Give the twinkies to Bitgeek and lets be done with them both.
We can not say anything particularly insightful about Paycoin because we do not have enough information. No one really has enough information to make an informed decision, other than remark its whitepaper has been consistently vague, error-riddled, and full of marketing fluff.
However, I think there is enough info to reach a definitive ruling on whether GAW is selling unlicensed securities. I want to get some feedback from people who support GAW, or are at least on the fence.
Josh has stated, unequivocally, that Zenpool profits are paid out on:
1. private rentals
2. mining
3. day-trading
4. undisclosed other activities.
Your
profits payouts are not a 1MH share of a mining pool, but a share of quite a few other activities in which MH does not even figure (like in day trading).
What is a security? http://www.law.cornell.edu/uscode/text/15/77bThe term “security” means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or
participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription,
transferable share, investment contract, voting-trust certificate, certificate of deposit for a security,
fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or
index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a
national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a “security”, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.
Josh appears unwilling to deny that the Zenpool is indeed a security, as he fails to do so in the latest "Troll/FUD" that Suchmoon linked. Instead of denying that he runs an unregistered security, Josh stresses that the SEC only steps in when "losses occur."
Why does it matter if this is an unlicensed security?If this is a unlicensed security, then there is a completely new type of unquantifiable risk to doing any business with GAW. That risk is that the SEC steps in and turns off his server, like they just did to BFL. That would make all hashlets, hashcoins, and even Paycoins (if we get that far) worth nothing at all.
Due to GAW's extreme centralization, you literally have nothing to show for your money if their server is turned off.
