Wednesday, June 4, 2014

Galt.io Update: June 4, 2014

John Galt reporting

Mobile Is Now Working Pretty Darn Well!
We’ve pushed a new release that addresses the issue that killed the Market & Members lists on Mobile last week. If you’ve been trying to use Galt.io on an iPad, iPhone or Android, please try again. Its still not perfect, but it is totally usable and a lot of fun.





Market Manipulation
There is currently an issue in the Market that has allowed some unethical Members to artificially impact the valuation of Causes. We are aware of this and will implement solutions that will remedy the problem retroactively, as well as going forward.

Market Correction

The solution will be to correct the Galtcoin balance of ALL MEMBERS who benefited from the actions of the guilty parties either knowingly or unknowingly. This systemic fix will have the biggest impact on the guilty parties, but will also inevitably effect many Members who did not participate in the manipulation directly (but benefited nonetheless). The correction is aimed to return to a functioning and fair market without being punitive to any member. As a result, inflated dividend collections and Member balances will be returned to non-inflationary levels.

Bringing Guilty Parties to Justice
Once the problem is fixed and the Market returns to normal, we will identify the guilty parties and leave it up to you - the Members - to determine their fate. We hope and trust that justice will be served through your verdict.

To the Guilty Parties (you know who you are and so do we):

While we appreciate your contributions in helping us find the holes that could be exploited, we do not appreciate your unethical exploitation of them. We are not even a month into this new world and your bad behavior not only discourages fair play and sense of community, but diverts resources away from bringing new features to the community that the Members really need. We are less than a month from launch and we are already having to focus on creating and enforcing laws (government functions) instead of building the community and economy. DON’T DO IT AGAIN. YOU’VE BEEN WARNED!

21 comments:

  1. This comment has been removed by the author.

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  2. Thank you for your succinct but thorough description, intended remedy and very classy reprimand you posted regarding this issue. We need writers like you over at GAG. I'm trying to grow my little fledgling the hard way, you see what I did there, wink wink? Seriously, really appreciate your post, especially the reminder to stay true to our convictions. Bravo.

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  3. This comment has been removed by the author.

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  4. I've been receiving much higher dividends in causes in the last few days. Then re-investing my galtcoins in new causes. I'm happy to be into the new causes. The higher dividends weren't that surprising, since we hear every day how successful galt.io has been. I understand punishing the manipulators, but not those that didn't manipulate. Jason was talking on Tuesday about insider trading vs stock tips. It's the same principle.

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  5. Glad you are making changes that will not adversely affect new Galt.io members. However, I am concerned that the "market" will need more information made available to both buyers and sellers before it is stabilized. At present we know only the number of lowest-priced shares offered for any given cause after reaching the 10,000-share threshold. There needs to be an ask book so potential sellers will have some idea if their asking price is not unreasonable, and to inform potential buyers that there are more shares being offered than those now presented.

    Also, contrary to the real world of investing, it makes little sense for a shareholder to take profits when your cause increases greatly in value since the dividend you receive is proportional to the cause's current valuation, not what you paid for the shares. With such inflated values of a fully-subscribed cause, your purchase price (e.g., GC10/share) can be returned in dividends in jsut a few days. Buy-and-hold is the way to wealth, they used to say.

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  6. I propose the following solution to the recent market manipulation issue.

    Base the market valuation on the last sale price, not the current asking price. This is how market capitalization is derived in the real stock market. Or, incorporate "bid" and "ask" prices like the real stock market. It would be nice to see limit orders etc going forward, but I'm sure you already have that planned.

    Currently, the market is set up such that any purchase is essentially a "market order," where the transaction is fulfilled by the lowest asking price. The current market manipulation is partially caused by this problem where the market cap is based on asking price, not last sale price.

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  7. Actually, LogicReason, the current valuation IS based on the last sale price. We don't see that changing. What will change is incorporating some new rules that will help prevent abuse - at least in the short term. In the long term, we are looking at ways to make buy and sell orders operate differently than the current system.

    Thanks for the input!

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  8. I'd propose something different. What we're seeing is classic supply and demand. Someone spent a lot of money, became a founding member, started a cause (thus inheriting many shares), and is being marketable selling them. The real solution is the valuation of the shares that ARE NOT the initial cause-holder, but the natural price fluctuation of the actual "sub-market" (buying and selling once the cause is seeded). I'm not saying the primary stakeholder doesn't deserve their due, but if they have the largest influence on the valuation, then it's a monopoly. Rather why not evaluate it from the free-market perspective, and if the market exists very little, you can reflect that, but small markets should not generate the dividends of larger more free markets..

