SencneS
Amarr
Rebellion Against big Irreversible Dinks
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Posted - 2008.12.04 14:36:00 -
[1]
 Originally by: Deizel
Thus my point on why you are paying two very different rates on what is essentially the same bond exposed to the exact same risks and which as it turns out are not limited to loans only.
This is a question I've had an answer to for a long time. No one, until now, ever proposed that there is a double standard for the same risk. The answer is simple - The risk is placed on EBANK'S hands not the customers.
Is EBANK really an IPO? A question I've been mulling over for a long time now but important to the question you ask. In the EVE Players eyes EBANK is no different then any other public company at it's basic level. I deposit money, I get more money back, assuming all went well. Although thats an extremely wide definition the same can be said for the in-game market. I deposit Assets on the market, I get more assets back, assuming all went well.
When comparing EBANK to an IPO there are differences.. For one, one customer depositing or withdrawing ISK does not effect the withdrawal or deposits or another, it also doesn't effect the other person's interest rate. That statement is important and what defines EBANK as NOT an IPO.
In a normal IPO a plan is drawn up, and ISK that is being asked for by the public has been worked out to the approximate value of what is required to run the IPO. A 10B IPO if one person buys 5B in shares and another only 100M in shares. What happens to the IPO if they allowed the same "withdrawal as you please" option as EBANK.
Well with the 5B (50%) would cripple the IPO overnight. That 100M investor wouldn't be able to achieve his return. If the 100M withdraw chances are that will not cripple the IPO.
In EBANK that doesn't exactly happen. Remove the sheer size of the deposits for a second, lets assume the customer ran the bank and withdraw 50% of EBANK's holdings. What would happen? Would the other 50% be effected? In short, no. The board and all of EBANK would simply shrink and liquidate assets etc to a level that would not only fulfill the 50% withdrawals but still cover the interest of the other 50%.
Back to the main point - Where is the risk.
From a customers view point the risk is the same as any other IPO out there. However EBANK has a point to prove, a challenge is you will. CCP's Dr.E at fan-fest 2007 announced that BANKS in EVE are more then likely a scam. EBANK plans to prove him wrong, and we're enjoying proving him and everyone else wrong every step of the way.
So from EBANKs view point - The risk is always on EBANK, not the customer. If EBANK runs at a loss the customer will never be effected. So you'll have to forgive the rest of EBANKs staff if some don't understand what it is you're proposing or the aspect you're taking.
We're offering our customers a dynamic chance to invest in a single entity at dynamic interest rates. From the customers viewpoint all they should need to see is, "If I deposit X amount into Y account, I'll get Z amount of interest in return. My risk is, they could scam and take my ISK."
The logistics behind EBANK are so large and complex that if we where to take a single customers ISK and break down the interest so that each one of EBANKs activities pays a proportional amount of interest you'd break your brain trying to wrap your mind around what goes where, how much return goes where. I'm not calling you dumb or you'll never understand, just EBANK doesn't work that way, it would be stupidly complex if it did.
EBANK takes all the deposits and works them a single deposit and pays what people expect from the return of the whole working capital. Attempting to break it down into "What a single customer invests into" is irrational and completely redundant. And not exactly fair. If we a depositor deposited 50B across multiple accounts (And some do) allowing us to open a profitable new venture everyone benefits, not just that one person.
EBANK is about community and we aim for just that,community helping the community. |