What a strange thing to say. No it wouldn't.

A little run down of the math:
Labcoin consists of 10m shares. If we have 1% of the network, that means each share gets 1 ten-millionth of 1% of 25 bitcoins every 10 minutes (actually even more since blocks are found faster than that).
That's 0.009198 btc per year. Going by IPO price of 0.001 per share, that's 91.89% APR. That's exceptional compared to all other mining stocks (AM has what, 20-25% now?). And it's still excluding all possible hardware sales.

Far more important than that, a 1% share would mean most of the risk of the stock was removed.  The company would be proved to be real and to be competent.

The share price would have skyrocketed by then.  It's so low at the moment only because so much is unknown.  As the unknowns become knowns, the price increases.

So yeah, 1% would be fine in my book.

Well, those 50TH/s will not make make 10% of the network by the time they are deployed, or even 15%. They would barely make 15% if they got deployed completely right now.

But that doesn't really matter. If labcoin only manages to hold ONE percent of the network, then the current share price is nothing else than cheap as fuck.
Which is why I think this will turn out to be a great investment. If they don't completely fail, and even just manage to hold a very small percentage, then everything is fine.
The more they get, the better, but as long as they get something, then there's nothing to worry about.

The labcoin.com website as far as I know is just going through updates and redesign. I will definitely be here to update if anything significant is to be communicated.

If needed, I think the whole "bitcoin securities" thing will move to a more secure location if it was deemed illegal.  The United States does not rule the world, and if they want to attempt to restrict Bitcoin, or control how it is used, it would be nothing more than a speed bump.

All this is besides the point of Labcoin though, when is the next update scheduled to come out?

This news is very bullish for BTC in general

I am Chinese live in China, I do not understand too.

Force buy back all shares just because one random jerk calling to police, it's ridiculous. Ridiculous even in North Korea.

Because of the long history of investment scams.

The Bitcoin world, in a few short years, has already had almost every common investment scam - bucket shops, Ponzi schemes, front-running, big stores, embezzlement of customer funds, and simply taking the money and running. It's embarrassing.

The reason it's capped is that non-sophisticated investors are not sophisticated and the cap prevents them from investing too heavily in something they have probably not fully investigated.  The cap is a good thing and it is raised in the presence of a sophisticated investor.

In my humble opinion.

. This exemption would allow use of the internet "funding portals" registered with the government, the use of which in private placements is extremely limited by current law. One of the conditions of this exemption is a yearly aggregate limit on the amount each person may invest in offerings of this type, tiered by the person's net worth or yearly income. The limits are $2,000 or 5% (whichever is greater) for people earning (or worth) up to $100,000, and $100,000 or 10% (whichever is less) for people earning (or worth) $100,000 or more. This exemption is intended to allow a form of crowd funding.[2
http://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startups_Act

You guys are missing the point. I m not going to speculate on whether VBS has ulterior motives or not, as I don't care. It seems clear that he has some good technical knowledge and knows what questions to ask - that's good enough for me and I m glad he's around.
My The problem is LC not answering.

UPDATED VERSION, 6 August 2013:

My company has applied to list BTC Growth, a hedge fund-style service, on BTC-TC. The canonical version of the document, at around 8500 words, is now available directly from the exchange:

https://btct.co/security/BTC-GROWTH

In the interest of compactness, I have included here just the 'Executive Summary' and 'About the Fund Issuer and Fund Manager' sections. Please refer to the full version of the document for additional details, including risk factors and FAQ.

Any updates to this document will be summarized in the post following this one.

Executive Summary

Operating as a hedge fund-style service to the exchange, the BTC Growth fund aims to achieve capital growth denominated in Bitcoin.

The fund may invest in securities listed on Bitcoin-denominated exchanges, or in unlisted short-term debt of listed or unlisted businesses with demonstrable cashflow. It may construct strategies using derivatives intended to hedge risks associated with these investments or to generate returns in their own right. In exceptional circumstances, the fund may invest privately in unlisted businesses. The fund may provide capital to exchanges, and it may construct positions designed to extract value from volatility in the value of Bitcoin versus other currencies.

The fund's portfolio will be marked to market and its Net Asset Value published approximately once per month. Being exchange traded, no redemption notice is required, and the fund may provide additional redemption and subscription liquidity by placing bids or asks (respectively) at a level between NAV and open market prices.

The fund employs a 'two and twenty' fee structure common to the hedge fund industry, together with a rolling high-water mark tallied on a trailing three-month basis.

Potential participants for whom the full document is in any way 'TL;DR' should not participate in this fund.

