RE:This bothers meHi Mr. Fordster,
I just glanced through the White Paper. You are correct. Cunningham can dilute at their whim and there is no clear cut formula on what gold is backing token.
But you know what is even worse?
Cunningham has diluted the token already! They issued themselves 810 million tokens and antoher 90 million to Cunningham Natural resources! Whaat?
So if they succeed in raising the $60 million with a sale of 100 millioin tokens at $0.60, the day after the close there will be 1 BILLION TOKENS oustanding. 90%, or 900%, dilution on day one depending on how you look at it!
Who in their right mind would ever buy this token?
Serious question for the board: Would you buy the Nugget Trap token based on above?
fordster wrote: ...and it would stand in the way of me buying a token....
"The exact amount of gold backing each Nugget Trap Gold (NGT) token by Cunningham Mining isn’t specified in terms of a fixed weight of gold per token. Instead, the tokens are backed by a combination of in-ground gold assets and physical gold from the Nugget Trap Placer Claim. This means the value of each token is tied to the overall value of these gold assets rather than a specific quantity of gold per token."
...It's as silly as having a token backed by the dollar as it voids out its security purpose. Cunninghams token is like buying a stock that can be diluted out.
If I'm wrong, please educate me as I'm more than willing to learn. I'm really hoping this falls through...but will be at peace if it happens.