Opportunities:
- Annual yield of at least 36% if the tokens are rented out
- Savings can be even greater than 36% of token value per year if the tokens are being used for mining coins
- Company is legit – one of the biggest mining company in North America. Founder has been around the mining game for 4 years
- Company is transparent – it hosts open tour twice a month which allow the public to visit the facilities at WA, USA. This is done presumably because there were instances of cryptocurrency mining scams in the past.
Concerns
- The general trend is moving away from Proof-of-Work – once Proof-of-Stake can be proven that it is scalable, all the coins should move towards Proof-of-Stake which render Proof-of-Work and mining obsolete
- Even though mining is profitable now, mining difficulty is going to increase dramatically in the near future
- Asked the company on slack channel about the % of facility being rented out right now – only 23%
- If the demand is as high as they say, how come only 23% of the facility is rented out?
- Obtained opinions about Giga Watt’s services from several cryptocurrency miners – Giga Watt’s pricing is average to high. It sells miners at above retail price.
- Don't really understand the rationale of having this ICO and issuing tokens. If the mining operations is as profitable as it shows on their website, then it is better off for Giga Watt to just renting the facilities out for mining operations.
- Unlike most of the other ICOs, the tokens are not going to be used to facilitate anything (creating a network, a community, used as a virtual currency, etc.). I really don't see a need to issue blockchain tokens.
Conclusion:
I don’t like the ICO because there are several risks that are too great to ignore: 1) the risk of not being able to rent out the tokens, 2) the risk that Proof-of-Stake will replace Proof-of-Work, which makes Proof-of-Work obsolete.
Also, the ICO lasts for nine weeks which is longer than most ICOs. If the hard cap is not reached, then your contributions will be locked up during the entire period. Opportunity cost can be high given that cryptocurrency prices fluctuate so much recently.
