Dear Friends and Colleagues in the Das Community,
This communication will be focused solely on the STORC project, the first project of the Das33 platform. This message carries the most recent information available about the STORC project, including content shared during several phone conversations I had this week with Greenstorc CEO Paul Flynn. Nonetheless, since a joint statement proved too difficult to coordinate in time for publication today, I want to make it very clear that the following are solely my views on the STORC project.
From the start, the Das community has been very enthusiastic about Greenstorc. We liked everything we heard: great concept, great management team, and great progress right from the start! Greenstorc was primed for success and just needed the resources required to take them to the next level. The premium token was a perfect match for Greenstorc, and we quickly agreed to work together to create STORC, which we hoped would become Das33’s first premium token.
An Amazing Start
On September 7th, the STORC project got off to a wonderful start! Over the course of the next 60 hours, the Das community successfully completed the Pre-Sale by pledging €1.5 million in DasCoin. The opportunity attracted over 1,500 pledgers within our community at an average pledge of just under €1,000 in DASC. The Pre-Sale was quick and smooth. We were on our way!
Unfortunately, just two days into the Pre-Sale, our community was hit with the tragic news that the Chairman of DasCoin’s Board of Directors, Anna Hejka, had unexpectedly passed away. This was a shock that deeply affected me and many other people within our community. As we mourned Anna’s death, it became a struggle to properly launch the first round (following the Pre-Sale) of the STORC project. The communication strategy about this project (especially to the outside community) was not given enough attention and the onboarding within the DasWallet was more difficult than it should have been. The result was a very slow start to the €1.5 million first round of the project, and a severe loss of momentum.
Crypto Winter Set In
As we struggled to get a grip on the communications strategy and improve the onboarding process, the entire crypto industry began to suffer a significant collective decline in value. This so-called “Crypto Winter” reflected a profoundly negative shift in global sentiment around cryptocurrency. With crypto out of favor and DasCoin and other cryptocurrencies at historic lows, interest in the STORC token waned.
Where We Are Now
So let’s summarize where we are: to date, nearly €2.3 million of digital assets has been pledged to the STORC project. This means there is still over €700,000 needed to reach the soft target of €3 million that was announced in the STORC White Paper and another €2.7 million in pledged assets will be needed to achieve the hard target of €5 million in digital assets.
What Happens Upon Issuance of Tokens
Provided the soft target is met at the time of the project deadline or directly following the achievement of the hard target, the STORC Tokens will be issued to each pledger in accordance with the resources pledged. The pledged resources will then be released to the company in the form they were received when pledged (DASC and BTC).
What If the Soft Target Is Not Reached?
If the soft target of €3 million is not reached by the project deadline, then all of the pledged resources will be transferred back to the respective digital wallets of the pledgers. It’s important to emphasize that this will be a return of exactly the assets pledged (DASC or BTC) and NOT the Euro equivalent of what was pledged at its value at the time of the pledge. It is also important to note that the pledged assets are being held for the STORC project within our digital wallet system – they were NOT converted to a fiat currency at the time of the pledge.
An Oversight of the First Das33 Project
When the STORC project started, everyone was confident that the project would be completed quickly. As we pointed out, the start was strong and we believed the finish would be equally strong. Almost everyone involved thought the project would be completed in less than 30 days, and certainly no more than 60 days. So needless to say, the current outcome is nowhere near what we expected. That said, and especially since this was our first Das33 project, we knew that we would learn a lot. Particularly since the project is so innovative, there were bound to be mistakes and oversights. With the project now taking over 7 months, one major oversight is that no deadline was provided in the published STORC White Paper. We have a soft target set that needs to be met in order for the tokens to be issued, and we have a hard target, but surprisingly (to us all), we did not publish a deadline for the project.
STORC Deadline: September 7th, 2019
After recent conversations with Greenstorc CEO Paul Flynn, it has now been mutually agreed that the official deadline for the STORC project will be September 7th, 2019 at 12:01am CET. This means that if the soft target is not reached by that time, then all pledged resources will returned to the pledgers’ respective digital wallets. If at that time, more than €3 million has been pledged but less than €5 million, no further pledges will be accepted, the STORC token will be issued to all pledgers in accordance with the digital assets provided (based on the value at the time each pledge was made), and the pledged resources will be transferred to the company for use in its operations as described in the White Paper. Of course, at any time between now and September 7th, the STORC token issuance can be immediately triggered by successfully hitting the hard target of €5 million.
Why Paul Flynn Has Asked Everyone to Wait
In the past week, the word went out from Greenstorc CEO Paul Flynn that he was advising members of our community not pledge any more DasCoin until the price of DasCoin increased. Paul’s comment reflected his concern that it would now require considerably more DasCoin to equate to one STORC token compared to last September (when the price of DasCoin was higher). Implicit in his remarks is the further concern that upon completion of the project, the DasCoin pledged currently would only be convertible to less than 20% of the value when pledged. Again, the way the system is structured the digital assets pledged are held until the project has either expired or the hard target has been reached. Consequently, there is currency risk being shouldered by the operating company. So Paul is asking those in our community who are considering pledging DasCoin to wait to pledge to STORC until the price of DASC is higher than its current levels. Of course, with the recent increase in Bitcoin, if an interested party is considering pledging Bitcoin to the STORC project, timing may be more favorable.
Timing of the Conversion
It’s important to emphasize that the timing of the conversion of digital assets is dependent on the actions of the community. A conversion (of the pledged digital assets to the fiat currency desired by the operating company) will be triggered only when the project has hit its hard target of €5 million in pledged assets or when the project expires and more than €3 million in digital resources has been pledged. Especially if there has been a long period of time since the start of the pledging, there is risk that the underlying pledged asset has decreased in value, and this is obviously a concern for the operating company associated with the project. Of course, there is also the potential that the underlying value of the asset increases by the time the hard target has been achieved or the project expires – and these scenarios would favor the operating company.
The Potential of a Strong Finish
There has been fantastic support of the STORC project by this community, and each of the pledgers is positioned to benefit should the results described in the STORC White Paper be achieved in the coming years. There of course is no guarantee that the company will achieve any results, so this must be considered when weighing the potential of pledging digital assets to the project. Paul has asked for the community to wait on making further pledges to STORC until the price of DasCoin increases. Should a significant price increase happen sometime over the next few months, the appeal of the STORC project could reach new levels. With a lot of new developments underway in the Das ecosystem, the next few months could be very interesting times indeed!
Need for Clear Communications
Finally, as I spoke about at the start of this message, this is a new and innovative project, and it’s inevitable that there will be communication challenges. As a matter of fact, even up until just today there was some confusion about who was running the Storc Official Telegram group. I was actually told on Friday that that group was being run by admins on behalf of the Das community, and was not being run by Greenstorc. Thankfully, Greenstorc’s Nigel Brandon has now come forward to clarify the situation, and has confirmed that he is the authority behind the Greenstorc’s Telegram group. My sincere apologies go out to Bryce after I had made recent comments in which I assumed that he was running the group on behalf of the Das community. Bryce is an excellent admin for the group and should be commended by all for the great job that he does!
Hoping this provides more insight into the current state of affairs involving the STORC project. Look for more details in the coming weeks.