainly, shareholders can get much more — the unique experience. And if everything goes as we plan everybody will make a handsome profit.

We also reserve 10% of CFUNDs to invest into solving technical issues that have to be solved as soon as possible.

Blockchain Way Problem

But how to preserve fiat investments? Here is an analysis of possible options:

But we have now Ethereum, SAFE Network, Augur. Funded fairly. It is what has inspired us to choose true blockchain incorporation! We cannot spend $1M for legal compliance like Ethereum did.

So we tried to find an alternative that is more efficient and costs $1.

On one side, we have private investors who want us to be incorporated that costs money and has a lot of limitations. On the other side, we would like to solve this incorporation issue with a help of the market forces.

If at the end a cap offered by private investors who want us to be incorporated is two times bigger in bitcoins than a cap offered by blockchain community, so let it be. It is a fair answer. But in this case we will sell at least extra 5% of equity and will accelerate faster.

Hard Decision

Everybody is telling us:

Anyway you should be incorporated

But why? To be honest, I don’t believe in legal entities. Do you know why? Because I have already invested in 30 lean blockchain projects that do well without expensive incorporation. In some of them I invested some bits. On some I bet. And I could understand the sufferings of founders from Swarm who try to figure out how to automate legal incorporation using blockchain. It seems that they will fail.

I like to invest using bitcoins! It is a whole new thing that has huge potential!

Open Asset Protocol

We don’t need our own blockchain network to issue our tokens. We issued CFUND tokens a year ago on 17 of November in accordance to blockchain! So it seems that today our 1st birthday!

Following the rule:

Do not invent a wheel

we made our choices and though it could be not the best choice but it is good enough for our purposes. We choose OAP in fair competition with NXT, Counterparty, Colored Coins, Coinspark, Omni, BitShares and Ethereum. That is not set in stone but stay for a while.

By the way: 1 year we account shares of a project between ourselves. It just works.

We want to thank Blockcypher: Catheryne Nicholson and Josh Cincinnati. Your awesome API help us to stay with Open Asset technology.

Issuing token is like a magic! You create something that will belong to you forever! You define terms! And you can give that to everybody!

Cyberspace

On more time: Thanks to guys from Proof-of-existence who help us combine a signature feature from Keybase and a notary capability of Proof-of-existence. As a result we have a digitally-signed by 4 co-founders time-stamped documents:

Genesis Agreement

A concise 1 page document that defines cyber•Fund entity. Forget 30-pages long founding pack of documents that requires 10k lawyer to be created and is impossible to understand without 2 bottles of vodka or a pack of weed.

Placement Agreement

It is 2-pages long document with the terms of placement.

Creating these documents we also want to show a simple way that allows to make deals using distributed tools by any internet business without asking any permission from states that enforce you to use their expensive money.

So these two documents are created in Cyberspace and are valid for Cyberspace. Not USA, Russia or China. But Cyberspace that is global and ubiquitous and is here to stay forever.

• If you understood what and how we did, it is cool.
• If you want to understand, don’t hesitate to ask questions.
• If you don’t want to understand, pass by. There is nothing for you here.

Beautiful Innovations

Our new funding page has a new thing in web-design: Dynamic Text.

That is text that is updated in real-time. So simple. But it looks very beautiful and we want all major data on Internet to be updated like this. Look!

FAQ

Are CFUNDs just another cryptocurrency?

Definitely not. cyber•Fund is a private blockchain entity that operates under domain cyber.fund. There are shareholders rights assigned to those who owns tokens specified in the Genesis Agreement. Please, read this 1-page document carefully before investing.

How can I check that you don’t cheat on me with a revenue?

Simple enough! We call it proof-of-revenue mechanism. All revenue addresses will be embedded in site’s code. All code is open source. Check it. So you can be sure that any time somebody sends us some bitcoins for services, money will not pass by. They just simply could not.

Is your entity centralized?

Kind of. Majority of tokens are under control of the co-founders. Like in traditional startups. But tokens are accounted on Bitcoin blockchain using Open Assets protocol. Our code is open source.

