This update of and from Hodler Enterprises will explain details about the current and future development of Hodler Enterprises and its projects.
Since we are going to post this article in the private investor group for Hodler Energy first, we will first start with the evaluation of the Hodler Energy project. How it started, where we are and how we are going to continue.
Hodler Energy, formerly known as Miniera and Hodler Mining.
Miniera started in early 2018, where we were hired as the builders of the mining rigs, the hardware that fuels the project.
While we were hired for the project, we were almost developing the project on our own.
Creating the token, the backend system, the website, bringing in investors, finding the proper location, providing customer support during night and day, and so on.
After a while, the original CEO of the project couldn’t continue his business with Miniera.
Investors of Qredit also invested in Miniera just because of us and we invested a lot of time and money into the project.
We could either walk away from the project and take our loss with some massive scars or continue the project on our own. We eventually decided to continue with the project and rebranded the project to “Hodler Mining”.
At that time, Hodler Mining started with about 40 000 euro in the red.
During pre-ico phase, around 2 250 tokens were sold at a price of 100 euro. However, the amount of money collected was less due to market conditions.
We collected the funds at a time where Neblio was sitting between 7–17 dollars per 1 Neblio.
We converted all of our Neblio on August 1st at 3.60 euro.
So doing the math from here:
As you can see, the actual amount that we collected was around 66 707 euro.
For the total amount that we had collected, I’m not going to count the -40k euros from Miniera.
At that time, We had decided to use our own funds to cover that loss.
So, in the end, we had the actual € 225 000 (EUR) to invest in mining equipment.
August 2018 was when we decided to swap Qredit to our own mainnet, we offered refunds to the Qredit investors.
The math is quite simple. We collected the funds mostly in Neblio when it was around 25–35 USD and the total amount was 643 000 USD (~584 000 EUR).
We sold the ICO funds from Qredit on the same day as Hodler Mining, on August 1st.
This left us with around 92 520 USD (~83 500 EUR).
Not counting the funds that we already used to pay for TradeSatoshi, Bitker, BiteBTC and some marketing plans along with the expenses for the team and so on.
During the swap phase of Qredit, about 65% of the investors decided to go for a refund at 0.10 euro, leaving us with a debt of around 228.000 euro after the refunds.
This was obviously the worst decision I’ve ever made. Thinking that everyone would stay with our new plans, which wasn’t the case. The market sentiment had a far greater impact than we had expected and the refund policy was not of the best interest to the project.
Hodler Mining Background
Going back to the Hodler Mining project.
In December, we got hit hard by the dutch AFM. (SEC type of agency).
We were forced to shut down all of our projects during their investigation until further notice.
In January, after the investigation, we were given a clean bill of health, mostly thanks to Token of Trust, our KYC partner.
We had everything well documented and were fully transparent about the source of the funds that we collected. However, during this period, some of our team members had to find another job, because we couldn’t promise the future of our company. The lead developer also left during this time. Our company was in significant debt and the only thing still standing with the right amount of funds was Hodler Mining.
We knew that we couldn’t continue in the Netherlands. Cryptocurrency is still a grey area there, regardless of how ‘friendly’ they claim to be. There is a monopoly going on and we couldn’t continue with Qredit or Hodler Mining without jeopardizing the future of the projects.
There was one day, where we did convert some bitcoins to fiat currency. Ironically to pay the lawyer for dealing with the AFM investigation. The amount was around 6600 euro.
Our funds suddenly got locked by the bank for investigation.
At this point, I (Nayiem) almost went totally crazy and locked myself up with the computer in the ‘basement’ where Hodler Company and Qredit started in the early days. I didn’t come out until I had come up with an adjusted plan ensuring we are able to continue.
At this period of time, our bond with Mike grew stronger and we arrived to the point where we eventually came to the conclusion that Hodler Enterprises should take control over Altilly.
Mike sold Altilly to Hodler Enterprises for 25 million XQR.
