> collecting crypto donations in a pool on 'behalf of' those websites
No. The rewards program is centered around the people. It just happens that the way to discover the people and address the payment is through some specific platforms (like Youtube, twitter, reddit, github, etc).
> holding them hostage
Nothing is held hostage. The only legal way that they can pay someone is if the person goes through KYC. The system can only recognize the recipient as "authorized to receive payments" if the creator has signed up to one of the partner exchanges.
> keeping them for themselves
This is false. Contributions were going to the user pool. Now they are returned to the original donor.
No, I think I'd be significantly angrier if they'd collected actual money and withheld it from its originally intended recipient and instead put it into a fund that they used to grow their business. That was actually more offering them the benefit of the doubt. Crypto tends to cloud a lot of judgement and relax the definitions of 'financial fraud.' If it were done with actual dollars they might already have met with the DOJ.
> Nothing is held hostage. The only legal way that they can pay someone is if the person goes through KYC.
So what you're saying is, you can't get it unless you sign up even though they'd already solicited the donations on your behalf. Got it. So exactly what I said. This wouldn't be an issue if they had people sign up first, right? Then they wouldn't be soliciting donations on behalf of unregistered individuals and the whole point would be moot.
> This is false. Contributions were going to the user pool. Now they are returned to the original donor.
Right, the marketing budget. They stopped after they got called out for it.
Exactly what I said.
[edit] Side-note, if they'd done this on the websites of charities, it may actually be illegal in a number of countries.
> Charity fraud is the act of using deception to get money from people who believe they are making donations to a charity. [...] Charity fraud not only includes fictitious charities but also deceitful business acts. Deceitful business acts include businesses accepting donations and not using the money for its intended purposes, or soliciting funds under the pretense of need. [1]
Now I'm no lawyer but soliciting donations that people think are going to a charity and instead putting them into your 'user pool' if 'unclaimed' sounds a lot like [1].
Anyway, what they did was no different than any other tip bot did on reddit, or any other company that needs to find a way to bootstrap a marketplace that depends on network effects: they made it easy for people to initiate a transaction and then would go after the other end to close the deal.
> The marketing budget.
The "User Growth Pool" was a literal pool of extra funds that would get distributed to the users beyond what they collected from the ad-selling. It takes a special type of cynic to think that they would use that as a ploy to increase their "marketing budget".
What I really don't get is why people are so sensitive against these actions only when the company is involved with crypto. Google and Facebook are making fortunes out of fraudulent ad views, and I can bet good money that you don't mind having them in your stock portfolio. But here is one company building a model on actual privacy and fraud-free ad views, and you are here calling for "financial fraud". For what? Eight people complaining about the improper messaging on their beta product?
How much did they get out of this "fraud"? A few hundred dollars, that didn't even get to go to their pockets? Is it really believable that a company with millions of dollars in funding and one of most successful ICOs from the 2017 craze would run such a ridiculously unprofitable "fraud"?
> collecting crypto donations in a pool on 'behalf of' those websites
No. The rewards program is centered around the people. It just happens that the way to discover the people and address the payment is through some specific platforms (like Youtube, twitter, reddit, github, etc).
> holding them hostage
Nothing is held hostage. The only legal way that they can pay someone is if the person goes through KYC. The system can only recognize the recipient as "authorized to receive payments" if the creator has signed up to one of the partner exchanges.
> keeping them for themselves
This is false. Contributions were going to the user pool. Now they are returned to the original donor.