The Golden Fleece project intends to build cryptocurrency mining datacenter on the land of Colchis, at the Black Sea coast in Georgia. GFL introduces third party mining equipment hosting service with flat fees 13-16 cent per KW/h depending on quantity. GFL datacenters will use different types of equipment for mining the most popular cryptocurrencies.
The secret is that GFL company is building mining datacenter in Free Industrial Zone [tax free] in Georgia using green energy generated by hydropower plants.
GFL claims that they have already developed self-cooling HDMU [High Density Mining Unit] and run in operation in Kutaisi Free Industrial Zone.
GFL’s second HDMU is in the process of development and to be launched by the end of February 2018. Development of the third HDMU is expected to start in February and finish in March 2018.
But as of March 2018, there is no information about construction of mining datacenter on the company's website and social networks.
The mining facilities are being developed based on funds raised through crowdfunding and GFL token sales. Total target investment volume is set to be USD 40,000,000 for 20 MW electricity capacities for the mining datacenter. The White Paper says about the low cost of electricity, the unique technology of creating a mining center, the use of green energy. Up to 15% of Golden Fleece mining datacenter capacity will be generated from own solar panels. The main element of the business strategy is the location of the mining center in the tax free zone of Georgia.
But tax legislation of Georgia may change. Tax benefits may be revoked at any time. So, the whole business model of cheap mining may collapse.
The project team claims that Golden Fleece has already implemented pilot mining datacentre project in Telavi with more than $400,000 investment including funds for land purchase. Showroom for any interested parties to visit opened in Tbilisi. It is obvious that an investor who wants to buy tokens will not go to Tbilisi. But there is no information about work of this mining datacenter, no photos, video reports, documents.
The role of tokens in the project is not clear either. The white paper says that 50% percent of the mining datacenter profit will be distributed to the GFL token owners holding minimum 10,000 of the GFL; other GFL holders will benefit from own trading on exchanges. In this sense, tokens are very similar to stock, but legal issues have not been detailed.
Information about marketing is almost missed. The project has low activity in social networks. On BitcoinTalk there are 7 pages since July 2017, in Telegram there are 303 followers, in Twitter 666 readers, on Facebook more than 10 000 subscribers, but likes and repost less than 10 for each post. It indicates fake group. In the White Paper the bounty program is claimed. Site design is very poor and social networks are full of tawdry and tasteless banners.
On this background, statements about the collection of $ 40 million don't look serious.
The project team consists of 11 people experienced in business development, IT and blockchain. The experience of each team member is not described. The team is clearly lacked of marketing experts.
The White Paper provides the overview of the main economic indicators of Georgia as a country with a low cost of electricity and a favorable environment for development of blockchain technologies. But Georgia is not the only country where mining centers are created. In the White Paper there is no market review and competitors analysis.
The target audience is not described. Obviously, it should be miners.
As it is said in the White Paper Golden Fleece will remain profitable because of high efficiency rate, low electricity prices, and economies of scale. But this is only unverified statements of the project founders.
Golden Fleece is a project that is aimed to create a data center of crypto currency mining in Georgia. The team of the project does not use follow the Georgian myth that says the gold can be found and collected in the rivers. It executes a real mining seeking for the gold under the ground.
The investment volume of Golden Fleece is about 40$ million. The agreement is determined for 5000 m2 and it includes two zones in Georgia. Different kinds of equipments will be used for the implementation of the project. By the way, Golden Fleece has already carried out a project on pilot mining and gained sufficient funds to be confident on the next projects.