So the only thing we possesed at this point was:
- Small chunk of BTC (BTC price at 3200 euro)
- Large bag of Qredit coins
- 225 000 euro for Hodler Energy
After thinking and working for a while in the ‘basement’, I (Nayiem) decided to move my business elsewhere. Somewhere where I can’t be disturbed by official 3 letter agencies and a place where I can’t be disturbed by other competition. This new location needed to have favorable electricity prizes, the crypto regulation has to be friendly and overall should be a place where I can easily work on my plans and ideas.
After thinking for a while, I took my car and drove directly to Sweden to find a property to continue our business. Within 2 weeks, Sophia and I purchased a nice property with very cost-effective electricity and enough space to work on Hodler Mining.
This is where we started to order mining equipment for the Hodler Mining project and also decided to continue with FPGA hardware, instead of GPU. (April-May 2019)
While having ordered the mining equipment. We did luckily dodge some bullets as mentioned many times. If we had ordered the GPU’s in December, we would have been mining at a great loss. But the decrease in mining profit was slowly going on.
We had to keep investing more and more money and purchase more hardware to stay within the ROI limit of 2 years.
The FPGA cards that we have, also known as VCU1525 and BCU1525 had a value of 5800 euro in April 2019. (with a difference of around 400 euro between those 2 cards).
We ordered the cards at 3650–3850 euro in early June 2019, about 36 cards.
The moment the cards arrived (2 weeks later), the price already dropped to 3250 dollars.
Total amount invested in hardware was 135 400 euro at this point.
We ordered 10 blackminers F1’s at a price of 2450 euro. (24500 euro) and last month we did order 36 more of BCU1525 cards, at this time, the price of the BCU1525 was dropped from 3250 to 1600 euro.
The cards arrived last week and the price of the BCU1525 dropped even further to 1250 euro.
After all of this, you can now view the chart below, it shows how the Hodler Mining funds have been allocated/spent and how much we invested on our own.
About 320,193 euro extra was spent, on top of the initial investment, from our own pocket, just to stay within the limit of a 2 year ROI.
At the time of writing, we are mining Veriblock. Which gives us around $ 3.20 per day per mining card.
Having a capacity of 82 FPGA units since last week, the math is :
82 units x 3.20 dollar (~2.90 euro) per day x 30 days = 7872 dollar (~7153 euro).
To give you an idea, last month we were mining with only 46 FPGA units.
So looking at the history of the mining profit and the value of hardware, does this mean we have a problem?
Not directly. Since the beginning of the first mining rewards, we didn’t take the 10% reinvestment costs as mentioned in the whitepaper and we didn’t pay any of our workers from the mining profits.
We are going to keep it this way, as it doesn’t make any sense to take (ie) 1000 USD salary from a monthly mining reward of 7000–10 000 USD.
We will be paying the 10% reinvestment from the general profit of the company (Hodler Enterprises or McBläck) and add more hardware, once in a while.
The profit is decreasing at a rate of at least 25–50% per month, even with constantly looking at the most profitable coins.
In some respects, we are fortunate that we didn’t raise millions like other mining ico’s.
It gives us the chance to reform the idea or invest a little of our own money to stay within the 2 years ROI limit. This would have been impossible if we had raised millions and if we had 1000’s of investors.
Keeping it a 4 dollars profit per month, per token is possible, although this is currently being supplemented by the income stream from the McBläck store we opened 2 months ago. If we did not have the McBläck store, the only thing we could have hoped for is finding a nice bitstream for higher profit or hope for more stability in the crypto market.
However, having so many projects. It would be great if we could finally earn something on it and pay our workers, find more developers, invest more funds into marketing and so on.
Qredit has its own smart contracts platform and is becoming one of the best from all Ark forks, the ideas and plans for Qredit are great.
We have a few customers/companies that are going to work with Qredit soon.
The dependency between price and partnerships, however, are not the same as in late 2017.
Even if we ‘finish’ all plans from our roadmap, the competition is still there and we should utilize Qredit further and create our own real-world adoption.
