No, a corporation is a legal entity that must have directors and officers, aka people. Without that, you don't have a corporation. And after reading the article, they aren't a legally recognized corporation.
> No, a corporation is a legal entity that must have directors and officers, aka people. OR, a corporation is a legal entity formed by a corporate charter that is treated as a person under the law. In any case, whatever these ethereum-based things are, they aren't corporations.
What a bunch of snake oil. If you invested or are thinking of investing ask yourself a few simple questions. Who are the Shareholders/Directors/Officers of this corporation? Do you know what state it is incorporated in or going to be incorporated in? Just a few buzz words. Decentralized? No shit, any corporation with more than one shareholder is decentralized. Smart contracts? Defined as a self enforcing contract, gu…
You're referencing US law here, but it looks like most of the people involved in the DAO are neither US citizens nor US residents. Slock.it is a German company and dao.link will be incorporated in Switzerland.
The exact details differ, of course, by where it is incorporated (and also where it is doing business, as there are requirements for foreign corporations doing business in various jurisdictions), but generally similar kinds of application, registration, disclosure, management/agent desgination, etc., requirements exist in most jurisdictions.
I'm not sure if you are trying to compare my legal knowledge to that of a Taxi driver, or suggesting my position is not based on law but an irrational fear of competition, or maybe you are implying taxi drivers were wrong about Uber so I must be about DAO. Maybe it helps my point, maybe not, but Uber is certainly illegal in many jurisdictions. Take Miami-Dade county, there are 10,000 Uber drivers and nearly 3,000 tic…
> I'm not sure if you are trying to compare my legal knowledge to that of a Taxi driver ... Certainly not, I see no evidence that you don't have a strong understanding of the law, far beyond my own. I guess what I'm saying is that Uber and the DAO both operate in a legal grey zone- And both of them likely have aspects that directly conflict with current law. However, I think it's clear that the legal system is a "liv…
> I guess what I'm saying is that Uber and the DAO both operate in a legal grey zone-
What is required to be a corporation is not really a legal gray zone. The DAO doesn't operate in a legal gray zone as to that characterization, its just flat inaccurate.
Insofar as the DAO is a mechanism for constructing contracts between actual legal persons (either natural persons or corporations), it may operate in a poorly-tested area as to whether valid contracts are formed, how those contracts are interpreted and what law they are governed by, and whether and to what extent they are enforceable, true.
"found" means to do the paperwork and setup a bank account. that's it. there's no deeper meaning. "fund" just means putting some money into a bank account for it. you could fund a company with a dollar (and many people do, for symbolic reasons).
"With reasonable hope of success" is an implied clause of the original sentence. You might have not considered this aspect.
At a certain point we have to stop beating around the bush and admit that being successful isn't something people are entitled to and it is something you actually have to work at.
The DAO isn't actually worth 120 million. For one, it's based on the price of ETH, which would completely crash if you attempted to sell even a few million worth. Secondly, everyone can withdraw their funds from the DAO before any funds are sent to projects. Many have invested because those who invested early make money from those investing later, since the number of "DAO tokens" you get per "ETH" has gone down over…
Ethereum's daily volume is around $22 million, and thats just on public exchanges. So you could sell $120 million in Ether in 4-5 days also using OTC exchanges. I've had worse liquidity on penny stocks and the options market, so you'll have to drop the meme. Cryptocurrencies are liquid enough and they continue to attract more and more liquidity.
Uh, that's not how volume works. For one, because you'd be adding to it. But also: much of that volume is buying and selling of the same ETH.
I just sold one of my hairs to myself for $10. Is my head now worth a million? With Apple, there's intrinsic value to consider. And frankly, if you sold enough Apple stock for it to go down 50%, I'd personally start buying. I doubt that's the case for ETH, where there's only early adopters buying it hoping to strike it rich.
It actually did go down 50% from $15ish to $6ish and recovered. Early adopters trying to get rich = all early stage investing so what's your point?
That's because of the tiny liquidity. Nowhere near $120 million was sold, and it still lost 50%. Now try selling tens of millions worth, and see what happens.
Right. In fact, an business entity that doesn't go through the formalities of becoming a legal corporation, LLC, etc., may expose its members to unexpected legal responsibilities. E.g., if the agreement were seen as forming a general partnership, each member would be jointly and severally liable for all legal liabilities of the partnership.
Two of the big advantages of a modern joint-stock company are: limited financial liability and professional management. Management limits the need for input and activity of the investor. (You don't even need to vote your shares.) Do the members of the DAO want to vote on every little thing?
Could they not just vote for professional managers to handle the small tasks for x compensation?
I just sold one of my hairs to myself for $10. Is my head now worth a million? With Apple, there's intrinsic value to consider. And frankly, if you sold enough Apple stock for it to go down 50%, I'd personally start buying. I doubt that's the case for ETH, where there's only early adopters buying it hoping to strike it rich.
So you're saying the intrinsic value is certain to be lower than it's current market value? I have good news for you: You can become rich by simply shorting ether on Kraken and Poloniex!
You're completly disregarding that timing is far more important than simply knowing that there will be a downward correction. The shorting fees will end up being consuming a large chunk of the profit even though you sold a hundred thousand ether coins at $11 and bought them back at $1.
> I'm not sure if you are trying to compare my legal knowledge to that of a Taxi driver ... Certainly not, I see no evidence that you don't have a strong understanding of the law, far beyond my own. I guess what I'm saying is that Uber and the DAO both operate in a legal grey zone- And both of them likely have aspects that directly conflict with current law. However, I think it's clear that the legal system is a "liv…
> I guess what I'm saying is that Uber and the DAO both operate in a legal grey zone- What is required to be a corporation is not really a legal gray zone. The DAO doesn't operate in a legal gray zone as to that characterization, its just flat inaccurate. Insofar as the DAO is a mechanism for constructing contracts between actual legal persons (either natural persons or corporations), it may operate in a poorly-teste…
I hear you, but I don't think I've ever used the word "corporation" in this forum or claimed that the DAO is a corporation, or directly disputed any claim made by another comment as to whether the DAO is or isn't a corporation.
Whether or not the DAO meets the definition of a "corporation" doesn't seem like a very interesting question to me, and I think it's too early to know how/if it matters if the legal system uses the word "corporation" to refer to the DAO.
I just sold one of my hairs to myself for $10. Is my head now worth a million? With Apple, there's intrinsic value to consider. And frankly, if you sold enough Apple stock for it to go down 50%, I'd personally start buying. I doubt that's the case for ETH, where there's only early adopters buying it hoping to strike it rich.
So you're saying the intrinsic value is certain to be lower than it's current market value? I have good news for you: You can become rich by simply shorting ether on Kraken and Poloniex!
The cryptocurrency holders can probably stay irrational for longer than I can stay solvent. I'll sit on the sidelines and watch.