Compcoin’s value is equivalent to its members best financial estimation of value of membership, the licensed rights to the use its encoded financial trading software, and to the degree it allows its members to share its technology. We do not make any representation as to investment performance that could be interpreted as providing investment advice. The predictive intelligence information is in the form of statistical data that constitutes an objective report of facts on a non-selective basis directly from the output of a software program.
Past performance is not indicative of future performance. Trading futures involves substantial risk of loss and is not for everyone. This is not a guarantee of future performance. Dollar and percent gains listed include commission charged by the broker, real-time quote fees and any monthly platform fees that might exist. Monthly draw-downs posted are measured on a closing month – to – closing month basis. Percent gains/loss are measured using a normalized account balance (our per unit trade size) in order to closer reflect what our average customers might have seen. They do not include the one-time licensing fee Compcoin.com charges for the use of the algorithms. These live returns are provided so that our clients can make an informed and educated decision regarding the use of our algorithms. Refer to our license agreement for full risk disclosure. Compcoin.com is not a registered or licensed investment advisor or CTA. We claim the self-executing exclusion from registration granted by the CFTC , rule 4.14(a)(10). These returns have not been audited by any government agencies and therefore should be considered customer testimonials only. These results may not be representative of the experience of other clients.
Compcoin network operates without any human involvement under the control of an incorruptible set of business rules. Compcoin is an investment App not a “convertible” virtual currency. Compcoin virtual digital coin does not have an equivalent value in real currency, or acts as a substitute for real currency.The purpose and utility of a Compcoin token in this category is a “membership” in Compcoin Distributed Collaborative Organization with unique rights to it’s members.
Compcoin members are not dependent on effort of any kind by third parties, in their business using this software. Using Compcoin encoded financial trading software is based solely on the input of various artificial intelligence programs without any human input.
There are two financial incentives that are attached to this membership. First, the speculation that Compcoin tokens and membership will grow in value as the use of Compcoin grows. Secondly, the members ability to use and potentially profit from the developed and tested trading technology. Compcoin buyers are purchasing the membership with a token of value.
Common Enterprise: Money raised from Compcoin sales is not pooled and there is no common enterprise between Compcoin holders and the miner of Compcoin. There is no common enterprise, horizontal or vertical commonality.
Reasonable Expectation of Profit: Purchasers of tokens of this type may purchase in expectation of profit. In the case of Compcoin the miner has total control over fund utilization from token sales. The direction of the entity, such that control over the entity is exercisable by those putting up the funds to purchase tokens, effectively makes Compcoin holders shared managers in the success of the entity. Compcoin holders have enough control to fundamentally impact the value of their tokens or the enterprise.
Rights associated with Compcoin token:
“Conclusion: Depending on the nature of the organization and the actual control held by people who have committed capital, “shares” organizations which are structured on the blockchain (commonly referred to as Decentralized Autonomous Organizations) Compcoins are likely not to be considered as securities.”
Running Compcoin trading technology feature to trade Forex is your own enterprise. You will have to know how to follow instructions, to install software and have an existing or open Forex account of a size you deem appropriate. You will have to turn on the program with your broker and turn it off. The date you turn on and off the program will in large part determine your profitability. You will determine the size of orders entered into your account by the number of tokens you activate.
Compcoin is managed by its coin holders as members in a Distributed Collaborative Organization.
All funds used to purchase newly issued Compcoins are for the exchange of value of the membership and the uses and rights to software licenses collectively shared by its members. All development of Compcoin financial trading software and its embedded AI algorithms are complete in form and function. No funds from Compcoin sales will be for further software work or adjustments made to the algorithm or the trading technology. The members have agreed to maintain the usability and security of the free Compcoin wallet software. Members maintenance and security upgrades are provided at no cost by members for other members.
Compcoins are transferable, divisible and exhaust when used at a rate of .05 % each quarter. Tokens are consumed when sent to activate trading technology at a rate of .05% each quarter.
Recent publication of Legal framework for Blockchain token issuance and trading has been published by Harvard and MIT business and legal experts. This has given the green light to digital coins issued by Distributed Collaborative Organizations. Compcoin by its original design follows this framework to ensure that Compcoins are not in any respect a security or convertible virtual currency. Compcoins do not meet the definition of securities in any respect due to the fact that;
1.) Compcoins are exhausted as they are used to activate encoded financial trading software.
