Entropia Investment Fund implements a 1:5 share split

[mastermesh]

Originally Posted by Joat

I guess there are room for several different types of funds.
This one fits those that do "investments" without timetable.

That could be, but originally, they had a 90 day buyback policy, where you put money in and were promised your buy in money + profit after 90 days. Things have changed a lot since that time, and that was less than 2 years ago. Makes me wonder how much more things will change over the next few years. Will the fund even still exist by the time dividends have paid out enough for people to get their original buy in money back? Just makes me wonder about it all... especially since there are some uh, rumors that maybe the avatar running the thing is a duplicate. I don't know if that's true or not, but I suspect it may be based on the avatar names of the few avatars in their soc. in soc. terminal. ... also based on the fact that website and some other things say,"brought to you by via delarosa," etc. I could be wrong about many assumptions and thoughts, but it just seems that in my contact with the main guy or gal running the fond manager avatar, the entire attitude changed from lets make this a safe bet to who cares, we are getting taxes and are rich once the LA buys happened.

I don't mean for this to be anything hostile or anything... Just a bit of a warning type post. It also might be bordering on pointing fingers and stuff, but anyways, this is just my honest opinion... and I hate to say bad things about anyone but it just seems, well, like there's a big scam in the works until it can be proven otherwise somehow? I don't get how you can allow unlimited number of shares and expect people to sell them and stuff without allowing general public to buy in at one share each... it's sort of like the "share making machine" is just there sucking up peds like a vaccuum, and is giving out lots of shares but not giving anyone a way to sell those shares back to the fund or to anyone else for that matter since new people wouldn't have to buy from others in the fund, just buy a new bundle of shares, etc. increasing the main avatar's ped count up and up and up, until that avatar either cashes out or something?... Guess time will tell what will happen. It was a good idea at the time I guess... just doesn't seem to be thought out all the way as to how people can get their money back once they hand all their peds over to the fond manager to buy stuff and enjoy.

[Joker]

have you actually contacted or been contacted by the SEC yet? is it legal to essentially create a stock... and not be regulated...?

[EarlVonKippler]

Originally Posted by mastermesh

Nope... new people would have to spend substantially more than initial buy in people to get same number of shares...

what i ment was that everyone that bought the 1st shares got what is worth 5 today. so we paid at least 500 peds to start. and again at least 500 peds to buy more stocks. so yes, a new person buying in is still starting, imo, the same way. the values didn't double. we all had stock in multiples of 5.

[Jeffe]

Originally Posted by Gluepot

The split is a nice idea, but.... Forcing people to invest a minimum of 500 ped kind of defeats the purpose I think

Gluepot, I understand your initial thoughts but this is a good idea. For instance say I own one share, but cant afford another, now I can buy 1/5 of that at a time. If every existing member bought an additional share per current share owned that would raise the initial investment by twenty percent. Also many people may not have enough to buy two or three initially so this way they are free to invest at the percentage level they choose. The reason for the minimum is to keep accounting simplified I think, and to show enough interest in the established project.

[mastermesh]

say I own one share

That'd be impossible since they make new people buy a minimum of 5 to start with... and once you buy one you can't sell it back, only can sell to others... so you are sort of stuck with it unless you can smooth talk someone else I guess? I've got some seaside property in Arizona...

[Fund Manager]

Jeffed owned one OLD share (base value 500 PED).

Since the share split he owns five NEW shares (base value 100 PED).

[Joat]

Originally Posted by mastermesh

That could be, but originally, they had a 90 day buyback policy, where you put money in and were promised your buy in money + profit after 90 days. Things have changed a lot since that time, and that was less than 2 years ago. Makes me wonder how much more things will change over the next few years. Will the fund even still exist by the time dividends have paid out enough for people to get their original buy in money back? Just makes me wonder about it all... especially since there are some uh, rumors that maybe the avatar running the thing is a duplicate. I don't know if that's true or not, but I suspect it may be based on the avatar names of the few avatars in their soc. in soc. terminal. ... also based on the fact that website and some other things say,"brought to you by via delarosa," etc. I could be wrong about many assumptions and thoughts, but it just seems that in my contact with the main guy or gal running the fond manager avatar, the entire attitude changed from lets make this a safe bet to who cares, we are getting taxes and are rich once the LA buys happened.

