Floyd Mayweather-Backed ICO Responds to Lawsuit: 'Investors Have No Ownership Rights' (No. 124)

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Floyd Mayweather-Backed ICO Responds to Lawsuit: 'Investors Have No Ownership Rights'

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We are proud to announce that the following document Floyd Mayweather-Backed ICO Responds to Lawsuit: 'Investors Have No Ownership Rights' WP version 124 achieved the ChainBLX opinion based accreditation on 2019-02-12 21:37:11.

This accreditation testifies that it is our professional opinion as well as the opinion of our community that document Floyd Mayweather-Backed ICO Responds to Lawsuit: 'Investors Have No Ownership Rights' is in compliance with the professional standard brought forward and regulated by chainblx.io.

A ChainBLX accreditation is very difficult to archive and in no way should any statistic be indicative of the quality of the document at hand. Neither should the achievement of accreditation in anyway imply that investors should not conduct their own diligence prior to any investment.

Document Floyd Mayweather-Backed ICO Responds to Lawsuit: 'Investors Have No Ownership Rights' reached its accreditation with the following statistics.

Likes of forum members: 0

The discussion forum will remain open for future discussion, the remainder of the bounty will be reimbursed to the owner and no future claims can be filed.

In the name of the community and ChainBLX

We wish Floyd Mayweather-Backed ICO Responds to Lawsuit: 'Investors Have No Ownership Rights' the best of success.

MX10178MX10178 Reputation: 75
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Automatic Claim Number - cla1550183580

Quote - Definition It is yet unclear how this activity is treated from a regulatory viewpoint. In the past, certain prediction markets were treated as financial activities as they predicted financial instruments and the regulator treated it as futures trading. It is clear that financial predictions will continue to be monitored by financial regulators, however it is not certain how other predictions such as political events, product releases etc will be governed, especially in a decentralized world and whether such activity will be captured by online gaming regulations. Stox is committed to following all required regulations.

Claim

Readers are mislead by the above text to believe that a regulatory crackdown on gambling sites would simply be a 'challenge', when in fact it could render investors' shares worthless.

There is no contingency plan in the whitepaper for what the company will do if regulators deem Stox to be a gambling site. And there is no contingency in the whitepaper for financial regulators stepping in regarding the site's financial 'predictions'. Failing to thoroughly address the strong likelihood of catastrophic regulation in the U.S. and elsewhere is bad faith.

Here is a link to a January 2017 article that demonstrates that regulation or banning of gambling sites is very likely: https://bit.ly/2S3FfSU

This entire enterprise has a reasonable likelihood of being completely banned.f18c7cd4b492a2b76cd3876a90d27655
onderI1sonderI1s Reputation: 54
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This is not true.Investors have all the rights in this case because they have invested their shares in the company.They are entitled to ownership of the company.

64978c02064c7bfbd81ca43beaff585f
MX10178MX10178 Reputation: 75
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Automatic Claim Number - cla1550271081

Quote - Like any other exchange prediction platform, Stox utilizes the relevant event in the form of a stock where participants can trade on the outcome of the event.

Claim

The whitepaper describes the Stox platform in the present tense, conveying that it is fully operational with participants. 2caf74967e9a0862db72168b7ed9f845
MX10178MX10178 Reputation: 75
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Automatic Claim Number - cla1550271192

Quote - Like any other exchange prediction platform, Stox utilizes the relevant event in the form of a stock where participants can trade on the outcome of the event.

Claim

An event cannot be a stock. Stocks constitute ownership rights and trades are closely regulated. You can't just create a trading unit and call it a stock, without any compliance to regulations. The trades on this platform would actually be bets, and the trading (betting) units are nowhere close to being definable as a stock.638eea82c4f79e750c43ff1ec45507a4
THE JUDGE!!!!!!THE JUDGE!!!!!! Reputation: 0
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Opinion #7: An opinion has been issued in Automatic Claim Number - cla1550183580.

It was decided to release 0% of the funds. The jury voted in their opinion to release an average of 0% of the bounty and a median of 0% of the bounty.