About the Fund Issuer and Fund Manager

The fund will be provided as a service to the exchange by Mulhauser Consulting Ltd., a company incorporated in the United Kingdom eleven years ago and which has been in continuous operation ever since.

The fund will be managed by Dr Greg Mulhauser, the company's founder and Managing Director. In other areas of its business, the company works with a team including both volunteers and paid employees and consultants, but for the purposes of this service, fund management will be handled entirely by the Managing Director.

With educational background in mathematics, philosophy, and later in mental health, Dr Mulhauser has worked at the Pentagon, UK universities, and telecommunications giant BT. Originally employed at BT as a research scientist in cognition, complex systems and biologically inspired computation, he was also responsible for curiosities such as the Lattice of Extended Turing-Style Automata, which he designed as a novel computational architecture for implementation with FPGAs in a fashion similar to cellular automata. He later left the Complex Systems Laboratory for business strategy roles and advised on corporate venturing and on derivatives strategies associated with M&A projects. He contributed to the company's Asian portfolio management, assessed flotation and alternative demerger options for its wireless operation, and developed strategy for its £500 million indirect channels business. In 2002, he left a strategic partnering role in security and mobile technology to found his own firm, securing consulting contracts ranging from ground-based air defence systems at Northrop Grumman and the UK Ministry of Defence to internal communication at the UK's national Police IT Organisation (PITO). A British Marshall Scholar and Fellow of the Royal Society of Arts, Mulhauser lives in Devon, England with his wife and daughter.

Additional information about the fund manager specifically regarding his investment background is available from one of the newest sites in the company's portfolio, Psychological Investor:

http://psychologicalinvestor.com/lib/about-founder/

Potential participants can get something of a flavor of the fund manager's general approach to investing from the same site, and a small selection of his recent articles specifically about the Bitcoin economy can be found here:

http://psychologicalinvestor.com/lib/tag/bitcoin/

For further background, the archive section of the Mulhauser Consulting site also includes work on business strategy development and even older research work on topics like algorithmic information theory, computability and recursion theory dating back to the 1990s. (Greg Chaitin, who as a teenager independently invented algorithmic information theory alongside Kolmogorov and Solomonoff, described the fund manager's first book as "One of the first serious applications of algorithmic information theory; fun to read!")

http://mulhauser.net

Posts by the fund manager on the Bitcointalk.org forum can be found here:

https://bitcointalk.org/index.php?action=profile;u=132160;sa=showPosts

As with ordinary hedge funds, in which the General Partner typically invests alongside Limited Partners, the fund manager intends to participate in the fund, helping to ensure alignment between his interests and those of the fund. Note, however, that the General Partner/Limited Partnership model itself is neither desirable nor practical for a fund intended to trade freely on a Bitcoin-denominated exchange.

Note: This document is copyright 2013 by Mulhauser Consulting Ltd., with all rights reserved, and may not be repurposed without written consent.

where are daily videos ?

progress raport, website update, anything

labcoin.com/presentation.html it is not changed...

Following posts on their research & development, people believed in this project (wrongly or not is to be seen). Hence sold out IPO before its start (some of this *might* have been due to speculation, but still).
Lack of communication on important points make investors uneasy, lose confidence and sell off.

I have the feeling I m stating the obvious here.

There is an another IPO which could potentially push it lower if there is a another panic sell off like last week:
https://bitcointalk.org/index.php?topic=269216.0

It's older than Feathercoin and almost all of the new features are unique...  Since publishing various ideas a few have been incorporated into other blockchains, e.g. my memcoin proposal was integrated into YACoin and my random hashing scheme was into quarkcoin, but I'm not really going to directly take credit for any of that.

No matter how I look at this, IF the investment is indeed $200 million that is nothing more than a HUGE bet on very fast and sharp increase in Bitcon value.

Why? Because almost no matter the technology used, to actually make a sustainable profit off $200 invested Avalon would have to hold OVER 50% of the network hash rate for a very long time (many years) at current BTC value, a calculation I think no VC would be willing to bet on (Not onto mention the huge risk to the Bitcoin network as a whole).

What this investment really is, is a HUGE bet on increasing BTC value. Nothing else in my opinion. It's someone who wants into BTC on a larger scale then they could reasonably purchase BTC over the open market.

Do you think a Xeon is better than a high end over clocked i7 processor?

When I give a peek to 4chans /pol or reddit, facebook, twitter, pretty much any big community and/or social network people seem to be so ignorant and willing to voice their ignorance whereas in communities such as Bitcointalk (and a couple others which I shall not name) people are able to put together logical arguments, have discussions and view the current events without the glasses with a thick layer of crappy propaganda on them?

Seems that you rarely stumble upon ignorant fools on here.