Over the past few months, nearly all digital currency cloud mining services have been taking huge hits due to the declining Bitcoin price. With a lower Bitcoin value comes a greater, ifn ot impossible struggle for cloud mining operators to remain profitable, and a new course of action has to be decided upon relatively quickly. However, it is not all doom and gloom in the cloud mining world, as GetHashing raised US$100k in one week by selling colored coins through Coinprism.
GetHashing Crowdfunding Campaign
The idea of a crowdfunding campaign for a cloud mining company so that they can buy additional mining hardware sounds a bit strange at first, but once you give it some thought, you will start to see the logic behind that idea. Such a crowdfunding campaign would serve two purposes : the company has additional funds to buy more hardware, and the crowdfunding ‘backers’ receive something in return. In this case, every backer received colored coins called “GHX”, each of which is backed by a “tangible” asset in the form of 10 GH/s.
While 10GH/s is next to nothing when comparing it to the overall Bitcoin network hashrate [which sits at 325 PH/s – or 325,000,000 GH/s] , backers of the GetHashing campaign receive something in return. What may strike people as odd is the price tag of US$4.20 put on each GHX colored coin during this campaign.
Other Bitcoin cloud mining services such as Zeushash (US$3.65 for 10GH/s) and Genesis Mining (US$4.9 per 10 GH/s) have vastly different rates, depending on whether or not there are any additional fees involved [Genesis Mining does not charge maintenance fees, yet Zeushash does]. Similar to ZeusHash, GetHashing also charges a daily maintenance fee for their cloud hashing service, equal to US$0.0014 per GH/s per day. Said fees will be deducted from your daily earnings.
All of the revenue generated from the additional hardware will be paid out to GHX coin holders, visible on the blockchain on a daily basis. But that is not all, as Gethashing added another incentive for backing this campaign. Investors who hold 115.5 GHX coins or more are eligible to receive a mining unit in the form of a Bitmain Antminer S5. Do keep in mind that your miner will be hosted by Gethashing during the first 90 days, and secured hosting plus maintenance fees need to be paid in advance for this 90-day period.
The original plan was for Gethashing to sell 25,000 GHX colored coins [in their first batch] and raise US$100,000 in funding to buy the additional mining hardware. That goal has been reached quite easily, and it didn’t take a full week to do so, which is rather impressive in its own right. All purchased GHX colored coins can be exchanged freely on the Bitcoin blockchain.
Colored Coins & Coinprism
GetHashing’s crowdfunding campaign was made possible by using Coinprism’s “virtual vending machine”. This “virtual vending machine” makes crowdfunding really easy, for both investors and companies alike. Investors had to send their Bitcoin to a specific generated wallet address, and once they did, the right amount of GHX coins was issued to that person automatically – depending on the incoming Bitcoin amount of course.
Unlike other, more traditional crowdfunding platforms [either related to digital currency or otherwise] only minimal fees had to be paid for participating in the Gethashing crowdfunding campaign. These fees are called “miner fees”, and have the exact same cost as regular fees when sending a Bitcoin transaction. However, Coinprism’s “virtual vending machine” truly stands out because of this zero confirmation policy [which is also protected against double spend attacks]. More information about the “virtual vending machine” can be found here.
One other main advantage of using Coinprism for crowdfunding campaigns is the fact that their “suite of offerings” allows campaign owners to easily issue dividends. All mining revenue generated by this additional hardware will be distributed among people who backed the campaign, and Coinprism makes this operation far less tedious than it would be otherwise.
For those crowdfunding campaign backers who wish to store and/or trade their newly acquired GHX on their mobile device, Coinprism offers a solution in that regard as well. The Coinprism mobile wallet [which is available for Android users] lets you take your Bitcoin and color coins with you wherever you go.