Please see below for the opinion of the jury:
  • Opinion #1 - Online gambling has become more troublesome in the eyes of the US govt over the last few years. With the new version of the Wire act being done and close to being implemented, it is true that companies do not know what will be enforced or how it will be enforced. Just today, the New Hampshire Lottery Commission has filed a suit against the Department of Justice to stop the enforcement of the new Wire Act. So, where does this leave companies like Stox and also where does it leave the people who use their product or invest in their company? The text could be interpreted as a bit misleading but I believe that it is more that they are really unsure about how they will be treated but as it says in the whitepaper, they are prepared to abide by all the regulations. So I think that no bounty should be awarded. Also, investors/users should keep a tab on this company if they are interested in it, as well as the upcoming decision of the possible implementation of the new Wire Act.
  • Opinion #2 - The text is not misleading. The company states that although they are not sure how regulators will view their activity, they state that they are prepared to follow all required regulations. Therefore, no bounty should be awarded. I do believe that the company needs to be more clear and/or elaborate more in how they will navigate regulation. Like if there is something they are working on or have as a backup plan in case they need to pivot their business due to not meeting regulations.
  • Opinion #3 - Investors have rights and ownership in this case because they own shares in the company and they are stake holders.Any decisions made in the organization, they should be informed.Therefore,they have a right in this case because they are co-owners of the company.

Claim: Readers are mislead by the above text to believe that a regulatory crackdown on gambling sites would simply be a 'challenge', when in fact it could render investors' shares worthless. There is no contingency plan in the whitepaper for what the company will do if regulators deem Stox to be a gambling site. And there is no contingency in the whitepaper for financial regulators stepping in regarding the site's financial 'predictions'. Failing to thoroughly address the strong likelihood of catastrophic regulation in the U.S. and elsewhere is bad faith. Here is a link to a January 2017 article that demonstrates that regulation or banning of gambling sites is very likely: https://bit.ly/2S3FfSU This entire enterprise has a reasonable likelihood of being completely banned.

Highlight: Definition It is yet unclear how this activity is treated from a regulatory viewpoint. In the past, certain prediction markets were treated as financial activities as they predicted financial instruments and the regulator treated it as futures trading. It is clear that financial predictions will continue to be monitored by financial regulators, however it is not certain how other predictions such as political events, product releases etc will be governed, especially in a decentralized world and whether such activity will be captured by online gaming regulations. Stox is committed to following all required regulations.

78d287ff69c82e6b642d047062289180
karlkarl Reputation: 203
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Thank you all for participating in a jury. If you are selected as a jury member pls evaluate only the claim on hand and not the paper as a whole. This of course does not mean that you can't consider the whole paper to put the claim in the right context. For now it was ruled on two claims.

64117edf069ab9060fe4cfe015efeffd
THE JUDGE!!!!!!THE JUDGE!!!!!! Reputation: 0
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Opinion #9: An opinion has been issued in Automatic Claim Number - cla1550271081.

It was decided to release 1% of the funds. The jury voted in their opinion to release an average of 4% of the bounty and a median of 1% of the bounty.

Please see below for the opinion of the jury:
  • Opinion #1 - agreed. Future tense should be used.
  • Opinion #2 - Albeit long, this paper, I believe, gives a view of various bitcoin companies, Stox and its competitors, and tries to convince us why the "masses" need to invest in cryptocurrency. I fully believe that cryptocurrency might be the future of currency. Like the above claim stated, events cannot be stocks. Bets are gambling, stocks are more complicated and take more effort, time, and responsibility, as far as investing is concerned.
  • Opinion #3 - there should be future tense used and it somewhat implies that the platform is already operational.

Claim: The whitepaper describes the Stox platform in the present tense, conveying that it is fully operational with participants.

Highlight: Like any other exchange prediction platform, Stox utilizes the relevant event in the form of a stock where participants can trade on the outcome of the event.

