Post
Topic
Board Securities
Re: Lab Rat Data Processing, LLC (LabRatMining) Official Announcement
by
Endlessa
on 06/04/2014, 00:52:35 UTC

Regarding the bolded part, I guess my perspective is opposite yours.  I see it as there is a lot to lose. The entire upside potential, since we have NO idea what is going on and what the proposed solution will look like, it seems hasty to assume that the near zero value we have at the moment will be a persistent thing.  Right now the potential downside is losing the final few pennies per 'contract' but the upside potential I think is pretty significant.

Best case scenario I think is all the new hardware has been hashing for a month and after restructuring we get back dividends and things move on as originally intended and share value returns to what it was prior to "the announcement".  Or even better, we get some form of exchange and the 'contract' price goes up.  Assuming trust is repaired, transparency improves etc etc. 

I am patiently waiting(for now) because there will be plenty of time (years) to pursue lawsuits and criminal charges if things do not shake out favorably for 'contract' holders.  Any sort of lawsuit would likely take a long time to resolve, at the very least a year or more, by which time all of the assets owned by LRM that could be liquidated would be almost worthless and worse yet, any damages wouldn't be recovered in terms of BTC but in terms of USD you paid for the 'contracts' when you first acquired them at the exchange rate AT THE TIME you acquired them and possibly just the USD value at the time of the IPO.  Courts may even look at the USD value of the BTC received weekly per 'bond' and determine that all USD value of payments received exceed the original cost of the 'bond' so there are no damages to claim.  Bitcoin is in new uncharted waters so it seems pretty hard to predict how any sort of legal action would be resolved.  I see a lot more downside risk to legal action than upside potential.

Has anyone ever bought shares in a company with lawn furniture or hammers?  Since the IRS has advised bitcoin is to be treated as property, courts may compare it more to lawn furniture than to dollars or gold / silver.

I'll probably start to run out of patience though around mid to late May.  That would be a full 6 months since this issue came up on the radar judging by the 'for 2 to 3 months' comment.  A description of the issue at hand would be really nice.  I am hoping the issue is 'we want to avoid a need to collect personal information and issue 1099's' or even 'we want to avoid having to register as a MSB'.  Those seem like the most likely legal issues to me.  And I am pretty sure there would be legal means around both of them.  I really would like to know more about what is going on.

I agree, if I was only considering time to getting a solution.  The lack of information about the problem and promised results from some "lawyer" that never manifests, makes my timeline much shorter.  I don't care about the damages or returns if it comes to that, whatever happens at that point is what it is.  It's more about consequences of bad business.