Xenium [XENM] FAQ
What is Xenium?
Xenium is a fully compliant security token, which is registered in the crypto-friendly jurisdiction of Thailand, and issued by Veritas mining to investors, in exchange for participating in their Secondary Security Token Offering.
I didn't even know there were different kinds of coins. What is a security token and why is Xenium one?
There are at least three types of digital assets: Coins or Cryptocurrencies, utility tokens, and security tokens. By meeting the conditions of the Howey test, Xenium is considered a tokenized security, because the tokens represent shares of the business. Put simply, it means that when the business makes a profit, each token makes a proportionate share of the profits, too. In Xenium's case, paid as a monthly dividend.
What are the funds raised by the STO going to be used for?
Xenium is a crowd-sourced cryptocurrency mining business, aiming to raise up to $50m via it's Second Coin Offering, launched in August 2018. Due partly to its symbiotic business model, which allows for the allocation of a massive 97% of all capital raised exclusively for buying mining hardware, Xenium has already claimed an industry-first, after it paid a solid dividend to investors for its very first month of operation - in bear market conditions!
When and how will the dividends be paid to token holders?
During the STO, 50% of net profits are paid as dividends, with 50% going into re-investment for expansion. However, changes with the ratio may occur throughout but 50% Dividends & 50% Reinvestment would be lowest for the Dividend ratio. We would not be paying less than 50% of net profits for dividends. They are calculated and paid monthly in ETH, after the 15th of each month, to the Ethereum wallet you nominated during KYC.
What exactly is cryptocurrency mining?
Cryptocurrency mining is a term coined to name an operation which uses computer processing hardware to verify transactions made between counter-parties, who are using a digital currency as a form of payment. Every transaction that has been made using that digital asset is stored on a distributed ledger, called a blockchain, which is a publicly visible record of all transactions. For every transaction, the records transmitted between each party must always match exactly what is on the blockchain, in order for them to be a success.
I read those successful crypto-mining operations such as Bitmain, make huge profits. Is this true in most cases?
Whilst this can be very true, the reality is that most current crypto-mining ICOs began with business models aren't able to deliver on their forecast ROIs in all market conditions, and aren't going to be sustainable over the medium to long-term, unless the market conditions rapidly improve markedly. Some never even get operational. In both scenarios, the investors lose just about everything they invested.
Then, why do more mining ICOs go bust or fail to deliver on their white paper's forecast, than achieve success?
Setting up a mining operation – including hiring staff - is expensive. These ones off costs usually drain the majority of funds, before mining hardware can be paid for. There is also a significant period without income generation, during set up, before any mining can begin. Because mining is very energy intensive before a company can profit, first, it must be able to earn enough from selling the crypto it mines to pay for its power costs, wages, maintenance and replacement of hardware as a minimum. Generating the income to cover these outgoings will also be dramatically affected by perilous headwinds, such as downward price volatility or increased competition; from the deployment of new and superior technology by competitors or just an increase in the number of miners.
Therefore, the minimum entry requirements a mining operation must meet in order to survive, let alone achieve profitability, are guaranteed access to cheap electricity; and, mining with the most current hardware. However, unless the cost of labor, vital upgrades, rent – even poor management decisions - can also be kept very low, the operation will struggle to remain viable, long-term.
Why did Veritas Mining launch an STO during a bear market?
Again, look to Bitmain's 2017 performance - mining can be very profitable, especially when an operations business model possesses the optimal mix of key factors. Veritas saw a unique opportunity to turn the company's fortunes, after being hit hard by the current, long bear market. The facility had plenty of capacity just sitting idle, and we already had the experienced team in place. But, there was a dark horse - we were very excited by the possibilities of an incredibly efficient, emerging technology in hardware mining, called an FPGA. All we needed was capital to purchase this new type of hardware – then we could just plug and play! So, after receiving the community's overwhelming support, the Xenium concept was born and soon after the SCO was launched.
I have also read online that pretty much anyone with enough money can buy the hardware and make an easy side income from a small scale mining operation at home, so why risk investing in a mining token?
Whilst there may have been the opportunity to profit with home mining setups during the period leading up to the bubble for many people running a rig or more at home, the huge increase in interest and investment also caused the number of people mining from home, and commercially, to rise exponentially. This caused the difficulty factor to increase dramatically as well, which put simply means that the amount crypto mining could yield has decreased as the difficulty factor increased. That, combined with high power costs in the home has driven most home miners out of the game – which has also caused the difficulty factor to fall again. Further, investing in a successful miner allows people who don't have the experience, space or many thousands to set-up at home, to profit from crypto-mining.