3a95cc87a435fba25a01f3a25c873f95
karlkarl Reputation: 203
Status: White Paper Owner
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In opinion #9 we see that the bounty hunter is awarded 1% which is $37.50

4dcdbc98043c9fdb5928f3f7113730aa
seedbountyhunter15seedbountyhunter15 Reputation: 51
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This is a good teaching example. Please feel free to file additional claims. You can learn and get some $$. This said we do not say that the idea behind stox is bad.

2688e8f8d585eb80c357232cc639f635
MX10178MX10178 Reputation: 75
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I think I just got the first bounty ever on this site. I'm honored.

7592bb813b380d14ad4cf7599e9eb450
seedbountyhunter15seedbountyhunter15 Reputation: 51
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Pls don't reveal if you have been on a jury or currently are on a jury. Not a biggy for now. But we are concerned to keep the voting process fair and independent. Jury members are randomly selected.

cb6a94589121602bcbdcc95d4c291b4d
THE JUDGE!!!!!!THE JUDGE!!!!!! Reputation: 0
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Opinion #12: An opinion has been issued in Automatic Claim Number - cla1550271192.

It was decided to release 0% of the funds. The jury voted in their opinion to release an average of 17% of the bounty and a median of 0% of the bounty.

Please see below for the opinion of the jury:
  • Opinion #1 - In my opinion the events are not stocks and saying they are it will confuse investors. To my understanding there is no ownership rights of any kind in tangible assets but the token itself. Thus it does not qualify as a stock. Further more the article above goes right to that point of confusion which should be avoided.
  • Opinion #2 - these are not stocks, as stocks have a specific meaning. in addition the brand name Stox seems to be deliberately misleading.
  • Opinion #3 - The whitepaper did not claim that the event becomes a stock, rather it takes the form of the stock where then users can trade. Trading in cryptocurrency is like a bet, in that part the claim is correct but their reasoning to use that fact and belief that the company said that their events are stocks is not correct because that is not what is stated. Therefore, no bounty should be awarded.
  • Opinion #4 - No opinion necessary - This is claim is already covered in 1 claims already

Claim: An event cannot be a stock. Stocks constitute ownership rights and trades are closely regulated. You can’t just create a trading unit and call it a stock, without any compliance to regulations. The trades on this platform would actually be bets, and the trading (betting) units are nowhere close to being definable as a stock.

Highlight: Like any other exchange prediction platform, Stox utilizes the relevant event in the form of a stock where participants can trade on the outcome of the event.

538e0afa0aedbf2c250e3288feb16212
onderI1sonderI1s Reputation: 54
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Automatic Claim Number - cla1550736930

Quote - The company’s ICO reportedly raised $34 million back in August of 2017, partlythanks to Mayweather’s promotion. Per the plaintiff, Hogeg only invested $5 millionout of the total raised in Stox itself. In addition, he claimed the entrepreneur sold histokens before the earliest date he said he would do so, which devalued the tokens

Claim

This show investors had the rights for ownership of the company because they had invested their shares.

Flags:

The above quote does not support the claim. Hence I asked that no bounty is released by seedbountyhunter15 on 2019-02-22 01:16:29

feed0acf772d3efa0c0e7e449863c2fa
MX10178MX10178 Reputation: 75
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So I just got 17% of $3750?!? YES!! Can somebody from chainblx email me? My Coinbase wallet is not up yet.

0903d001b46096214c196333327def82
THE JUDGE!!!!!!THE JUDGE!!!!!! Reputation: 0
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Opinion #13: An opinion has been issued in Automatic Claim Number - cla1550736930.

It was decided to release 0% of the funds. The jury voted in their opinion to release an average of 0% of the bounty and a median of 0% of the bounty.

Please see below for the opinion of the jury:
  • Opinion #1 - Agree with flag" The above quote does not support the claim. Hence I asked that no bounty is released
  • Opinion #2 - I agree with the flag, The above quote does not support the claim. Hence I asked that no bounty is released
  • Opinion #3 - The claim highlights an issue about the dealings of the company but does not necessarily align with the text that was highlighted. No bounty should be released.

Claim: This show investors had the rights for ownership of the company because they had invested their shares.

