Ice Rock Mining completed its second live question and answer session with investors and those interested in the ICO. The live chat was held and YouTube streamed on April 22, 2018.
The chat began with 55 people who joined the YouTube chat. The CEO Malik and manager Dias began answering prepared questions from the Ice Rock Mining community and then took live questions from people in the chat.
This article can be read in a few minutes summarizes the first 40 minutes of the live question and answer session where prepared questions were answered by Malik and Dias. The article is also good for those who want to save bandwidth or do not have good bandwidth to watch the entire posted video.
Dias and Malik answer questions during the second live Q and A session held April 22, 2018.
Prepared questions from the second live Q and A Session with Ice Rock Mining
Note that some answers are paraphrased so the Ice Rock Mining team should not be held accountable if I have interpreted the questions or answers incorrectly in this summary.
This summary in not intended to be a verbatim transcript of the answered questions.
Q. How will tokens be burned if the hard cap is not reached?
A. We have in our smart contract that uses a special function which can be used to burn the coins. As I know our Technical Director has done it (has tested it). When the ICO is finished we will burn them, there will not be 21 million tokens but there will be less, for example, maybe only 18 million. You will see this information on the block chain – so the total supply will be less than 21 million after the burn.
Q. How much taxes will Ice Rock Mining pay and will it affect the profit of investors?
A. About the taxes from Ice Rock Mining profits, you know we don’t pay any taxes from the profits because Kazakhstan doesn’t have any legislation on how to pay the taxes and nobody has correct legislation or laws about this on how to distribute profits of crypto currencies. It is a very big question and at this moment we don’t pay anything and the government doesn’t say anything about it or have any legislation according to taxes on crypto currency. They may have these in the future but at this moment we don’t have it. And they don’t plan any in the future.
Q. If the mining gets banned in Kazakhstan will the profits get reduced since electricity and other costs will be higher?
A. We really don’t know but this question should be divided into two parts. First, if mining would be banned in Kazakhstan then we will move to another place. We have a backup place and really looking at this but we don’t have any plans to move there… but we do have it as a backup. As another part of the question know the government and electricity companies can’t increase their rates because for poor people it would be very expensive and they won’t have a chance to pay for it that is why I don’t think it will happen. It would be a big event to increase electricity costs in the entire country. Lots of other people are dependent on electricity not just our mining.
Q. If Kazakhstan bans mining where will the company move its operations?
A. This was just answered. There are several places and Ice Rock Mining already has one back up site; however, we do not think it will happen. In one of the previous videos we spent 30 minutes explaining about the (potential) mining ban in Kazakhstan.
Q. What happens if BTC does not recover in time for purchases of miners will we wait? Will this issue be discussed with investing community?
A. Of course we will talk about this with the community. I think it is our obligation to talk with community and we will make a decision together.
Q. What will be the listing price of ROCK2 tokens on the exchange’s after the ICO?
A. This is a very good question I think that you’ll see the token price start likely around $2 USD. It’s a free market so it can go up or down, the price will depend on the supply and demand but definitely we plan and think it will start from two dollars. We are not going to create more batches of ROCK2 tokens, after the ICO, so we will burn the rest of the tokens and only people who have tokens will be able to trade them. It means that the price will be likely higher than two dollars when listed but we will see. The market will show the true price.
Q. Can we put the ROI in Ethereum as well?
A. I don’t know what to say about this as we put the ROI (return on investment) in Bitcoin. We calculate everything in BTC and it depends on the price of it. The conversion to ETH is just a way of payment.
