Quote from: burnside on December 03, 2012, 10:54:27 AM

Quote from: JoelKatz on December 03, 2012, 08:43:17 AM

Giga actually has no other option -- he never extended any trust to Nefaro/GLBSE nor did he ever agree to extend any. The contract doesn't obligate him to accept these costs and risks.

I'm going to have to disagree on that one. My own issue of LTC-MINING was only 1000 shares but I knew going into it that I had to trust GLBSE for the whole process to work for the lifespan of the asset. I thought about it, did some research, and decided that I could trust GLBSE to be available long term. Nefario was actively developing on it, progress was being made on outstanding issues, he was posting to the forums regularly, etc. I even went through all the "what if" scenarios in my head and decided that even if he decided to shut down, it would be easy for him to give a weeks warning, I'd buy back all the issues per my asset's contract, and be done. Thus I very intentionally and deliberately extended trust to GLBSE to perform their end of the bargain, which was made in exchange for 8 BTC up front, and a percentage of trades thereafter.

Everyone that used it extended trust to GLBSE, especially the asset issuers.

I don't quite follow you. In what sense did you extend trust to GLBSE? In what way could GLBSE have done something that would have hurt you?

Now, the people who bought assets from you had to trust that GLBSE would actually deliver their money to you. Otherwise, they wouldn't get any dividends. And they had to trust that GLBSE would actually distribute the dividends to the asset holders. And, of course, they had to trust that GLBSE would remain in operation and not somehow lose or destroy their ownership interest. They had to trust that GLBSE would remain operational to ensure there continues to be a market that preserves the value of their assets. So they extend all kinds of trust.

But what was your exposure exactly? Maybe I'm missing something. I guess there's risk to your reputation and risk of lost profits.