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People have spent over $1M buying virtual cats on the Ethereum blockchain
01-10-2018, 08:12 AM
Post: #1
People have spent over $1M buying virtual cats on the Ethereum blockchain
https://techcrunch.com/2017/12/03/people...lockchain/
Quote:Launched a few days ago, CryptoKitties is essentially like an digital version of Pokemon cards but based on the Ethereum blockchain. And like most viral sensations that catch on in the tech world, it’s blowing up fast.

Built by Vancouver and San Francisco-based design studio AxiomZen, the game is the latest fad in the world of cryptocurrency and probably soon tech in general.

People are spending a crazy amount of real money on the game. So far about $1.3M has been transacted, with multiple kittens selling for ~50 ETH (around $23,000) and the “genesis” kitten being sold for a record ~246 ETH (around $113,000). This third party site tracks the largest purchases made to date on the game. And like any good viral sensation prices are rising and fluctuating fast. Right now it will cost you about .03 ETH, or $12 to buy the least expensive kitten in the game.

So now we have people using Ether, an asset with arguably little tangible utility – to purchase an asset with unarguably zero tangible utility. Welcome to the internet in 2017.

In all seriousness, it’s a little bit reminiscent of the beanie baby trend where people were paying insane amounts of money for stuffed animals. But if the popularity continues to increase these people may be able to make a return by reselling or breeding their rare kittens, or they’ll be stuck holding the virtual cryptographic keys to a virtual rare kitten when the market crashes in a few days, like eventually happened with beanie babies.

There are a few cool things about the game though, and putting aside the valuation absurdity it’s actually a cool way for beginners to interact with the Ethereum blockchain.

First off, it’s important to understand that since it’s played on the Ethereum blockchain there’s no central entity managing the game. This means users literally own their kittens. Unlike playing Neopets where everything was stored on a central database and your pet was deleted when the company shut down, CryptoKitties is decentralized and will live forever on the Ethereum blockchain.

“There are three classes of people: those who see. Those who see when they are shown. Those who do not see.”
― Leonardo da Vinci
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01-10-2018, 08:36 AM
Post: #2
RE: People have spent over $1M buying virtual cats on the Ethereum blockchain
Anyone own any Ethereum around here?
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01-10-2018, 09:44 AM
Post: #3
People have spent over $1M buying virtual cats on the Ethereum blockchain
I have some.

--I Eat Grits--
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01-12-2018, 08:22 PM
Post: #4
RE: People have spent over $1M buying virtual cats on the Ethereum blockchain
ethereum has been rising the most since the collapse of other digital currencies

i am quite bullish on it, although with so many NEW COINS in the market it's hard to see much upside in the short term

as a concept blockchain will be the future and will be essential for the future police state
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01-13-2018, 06:41 AM
Post: #5
RE: People have spent over $1M buying virtual cats on the Ethereum blockchain
(01-10-2018 08:36 AM)kungfool Wrote:  Anyone own any Ethereum around here?

Got in at double digits.
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01-13-2018, 09:06 AM
Post: #6
RE: People have spent over $1M buying virtual cats on the Ethereum blockchain
This is what you guys are talking about, yes?

https://finance.yahoo.com/quote/ETH-USD?p=ETH-USD

For those of you who own it, what sell stops and/or sell limits have you set?

In other words, at what price would you sell, either above or below the current price?
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01-13-2018, 09:12 AM
Post: #7
RE: People have spent over $1M buying virtual cats on the Ethereum blockchain
Related: signs of crypto mania, reminiscent of what happened in the late 90s internet bubble when companies added "dot com" to their names.

http://investmentresearchdynamics.com/th...ies-fraud/

"The rape and pillage of the blockchain name-change game took on a whole new dimension with Kodak (KODK) this week. KODK was on the way to its second bankruptcy filing this decade (first one was January 2012). On January 9th it announced that it implement a “major blockchain initiative. This “initiative” would use digital ledgers to help photographers license and get paid for their work. The stock soared . . .

Notwithstanding whether or not this “block chain initiative” will ever generate meaningful profits for KODK, it turns out that insiders at the Company filed S-4’s with the SEC disclosing that they were awarded 10’s of thousands of “restricted stock units.” The problem with this? The RSU’s were awarded on January 8th, the day before the “blockchain” announcement was released on January 9th. The timing of this filing is quite curious.

The Company released its Q3 10-Q on November 8th. Revenues plunged 32% yr/yr for the 3rd quarter; operating income swung from $15mm in Q3 2016 to a $54mm loss in Q3 2017. The Company is dying on a vine. Ordinarily compensation stock in the form of RSU’s is awarded at the end of each quarter. The issuance of RSU’s is disclosed in the 10-Q. No mention whatsoever of management or employee stock compensation awards. No mention whatsoever in the MD&A of a plan to incorporate “blockchain” in any part of the business model.

All of the above, in conjunction with the sudden disclosure of large quantities of free stock in the form of RSU’s the day before KODK’s “blockchain initiative” announcement tells me that this was a scheme hatched sometime well after the Q3 10-Q was filed by unscrupulous corporate executives who saw an opportunity to exploit the massive blockchain stock and cryptocurrency bubble.

In all probability, these insiders have likely arranged to hedge the gains on the underlying stock represented by the RSU’s using OTC derivatives underwritten by Wall Street banks. These would be derivatives structured in a way that would escape the requirement to disclose the transaction in an SEC filing. Instant profits on derivative stock that was awarded the day before news was released by the Company – news that upper management knew would send the stock to the moon.

Based on the black and white letter of the law, KODK upper management technically has not violated a strict interpretation of insider trading laws. However, 20 years ago it’s highly likely that, if lawsuits were pressed, KODK’s upper management and board of directors would have been prosecuted and convicted of insider trading.

Fast-forward to 2018, near the end of a stock and fraud bubble that is multiples of the one that occurred with dot.com’s in the late 1990’s, and everyone looks the other way including the NYSE, SEC and Justice Department.

It’s a good bet this “blockchain initiative” will never generate any meaningful profits for the Company. Most likely KODK is headed for a Chapter “22” filing before the end of this decade because bleeding cash profusely and it is mired in large pension and debt liabilities.

This is an example of the blatant fraud and corruption that accompanies the top of stock market bubble and the collapse of a political and economic system. The blockchain and cryptocurrencies will not revolutionize life as we know it nor will they generate real economic wealth for anyone other than those in a position to exploit the greed and fear of missing out of the idiots who buy into the fairytale."
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01-14-2018, 09:00 AM
Post: #8
RE: People have spent over $1M buying virtual cats on the Ethereum blockchain
wow
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