Q. In your organizational chart Prime Rose Hill Capital is in the UK?
A. The question is in the company structure with Prime Rose Hill Capital that is a Kazakhstan company and someone has googled it and showed the company has some legal entities in the UK and they are asking for a link to the website of the Prime Rose Hill Company. Prime Rose Hill Capital is a part of the Cashes Green Capital LLP and those two companies are linked. So Prime Rose Hill Capital will have all the operations in Kazakhstan while Woodland Networks L.P. Northern Ireland is the company that will invest money in Prime Rose. It is better for our company structure because your investments will be safe in Kazakhstan and it is a better structure for any taxation in the future. Also, it is a very good way to put the money in our Kazakhstan company because you can’t just take money from cryptocurrencies and put it into a company. It is wrong and difficult in an accounting way and for taxes and other things. That is why we have built the structure with the northern Ireland company for investors who were investing money in a Kazakhstan company. It is better for the company and its organizational structure.
Q. Malik Murzashev and Dias Kurmanov were interviewed by CNBC what happened to that video?
A. I don’t know they never released it so we gave the interview but they didn’t release it. I didn’t find it online. This is a very good question I think we need to write to them. We gave them the interview when we were in Dallas, USA in March. And they promised us they would release it but I didn’t see anything about it.
Q. Does ice rock mining consider dividing the risk by buying miners from different companies?
A. Yes, we can do it this way but at this moment is a very difficult question because we are not on the edge of buying miners as we are waiting for better options. At this moment if we were to buy miners from say two companies that each release two different miners then we will go with a better one. Maybe we will mix them for an investment option but we will see. It’s not in our interest to buy bad (or obsolete) miners with low Terra hashes and poor efficiencies and power consumption.
Q. Can ice rock mining throw a party in Kiev, Moscow or Istanbul after operating for all investors to join?
A. Yes we have some plans to do this eventually but at this moment we are especially focused to make the project as good as possible. To have a party is a good idea and to spend money but at this moment we must be professional and keep doing what we are doing. When we launch the firm then definitely we can do it A party only after the job is done.
Q. Did ice rock mining take hedging measures to ensure enough money for ASIC purchases?
A. This question might be related to the soft cap. Whatever money we raise (from the ICO) we will use for buying mining rigs. In France there is a saying, “droit au but” (forward to the goal). There is “no stepping back” we’re only going forward with the miners.
Q. Can you tell what is going on with the audit are you ready for the audit to happen are you taking any measures?
A. We already talked about the audit. First, It is difficult as there are no other companies that are making audits of cryptomining companies. Second question is do we need to pay them? And if we pay them can we say to them what to do (there could be a perceived conflict of interest for helping to direct and paying for a review or audit). I don’t see any company in the market that can do an audit of us and say those guys are doing it wrong or right.
There are some websites ranking and reviewing ICOs (not technically an audit), they rank by four or five stars. Some websites will ask for money for higher ratings. Ice Rock Mining does not pay for higher ratings on these ranking sites.
Q. How much BTC and ETH are raised?
A. This question is always asked and this is confidential.
Q. What kind of import customs duties and taxes are required to put miners in the cave?
A. This question is already answered, there are no taxes. For import, duty and customs: On customs this charge is 5% from the price of the miner and there is a 12% VAT tax.
Q. When will Ice Rock Mining install solar panels?
A. We don’t need solar panels as we already have a very good price for hydroelectric. If Elon Musk comes to us and wants to build solar panels with batteries we will not refuse.
Q. Will there be a minimum amount needed for payout to not waste ETH?
A. I don’t know about this question we need to check with our Technical Director. As I know it there is no limit on the smart contracts. The only limit is the transaction fee of the mined amount – if the mined amount is the same as the transaction fee then the payout would be zero. We will check this with our Technical Director.
Q. Similar mining ICOs are reinvesting 23 to 25% while IRM only reinvests 20% with this information are we going to equal reinvestment to match competitors?
A. Good question about competitors. IRM was the first to do reinvestment and started to promote the reinvestment option. We see a lot of copies of IRM now. About the 23-25% value, we will not change our model from 20% because we have already established this. May be on another ICO we might change this reinvestment. For IRM 20% should be a stable figure as we will not change it as it already covers the increasing mining difficulty and growth.
