It effectively requires the user to be able to check where the private key was generated. Not all users can be expected to be able to validate if the private key was generated locally and never left the users' computer/browser.
If people have suggestions for new distribution methods, please dont be shy. It should have wide reach, include some kind of mechanism to prevent a single user from claiming the distribution more than once and generally address a community or group that is relevant and can potentially contribute to the overall ecosystem.
I was just thinking 50 byte wallets are about $1,500 and of course 100 byte wallets are $3,000 .....for people who diversify into many coins I assumed that was about average for MOST of the wallets for Byteball
They offer an option to apply various additional checks like credit worthiness but we don't do that. Whether people have a good or bad credit history is totally irrelevant to Byteball since the ID isn't used to provide any kind of credit to users.
They operate in New Zealand and are regulated under that jurisdiction. They would be charged with theft if they seized customers' funds. I have a very hard time seeing that would ever happen. The coins they lost (we still don't know if Bytes where stolen or not) where customers' coins, and therefore it might not be possible to reimburse customers for that. But coins that wasn't stolen will still be in their wallet and once they re-open, customers will have legal ownership over those coins.