FunFair's August Update Shows What High Quality Project Reporting Looks Like

in coinfund •  2 years ago  (edited)

FunFair, the Ethereum gaming project, released their August update. It's notable not only because it lays out that they will will be burning many of their unsold tokens, listing on more major exchanges or any of the usual short term reasons that people use to pump a project and not only because it shows that the project's tech and games are ahead of schedule. No, it's most notable because this is the most thorough and comprehensive update I've seen from any crypto project. It compares favorably to the details and color I get from MD&A sections from companies in regular capital markets. It some places, it's arguably superior. Other projects should read through this form and follow FUN's lead.

Examples of what I mean

Jez San shares FUN's entire thought process behind their treasury management to date as well as their current liquidity. We have had multiple hundred million dollar ICOs who couldn't bother to outline their treasury mgmt policy before taking money from investors, but here FunFair goes into great lengths to describe how they have and will steward the $26mm that they raised. Sample:

In general we think we’ve optimised the sale of our crypto holdings and sold at close to and in some cases above the prices set at the time of our token event. We have yet to sell any of our ETH holdings as we think it will rise further over the coming months, with some major milestones being the Metropolis release, Devcon3 and other exciting infrastructure developments like Raiden and Plasma. Also, some big token sales (Bancor, Status, Tezos, EOS) are out of the way and there appears to be a bit of calm as smaller token sales have become the norm this last month or so.

Almost all of our costs are in fiat – salaries, rent, hardware, legal and professional advisers etc – so it’s important for us to maintain a healthy fiat cash balance.

As of today (31 August 2017), we’re holding around $6m USD in cash (mostly in Euros) which will keep the lights on for many months. At our current size it would last more than two years but we’re rapidly expanding our team so the monthly burn goes up. At all times we intend to hold at least six months’ runway in fiat and will continue to sell our crypto assets as needed, or whenever there are good opportunities to sell well.

Separately, FUN actually outlined their legal org structure, including where the IP sits and how things connect. This type of color is tough to get clearly for regular companies; getting it for a crypto company is phenomenal. A+.

We have a top co in Singapore called FunFair Private Limited that created and issued the FUN tokens and sold them in the initial token presale. Singapore is a blockchain-friendly but not gaming-friendly jurisdiction so our Singapore HQ remains solely a holding company and investment vehicle and not a trading company. FunFair Private Limited owns foreign companies that invest in and execute IP licensing of the games and technologies. FunFair has several middle co’s that hold IP, contract work out and do licensing. These are in Malta, Gibraltar and Guernsey, all gaming friendly jurisdictions. We have a bottom co in the UK that does actual development work under contract for the middle co’s and does not do licensing or any other function. We may have other dev co’s in the future.

We believe this corporate structure serves our needs, is flexible and adheres to local laws and regulations. We continue to fine-tune to get best results and stay the right side of regulations, despite being bleeding-edge on the legal front of both blockchain and gaming, so we have to maintain continued legal advice in those areas especially well.

The rest of the document explains and guides in great detail what FunFair is doing and will do with respect to their tech, their products, their goto market, their crowdsale and more. I encourage people to read this to see what type of reporting and disclosure they should expect from crypto projects they have invested in. FunFair has raised the bar and led by example.

Disclosure: I always have a lot of FUN.

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thanks a lot for the summary. Funfair showed already many times that they are pioneering the space. Please continue.

A crypto project setting an example of how transparency and communication with the community should be done, and a Steemian setting an example of how this should be reported and acknowledged! High-fives all around hahaha.

It still blows my mind to think that crypto has reinvigorated a kind of maker-space where small teams of developers can sit down and turn a hackathon project into a multi-million dollar business founded on bleeding-edge technology. It's a paradigm shift towards decentralized, community-oriented, transparent projects where everyone wins and projects succeed on merit & true value. Looking forward to telling my future kids "I was one of those crazies that owned cryptocurrency in 2013!"

Jez also gave a good presentation at Ethereum London in June. A working demo that looks good is always a strong start. Unlike many projects in crypto he is one of the few with a solid background, a clear direction, and a good understanding of the technology. At least that's my opinion from what I can see. :-)

I bought some at 3 cents because it is extremely undervalued. Missed out on the recent sale when it dropped again to 2.5c :-/

Interesting. I've been on Bittrex with some friends. That can be almost like a casino at times...

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Haha very true

Wow that is detailed!

Project cryptocurrency is very trend now, with cryptocurrency creating lots of new jobs
but the main key is capital
So I want to hire a delegate from you, are you willing @eeks

I need some fun between two crypto trades :) I t looks a grate project!
Fun is needed for life!

Nice post. Resteemed.

nice post

I've been buying funfair 🙌🏼🙌🏼

Lol....you are unbelievable buddy.

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  ·  2 years ago (edited)

Instead of doing whatever you're doing here and not curating, why don't you use the Steem Power whale status you've earned and curate good undervalued content like the film content @namiks @irime and @nandan are creating and the comic content @thebeesknees is producing. They need patronage from whales and it would help you get your voting power below 100% and earn more curation rewards. Help make Steem a destination for good film content. Forward.

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I'm not overly interested in making additional rewards for myself...I was offering most of my power as patronage. Sadly, accounts like yours forced me to reconsider and power down, necessitating the end of that patronage. So please, stick your advice where the sun doesn't shine. I guess by "forward" you mean largely for yourself. Well best of luck buddy. I wish you all the steem in the world.

Good points in this post. Interesting to see I'm not the only one that is thinking about this. The decision to buy a coin should be based on real analysis of the coin. I found that people keep buying coins without have any knowledge of them. This is considered high risk. Do you know this interesting site? https://www.coincheckup.com I'm using this site that gives in depth reports on every tradable cryto in the market. See: https://www.coincheckup.com/coins/FunFair#analysis For a complete FunFair Detailed analysis

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  ·  2 years ago (edited)

🗅