I just purchase 3MH worth of Mining Shares for $100. Not Miners.. mining shares. Lawyer cleared this up for me. Its all in the language and how they present it. Do i mind, not at all.. as long as i can get my ROI back.
If the process we're more similar to renting a rig, then yes i can see it being an actual miner you are buying. But GAW is controlling the coin and pools only because it flow's with their financial projections and what they are able to return to investors.
This is the obvious. Anyone with a business sense can see what they are offering are not miners but shares in an operation. Probably doing this to avoid regulation from the securities commission and ultimately higher taxes.
In Canada, any mining operation selling shares must be registered with the securities commission because they are selling shares
No difference with what GAW is doing. They are just trying to get around it with some wording and presentation.
Think of the production costs to manufacture these hashlets. And they spit em out like quick fast. (Good graphic designer)
If i wanted to purchase $75,000 worth of hashlets i can get them right away!! (SHARES make this possible)
No refunds, but i can trade them at a lower price??
Selling something that is a security as not a security is illegal in the US. It is two separate felonies: felony fraud and selling of unregistered securities.
I agree these are just shares, and thus securities.
I also agree anyone with some experience in finances can see that these are shares, but many people on hashtalk have no idea what they are purchasing because they are unable to see through the marketspeak nonsense.
Every single detail at zenminers communicates to the buyer that he is buying a MINER, not a SHARE.
A MINER is a physical asset that is generating income by contributing hash power to some multipool and the income thus generated is directly influenced by a number of real market conditions.
Hashlets are represented as MINERs in all and every detail.
Being in the "cloud" doesn't change their core quality which is the supply of hash power to a pool. If this is real, then we can't speak of shares or securities but rather for ownership of actual, physical asset which is measured in actual, existing MH/s and has specific, real world expenses attached to it (hosting + electricity + maintenance).
If MINERS do not exist, then a SHARE to a company that has no income generating mechanism other than SHARES SELLS is the exact definition of
PONZI.Doesn't GAW have lawyers? Isn't it completely and utterly stupid to publicly and openly advertise a fraud?I agree that the whole business model with the aggressive marketing, the aggressive zenpool payouts, the aggressive and most generous upgrade of original hashlets to prime hashlets etc can only be
easily explained by the PONZI (SHARES) model.
However, it can also be explained in complicated business and technical arrangements as well as by a really aggressive and expansive business attitude.
As an example, someone suggested in an earlier post the possibility GAW may actually have 2x the MHs they are selling: for every 1MHs hashlet they sell, they keep and operate 2MHs power. Obviously such arrangements (if indeed exist) are valuable company secrets that will never be revealed.
To objectively judge such possibilities one must have access to information about almost any corner of altcoin industry: total hash rates, total asic manufacture, fluctuations in exchanges and so on...
Without that, we can only speculate. The easiest explanation is that they collect money from new buyers to pay out existing buyers aka ponzi.
I am an old buyer of hashlets and I am paid every single day like clockwork from GAW so far.
But this is NOT ENOUGH!
As an investor, I want to know if I can trust to invest MORE in hashlets.
Therefore, I must be able to judge what's the risk I'm taking with them.
If hashlets are assets directly corresponding to actual and measurable hash power, then my risk is low and will follow the general risks of this altcoin market. UP with zenminers!
If hashlets are shares to non-existent hash power, pay outs being based on MY money and new comers money, then this is BIG FRAUD. DOWN with zenminers!
I am more inclined to accept the idea of hashlets being real assets based mostly on that the other alternative (ponzi) is so stupid and has grave, unavoidable consequences for GAW.