Altilly is performing well overall. The user interface and overall design have been improved by Marco and Mikes’ continued effort to improve the exchange user experience.
We have hired Savo recently to bring more awareness for Altilly and Qredit.
All of our other projects have a great deal of potential. We believe with the current and future plans for our projects, we should be competing at the highest level. Qredit should be at least sitting there with a 20million Euro market cap and Altilly should have at least a couple of million-dollar trading volume per day.
But to be honest, market conditions haven’t really changed and unless we see a marked improvement, it feels like the crypto winter could continue into 2020.
Even with significant efforts of the Team and continued effort to gain the required exposure, times are and continue to be challenging in Crypto.
The next sentence sounds ironic but true.
It’s better for us if we step out of crypto, to guarantee success for our ‘crypto’ projects.
With Hodler Enterprises, I’m no longer planning to stress out and wait for the crypto market to recover and slow down on development. Running a business in this way is impossible.
Since we acquired the McBläck store, We’ve been able to look at things from a different perspective.
McBläck was the first and only project to actually generate real income for our projects.
It brings in at least 7 500–15 000 euro per month, that we can easily reinvest on development, workers, hardware and so on. (p.s: McBläck was purchased for 15 000 euro, 40 days ROI!).
Looking at some other successful projects that didn’t receive millions through ICO’s.
They become a success by bringing in fresh fiat money with their activities.
They host events for blockchain startups for a price of 3 000–20 000 EURO.
Projects that earned millions are stupid enough to pay for it with investors funds.
Exchanges ask around 15 000 EURO up to 400 000 EURO for a listing.
The same projects that earned millions pay for that with investors funds.
Hardware developers, software developers, marketing agents.. they all become rich from crypto projects. They receive hard-earned investors funds from crypto projects, without being directly involved in Crypto. And so are some other examples. If you look around on how other projects spend the investors’ funds and how other projects become big by using those funds.
The only way to go is to drive adoption on our own and make our projects important for those that are not involved with crypto.
As mentioned earlier. There is a plan. Sophia and I decided 6 years ago to work on a life goal. The goal is to start something in the tourism sector.
2 years ago when Marco and I started to work on Qredit, our life goal for me and Sophia was still the same.
Below you will find a chart that was posted one day in Admins group of Hodler Enterprises.
This chart was posted somewhere around June 2018 and has been a guideline for our projects.
The chart is quite accurate when you see how the company developed. Unfortunately, we didn’t meet some goals for several projects or at least not in time.
A second chart was created in May 2019.
A New Income Stream
The plan now is to create something in everyday life. In the real world.
A stable source of income that can satisfy all investors and can fuel all of our projects.
Something that isn’t connected to the crypto market volatility.
Something that allows us to no longer worry about the condition of the ‘crypto’ market.
Something that can bring value to all of our projects and gives us the chance to develop the projects the way we want it.
We present to you, Voyager Park.
What is Voyager Park?
Voyager Park will become a holiday resort, close to the Hodler Enterprises headquarters.
The plan is to build 10 glass igloos with a small shopping mall and a restaurant in the middle of the forest, with additionally 40–80 mini cottages (stugas) with several activities in the park.
The Hodler Enterprises headquarters stands close to a region called ‘Höga Kusten’ or ‘Västernorrland’, here in the North of Sweden.
The region attracts many foreign people, but also southern Swedish people that like to spend their holiday here.
Here are a few quotes from a firm called ‘High Coast Invest’.
The high demand
Tourism is the fastest-growing service industry in Sweden, and the High Coast has a booming tourism industry. In 2018 summer tourism skyrocketed on the High Coast — there was a 29.4 per cent increase in overnight trips.
The High Coast’s tourism industry is a largely unexploited market and there is a high demand for new products and services. This indicates significant, untapped potential and provides an interesting opportunity for new businesses.
Voted the most beautiful place in Sweden, the Swedish High Coast is becoming a hotspot for domestic as well as international tourists — a well-known tourist destination for some; a recently discovered gem for others.
