I might be being dumb here but somebody help me out.....
Da Dice have now disabled the investor option so it's all a moot point but even if they have had people invest & some of the money invested has gone on paying for website development, signature campaigns to help the site grow why is that a problem?
The problem is that what happens on dice sites isn't really "investing". I picked a bad name for it. A better name would be "bankrolling". My bad.
When you invest in a company, you're typically giving them some funds in exchange for part ownership of that company. They're
free to use that money to build the company, and you reap the rewards since you own a share of it.
When you "invest" in a dice site, you're merely providing funds for the bankroll. The agreement is that your coins will be used to bankroll the site, and in exchange you get a share of the profits and losses according to the size of the amount you risk. You're meant to be able to divest your coins at any time and withdraw them. There's an expectation that the site will
hold the coins for you and have them available for withdrawal should you want them. If they spend a bunch of them on bombarding forums with advertising (say) then they no longer have enough coins to cover their liabilities. They still have enough coins to let some of the investors pull out, but if they all wanted out at the same time there wouldn't be enough coins to pay them all.
Do you see the difference? The typical dice-site deal is that the site isn't meant to be spending the customer funds. It should only use them as the bankroll that other customers play against. Maybe DaDice have a special arrangement with their investors that means it's fine if they spend their coins on just anything. In which case there's no problem at all. The investors might not be able to withdraw, and that's OK because that's what they agreed to. I didn't look at the DaDice 'invest' page to see what they agreed to.