Highlight: The company’s ICO reportedly raised $34 million back in August of 2017, partlythanks to Mayweather’s promotion. Per the plaintiff, Hogeg only invested $5 millionout of the total raised in Stox itself. In addition, he claimed the entrepreneur sold histokens before the earliest date he said he would do so, which devalued the tokens

0b044ad39049a8dce67f8c1acaad9611
MathildeMMMathildeMM Reputation: 61
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Automatic Claim Number - cla1551458560

Quote - The Stox TokenThe Stox ecosystem is based on an open source cryptographic token named STX (the Stox Token). Like other similar cryptocurrencies, STX is fractionally divisible, transferable and fungiblePurpose and usage

Claim

In the white paper the "purpose and usage" of this token are well-details. It clear that "users" (and not investors) would buy token in order to enjoy the services provided by the plateform. Making this token falling under the "utility token" categories as opposed to "security token". It is also stated in the T&Cs in their website (https://www.stox.com/terms-and-conditions/ - "STX is offered as a utility token only and is not offered for speculative purposes").

According to regulation in EU/Gibraltar (where the company is settled) utility tokens "are currently not covered by financial regulation." (source: https://www.esma.europa.eu/sites/default/files/library/esma22-106-1338_smsg_advice_-_report_on_icos_and_crypto-assets.pdf).Therefore the T&Cs and the present white paper would be the only legal framework for those tokens.

In the same paragraph of the quoted text above, the ESMA suggests that a utilty TRANSFERABLE token should be regulated by the Markets in Financial Instruments Directive (european financal market regulator) but as of now, it isn't. 52545c207be65c74b5b5865947a92eaa
THE JUDGE!!!!!!THE JUDGE!!!!!! Reputation: 0
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Opinion #24: An opinion has been issued in Automatic Claim Number - cla1551458560.

It was decided to release 10% of the funds. The jury voted in their opinion to release an average of 13% of the bounty and a median of 10% of the bounty.

Please see below for the opinion of the jury:
  • Opinion #1 - i believe this is a small but important distinction, and the claim provides some valid proof with links and statements to back it up.
  • Opinion #2 - The user provides evidence for their claim and proves that STX did not state that they are unregulated. Therefore, 10% of the bounty should be released.
  • Opinion #3 - The company omitted the fact that they are not regulated. Yet they state that STX is transferable. Therefore, 10% of the bounty should be released

Claim: In the white paper the "purpose and usage" of this token are well-details. It clear that "users" (and not investors) would buy token in order to enjoy the services provided by the plateform. Making this token falling under the "utility token" categories as opposed to "security token". It is also stated in the T&Cs in their website (https://www.stox.com/terms-and-conditions/ - "STX is offered as a utility token only and is not offered for speculative purposes"). According to regulation in EU/Gibraltar (where the company is settled) utility tokens "are currently not covered by financial regulation." (source: https://www.esma.europa.eu/sites/default/files/library/esma22-106-1338_smsg_advice_-_report_on_icos_and_crypto-assets.pdf).Therefore the T&Cs and the present white paper would be the only legal framework for those tokens. In the same paragraph of the quoted text above, the ESMA suggests that a utilty TRANSFERABLE token should be regulated by the Markets in Financial Instruments Directive (european financal market regulator) but as of now, it isn't.

Highlight: The Stox TokenThe Stox ecosystem is based on an open source cryptographic token named STX (the Stox Token). Like other similar cryptocurrencies, STX is fractionally divisible, transferable and fungiblePurpose and usage

d59d122c25f5438b95b4402100fc2690
jonwalkerjonwalker Reputation: 0
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I was just wondering if you can make claims based on information that has come to light since the whitepaper was published. In other words, if they say one thing in the whitepaper, but end up doing it differently later on. In the context of the whitepaper, the statement isn't necessarily false, but it turns out to be later through their actions.

268554092a06d7a25de7a5ca04e549f8
karlkarl Reputation: 203
Status: White Paper Owner
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@jonwalker Of course you can post it as long the white paper is in accreditation this is important information. The jury (community) will have to decide.

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