“The High Coast has never been as hot as it is right now. Camping and hiking tourism is increasing, and visitors are staying for a record-breaking number of nights. Meanwhile, the proportion of foreign visitors is steadily increasing.”
“We experience constant demand for rooms throughout the year from tourists, conference guests and weekend travellers. There is a huge demand for rooms and we often have to turn down booking requests. Encouraged by this high occupancy rate we want to invest further.”
The area is perfect for outdoor activities, in the winter and in the summer.
As we have seen with the McBläck store, people were calling us crazy for refilling ink in cartridges and to make a living out of it.
The previous owners of the McBläck store have been doing this for 10 years.
1 litre of ink costs 15 euro, while a refill of 5ml costs 10 euro, which is 70–300% cheaper than buying a new cartridge.
The ROI for 1 ink bottle is over 3000%.
Though, this would have been nearly impossible in a country where people don’t care about nature and about recycling.
The people, especially in the north of Sweden like to recycle items and they are happy to even drive a few kilometres for it.
We will be implementing the same idea with Voyager Park. Voyager Park will be eco-friendly camping with care for the environment.
The buildings will be using the heat from the mining facility, electric from solar panels and the nearby hydro-electric farms and several unique and advanced eco-friendly solutions will be implemented to achieve our goals.
The potential ROI
As mentioned previously;
Mining — has a current ROI of at least 2 years with fluctuating profits depending on the crypto market condition.
McBläck — had an ROI of fewer than 40 days.
The goal with Voyager Park comes close to the McBläck store.
A real-life asset with a stable ROI with additional activities to further increase the ROI.
At the time of writing, a single FPGA card costs 1600 euro.
The average return for an FPGA card per day is 3 dollars. (with profits decreasing).
It takes 533 days to cover the initial investment.
In our case with Hodler Energy, we have bought the FPGA card for 2000–3850 euro.
It takes roughly 666–1283 days to become break-even.
Maintenance and the hours of work to constantly watch the market has not been included.
The price of the card itself is also fluctuating, selling the card at current value would mean that we have lost over 70%.
The idea of Voyager Park is simple and we will start with easy and stupid examples.
Purchasing a mountain-bike costs around 500 euro.
It is easy to ask 5 euro per day, to rent out a bike.
The ROI for a bike would be 100 days.
Maintenance, obviously not included.
Price of a fishing rod (without other gear): 65 euro.
Renting out the fishing rod: 5 euro per day.
ROI: 13 days.
Price of a decent telescope: 450 euro.
Renting out the telescope: 25 euro per night.
ROI: 18 days.
This doesn’t mean that we are going to start a venture called ‘Hodler Bicycles or Hodler Fishing’. But these are only a few of the many examples.
The most profitable part will be renting out the stores and restaurants in the mall and renting out the cottages with the glass igloos.
Below you will see the potential ROI per property. Obviously, if all properties are rented out at a minimum price.
Above chart is made without including the costs of maintenance, insurance and the salary of workers. The difference between the mining operation and the Voyager Park is that the investment in property does not lose value. While mining equipment can lose its value and profit over 50–70% in 3 months, the properties for Voyager Park will stay profitable and remain its value and even increase over time. The estimated annual revenue for Voyager Park with all the activities is expected to be at least above 1 million euro up to 5 million euro.
The annual revenue could increase over time depending on the rental possibilities and activities that are being added to Voyager Park. This amount of revenue will also give us the chance to further develop our blockchain projects.
While there is enough funds to keep our projects going and to meet our goals in the roadmap for every project, I believe we should start working on a plan B that relies on guarantees, instead of speculation.
The income generated through Voyager Park will allow us to reinvest in Qredit and create liquidity on Altilly. This will also help to create liquidity on the ‘buy-side’ of Qredit Motion. Meaning that anyone could buy or sell Qredit at any moment with Qredit Motion at a fair price.
Time and workload
The Hodler Enterprises team currently has 6 core team members and 18 part-time workers.
