Coin Advisors founder Andreas Achleithner posted a new video on the BTCBusinessconsult Youtube channel on October 17, providing exciting updates on the HydroMiner project, and its recent ICO launch.
HydroMiner token update
Opening with the much anticipated HydroMiner ICO launch, Andreas shared that participants who joined in the first week would benefit from a 20% bonus on H2O tokens, sold at a base rate of 100 H2O tokens per 1 ETH.
He then touched on the main update to the tokenized model of HydroMiner, which has changed from a previous direct profit-sharing model. HydroMiner has now established the H2O token as a voucher issued to represent mining time credits. In other words, 1 H2O token will be redeemable for 5kWh worth of mining power for 24 months.
In order to perform the redemption, H2O token holders must first register on the HydroMiner platform. Once registered, they can then redeem the H2O tokens for mining time credits, representing a share of mining power on the HydroMiner mining farms.
Payments will also be credited to the HydroMiner platform, where users can request withdrawals to their own wallets, while viewing their transaction and redemption history.
Early supporters of the project will also be pleased to know that their token bonuses will continue to apply for every subsequent redemption made once their 24 months were up, up to the full value of their initial token purchase.
As H2O tokens are now the only way to obtain a share of HydroMiner mining power, Andreas believes that there will be a great demand for H2O tokens. With only 25 million H2O tokens available during the ICO, scarcity will drive up price, so token holders can also opt to hold and sell them on exchanges. No further H2O tokens will be issued until the new hydro stations are operational.
Ongoing work towards full compliance
Driving this token change is HydroMiner’s commitment to operating a business that would be fully compliant with all relevant Austrian financial and market regulations. As HydroMiner is not offering securities, the previous dividend-sharing model was not possible. Other updates in this area include HydroMiner’s recent incorporation as a Limited Liability Company (GmbH) in Austria.
Other updates
Andreas further revealed that HydroMiner has a team member in place in Southeast Asia to help manage equipment supply from that region. HydroMiner also has a new profitability calculator to help users make profit projections based on token redemptions.
All the latest technical information is also reflected on HydroMiner’s updated whitepaper. To stay abreast and participate in discussions, users are invited to join the Telegram group.
Click here to watch Andreas’s video now.
https://www.youtube.com/watch?v=7BbtZGTqa0o
Below is the full transcript of the video, edited for clarity:
My friends over at HydroMiner asked me to post another video on what’s up with the ICO, how the tokens have changed, what’s going on with the incorporation, some of their products, their advancements and the changes that have been happening overall. I’m very excited today to partner again with HydroMiner to bring you guys an update about one of the coolest ICOs I’ve seen right here in the beautiful country of Austria. So, let’s jump right in.
As you are aware, the ICO will start tomorrow, which is the 18th October. If you whitelist and then join the ICO in the first week, you will get a 20% bonus. This means that if you buy 1 ETH worth of HydroMiner tokens or 100 H2O tokens, you will get 120 tokens, which is a very nice bonus.
You guys might know this from Telegram, but one of the changes that they did which is very exciting is that if you whitelist and contribute, for example, 10 ETH, you will get your 10 ETH worth of tokens plus a 20% bonus. And then, once you turn those tokens into a mining contract, which I will get to in a minute, you can use that same 20% bonus every 2 years to activate new mining contracts. And they’re going to be doing this for as long as HydroMiner’s in business. So if you get in early with the bonus, every two years when you sign up for new mining contracts, you’ll still get that same bonus no matter what the price is.
Let’s talk about how the tokens have changed. The model used to be that if you held H2O, you would be entitled to a share of the profits, which was 80% of profits. However, in order to comply with Austrian regulations and the new regulations coming up for cryptocurrencies here in Austria, they decided to change that model. Instead of having a profit share by holding tokens, you will now be able to do one of two things.
The first thing you will be able to do is to convert your H2O tokens into a mining contract. And the changes to the contract that they made is that it’s still going to be a share of power from their hydro stations so it will be 5kWh per token for a 2-year period. So you will get 5kWh worth of mining profits from the entire portion of the mining farm directed to you per token. It’s kind of the same model used previously; you’re still buying power. So for example, if there’s 100 kWh available and you have 5kWh, you would have 5% of the total mining output.
They don’t sell hashes or equipment or anything like that and we’ll touch on equipment in a minute. But the reason why they’re selling power is that power stays more profitable for longer because they’ll be continuously updating their equipment and getting the most efficient miners when they become available.
