Crowetic released his asset titled "WorldMine" at the beginning of the year. Although I don't own any now, when it first came out I grabbed quite a few at the price of 90. The first few dividends seemed pretty good, but I very quickly realized just how under performing the asset truly was compared to its promises. I sold my shares at a small profit and am happy I did not get stuck in that asset. Today I am going to analyze how big the dividends currently are compared to how big they should be using the money received from the asset sales. I am going to give Crowetic every benefit possible during this calculation.
First lets look at what his latest dividends was: 180,000 burst total on Tuesday, April 25th, 2017 to 940898 shares which is the entire asset.
We will use this number as his weekly money production and the number of shares as the amount of money he received from this asset.
If we say that he sold all his shares at 90 (He actually sold many at 95) there would be a burst total of
90 * (940,898 - 100,000 for Crowetic's running fee) = about 75,000,000 burst to purchase equipment for farm.
How much money is 75,000,000 burst? Well we have to go back to January and see how much burst was worth at that time. According to Coin Market Cap, a good average I would say for the price of burst at that time would be $500 per 1,000,000 burst. So that makes the total money for the farm to be about $37,500! That is a lot of money!
Now how much mining power could you get with $37,500? I currently own a rig for my own mining that has 5 Msi Rx 470s and hashes at around 145 MH/s on ethhash. I spent a grand total of $1,175 on the rig. I will use these number as my benchmark to judge his asset's performance. This is also the first gpu mining rig i have built so i think it is fair to use it against crowetic's asset because he is a "pro" at gpu mining. Knowing that I found a couple of great deals for my rig, I am going to act like I payed $1,500, 25% more than I actually payed for it! So with that number, Crowtic should have been able to buy
$37,500 total/$1,500 per rig = 25 of my styled rigs.
Now how much does each rig make? Well with 25 rigs, you should be able to have an ethhash hashrate of
145 MH/s per rig * 25 rigs = 3,625 MH/s ethhash
Using WhatToMine we calculate that this hashrate would make a total of $330 a day mining ethereum without electricity cost, but we will give crowetic the benefit and say each rigs is only making $10 a day or $250 a day without electricity. We do not need to include electricity cost because according to crowetic "The investors into the asset will not be paying for running costs, that will come from the owner's portion." So with this said, every week the payout should be around $1750
Using the price of burstcoin on Tuesday when Crowtic made his payout, about $2200 per 1 million burst, We calculate that the payout should have been around $1750/$.002200 per burstcoin = about 800,000 burstcoin! This amount is hilariously off the amount that gets payed to it every week, over 4x more!!! It is almost like only 30% of the funds were actually used for the asset! So the question is where are those funds going?
This asset currently has medium volume sell orders at around 70ish, already 25% down from the original asset issuer sells, but with this calculation it really should be trading at 20-30.
If you see anything wrong with my calculations I am completely open to correction.