These loopholes and arbitrary, informal, procedures are why smart money avoids the exchanges. It's like a random listing on the forum or -otc, but with a single bottleneck-a person represented by a silly nickname with no real background of trust or accountability.
The plural'd seem unwarranted as there's neither loopholes nor arbitrary or informal procedures on MPEx. Otherwise yes, one (of the many) reasons actual money avoids the Global Scam Exchange is the complete lack of... I'm not even sure. Sanity, maybe. Let's recap this for the slower among us.
I. For the ~year it existed during which GLBSE listed ~50 or so scams the position of management was "we just list them, it's the job of the market to price them". Recently this policy was suddenly reversed. Does this mean that it was wrong and all the naive "investors" that lost money in the litany of GLBSE scams to date have now a claim against GLBSE management? (Tort, breach of duty of care etc?)
II. As part of the ongoing "Global Scam Exchange is where scams are listed" policy, the problem of dead assets (ie, that sticky residue left after a scam explodes) has been resolved through "new versions", "site redesigns" and such. The latest installment of this was the creation of four colored markets. The people who originally paid money to be listed in one environment have had their listings changed to a different environment. This is apparently not a matter of concern to Nefario (mostly because he is literally too stupid to realize unprodded how this would be a problem).
III. While the people that paid money to be listed are relegated to category III or IV,
Nefario arbitrarily decides on the 20th of September that some random failed central ecurrency is going to be category I on the strength that some nitwit wandered into the Interscamgro conference talking about it. And this is "due diligence" and all that jazz. Just as arbitrarily (and just as irrationally) the entire thing gets dropped on the 22nd.
IV. While all this is going on people are still asking "what are the rules of these new categories" and are met with stone silence. Why? Because Nefario announced the categories before he actually made the rules that go with them. Why? Because he is stupid. Literally, he starts building a car with the paint, this is what it is.
V. While all this mess is going on, a horribly mismanaged asset (DMC) is suspended from trading, and the owner account locked. There is no mention of this in any TOS, it just "happened".
After having taken action, Nefario thinks about the consequences of that action, and declares that there will be "a shareholder vote". The vote happens to reinstate the original owner (albeit he was a horrible manager for the asset), probably on the grounds that the measure of confiscating someone's asset was so stupidly executed and so appallingly planned that it just turned people's stomachs.
VI. In a typical bout of reality-divergent "thinking", Nefario announces a complex auditing process which will include "real auditors", which of course fails to materialize. He then refuses to name the auditors and eschews admitting that he's just... made some shit up on the subject. Much like the imaginary lawyers he's supposedly talking to, which are giving him some of the funniest advice
one could imagine.
This list could go on forever, fake offerings of the exchange's own shares which are bought by investors and disputed to this day, on and on it goes but really there's little point. The situation is simply that some intellectually sub-par individual is pretending to be running "an exchange". This is fine for shits and giggles, but nobody sane would put money in there. Taking part in GLBSE could be a sort of participating in an MMO, maybe, drop twenty bucks a month into "investments" that go nowhere. Practically it's a subscription fee for the game.
Thinking that GLBSE it is a market, that it has anything to do with BTC finance and so forth is laughable.
I hope this clarifies the matter.
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