This is an edited version of the excellent investigation of the bytecoin scam performed by user "rethink-your-strategy" on the bitcointalk forums written August 15, It is the best available account of the bytecoin scam, and covers the following areas from the original question: era of the cryptonote forum. Is Bytecoin (BCN) A Scam? by NrdGrl Why controversy? Well, being a privacy coin with a largely anonymous development team, Bytecoin is shrouded in secrecy, and because of the nature of cryptocurrencies (and the many controversies the leaders in the space have always been involved with), it can be difficult to (get clarity on allegations) decipher fact from fiction and justified concern. This is an edited version of the excellent investigation of the bytecoin scam performed by user "rethink-your-strategy" on the bitcointalk forums written August 15, It is the best available account of the bytecoin scam, and covers the following areas from the original question.
Rethink-your-strategy bitcointalkBytecoin – ₿⛏24crypto.de
Again though, none of this is uncommon in the privacy community. Holmes says that BCN lied about their narrative, falsely claiming that the coin started in April when it actually launched in Seth here: I have transacted in Bytecoin, using FreeWallet on Android, and found it to be a very performant currency!
Beyond that, there are many premium cryptonote forks that have chosen to base their code on Bytecoin instead of Monero- though that trend has since reversed, with most coins favoring the intensely researched and well-executed work of Monero. Regardless of the evidence in front of you, there is always more information laying below the surface.
So what does your gut tell you about Bytecoin? Is it a scam or a legitimate project? Your email address will not be published. Fortunately, there appears to be a way to do just that. Intangible Assets I refer you to a figure in the financial statements which provides a shortcut to the valuation of 2P Reserves. This is the carrying value of Intangible Assets on the Balance Sheet. But why would this amount matter at all? Following the acquisition of a concession right to explore a licensed area, the costs incurred such as geological and geophysical surveys, drilling, commercial appraisal costs and other directly attributable costs of exploration and appraisal including technical and administrative costs, are capitalised as conventional studies, presented as intangible assets.
Hence, we can determine that firstly, the intangible asset value represents capitalized costs of acquisition of the oil fields, including technical exploration costs and costs of acquiring the relevant licenses.
For the purpose of assessing impairment, assets are grouped at the lowest level CGUs for which there is a separately identifiable cash flow available. So apparently, the CGUs that have been assigned refer to the respective oil producing fields, two of which include the North Sabah field and the Anasuria field. Hence, what we can gather up to now is that management will estimate future recoverable cash flows from a CGU i. In other words, if estimated accumulated profits from the North Sabah and Anasuria oil fields are less than their carrying value, an impairment is required.
So where do we find the carrying values for the North Sabah and Anasuria oil fields? Further down on page in the AR20, we see the following: Included in rights and concession are the carrying amounts of producing field licenses in the Anasuria Cluster amounting to RM,, RM,, , producing field licenses in North Sabah amounting to RM,, RM,, Hence, we can determine that the carrying values for the North Sabah and Anasuria oil fields are RM m and RM m respectively.
But where do we find the future recoverable cash flows of the fields as estimated by management, and what are the assumptions used in that calculation? In the previous financial year, due to uncertainties in crude oil prices, the Group has assessed the recoverable amount of the intangible assets, oil and gas assets and FPSO relating to the Anasuria Cluster. Based on the assessments performed, the Directors concluded that the recoverable amount calculated based on the valuation model is higher than the carrying amount.
Details of the acquisition are as disclosed in Note 15 to the financial statements. The Directors have concluded that there is no impairment indicator for North Sabah during the current financial year.
Here, we can see that the recoverable amount of the Anasuria field was estimated based on a DCF of expected future cash flows over the production life of the asset. From there, management concludes that the recoverable amount of the Anasuria field is higher than its carrying amount i.
Likewise, for the North Sabah field. How do we interpret this? Moving on, we want to gain a deeper understanding of the 3 statements to anticipate any blind spots and risks.
Feel free to go through the financial statements on your own to gain a better familiarity of the business. Finance Costs are where things start to get tricky. Why does a company which carries no debt have such huge amounts of finance costs? The reason can be found in Note 8, where it is revealed that the bulk of finance costs relate to the unwinding of discount of provision for decommissioning costs of RM 25m Note Accounting standards require the company to provide for these decommissioning costs as they are estimable and probable.
The way the decommissioning costs are accounted for is the same as an amortized loan, where the initial carrying value is recognized as a liability and the discount rate applied is reversed each year as an expense on the Income Statement.
However, these expenses are largely non-cash in nature and do not necessitate a cash outflow every year FY RM 69m. Unwinding of discount on non-current other payables of RM 12m relate to contractual payments to the North Sabah sellers. We will discuss it later. Taxation is another tricky subject, and is even more significant than Finance Costs at RM m. Of the RM m, RM 41m of it relates to deferred tax which originates from the difference between tax treatment and accounting treatment on capitalized assets accelerated depreciation vs straight-line depreciation.
Nonetheless, what you should take away from this is that the tax expense is a tangible expense and material to breakeven analysis. Restricted cash and bank balances represent contractual obligations for decommissioning costs of the Anasuria Cluster, and are inaccessible for use in operations. Trade receivables largely relate to entitlements from Petronas and BP both oil supermajors , and are hence quite safe from impairment.
Other receivables, deposits and prepayments are significant as they relate to security deposits placed with sellers of the oil fields acquired; these should be ignored for cash flow purposes.
Note: Total cash and bank balances do not include approximately RM m proceeds from the North Sabah December offtake which was received in January Cash and bank balances of RM 90m do not include RM m of proceeds from offtake received in 3Q21 Jan Hence, the actual cash and bank balances as of 2Q21 approximate RM m.
Liabilities are a little more interesting. The way this works is that the government gives Hibiscus a favorable tax treatment on capital expenditures incurred via an accelerated depreciation schedule, so that the taxable income is less than usual. However, this leads to the taxable depreciation being utilized quicker than accounting depreciation, hence the tax payable merely deferred to a later period — when the tax depreciation runs out but accounting depreciation remains.
Given the capital intensive nature of the business, it is understandable why Deferred tax liabilities are so large. They are also quite significant at RM m. What do they relate to? Basically, they are contractual obligations to the sellers of the oil fields which are only payable upon oil prices reaching certain thresholds. Cash Flow Statement There is nothing in the cash flow statement which warrants concern.
We shall not consider operational risks e. Instead, we shall focus on the financial and strategic risks largely outside the control of management. The anniversary is being celebrated by a day-long event in Vienna. Monero was and remains a remarkable cryptographic innovation, and a full history of its development will no doubt be told someday.
First, a little background. Monero is fundamentally based on a protocol called CryptoNote, which appeared in It came completely out of left field. It used known cryptography but in a novel way. Even bitcoin developers were like, this is novel. More than simply an innovative approach to privacy, CryptoNote expanded the sense of what was possible in cryptocurrency broadly.