GetHashing raises $100,000 in a week using Colored Coins

GetHashingThe GetHashing cloud mining community used Coinprism last week to crowd fund mining hardware, by issuing a colored coin asset called GHX. As you can read from the asset description, each coin is backed by 10 GH/s worth of mining power and sold for a value of $4.20. The revenue generated by mining will be distributed back to the coin holders, on the blockchain, on a daily basis. GetHashing even goes one step further, and offers the option to receive a mining unit for 115.5 coins.

The objective for GetHashing was to sell up to 25,000 GHX in the first batch, for approximately $100,000. Not only did GetHashing reach their goal, but they actually sold out the first batch in less than a week. The GHX coins can now be freely exchanged on the Blockchain.

The decentralized model allows the investors to cloud-mine without having pay fees to a middle-man, while still benefitting from economies of scale.

GetHashing used the “virtual vending machine” functionality on Coinprism. Users had to send Bitcoin to a special address, the vending machine then dynamically issues the right amount of GHX coins, depending on the incoming amount.

The vending machine is very economical as the only fees paid are the miners fees. Also, it is secured against double spends, even with zero confirmations.

GetHashing will be able to use the full extent of the suite provided by Coinprism, such as “dividends” (to send mining revenue to the addresses owning GHX coins), and even voting on the blockchain. Users can also store and trade their GHX coins on their phone, using the Coinprism mobile wallet.

The simplicity and stability of the Open Assets protocol makes it a solid foundation for building virtual asset based services.

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  • ElPorito

    very nice blog! Thank you.

  • Jimbo

    It’s amazing so much was invested in such a horrible deal.

    • astro

      What’s terrible about the deal? It’s a bit more expensive than some cloud mining sites, but also cheaper than others. Plus, there’s the advantage in that if mining ever becomes completely unprofitable, you’ll be able to have your miner shipped to you. Between the high transparency and ownership of the hardware, that’s not a bad deal at all.

      • Jimbo

        I take it you’re one of the people pushing this horribly thought out scheme? It’s not a “bit more expensive”, it’s way more expensive.

        Why on earth would anyone buy from this sketchy group of unqualified and anonymous people who were just scammed by Garza, when they could just buy directly from Bitmain and save tons of money/worries?

        This sketchy group is asking for $0.42/GHS + $0.0014/GHS/day while Bitmain is asking $0.35/GHS + $0.0012/GHS/day. That’s not a small difference at all.

        There is no reason anyone would invest in this unless they are completely unaware of what else is available.

        • astro

          Depends what you mean by “pushing”. I own some, but it doesn’t help me in any way if others buy it. Matter of fact, it dilutes my share of the farm, so pretty much the opposite. I have zero vested interest in people purchasing coins from them.

  • Jon Scott Boroughs

    I get paid out everyday and they do a great job managing the hardware. Makes me feel good that it’s real mining equipment backing my coin. I also get dibs on one if I want. Not a bad deal if you’re in it for the long run. If you want a quick buck then not for you. Also the Get Hashing crew is very helpful. Nice group of folk

  • Avantika Prabhu

    Amazing blog posted.

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