Q. How many months emergency contingency reserve can keep the mining operational? Is there a plan to keep reserve funds for at least 12 months of operation so we can have a surplus and keep ice rock mining in the game?
A. I don’t know about this question. We will not keep funds for emergency we do not collect investors’ money since we mine and we take 50% as payment and use 20% of reinvestment every month. We will not collect half year’s worth of money payouts. (Dias added that this is a good idea to have a small emergency fund for replacing several miners, but such a fund would be small)
Q. The money not used in the 20% maintenance to consider using that for other areas, will it be added to or split with other areas?
A. We already talked about the money division, we will see what will happen with the 20% on a scale but it may be moved to profit or may be moved to reinvestment. It doesn’t matter to us, we will decide what to do once we have the figures but definitely if the money goes to reinvestment or profit its good. We’ve made note of this.
Q. About the new Swiss miners after personal research I found that the company is only six months old with low capital also in their address are 2 other company URLs not related to cryptos. Did Malik already visit them personally to make sure they area 100% legitimate?
A. No we didn’t visit but we had a couple of Skype calls with them and we are not running out tomorrow to buy those miners because we are keeping the interest of the investors in mind. We are being conservative. It is not our money, it is the money of the investors of the people. We trust Bitmain, Yabank (?) or Bitfury those companies have a good record. We are also talking with smaller companies and if we were talking with them it doesn’t mean we give the money for miners. When we find the right company we will go to their warehouse to see how everything is working with the Technical Director to check the miners to see how they are working with real figures and not some figures written in a PDF file that was sent by someone promoting their mining rigs. We want to see the real miners and their hash rates before we would buy.
Q. Do you consider making a voting booth for foreign investors to make important decisions?
A. Yes, we are doing it in the telegram channel right now it’s a very good idea. For example, if something happens with the SHA algorithm we would speak with the community as it is the people’s company,
Q. Other mining ICO’s are going to pay and re-invest on a bi-weekly or weekly basis, this means their hash power will go exponentially while ours will be the same for the whole month – have you considered changing the payment and the investment to be bi-weekly or weekly?
A. If they have experience in the mining area and are planning to do it weekly I don’t believe these people can guarantee they can do weekly. When you receive the miner it takes time to install. You have to deliver this miner to the warehouse, it also takes time it takes about 10 days, minimum, just to deliver it after paying taxes-customs and then install it in the farm – so weekly I think it’s impossible. For us definitely it is something to consider we do want to make ROCK2 as fast as we can because we have another project which we want to happen that is why ROCK2’s success is very important to us and about the bi-weekly definitely we could do it for the payments but for re-investments it takes about two weeks, definitely we are very interested to do this faster. As a team we get 10% revenue from the mining farm so it’s good for us to have (buy and set up) more miners.
Q. Previous Q and A Malik said he is open to have an external audit of ice rock mining what are the possible terms?
A. This question has been answered (previously).
Q. In telegram ROCK1 there were payout from mining a week ago investors received them but it was is 1.3 (times?) less than expected, Can you explain was it other than the final profits of the S9 or technical team had delays with installing so the full hash power was installed little bit later?
A. Have patience we are waiting for the official answer from our Technical Officer I don’t know the answer I think it is the late installing. Several miners were installed on successive days. Don’t worry about this as soon as I get an official answer from the technical officer will publish it in a telegram chat and social media.
Q. Any news about new ASICs?
A. We know that the S11 is working now and will be released in May.
Q. When you start mining and paying people?
A. At the end of July 2018.
The prepared questions are finished
The entire video can be viewed here: https://www.youtube.com/watch?v=tW-BuXcFrjo
For more information:
Ice Rock Mining website: https://icerockmining.io/en.html
Ice Rock Mining whitepaper (available in several languages): https://drive.google.com/drive/mobile/folders/1wgCA7H7Ob1QfZG5Z3c-8bND43ansH7t5
Social Media Links:
Bitcoin talk forum: https://bitcointalk.org/index.php?topic=2781356.new#new