bitaccum wrote:This is the part I don't understand. He said he would pay out real BTC for the IOUs.
He gave absolutely no such assurances in his initial post. If he honours all the IOUs he's generating then at worst he'll be a new BTC gateway. But unlikely one that people extending him trust actually should trust as much as existing gateways.
bitaccum wrote:Of course whether that's true or not is another story, but he did say that - so I'm unsure of where you're getting the idea that he said he wouldn't redeem the IOUs for real BTC.
This user has been hell bent on telling people far and wide how he thinks Ripple is a scam. He's offered to pay people 5 BTC to post a specific large red "warning" in their signatures if they have a post on the first page of the bitcointalk OpenCoin giveaway. He has repeatedly claimed that IOUs in general are worthless and effectively stated any IOUs from him should be treated as such.
The quote of his you gave is from this post
and is in response to someone asking:
B) what is to stop you cleaning out *other* people's BTC accounts!
to which his reply was (as you said):
TradeFortress wrote:I won't defraud/scam you out of any money. Yes, you can convert the BTC I send you to real BTCs.
Taken in context I took this as meaning that he doesn't intend to directly take your BTC/Bitstamp (or other gateway BTC) but that other people can convert his BTC IOU into real BTC (e.g. by finding a payment path to Bitstamp as the transaction above did). This isn't a promise that he'll redeem anything.
Perhaps I'm over-reacting to his little experiment. If his BTC (mis)trust network stays self contained it's harmless, just as the XTS and XXX testing currencies are harmless. However, if nothing else, this is an opportunity to remind people what extending trust means and that you should always be careful, especially if extending trust to multiple parties for the same currency code (something I've said many times before).