Note: an earlier version of this story referred to 180,000% gains. After hearing from a reader well-disciplined in mathematical formulae, and after double-checking our mathematics alongside his, it appears the gains are a staggering 800,000% however on this token. We have recorrected the article to reflect the correction.
*Update @ 15:59 GMT* Daniel Mark Harrison has just written to us the following: “Hi Guys, thanks as always for your extensive coverage of everything! Just a note about the DMHCO token – this is under development right now and in no way whatsoever can I say that there is any sort of implied 800,000%+ or otherwise profit. Really, the thing is a utility token and for what utility it serves – airdrops and membership benefits awards – will soon become clear. I think anyone buying the token for profit is definitely barking up the wrong tree. At the end of the day sometimes these things hype up, sometimes they drop in value, but none of our tokens are built for financial value speculation. Just wanted to make this clear and if you can highlight within the story this point that would be superb. There certainly is no intended redistribution of any kind other than what is randomly built into the token model. Like I have indicated in past e-mails on this, we will make this clear in a forthcoming paper on the token. Best, Daniel”
If you have been following this news site for the past couple of weeks, you will have noticed the odd reference to DMHCO tokens. Almost nowhere however can you find a concrete explanation of the token or how it works. This weekend I will attempt to decipher the mechanics in the software code of DMHCO tokens.
First of all, DMHCO tokens are available either via certain Zur Draft tokens if you can find them, or if not, then there are some available on Escodex and Instant Bitex. They are issued by Daniel Mark Harrison & Company. Currently, they are selling for 1 sat (although there aren’t very many at that price). If you examine the software code and the outline for the token, this may appear to be the bargain of the century.
There are a total of 30 billion DMHCO currently in issue and each newly issued DMHCO comes at a cost of 5,000 DMHCO per 1 ETH. This appears to have been achieved by essentially leaving DMHCO on what most token maker’s call “ICO mode” and configuring new token creation to a specific wallet address where around 25% of the tokens are still held that are in circulation right now.
In other words, there is up to a further 56 million ETH that will end up going to the DMHCO smart contract over the next years. Although this represents an astonishing 56% of total ETH in circulation, consider that ETH is infinite – there is no supply limit in place. There is a cold freeze coming up for Ethereum, whereby supply manufacture will become much more expensive than it is today (a phenomenon known as the “ice age”) but this will surely only serve to strengthen the ETH price. If 56 million ETH seems slightly far fetched, consider that the amount may be one tenth of this and the price of DMHCO tokens will be backed by nearly 3 cents per DMHCO. That is, around 800 times the current market price of the token, representing a mouth watering 80,000% in potential future intrinsic value gains.
For here is the thing that DMH announced in the project Discord earlier this morning and which prompted me to write this short review of the token: at the point whenever it is decided to be so, the ETH in the token’s smart contract goes to all the DMHCO holder’s wallets.
Now imagine that supply is roughly doubled, to 60 billion in total. That represents 6 million ETH. Assume ETH hits its previous high around $1,400 again around the same time, and that’s a fully 28 cents per DMHCO token you are talking about – payable in ETH! That is 8000 sats per DMHCO, or roughly 800,000% in gains. That is, dear reader, literally, I kid you not, Bitcoin all over again! This is because if that were so, then the “ICO’ would have to be “refunded”thus resulting in no extra net production of DMHCO but the ETH gains would be distributed among token holders nevertheless.
This is quite possibly the most creative use ever of the Ethereum smart contract’s ability to escrow large sums of payments for extended periods of time. Essentially, it’s an ICO in reverse: you buy the tokens, they fill up the contract, and you get the contract proceeds. How long has it been since we’ve seen anything like that in cryptocurrencies? Forever, is the answer.
The proposed process here on this one is certainly justified by the smart contract code, and it fits with the broad vision by DMH to offer value-enhanced tokens. DMHCO may be the best value investment going right now.
Or maybe for that matter, ever.