Bitcoin Forum
December 08, 2016, 06:04:36 AM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: If GLBSE were to get shut down or dissapear...  (Read 919 times)
LoweryCBS
Sr. Member
****
Offline Offline

Activity: 364


firstbits 1LoCBS


View Profile
July 02, 2012, 03:18:33 AM
 #1

...is my ownership of various individual bonds safe? How are the bond issuers to know who holds their securities & who is due dividends?

I'm trying to invest wisely, diversify & spread my risk - but it occurred to me that the single point of failure could be the GLBSE itself.

(I'm sure this has been discussed before, but a search doesn't return quite what I'm looking for)

Thank you in advance to anyone pointing me toward any information that would increase my understanding of the exposure.

1481177076
Hero Member
*
Offline Offline

Posts: 1481177076

View Profile Personal Message (Offline)

Ignore
1481177076
Reply with quote  #2

1481177076
Report to moderator
1481177076
Hero Member
*
Offline Offline

Posts: 1481177076

View Profile Personal Message (Offline)

Ignore
1481177076
Reply with quote  #2

1481177076
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481177076
Hero Member
*
Offline Offline

Posts: 1481177076

View Profile Personal Message (Offline)

Ignore
1481177076
Reply with quote  #2

1481177076
Report to moderator
1481177076
Hero Member
*
Offline Offline

Posts: 1481177076

View Profile Personal Message (Offline)

Ignore
1481177076
Reply with quote  #2

1481177076
Report to moderator
1481177076
Hero Member
*
Offline Offline

Posts: 1481177076

View Profile Personal Message (Offline)

Ignore
1481177076
Reply with quote  #2

1481177076
Report to moderator
Meni Rosenfeld
Donator
Legendary
*
Offline Offline

Activity: 1890



View Profile WWW
July 02, 2012, 03:43:44 AM
 #2

If GLBSE vanishes overnight and is never heard from again, there is a problem since there's no way to know who owns bonds.

But if GLBSE goes out of business for any reason, while its owner(s) are still alive and honest, they can share the information with issuers. What they do next is up to the issuer - the bond offerings assume GLBSE is working, so it might not be 100% business as usual but you will not lose your principal entirely.

1EofoZNBhWQ3kxfKnvWkhtMns4AivZArhr   |   Who am I?   |   bitcoin-otc WoT
Bitcoil - Exchange bitcoins for ILS (thread)   |   Israel Bitcoin community homepage (thread)
Analysis of Bitcoin Pooled Mining Reward Systems (thread, summary)  |   PureMining - Infinite-term, deterministic mining bond
Bitcoin Oz
Hero Member
*****
Offline Offline

Activity: 700


Wat


View Profile WWW
July 02, 2012, 03:48:03 AM
 #3

Nefario has a "key man" policy in place he has shared with the glbse shareholders. These shareholders are some long time bitcoiners who wont let glbse "disappear" without a fight.

Cant say much more as its up to Nefario what he chooses to share with users.

ColdHardMetal
Hero Member
*****
Offline Offline

Activity: 701



View Profile
July 02, 2012, 04:20:28 AM
 #4

Nefario has a "key man" policy in place he has shared with the glbse shareholders. These shareholders are some long time bitcoiners who wont let glbse "disappear" without a fight.

Cant say much more as its up to Nefario what he chooses to share with users.


All of the access information required to keep GLBSE running has been encrypted and provided to a number of individuals. X of Y members of that group are needed to come to a consensus and provide pieces of the encryption key needed to access that data. This ensures continuity, while at the same time preventing any one individual from going rogue and messing things up so to speak.

It does seem like it might be useful for there to be a mechanism for asset issuers to maintain their own records of who holds their asset, but then we run into privacy concerns where asset owners might not want that information known to anyone. Where's the balance? I really don't know.

madberry
Newbie
*
Offline Offline

Activity: 29



View Profile
July 02, 2012, 07:32:41 AM
 #5

From all I have read I don't believe GLBSE would just disappear overnight.  What worries me is some individual(s) pulling a Maldoff.

Have any spare coins? I'll take them:
18R28KTmwfR17EGGw9SFjoEzpWLvJAfmrT
Stephen Gornick
Legendary
*
Offline Offline

Activity: 2002



View Profile
July 02, 2012, 07:45:51 AM
 #6

From all I have read I don't believe GLBSE would just disappear overnight.  Wat worries me is some individual(s) pulling a Maldoff.

GLBSE only hosts accounts for investor's balances (which the bitcoin funds can be used to buy shares or withdrawn).  Once there is an IPO, the issuer gets those bitcoin funds.

In expressing your concern were you referring to GLBSE itself or an action by an asset issuer?

Bitcoin Oz
Hero Member
*****
Offline Offline

Activity: 700


Wat


View Profile WWW
July 02, 2012, 07:49:05 AM
 #7

From all I have read I don't believe GLBSE would just disappear overnight.  What worries me is some individual(s) pulling a Maldoff.

GLBSE cant control greed.

madberry
Newbie
*
Offline Offline

Activity: 29



View Profile
July 02, 2012, 07:44:28 PM
 #8

No true, the whole Maldoff thing didn't really reflect badly on wall street either.  But I am going way of topic...

Have any spare coins? I'll take them:
18R28KTmwfR17EGGw9SFjoEzpWLvJAfmrT
madberry
Newbie
*
Offline Offline

Activity: 29



View Profile
July 02, 2012, 07:47:10 PM
 #9

In expressing your concern were you referring to GLBSE itself or an action by an asset issuer?

Asset issuers, I understand how GLBSE works and that they don't control what an issuer does. Nor could they ever.

Have any spare coins? I'll take them:
18R28KTmwfR17EGGw9SFjoEzpWLvJAfmrT
thelibertycap
Full Member
***
Offline Offline

Activity: 203


View Profile
July 03, 2012, 10:49:51 AM
 #10

bitcoin would plummet in value 30% in two days
Blazr
Hero Member
*****
Offline Offline

Activity: 882



View Profile
July 03, 2012, 10:54:30 AM
 #11

bitcoin would plummet in value 30% in two days

No biggie, we used to have 50% price swings everyday.

Busy ATM.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!