The truth is that the domain-based businesses cannot be decentralized as domain names are managed centrally by ICANN, and a business of any internet company is bound to a domain. It is a brand, a source of organic traffic, etc. A lot of operations we do can’t be decentralized. However, once we will figure out — with help of Ethereum, IPFS, SAFE Network, etc. — how to decentralized them we will make the next step! And you will be with us!

But why do you call your service decentralized?

We don’t put our hands on your money. And we want to attract users who will be ready to prove to each other that they own funds and addresses. This approach will allow us to gather data on cryptoinvestments on cyberFund’s platform without dependence on any technology except for public/private key cryptography. So our service will be able to help users with cryptoinvestments in a truly decentralized fashion, but with efficiency that is unachievable for any centralized funds or entities that exist today. You can think of cyber•Fund as fund of funds. If cyber.fund domain one day disappears all investors will stay with the money that they own. Cool! Decentralized, doesn’t it?

Why are you selling so few?

Because at this point of time we don’t want to sell more than 3% of our equity. We already put a lot of efforts and resources in this project and were self-funded for some time. We are quite lean, and our burn rate is modest, but we need to test revenue hypothesis and thus prove that we could be profitable in the long run. So, we don’t want to sell more as we want to earn our own fair share of profits and we want our shareholders to understand that we are here to stay and do business. The best practice for startups in so called pre-seed stage is to find business angels, the guys who give money needed to reach product/market fit. So by this placement we are putting a traditional approach on a new blockchain crowdfunding rails. We want to get money from those who are interested in our product as users, partners, and investors. We believe that you guys could help us to reach product/market fit earlier than any angel from a Silicon Valley.

Why is a minimal investment 1 BTC?

We don’t start this campaign just for money. As mentioned before we want to attract people who are seriously interested in cyber•Fund project.

When will CFUNDs be tradable?

We are not going to do anything to put CFUND on exchange until much later when we will do public offering mentioned above. Remember, that after placement cyber•Fund remains private. However, we cannot stop you from trading CFUNDs if you want.

How long will a private phase last?

We don’t know. To make a successful public offering we need at least 2k+ happy users. Moreover, we need to deliver a prototype of the decentralized investment platform that we want to create finally. According to our estimates, a year from now is a reasonable time-frame. Or maybe more.

I have more questions!

Please, drop us a line on our community forum — cyber•Talks! We are happy to discuss everything about blockchains and decentralized consensus technologies!

Share it!

If you like what we are doing, please, help and share this information with your friends :-)

Let me remember that we would like to get 42 bitcoins!

Read our blog!

It is interesting and will inspire you and maybe one day you will come up with some ideas for a new business in the remarkable world of cybernomics!

For cyber•Shares holders

Special conditions for participants of the cyber•Shares Genesis Sale.

Due to the fact that cyber•Shares as a concept is too early to implement the project has not received the active development and enough support. That doesn’t mean that a project is dead. But it is postponed for a while. All purchasers of the cyber•Shares Genesis Sale will receive a double compensation of their BTC expenses for the cyber•Shares in CFUND tokens at the rate applicable at the time of completion of the placement. Thus, in gratitude for your faith and patience, you will get a 100% profit.

All these procedures should be completed before December 31, 2015.

List of 6 people who invested 0.88 BTC in cyber•Shares on Genesis Sale:

• 15MMKMaXSokvd7p4ngdbCbp6fRKCfxVRYa
• 1BgqAxwBj2QNi37iMaJ3EfCLmKPKQFc9rT
• 1CdPJy6GMG8B6UUaSQZ7fqdH4AK429MtP7
• 17jT4xu3FDhcEK4noCGYo29ZdncPdqQYMz
• 1chBJZsk87g2TyqJTPxNPwWD4iYwuzpEM
• 1NwD2PrwqpAGGhw2TEjawJur5shcXfXKif

Procedure is simple. Send from Coinprism cyber•Shares to akMNeeKE2aXsEuMaUruy9aPhzZzkE8MXEi8 and we will sent you back CFUND at 1 of January 2016.

Tokens that was dropped on NXT do not participate. If you initially bought CSHARES on BitShares (2 holders) please contact me, to settle an exchange also.