If they sold equipment – and this just came from Tobias as I had a conversation with him a minute ago – they would have to charge VAT (value-added tax) and this would make the individual investment for a person to join the HydroMiner project would include buying or leasing a piece of equipment, so you’re looking at probably $1,000 to start. Then you get VAT and KYC. So they wanted to skip that model and stick with power. So your H2O tokens are going to be exchangeable for 5kWh worth of power from the HydroMiner stations for a 24-month period. At the end of those 24 months, you will be able to buy another contract.
What else can you do with these new tokens? You can hold them and you can sell them on an exchange. As I mentioned, I was just talking to Tobias and he let me in on a little something I’d like to share with you. You have 2 options, as discussed. You can turn them into mining power or hold them.
They’re in the first stage of their ICO and they’re going to sell 25 million H2O tokens. And once those 25 million tokens are gone, you will not be able to buy more mining contracts because you have to buy contracts with tokens until the next power stations come up and they have more tokens to release.
So, if everybody has their tokens and they turn them into mining contracts, they will be no tokens to buy. However, because of the demand for tokens, you will be able to sell them on an exchange. So you could convert, for example, half of the tokens from the ICO into mining contracts and then you could hold off onto the other half of your tokens to sell on an exchange. Because they’ll be such a high demand for the tokens and the supply will be low, the price will go up. So that’s a good way to speculate: you might be able to get some profits by holding on to your tokens and selling them to someone else. Only when the next power stations come up will they have more tokens to release.
As you’ve probably seen, they’ve been posting some pictures of their new miners. They’ve got a new team member down in Southeast Asia making sure everything’s smooth so they always have a nice supply of equipment coming in, making sure the process works to give more value to you guys. They just incorporated in Austria – officially it’s called a GmbH, which basically means Limited Liability Corporation so these guys are serious.
I know a lot of people are like “Oh, they slowed down the ICO” and stuff like that but you’ve got to think in context. They slowed down the ICO and they put a two- and three-week break on it in order to stay ahead of regulations. They wanted to be compliant and one step ahead of the government in the sense that they didn’t want to do an ICO, promise a whole bunch of things, get going and then have the government say “Hold on, we need to take a step back and look at this”.
They hired a great lawyer who was able to help them and they got everything sorted out. So the tokens have changed from a dividend model which is a security, to a point of power that you can exchange for contracts.
If you go on the website, they have a really handy calculator that you can look at. You can say, for example, what if I buy 5,000 H2O tokens, what happens over the course of 2 years, what kind of ROI (return on investment) can I expect, what kind of payments can I be getting out… they thought of a lot of stuff! Will you mine Bitcoin, Ethereum, Zcash and a few other things? It’s on the website, you guys can check it out.
The new whitepaper they just released is really professional. It lays out all the changes. Yes, change is a little hard, it can be frustrating sometimes but they took the time they needed, they did the changes, they made it right. Going forward, they were always going to be compliant with anything that the government comes up with and they’re still scheduled for their February 2018 start. So in February 2018, you will be able to take your H2O tokens and turn them into mining contracts to get 24 months of monthly payouts.
How are the payouts going to work? The payouts will have a centralized platform on HydroMiner. So what’s going to happen is that you’re going to have your account with your mining power. You’ll be able to see when it started, how much power you have, your payouts etc.
You will go on to HydroMiner, log in to your account and then you will take the funds from the account, transfer them to your Bitcoin wallet if you mined Bitcoin, to your Ethereum wallet if you mined Ethereum etc.
You can know that if it’s from HydroMiner, it’s going to be slick, it’s going to be easy to do and it’s going to work. So that’s the main gist of all the changes that have gone on recently. Again, they reached out to me and said: “Hey, you know what, Andreas, we really appreciate working with you before and we wanted you to make this video”.
This is the most up-to-date information about HydroMiner. Make sure you go to the website, get registered because once you get whitelisted and get the bonuses, the bonuses will continue every 24 months at their business. Every time you get a mining contract, the same bonus will apply up to the amount you put into the whitelist.
These changes are very positive, the team did the right thing by slowing down, taking a step back and then making sure they complied with the regulations and they got incorporated. I’m excited to see the future of what they’ve got going on. Oonce everything starts and the new power plant is up and running, I’m going to go and check it out, make some videos, so that you guys can see that they’re putting their money where their mouth is. They’re buying equipment and they’re bringing a quality product to you.
So let me know in the comments below what you think about HydroMiner. If you haven’t joined their Telegram, make sure you do from their website. Nadine, Tobias, Christian and all those guys, they are on top of it, answering questions left and right. They’re a very professional team. I don’t post very much but you can be assured I’m reading it and staying up to date with HydroMiner.
I hope this video helped you out. Thanks so much for watching, I really appreciate it. And again, thanks to HydroMiner for partnering with me to bring you guys the most up-to-date information on their project. Stay tuned for more great stuff from HydroMiner and greetings from Austria.
