MARKET COMPARISONS

Claim markets may be confused with other market types, in particular crowdsourcing and futures markets. Here is an overview of how claim markets differ from these markets.

CROWDSOURCING

Claim markets differ from crowdsourcing in the following ways:

A) Crowdsourcing asks participants to make a financial commitment, often with a credit card, towards a proposed project.  Claim markets, by contrast, asks participants to secure claims that the participants may choose to act upon (or not), at a future date.

B) Crowdsourcing utilizes pledges made with internationally accepted currencies.  Participants in claim markets, instead, consummate transactions using funds from their assigned reserve account.

C) Crowdsourcing offers a single solution to a problem or need.  Claim markets, by contrast, provide an opportunity to craft multiple solutions to a problem or need.  This multiplicity may be achieved via refinement of a single claim market or by launching competing claim markets to see which achieves the best outcome in solving a problem.

D) Crowdsourcing presents a polished proposal and seeks funding for that proposal.  Claim markets, by contrast, may begin with a rudimentary proposal and seek refinement and funding of that proposal.

E) Participants in crowdsourcing often receive a free gift, such as phone app, should the crowdsourcing project come to fruition.  Claim markets, by contrast, may offer exploratory participants an opportunity to earn payouts and qualified participants an opportunity to secure property or participatory rights in a future product, service, or enterprise.

F) Crowdsourcing offers investment opportunities presented by an authorized entity.  Claim markets allow participants the opportunity to participate in endorsed claim markets, but also the opportunity to participate in unauthorized activist markets.

G) Finally, crowdsourcing seeks to fund projects through micro investments by “crowds” of participants.  Claim markets explore investment models that might be funded by crowds, a small group of individuals, or even a single participant or institution.

Asked for a sound bite, we would say crowdsourcing funds an enterprise.  Claim markets, by contrast, are designed to both design and fund an enterprise.

FUTURES MARKETS

Claim markets differ from futures markets in the following ways:

A)  Futures markets utilize internationally accepted currencies to purchase calls or puts.  Participants in claim markets, instead, consummate transactions using funds from their assigned reserve account.

B) Investors in futures markets may buy and sell their calls and puts at will.  Participants in claim markets may only make claims and cancel claims. The sale (or benching) of claims, when it occurs, is beyond the control of participants in claim markets.

C) Trading in futures markets involves real capital gains and losses.  These transactions are taxable events. Claim markets by contrast are a proposal.  Any capital gains, losses, or taxable events occur outside the confines of claim markets by participants later choosing to enact the proposal.

Asked for a sound bite, we would say futures markets pertain to real commitments, made with real monies, for real goods and services.  Claim markets, by contrast, pertain to claims, made with reserve accounts, for conceptual goods and services.

 

Each claim market is a proposal.  It is a form of free speech.

Many obstacles stand between this free speech and actual implementation of the market proposal.  Some claim markets may be contrary to existing local, state, or federal laws, making implementation impossible without changes to applicable law.  Schock Market makes no representation as to whether any particular claim market will result in a public/private partnership, tax savings, voter initiative or any changes or outcomes proposed by market creator or participants.  Schock Market cannot guarantee that our market proposals will be implemented or that any payouts will be paid.

All participation is subject to the Market Rules, available here:www.schockmarket.com/marketrules.