We have more than enough funds and time to continue the development of Qredit, Altilly, Persona, Hodler Energy and Antares Energy. 9 of the 18 part-time workers already signed up to move to Sweden once the Voyager Park project starts rolling.
Having the Voyager Park will allow us to give the part-time workers a full-time salary and have them to work full time on all of our projects to speed things up.
Voyager Park will give us more time, more people and more passive funds.
The physical production of Voyager Park will mostly be outsourced by local companies. One of them being Northern Lights Construction (NLC) in Junsele.
NLC is also the company that helped us during the build phase of Hodler Energy.
Proven Concept and Projects utilization
Voyager Park will bring all of our projects together.
We will be able to demonstrate all of our projects in one place.
Qredit with the AltillyPass can be used inside the park facilities and activities nearby. It can also be used with booking requests.
Persona will be used for KYC verification and alternative booking methods, targeting Airbnb and Booking.com.
The goal is to have the cottages booked without human interaction in potential cooperation with Ki foundation.
The new Hodler Energy facility with the proven concept of heat utilization will provide heat to facilities, showers and buildings on the park. With additionally allowing colocation for other companies to host their FPGA cards with us to further increase the efficiency.
Antares Energy will be deploying several green energy-winning solutions on the park to increase maximum efficiency on electric price and usage.
Altilly will increase its liquidity on the Qredit market and especially on Qredit Motion to allow fast and low-volatility crypto/fiat conversions.
The location for Voyager Park has already been decided and it’s close to the current Hodler Enterprises headquarters.
The region offers several spectacular views like northern lights in the winter, beautiful lakes on every corner and breathtaking mountains.
The park is located next to the ‘90’ road between Sollefteå and Junsele. It’s a passage for a lot of tourists that are heading from Sweden to Norway or to other northern regions in Sweden.
The location is exactly in the middle of 4 nearby airports (Örnsköldsvik, Kramfors, Östersund, Sundsvall).
The map below will give you an idea of the actual amount of space that will be available to us.
A, B (already owned)
A: current Hodler Energy operation.
B: no plans yet.
C, D, E, F, G
C: No plans yet.
D: Future datacenter, Hodler Energy and Hodler Headquarters.
E: Igloos with receptionist and dome with stores, mcbläck and restaurant.
G: Multi complex wooden houses with 1 bar along the E90.
V is owned by company Vattenfall and is a hydroelectric farm with 165MWe output.
- Hodler Enterprises applied for banking and exchange license (Altilly & Qredit)
- Voyager Park IEO (First IEO on Altilly)
- Release website Voyager Park
- Release of Altilly Mobile app
- End of discount Voyager Park IEO
- Swap Persona to QAE
- Qredit Motion is live on Altilly with fiat pegged stable token on QAE
- Altilly receives banking and exchange license
- Cut down of Forest at Site E & F
- First phase of building at Site G
- Voyager Park Booking system goes live with Qredit integrated payments.
- Marketing Phase with travel agencies
- Acquisition phase of nearby activities and event organizers
- Relocation of McBläck to site G
- Altilly incorporated in Estonia
- First glass igloos are being built
- Order of 50 Ki Devices
- Qredit live Generalbytes ATM
- Generalbytes ATM deployed on VoyagerPark
- First users can now register on Persona
- Installation of electric grid and Hodler Energy heat utilization.
- Deployment of Antares Energy Solar panels
- Fiber internet connection installed by Sollefteå Stadsnät
- Build phase of the Dome with shopping mall with restaurant.
- Delivery of Ki Devices
- First rentals of restaurant and stores
- Shuttle service goes live
- Guests arrive at Voyager Park (Site F)
- First utilization of Persona Identity Management and Qredit Wave.