I don't mean for this to be anything hostile or anything... Just a bit of a warning type post. It also might be bordering on pointing fingers and stuff, but anyways, this is just my honest opinion... and I hate to say bad things about anyone but it just seems, well, like there's a big scam in the works until it can be proven otherwise somehow? I don't get how you can allow unlimited number of shares and expect people to sell them and stuff without allowing general public to buy in at one share each... it's sort of like the "share making machine" is just there sucking up peds like a vaccuum, and is giving out lots of shares but not giving anyone a way to sell those shares back to the fund or to anyone else for that matter since new people wouldn't have to buy from others in the fund, just buy a new bundle of shares, etc. increasing the main avatar's ped count up and up and up, until that avatar either cashes out or something?... Guess time will tell what will happen. It was a good idea at the time I guess... just doesn't seem to be thought out all the way as to how people can get their money back once they hand all their peds over to the fond manager to buy stuff and enjoy.

I can understand people getting worried about things around their investments,
but just as with any other RL-investment, most people act by greed
rather than thought out plans. And when rumours begin to spread,
people also get panic and do less smart actions, again.
(Just look at how USA has it today... )
To me it seems you do just that, spread rumours about something you
don't know for fact. Getting worried is a normal human behavior thou',
when we see something that seems odd based on our own knowledge.

I never heard that we should become rich when we bought LA or Shop,
or Hangar for that matter. All I see that as, is an progress for fund that
were the initial idea.
But I guess I'm not out for fast profit. I do see the potential in fund thou',
so I will for sure buy more shares as soon as I can do that.

A note about playing with several avatars in general, not based on your
post... you do know that you can do it, right?
You can't "own" two avatars, but you can play with someone elses avatar.
For example, my sister has a avatar, and I can play with that one if I want.
She lose her rights to get help if something bad should happen, when
she reveal her login and password to me,but as long I play with it and
follows EULA, there are no problems to do so.
It's a question about common sense...

[EarlVonKippler]

i guess with all investments trust that the money will be handled properly is always a concern. however, i am more inclined to trust the EIF manager than my bank nowdays with all the money scandals.

[mastermesh]

Well, I see what you mean... it's not really trust that would be my main concern, although that's a biggie... the main concern I have is would you ever get your original peds back or just have to sit around and wait for the LA taxes to more or less get you to break even in about 10 years, assuming the taxes keep bringing in 10% or so of original investment... I assume there's zero plans to sell the LAs or the shop so there's zero ways to get the peds out of the fund sunk in to them? With TT stuff like originally started things just seemed to be a safer bet, especially since there was a 90 day buyback guarantee.... promise that I guess got broken to some who were already in once the LAs got bought?... The 90 day thing was the one thing that gave me incentive to get in last year but I had hardware issues that kept me from logging in for many months, so didn't ever get around to it... now I have the peds to invest and just don't see any reason to... and am having trouble figuring out why anyone else would want to now, especially after the split since split essentially means that you now will have to find at least 5 people to buy your shares if you want out, and not just one... or maybe find one new sucker who can be forced in to buying all 5 at once as some sort of initiation rite of passage, lets take the n00bs money type of thing... I think I read somewhere on the site that the screen prints of original sales are the things that verify sales, and that as far as the fund is concerned it stays like that if shares are ever sold, so original owner is always the original owner? Just seems a little odd and stuff.

It's not really trust since it seems to be a good idea and stuff, just seems like there's issues in figuring out how to do stuff down the road when someone does want out if anyone ever does want out... Guess no one has ever asked to get out?

[Joat]

Originally Posted by mastermesh

Well, I see what you mean... it's not really trust that would be my main concern, although that's a biggie... the main concern I have is would you ever get your original peds back or just have to sit around and wait for the LA taxes to more or less get you to break even in about 10 years, assuming the taxes keep bringing in 10% or so of original investment... I assume there's zero plans to sell the LAs or the shop so there's zero ways to get the peds out of the fund sunk in to them? With TT stuff like originally started things just seemed to be a safer bet, especially since there was a 90 day buyback guarantee.... promise that I guess got broken to some who were already in once the LAs got bought?... The 90 day thing was the one thing that gave me incentive to get in last year but I had hardware issues that kept me from logging in for many months, so didn't ever get around to it... now I have the peds to invest and just don't see any reason to... and am having trouble figuring out why anyone else would want to now, especially after the split since split essentially means that you now will have to find at least 5 people to buy your shares if you want out, and not just one... or maybe find one new sucker who can be forced in to buying all 5 at once as some sort of initiation rite of passage, lets take the n00bs money type of thing... I think I read somewhere on the site that the screen prints of original sales are the things that verify sales, and that as far as the fund is concerned it stays like that if shares are ever sold, so original owner is always the original owner? Just seems a little odd and stuff.

It's not really trust since it seems to be a good idea and stuff, just seems like there's issues in figuring out how to do stuff down the road when someone does want out if anyone ever does want out... Guess no one has ever asked to get out?

I think you should head back to the site and reread the info.
Some info:
"The first owner stays as owner in the EiFund books as long as we do not get screenshots from seller and buyer that document the trade"