filmackay
Re:Bitcoin Exchange Had Too Many Bitcoins
on Thursday August 03, 2017 @04:37AM (#14917935)
A spin-off (or more correctly, demerger) is almost exactly what you describe: a company cloning itself but adopting a different vision/mission, and awarding shares to all existing shareholders.
With companies it is usually done with a particular division, or business area - but in the case of an anti-trust settlement (go and compete with yourself) it would be exactly what you describe and be implemented as a demerger.
Re:Bitcoin Exchange Had Too Many Bitcoins
on Thursday August 03, 2017 @04:34AM (#14917925)
I think this is a bit one-sided, that you've created "forced buy in". You've also created a LOT of supply as well, which goes a long way to counter-balance the demand.
Besides, the exchanges do not seem to have implemented this as a demerger spin-off (you were short BTC, but you do not need to return BCH - just bTC), and as a consequence NOT created "forced buy in".
Re:Bitcoin Exchange Had Too Many Bitcoins
on Thursday August 03, 2017 @04:31AM (#14917915)
It's not a stock split (which would issue you more BTC), but a demerger - or a spin-off. This is where a company gives out shares in proportion to existing shareholding. It's like BTC has "spin off" BCH which was part of BTC - but now trades independently. I'd say a LOT of people do not understand this, because the price of BTC should have fallen, which I guess makes sense since this BTC has no entitlements and therefore is driven, a little like gold, on future expectations or speculation.