On February 26, Substratum moved another 1,200 ETH to Kraken–most likely to liquidate into USD to cover operating expenses. ETH was worth ~$133 on the day of the transfer, which means Substratum’s 1,200 ETH liquidation was worth ~$159,600. Substratum made a similar transfer of 2,500 ETH (~287,000) earlier this year on January 25, 2019. My guess is Substratum liquidated 2,500 ETH in January in order to cover operating expenses for January and February, while the most recent 1,200 ETH liquidation will be used for expenses in March. These recent liquidations support the hypothesis that Substratum’s burn rate is ~$150,000, a figure which I first wrote about in August of last year after observing liquidation patterns in April and May.
We have been in business for over a year and a half, and even with the struggling crypto market, we have been fortunate to hit good points most of the time with conversion to fiat for use in building the company. While we utilized Bitcoin and Bitcoin Cash upfront to get the business up and running, all those upfront costs were associated with building the business, and we still have roughly half the Ethereum that we raised during the ICO and nearly all of the Ripple and LiteCoin we raised are still stored in Cold Storage.
Okay, someone is lying here. According to Substratum’s whitepaper, the BTC, ETH, XRP, BCH, and LTC collected during its ICO was hedged four ways into BTC, ETH, USD, and USDT (25% each). Now, Justin Tabb is saying there is still XRP and LTC “stored in cold storage”, which is impossible if Substratum did indeed hedge its funding as stated in its whitepaper. Also, Substratum does not have “roughly half the Ethereum” it raised during its ICO left. Substratum raised 17,778.25 ETH, and there is currently 5,150.991684 ETH left in the treasury–that’s ~29%. Last time I checked, 29 ≠ 50.