What are the advantages and differences between Xenium and most other mining ICOs, e.g. IRM, MIO?
Special access to the manufacturers in China of the most cutting-edge mining technology, allowing Veritas to build the hardware for one-third of the cost, a 3-to-1 cost advantage no other miner can dream of
Ability to allocate 97% of all capital exclusively towards the deployment of FPGA hardware, maximizing ROI
Access to renewable & eco-friendly energy which rivals the prices of our biggest competitors in Europe, Russia, and China.
Very low labor costs for running the operation, again, comparable to our toughest competitors
Dividends paid monthly and on time to token holders – something rarely seen by other ICOs to date
The security token is a share in profits with no end date – meaning forever
Veritas team is very experienced & are always looking to stay ahead with the advantage of new technology
Veritas Mining is a registered mining company in Thailand, and fully compliant with Thai regulations
In summary, the opportunity to get in at the ground floor of a start-up with so many advantages, and one which was able to begin trading, in profit, from day one, is so very rare and is only possible for XENM because it is Veritas' second business. This symbiosis forms part of the unique mix making XENM's business model unparalleled - not only for crypto-mining but for most start-ups across all sectors of business, period. It is a once in a generation opportunity.
How and where can I purchase Xenium tokens?
You can refer to our Xenium Token Sale page from the link above for more information and detailed instructions.
What risks should all investors in the rapidly evolving crypto-space be aware of?
As with all investment into new markets, 'early adopters' should be aware of natural volatility. The fluctuations in cryptocurrency prices can be very extreme. All miners and their investors should be aware of the high risks, and be prepared to accept the possibility of low or even non-existent dividends when mining is not that profitable. Further, that there is the chance that a company may fold if cryptocurrency prices remain to low for the business model to sustain. However, with our unique mix of cutting-edge tech, cheap power, and low costs, Xenium's exposure to these risks are very low, as shown already by our dividends, paid to date, all generated in a bear market. As always, DYOR!
How will Xenium “scale up” to remain competitive with the increasing difficulties of crypto-mining?
After reaching a majority consensus from investors in support of the team's proposal to increase the proportion of
re-investment from 30% up to 40% of net profits. This is put towards expanding the hardware purchasing of the operation, as well as towards researching ways to innovate and develop better mining. We are currently utilizing FPGAs for mining – pay off for research and development undertaken by Veritas Mining Co.
How does Veritium, the ICO funds Veritas set up the facility with, benefit from Xenium's use of them?
In the white paper, it was prescribed that Xenium provide additional income to Veritium, at 12% of net profits. This is to be used exclusively for the purchase and deployment of FPGA hardware in order to expand the mining operations and increase the dividends to VRTM token holders.
How does the high re-investment into the expansion of the operation benefit all Veritas investors?
Purchasing more hardware for the expansion of our operation will not just increase the amount of crypto we can mine and sell, but also our power consumption. This adds the potential to reduce our power costs greatly if we can meet the required levels. We currently pay just 0.063 US$/kWh. However, due to our exclusive contract power, once we hit 10mW, the price drops to 0.0528 US$/kW. Over 20mW = 0.0376 US$/kW. Finally, over 30mW = 0.0285 US$/kWh. These savings obviously would greatly benefit both Xenium and Veritium.
How much power is available to us?
We have about in total 55MWh to 60MWh. The minimum amount in Saraburi at about 15MWh and maximum at Suphanburi is 28MWh. We currently have 13.5 Megawatts of infrastructure ready for running mining equipment.
Where are the mining operations located?
Will Xenium [XENM] be tradable?
The tokens will become tradable at the end of the STO. We have already secured the high volume exchange, Yobit. We are also in the process of building our own, VERAExchange, and XENM will likely also be listed on it, and whilst there may be other exchange listings possible in the future, XENM is a 'security token'. Therefore, from an investment point of view, Xenium tokens generate passive income, by design. They should be considered more like a blue-chip share in a PLC, for example, which are generally held by successful investors as longer term and lower risk investments, not as speculative investments for arbitrage.
Are there any limitations as to who can invest?
We will allow anyone to invest provided their jurisdiction will allow them to do so, as we are a security token.
What cryptocurrencies will Xenium mine?
We will be mining Ethereum, Ethereum Classic, Zcash, Monero, Ubiq mainly. However, all these might change accordingly to profitability and liquidity of the coins.
What kind of equipment are we planning to purchase for our mines?
We would be going for 100% FPGAs for now but will change accordingly to suit profitability and also being future proof.