- End of Voyager Park IEO
- Guests arrive at Voyager Park (Site G)
- First Payout Voyager Park
- New Facility Hodler Energy and HQ (Site D)
- Build phase of Site E
- New facility of Hodler Energy goes live
- Guests arrive at Voyager Park (Site E)
Our actual plan this time was to leave out cryptocurrency investors without going through another ICO and focus more on fiat investors, VC firms and local companies. However, after having some conversations with the existing investors of our projects, we have decided that it would be fair to at least offer a chance for the existing investors to invest in our new plans while still keeping the focus on fiat currency investors. Since we are now mainly focusing on fiat investors, bringing this idea to fiat investors and sharing rewards using volatile cryptocurrency will most likely not be accepted.
Our plan is to create a stable token for the profit-sharing on the Qredit blockchain. Altilly recently applied for exchange and banking license. Which will give us the possibility to hold funds in fiat currency. The stable token will be pegged against the Swedish Kronor and Euros. Meaning that profits that come in through Voyager Park in fiat currency will be directly transferred to our own bank and converted to the stable token. Investors will receive quarterly rewards in the stable token in to their Qredit wallet address. They don’t have to withdraw or exchange their rewards directly to another currency.
The stable token will keep its value over time. Having the stable token for 1 day or 1 year doesn’t matter. Even after a year, you can withdraw your stable token to the same value in fiat currency with a single click on a button.
We will be creating 10 000 Hodler Enterprises tokens that will represent the percentage of dividends you will receive from the profit earned through Voyager Park.
49% of the profit will be shared with investors of this project, while 51% will be used for Hodler Enterprises and the reinvestment in projects.
This will be the last cryptocurrency funding phase we will ever conduct.
Having 3 ICO’s is more than enough in a lifetime for any company. We came a long way with the previous 2, submillion ICO’s and we are still moving forward.
The 10 000 Hodler Enterprises tokens will be offered through an IEO on the Altilly Exchange.
It will only be available for people on the Altilly exchange that are KYC verified.
The 10 000 Hodler Enterprises tokens will also be offered to VC firms and local companies, which is our main focus.
Anyone that would like to invest in fiat currency is able to contact us personally, where we will handle the KYC verification process manually.
Unfortunately, US participants are prohibited from investing with fiat currency.
Price per Hodler Enterprises token in fiat currency:
Euro: 50 EURO
Swedish Kronor: 500 SEK
The presale will be available until the 5th of October 2019.
After 5 October:
Euro: 100 EURO
Swedish Kronor: 1000 SEK
Price per Hodler Enterprises token in cryptocurrency:
Qredit: 250 000 XQR
Hodler Energy/Mining token: 0.5 HDLRE/HODLR/HODLQ
Bitcoin: 0.005 BTC
After 5 October:
Qredit: 500 000 XQR
Hodler Energy/Mining token: 1 HDLRE/HODLR/HODLQ
Bitcoin: 0.010 BTC
Softcap: 75 000 euro
Hardcap: 1 000 000 euro
Payout occurs in QAE stable tokens to remain the fiat value.
49% of the profit earned through Voyager Park will be divided over 10.000 Hodler Enterprises tokens. Only sold tokens will receive dividends.
The payouts will occur in a quarterly basis, starting from July 2020.
More information about Voyager Park:
Our conclusion and to summarize all.
Voyager Park is the only missing project in our portfolio. It will boost all of our projects in a single showcase.
It will create a reliable source of income for the existing projects and we will no longer have to rely on the market condition or potential partnerships or customers.
With or without Voyager Park, we will still be working on the existing projects and make them a success
However, having a reliable source and steady stream of income will make things go even quicker. Since the regulation of cryptocurrencies has been a struggle from the beginning of Hodler Enterprises and bigger parties like Facebook, Amazon, Google joining in on the cryptocurrency events, we believe it’s time to create our own value for the projects and have a plan B to tackle future market conditions.
From now on, Hodler Enterprises will rely on guarantees.
And together, we will make it happen. Let’s bring our projects to the next level.
We did our best to explain most of the details.
We understand that there might be some questions. For this final project, we have created a new Telegram channel where we will bring people from all projects together @ https://t.me/hodlerenterprises
Please don’t hesitate to contact us.
Thank you for taking the time to read this article.
— Nayiem Willems
Founder and CEO of Hodler Enterprises