The first legitimate Ponzi scheme.
If you start using, the more people you get in the more you can get out, and it grows until the last ones to enter are final losers.
Kind of like social security.
Check it out.
http://en.wikipedia.org/wiki/Ponzi_schemeShould GLBSE really be supporting this sort of scheme as one of it's tradable assets?
While I can sort of see a case for it because it's up front about what it is, it strikes me as the sort of thing that will negatively affect GLBSE's growth.
Why not restrict assets to those that have at least a plausible sustainable investment model - and also are not so likely to attract negative attention from the media and/or various law enforcement/regulatory bodies?
While in general I expect the bitcoin community would be hesitant to get law enforcement involved in disputes - there are perhaps cases involving fraud where there is a place for cooperation with certain agencies. (e.g MTGox indicated they may get law enforcement involved with certain aspects of the recent hack)
Having an asset like bitponzi on the books seems to make it unlikely you'd get any cooperation if for some reason the exchange did need to work with investigators on some issue.
That aside.. it's just likely to scare the average investor off and thus reduce the potential depth of the GLBSE exchange.
Wouldn't it be in your interests to drop bitponzi and at least have a basic 'dress code' for listings? - e.g:
a) real world contact details which you have verified (can be kept secret - but retained in case of fraud)
b) plausible sustainable business model
c) enough transparency in operations to give credence to b).
I can see you're going for a hands off approach from your terms and conditions.. which is fine to an extent..
but it puts your interests somewhat at odds with those of the average investor.
BitcoinGlobal could be seen to be making a profit from shonky asset operators.
You state:
"We assume no responsibility or liability for any fraud committed on this exchange but will do our best to prevent its occurrence."
Ponzi schemes aren't likely to fit into most peoples expectations of doing the best to prevent fraud. Even if bitponzi itself is up front about it - you can almost guarantee some early participant will misrepresent it to someone else in order to get more money into the pot.
It's a bit like a company saying they don't spam, yet they encourage their agents to do it on their behalf.
Your exchange your rules.. but it strikes me that you're making a gift for whatever competitors come along and setup an exchange that feels more 'business-like'.
