Cryptonomos, a solution provider for blockchain-based crowdsales, announced a new venture to democratize mining and making it more profitable with the launch of a new token dubbed WTT, which offers access to the capacities of professional mining facility Giga Watt, designed and built by Bitcoin mining pioneer Dave Carlson. The stated goal is to make cost-effective mining available to everyone.
The WTT token crowdsale will begin June 2, 2017 and continue for 60 days. Tokens will represent the right to use Giga Watt’s facility, which token holders can use to accommodate their own miners or to rent out for others’ use.
The WTT token, which will be offered on Cryptonomos beginning June 2, 2017, will tokenize the right to use Giga Watt’s processing center capacity to accommodate one watt’s worth of mining equipment power consumption, rent-free, for the lifetime of the hosting facility, which is expected to be of about 50 years. WTT token holders will be able to mine Bitcoin, Ethereum, Litecoin, and new cryptocurrencies that could be launched in the future.
In terms of return on investment, this looks like a very compelling value proposition. A press release claims that:
At present estimates, this allows Bitcoins to be mined for less than $500, significantly cheaper than their online purchase price.
“By tokenizing our mining infrastructure, Giga Watt is finally able to extend our huge economic advantage to anyone in the world, large or small, to run their own mining business and be successful by having our expert team build and manage it,” said Dave Carlson, founder of Giga Watt. “This is a move to decentralize the global balance of mining power and put it back in the hands of the little guy. The home miner built Bitcoin, and I want anyone to succeed as a true participant in the explosive growth of cryptocurrency mining.”
Carlson, a software engineer and entrepreneur, founded MegaBigPower, one of the largest single-operator mining facilities in the world, and spent four years as company CEO.
Cryptonomos provides a platform for launching and servicing tokens with customizable structures and model smart contracts that, according to the company, permit to cut down on costs and time at all stages of development of a token-based project. The platform includes a selection of adaptable functions, independent auditing of smart contracts, and assurances of legal compliance and security.
The Giga Watt facility, located in Wenatchee to benefit from low electricity costs in the state of Washington, provides turnkey mining services and custom mining packages. Giga Watt offers a full range of mining services including equipment sales, maintenance and repair, and private blockchain servicing.
“The goal is to offer the participants access to both an exciting new world of technology and the cryptocurrency mining business,” states the Giga Watt website. “From the time of the Gold Rush to this day, infrastructure costs consume the lion’s share of potential profits. And cryptocurrency mining is no exception.”
Giga Watt started to try and reach the audiences outside the blockchain community. The first billboard in Los Angeles, shown in the picture, is intended as a demonstration for people who aren’t into blockchain, loosely based on real facts.
To the question “Why do you need tokens?,” Giga Watt offers a clean and concise answer:
“Market price of 1 BTC $1716.00
$445.53 Mining cost of 1 BTC, for WTT holders”
If you ask me, this sounds much too good to be true: make an initial investment to buy mining equipment and enough WTT tokens to host it at Giga Watt, and keep printing money out of thin air for 50 years… the question that comes to my mind is, where is the catch? I’ll explore further in a forthcoming report.
Picture from Giga Watt.