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for me i feel taken advantage of because whether i resell the "LE" or not i will never be in a posistion to profit from it like they will. this is why i do not sell ( well i did...like once) from my home tanks....it just does not feel right
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Can you really be taken advantage of though if you know what is going to happen and you still give them frags? The solution is just not to give them any of your corals
in which case nobody is 'swooping' on you or being shady. On the other hand if you don't know who these guys are (not likely if they are in contact with you) I can see your point.
I don't like to sell corals from my tank either. It feels wrong to me also, especially since I have been given many nice pieces (and would never sell frags of any of those). On the rare occasion I have sold stuff it was for extremely fair prices, so like you I wouldn't be able to profit from any of my stuff becoming 'LE' because I would still give it away as I always have. Nothing wrong with making a profit, but its not my gig.