2.) Compcoin financial trading technology is complete in form and function. No further efforts for development are in effect. All sales are final for the licensed use of the completed technology that runs autonomously.
3.) Compcoin operates as Distributed Collaborative Organization managed by its members in which Compcoin members can vote using the smart contract system.
4.) Compcoin coin ownership is as an individual member. They must set up software, activate features using available Compcoins in their wallet. Through their own efforts they turn on or off their Brokers trading software in a private segregated Forex Account in which they fund. All profits and losses from this activity are determined by the coin holders individually and not collectively. Individual Compcoin holders determine the size of trading in their account by the number of Compcoins they activate. Members promote Compcoin to others as it will be by their own efforts by which they can resell at a profit or loss if they desire to do so. The success of the individual who buys Compcoins does depend solely upon them and not in anyway upon Compcoin issuer success as a whole. Individual Compcoin holders do not share a common enterprise in any respect with the issuer. Compcoin membership purchased by electronic tokens is not a security but rather a membership with rights of use. Potential profits by members are in all respects separate and distinct from profits of Compcoin issuer.
Your efforts will be required to resell your Compcoins. Your profits are solely from results of using Compcoin financial trading software technology successfully in your own Forex account. Compcoin makes no representations on your ability to transfer Compcoins to any other party at a profit or loss.
The success of Compcoin software sales does not correlate with individual Compcoin holders profit or loss from using the financial trading software. Compcoin can sell as many tokens as are available based upon the programmed mining schedule. The proceeds of the new Compcoin sales will go directly to the issuer of Compcoin minus a sales commissions and other promotional expenses paid to referring Compcoin members and third parties.
You can make profits or sustain losses independent of the fortunes of others. Compcoin purchasers must take an active part in managing their Financial Trading business. You have the control over Compcoins you have purchased, Compcoin provides no managerial efforts on your behalf.
References Britto, Jerry, Houman B. Shadab, and Andrea Castillo. “Bitcoin Financial Regulation: Securities, Derivatives, Prediction Markets, and Gambling.”Columbia Science and Technology Law Review 6 (2014): 240-97. Web. Buterin, Vitalik. “Launching the Ether Sale.” Web log post. Ethereum Blog. Vitalik Buterin, 22 July 2014. Web. Cawrey, Daniel, and Andrew Beal. “The Importance of Keeping Crypto Crowdsales Accountable.” CoinDesk RSS. N.p., 29 Nov. 2014. Web. Dietz, Joel. “Distributed Governance Whitepaper.” GitHub. N.p., 10 Jan. 2015. Web. Dietz, Joel. “Cryptoequity: Legal Considerations.” – Google Docs. N.p., 3 Dec. 2014. Web. Dietz, Joel. “The Second Wave of Blockchain Innovation.” Medium. N.p., 24 Dec. 2014. Web. Dietz, Joel. “The Swarm Manifesto.” Crypto Biz Magazine. N.p., 25 June 2014. Web. Dietz, Joel. “SWARM: The Dawn of Cryptoequity.” Follow The Coin. N.p., 04 June 2014. Web. Dietz, Joel. “What Is Cryptoequity?” Medium. N.p., 31 Oct. 2014. Web. Dietz, Joel. “Crowdsale Guide.” – Google Docs. N.p., 27 Dec. 2014. Web. . Ethereum.org. “Terms and Conditions of the Ethereum Genesis Sale.” Terms and Conditions of the Ethereum Genesis Sale (n.d.): n. pag. Web.. Gordon, James D., III. “Defending a Common Enterprise in Investment Contracts.” Ohio State Law Journal (n.d.): n. pag. Web.. Johnston, David. “The General Theory of Decentralized Applications,DApps.”GitHub. N.p., 9 Nov. 2014. Web .. Shadab, Houman. “Why Cryptoequity May Not Be Securities.” Weblog post.Lawbitrage. N.p., 12 Nov. 2014. Web. . Shadab, Houman. “Decentralized Autonomous Organizations and the Law.” Weblog post.Lawbitrage. N.p., forthcoming. Web. . Windslow, Edward. “North Carolina Has Rewritten Its Warpy Law of Unincorporated Associations.” Notes Bearing Interest, North Carolina Bar Association VOL. 28, No. 3