11–20 of 67 posts
It happened in Brazil recently, where one company created a fake cryptocurrency and used it on its Ponzi scheme. source: https://translate.google.com/translate?hl=en&sl=pt&tl=en&u=h...
"No minimum investor qualifications. Most legitimate private investment opportunities require you to be an accredited investor. You should be highly skeptical of investment opportunities that do not ask about your salary or net worth." This is a ridiculous regulation that prohibits class mobility as software eats the world. Apparently being middle class means you are too stupid to realize you are being scammed, but i…
Under the Howey Test, a transaction is a security (or investment contract) if:
1. It is an investment of money
2. There is an expectation of profits from the investment
3. The investment of money is in a common enterprise
4. Any profit comes from the efforts of a promoter or third party
Based on their recent cyber division being announced, there is seemingly a strong possibility of review/conviction if launching an ICO as a US citizen, no? Soliciting an unregistered security carries 20yr prison term. Are dev's factoring this as possible risk?
"No minimum investor qualifications. Most legitimate private investment opportunities require you to be an accredited investor. You should be highly skeptical of investment opportunities that do not ask about your salary or net worth." This is a ridiculous regulation that prohibits class mobility as software eats the world. Apparently being middle class means you are too stupid to realize you are being scammed, but i…
Initially, private companies could only crowdfund from accredited investors, the wealthiest 2% of Americans. On June 19, 2015, three years after the JOBS Act was initially signed into law, Title IV (Regulation A+) of the JOBS Act went into effect. For the first time, Title IV allows private growth-stage companies to raise money from all Americans.
https://www.seedinvest.com/blog/jobs-act/raising-capital-reg...
Would be interesting if they would give examples of ICOs or other crypto related investments which turned out to be Ponzi schemes or fraud.
SEC Exposes Two Initial Coin Offerings Purportedly Backed by Real Estate and Diamonds [2] [3]
SEC Issues Investigative Report Concluding DAO Tokens, a Digital Asset, Were Securities [4] [5]
SEC v. Trendon T. Shavers and Bitcoin Savings and Trust [6]
SEC v. Garza, GAW Miners, and ZenMiner [7]
[1] https://www.sec.gov/oiea/investor-alerts-and-bulletins/ia_ic...
[2] https://www.sec.gov/news/press-release/2017-185-0
[3] https://www.sec.gov/litigation/complaints/2017/comp-pr2017-1...
[4] https://www.sec.gov/news/press-release/2017-131
[5] https://www.sec.gov/litigation/investreport/34-81207.pdf
[6] https://www.sec.gov/litigation/complaints/2013/comp-pr2013-1...
[7] https://www.sec.gov/litigation/complaints/2015/comp23415.pdf
"No minimum investor qualifications. Most legitimate private investment opportunities require you to be an accredited investor. You should be highly skeptical of investment opportunities that do not ask about your salary or net worth." This is a ridiculous regulation that prohibits class mobility as software eats the world. Apparently being middle class means you are too stupid to realize you are being scammed, but i…
To further elaborate - a young student putting in $1000 in facebook seed round would now be a millionaire. Not unthinkable for someone like a young Warren Buffet. The government has successfully regulated the future to the top 1%, while claiming it's for the public good.
"No minimum investor qualifications. Most legitimate private investment opportunities require you to be an accredited investor. You should be highly skeptical of investment opportunities that do not ask about your salary or net worth." This is a ridiculous regulation that prohibits class mobility as software eats the world. Apparently being middle class means you are too stupid to realize you are being scammed, but i…
On April 5, 2012, President Obama signed a landmark piece of bi-partisan legislation called The JOBS Act into law. The JOBS Act greatly expanded entrepreneurs’ access to capital, allowing them to go to the crowd and publicly advertise their capital raises. Initially, private companies could only crowdfund from accredited investors, the wealthiest 2% of Americans. On June 19, 2015, three years after the JOBS Act was i…
Edit: not sure why I'm downvoted. Middle class can't invest in filecoin, for instance, even though the top tier can.
"No minimum investor qualifications. Most legitimate private investment opportunities require you to be an accredited investor. You should be highly skeptical of investment opportunities that do not ask about your salary or net worth." This is a ridiculous regulation that prohibits class mobility as software eats the world. Apparently being middle class means you are too stupid to realize you are being scammed, but i…
To further elaborate - a young student putting in $1000 in facebook seed round would now be a millionaire. Not unthinkable for someone like a young Warren Buffet. The government has successfully regulated the future to the top 1%, while claiming it's for the public good.
Imagine you repeal all accredited investment regs overnight. Which of these seems likely:
- everyone in america invests $1000 in a future facebook, ten years later we're a nation of millionaires.
- 10% of the middle class (a huge number of people) wholly or partially cashes out retirement funds to put too much money into speculative early stage startups chasing fantastic returns. They lose it. Kids lose college funds, adults lose retirement funds, and we / society / government has to pick up the tab when such people get too old to work.
The point is, it's easy to attack these regulations as a barrier to opportunity and an unfair impediment to your right to do whatever you want with your own money. That's fair as far as it goes, but you also have to grapple with the real consequences of changing the policy. I have a hard time with your analysis that accredited investment rules have no "public good."
Phrased differently,the view on the ground in middle America is this: lots of middle-class people buy lottery tickets. Why do you suppose they do that?
It happened in Brazil recently, where one company created a fake cryptocurrency and used it on its Ponzi scheme. source: https://translate.google.com/translate?hl=en&sl=pt&tl=en&u=h...
It specifically says that it was a multilevel marketing/pyramid scheme, not a Ponzi scheme.