Exposure to lawsuits from investors.
I don't see how this is trust extended to the exchange. You mean if the exchange does something wrong, the issuer might get sued? I would consider that a pretty unrealistic fear. We'll find out which of us is right.
I live in the US. Lawsuits are never an unrealistic fear.
Exposure to release of your personal details after doing the verification process.
True. As it happens, giga isn't anonymous, but that applies to some issuers.
Exposure to bugs in the exchange that held up dividends or trading, thus depressing the value of your assets and angering asset holders.
That doesn't really hurt the issuer.
Eh... really? So if an asset's price tanks, it doesn't hurt the issuer at all? What if it happens during IPO? What about the asset issuers operating funds holding that asset?
Exposure to legal issues because the exchange wasn't on solid legal ground.
I don't see how that's trust extended to the exchange.
Because if the exchange leads you to believe they're a company operating legally, and later on you find out they aren't, and they shut down, you're f'd? Isn't this exactly what happened?
For funds that held their portfolio on GLBSE, exposure to your portfolio disappearing.
Yes, I agree that asset owners have to trust the exchange. The question was whether asset owners had to trust the exchange.
Funds my man, I specifically said funds. You know, the assets that hold other assets as investments? If you were an asset issuer operating a fund that held assets on the same exchange, you're putting a huge amount of trust in the platform as a whole.
I guess if you're not an asset issuer with your tail hanging out, you might not see the exposure, but it's there, like it or not. And even if you can't latch on to any of these reasons discussed, you hit the big one square on the head for me in your previous post:
I guess there's risk to your reputation
That's a pretty big deal to anyone trying to operate a legitimate ongoing business.
Cheers.