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  9. One more thing. I purchased shares in causes in ACTUALLY for. Some were these manipulators. I then sought out more causes with the profits, once again ones I believe in, and actually sold shares of causes I didn't quite understand. In short, I don't mind if you zero my balance, but the causes I have been able to sign up for, I'd like to keep at least one share (you can have the rest if that's the judges verdict) for the causes I have.

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  10. I manipulated the Galt market. And, this is my response to the Galt post regarding this issue.


    I have earned millions of Galt coins. I don't know if I would be classified by the Galt post as a manipulator or just someone who benefited from others manipulating the market. I did raise the value of causes I created or invested in by buying up shares that were for sale at a high price. But, I never sold a share for an inflated price. I'm not sure but I don't think I ever sold a share for over a hundred Galt coins. Nevertheless, I'm here to defend all manipulators. We did not make the rules. Everyone at Galt only played within them. We were all trying to earn Galt coins. I like the site because I'm interested in all the ideas being brought fourth by the member causes. But, most of all I like the potential of the site and where it is going. The real change will be when members can interact with cause founders and with each other so we can begin to organize. But lets face it, right now Galt.io is somewhat limited. And, earning Galt coins is a fun distraction until the real cool stuff happens.



    I didn't think I was doing anything wrong and I doubt anyone else did. Also, I don't know the entire purpose of Galt coins are they just to determine the value of causes. Or, do they have some other purpose in the future. If "John Galt" or Jason Lewis haven't thought of it which I kind of doubt, Galt coins could be a kind of currency to buy services for a cause i.e. advertising on the radio, hiring other members to help answer email from cause members or what ever else Galt and its members can think of. I wanted to accumulate Galt coins for this possibility. I could use them to manage and promote my causes.



    Of course inflation has gotten out of hand, and I understand why its being stopped. But, more information about what is in store for the Galt website may have helped with this problem. Also, Galt coins are the currency of influence around here, and the site is set up like a market. In this market the causes function like businesses. This pits causes against each other and does not promote "a sense of community." You do not see a sense of community in business where the primary goal of each business is to help the others to succeed. Businesses focus on their own success. The same is true for members and their causes. I do realize we generally all have the same ideology and goals here, and that is where our shared community is at, but we also have some differences. And, our ideas have been set against each other so that the best ones rise to the top and succeed and the weak ones fall to the way side.

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    1. understood , and that's why i'm leaving. I'm not for the stand around and talk club. So i putting my Calt.ot up for sale.

      For SALE on Galt,io, the "Oil Consumption Reduction Team (HCF2012)" please in Box me for price.

      No time to stand around ant talk gas is raising the price of FOOD. we need $1.5M for advertisement to get the word out about the Hydrogen Car Fender insert. We as American cant afford to stand around and swap "I Wish Stories"

      by www.fatttrixx.com

      Delete
  11. I manipulated the Galt market. (continued)


    I think the concept of a literal market place of ideas is remarkable. But, having put this kind of adversarial system in place, it shouldn't be surprising when competition gets furious and out of control. Also, once I began to understand the rules of the market and how it worked, it was obvious to me and I would guess to others that inflation was certainly going to happen. In order to stay ahead of what was coming it was important to get as many coins as possible. So, I don't think members were "unethically exploiting" holes in the system. They were working to advance their interests in the market provided for them. The market had the problem not the members. I don't fault Galt though, the problem was simply that it is difficult to create a functioning market. It takes trial and error. I expect it will improve in the future, but it will also have some problems as well. Unfortunately, I think part of Galt's future roll is going to be to create market rules. I don't think its reasonable for our causes to be put in competition with each other and to expect us not to be competitive. This is especially the case when the moderating influences i.e. member to member communication that would allow more cooperation among causes and members has yet to be introduced So, I think it was wrong for Galt to warn its members against this behavior.



    And, I think chastising us was uncalled for. What we were doing wasn't unethical. We aren't progressives invading this site. We aren't trying to undermine the market and how it functioned, even if it had that effect. We are not bad actors of any kind. Instead, my guess is we are some of the most enthusiastic members of this site and are anxious to see where it can lead. So, please don't kick us off the site, punish us, or hand us over to a riled up mob of Galt members. Please, recognize "we are not even a month into this new world" and there are still a few bugs to work out.



