Quote:
Originally Posted by Rhotchkiss
Maniac, I have been following this thread. Ignore the haters. I appreciate the post and information, even though it’s not for me. I don’t think you have said/done anything wrong/improper, at all
I never heard of a DAO before you created this thread. While it’s not for me, I recognize that many things are changing and DAOs, collectives, fractional interests, etc are all here and likely here to stay; as is crypto, which I do NOT think is a scam and I am significantly invested in. I appreciate learning about DAOs and better understanding the full market - what I am competing against as a buyer and who may ultimately be a buyer.
I think many people are scared of change, and us pre war collectors are likely more change-resistant than most (we like the old stuff and glory days). But please don’t let that discourage the discussion - pure investors/investment entities are a real part of our current “hobby”, may be permanent and forever transforming it. So I appreciate learning what’s out there/going on, as I continue to collect/invest in 2022 and beyond
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Maniac,
Agree with Ryan, you're doing nothing wrong, and these aren't scams. They are basically just setting up a partnership, LLC, or corporation to invest as a group. This isn't really anything new at all, except that they're doing it all via the internet and calling the ownership units "tokens" instead of stock or partnership interests. They are simply changing the longstanding terminology, and making it sound more modern and "cool" I guess for the younger crowd.
Heck, 20 years ago I used to review the partnership tax returns for a ladies investment club. Some well-off women each kicked in the same amount of money and they decided how they wanted to invest it then. It was more of an excuse for them to get together every few weeks or so over coffee and tea (or maybe something stronger), and complain about their husbands, or so I was told. Bottom line is, it was a group that pooled money to invest, and then got together to talk and make decisions about it in person. These DAOs have everyone interacting via the internet instead, that's really the only true difference from what I can tell so far.
Look back at what I said in post #80. They're still going to have to set these DAOs up as some type of taxable entity, and someone is going to have to follow-through to actually buy/sell things decided upon, keep some type of books and records, make sure the proper tax returns are prepared and filed, have hired and directed the attorney(s) to create and formalize the agreements and documents everyone is is going to follow, open up a bank or some type of monetary account to hold, receive , and disburse funds, designate someone responsible for handling and in charge of the bank/monetary account, decide who will be responsible to set up and manage accounts at AHs and Ebay so you have venues to buy and sell cards through, determine who is responsible for appraising the DAO if someone wants too sell their interest in it so they know what it is worth at the time, and on and on and on. And all this necessary activity generally isn't going to be free, so there are probably going to be continuing costs that may be higher than anyone would have expected, as well.
You're just setting up an investing business that still has to do everything by the current books and rules. The use of the term "Decentralized" in the naming of these supposedly new investment vehicles to me is a complete joke. As I just noted in a few of the things above, any such business is going to have to deal with and decide which person(s) will be responsible for doing all of those, and potentially so much more, and handle them for and on behalf of all the investors in the DAO. That all pretty clearly calls for some semblance of a centralized effort(s) on behalf of the operations of the business. A decentralized effort would be totally inefficient and pretty much ridiculous for operating any such business. But if they want to call them decentralized merely because of the implied connotation that the ownership group is supposedly more democratic and the decision making process is not centralized in a single person or small group, so be it. But how does that work if you have a single investor in a DAO, or small group of similar minded investors that band together, and own a voting majority of the "tokens" in the DAO? That sure sounds like it may end up being a form of centralized decision making to me after all.
Again, anyone thinking of getting into one of these, be sure to read AND UNDERSTAND FULLY, any and all documents and agreements regarding the formation and operation of any DAO before you sign or agree to anything, ever!!!