Quote from: Vandroiy on June 22, 2012, 12:33:55 AM

Also, does anyone have credible figures about the magnitude of "deposits" in the various nonexistent/vaporous bonds and companies?

Here are a couple valuation tables:

- https://bitcointalk.org/index.php?topic=84399.msg974903#msg974903
- http://www.thebitcointrader.com/2012/05/glbse-valuations-13-may-2011.html

Overall, this shows a relatively pretty small amount. Eyeballing it I see maybe a quarter million USD. Maybe at peak for all issues (not just the top 20) the total was twice that (wild assed guess).

Quote from: Vandroiy on June 22, 2012, 12:33:55 AM

If this is large enough to cripple Bitcoin's current recovery when it finally shuts down... let's just say I would be disappointed.

Funds held by Bitcoinica totaled far larger amounts (perhaps by an order of magnitude larger) and Bitcoin didn't skip a beat.

Additionally, if some (or most) of these were to collapse, the bitcoins would presumably already have been spent, thus there's no selloff of bitcoins that would result.

The event you fear would, however, give pause to it occurring a second time (at least not right away ... memories are sticky, but the pain fades and it happens again eventually).

What I'm surprised by is why there aren't a wider variety of asset issues. Of course I had expected word to get out that you could create a "fund" that would "invest" in "[put some commodity or other asset here]" and raise "capital" on GLBSE -- all for about $50 (not including the cost for the fake ID).

But what I thought we'ld see (and hoped we'ld see) by now were things like what you'ld see at an angel pitch fest maybe and trying to raise their seed money here (and yes, using their real names, addresses, portfolio history, business plan, a paying customer or two, etc.).

It is like the elephant kept under control having a leg chained to only a tiny stick. Equity crowdfunding is here, waiting to be put to good use! [Crickets ... ]

What GLBSE needs are some successes with meatspace ventures building and shipping in a way that proves how these markets can work just fine for those trying to raise capital in an honest, transparent fashion.

Incidentally, another thread on this "what if Pirate defaults" topic:
- http://bitcointalk.org/index.php?topic=86853.0