    Well I spoke my peace, philosopher

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  12. EnergyIndependence is the cause I founded and its stock is only worth 10 GCs a share as of 1:00 PM 6/6/2014. Is this right!!!


    I assume I am being punished for manipulating the market. I doubt shareholders have turned against the idea of the Keystone Pipeline itself. I will not try to buy up those shares to raise the stock price of EnergyIndependence. I have not bought shares to raise the stock price in any of the causes I own since the warning was issued by Galt not to engage in this behavior. I need to say though that I think its ridiculous that we are expected not to earn as many Galt coins as we can. Its like going to Las Vegas and hitting the jackpot and realizing that you are unethically taking money away from the casino even though they set the rules of the game. So the right thing to do is police yourself and leave some or all of the money behind. Is it wrong to run up the score on the opposing team? Should my Galt coins be taxed and redistributed among those Galt members who are Galt coin poor?



    I could understand being punish if I had done something wrong, but I have not. I worked within the rules of the market, and I did not cheat anyone. I think this is destroying Galt. I would not mind if all my coins are taken away and I have to start over. But I want to know if I will be punished indefinitely? Will I be forced off the site by Galt or its members? I think this is punishment is unjustified!



    philosopher

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  13. The 10 GS share price is coming from a member that is obviously reacting to what is going on - not anything Galt.io is doing.

    We are noticing - and appreciating the fact - that people are distancing themselves from causes that they feel were involved in something they do not agree with. A perfect example of real market forces in action.

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    1. Sorry, I didn't mean to suggest that I was punished by Galt at least not directly. I realized the members were the ones that sold the shares. But, I do think Galt help to trigger the action by suggesting members should serve out justice. I'm quite frustrated with the whole situation. I still don't think I or anyone else did anything wrong. I have decided to sell all my shares for 1GC each. And, after all my shares are sold I am going to request that my coin total be set back to zero if that isn't to difficult. I just want to start over.

      Thank You, philosopher

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  14. Phil, I don't believe they care about folks like you and me that found the ways to make coins. I didn't cheat anyone and amassed quite a mound of coins. I used my coins to help some causes get off the ground that I liked and profited from that. I also helped launch some causes and then sold the shares cheap. Collected my dividends every 8 hours, etc... I'm 7 mil deep with no way out. I was a kickstarter founder and have had a great time and even found ways to connect with some of the folks on here. Jason can keep my couple hundred dollars. If they are going to whine like liberals and change the rules repeatedly to make things "fair". I want nothing to do with it.
    Love Cootslayer
    PS. Anyone that is going to continue to play should check out my profile. All of my causes are selling off real cheap! look up cause Jokesover for my profile.

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  15. As I mentioned in your other post - the choice is yours. It's just a shame that you are not calculating your entire portfolio - seems a waste to leave over 2,400,000 GS on the table by leaving. If you'd like to discuss your specific details, I'd be happy to assist you via a support ticket.

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  16. Thanks for your post Cootslayer, its nice to know that someone understands where I'm coming from. I haven't decided to quit completely yet, although the thought has crossed my mind.

    I did sell all my shares and currently have a coin balance that is over seven million in the negative. With no shares, I will not get any dividends and it would cost way to much to buy my way back to even. I think it would cost over one hundred and fifty thousand dollars in U.S. currency if my math is right. I created a ticket asking for a zero balance I have to see how that turns out. They might just think its all my fault.

    I'm very disappointed in the whole issue. It was an unfair character attack to say we are unethical and guilty of what I'm not sure. But, I think I will focus on my causes and not on the coins. They are not worth anything anyway. Cootslayer you may want to reconsider and stick around for awhile maybe things will get better. If you still have that many coins your in a much better place than I am.

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  17. Sorry, Cootslayer

    I didn't read your post closely enough. I see you are in the same boat as me coin wise.
    I was going by Galt's reply that suggested that you had more.

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  18. Question: How do I get an invite?

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    1. Thank you for your interest in Galt.io! We're delighted you'd want to join.

      Sadly, we cannot invite you - you will need to be invited by a current Galt.io member. I recommend posting on the Galt.io Facebook page that you are seeking an invitation and connect with a member there. (https://www.facebook.com/Galt.io)

      We've also seen folks on Twitter offering invites. Consider that carefully.

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