Ponzi Schemes Using Virtual Currencies (2014) [pdf]

Post by whataretensors » Tue, Oct 03, 2017, 9:01 PM UTC

mitchellst wrote: post #19

whataretensors wrote: post #9

Earlier quoted context omitted.

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.

OK sure, but it assumes that young student would be able to discriminate a money-making investment from a money-losing one-- something the best VC's in the business, who vet tech deals all day every day, struggle to do. 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…

Post by nkrisc » Tue, Oct 03, 2017, 9:15 PM UTC

mitchellst wrote: post #19

whataretensors wrote: post #9

Earlier quoted context omitted.

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.

OK sure, but it assumes that young student would be able to discriminate a money-making investment from a money-losing one-- something the best VC's in the business, who vet tech deals all day every day, struggle to do. 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…

Post by lostmsu » Tue, Oct 03, 2017, 9:28 PM UTC

unkown-unknowns wrote: post #22

TaylorGood wrote: post #14

Ponzi aside, let's say it's the greatest cryptocurrency idea. The SEC has right to use their Howey Test to determine whether it's a security. Based on 1,2,4 below, is this not ICO's? 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 c…

How many of the Howey test questions must be "yes"? All? Any? More than x number of them?

Post by [deleted] » Tue, Oct 03, 2017, 9:39 PM UTC

xdeqx366 wrote: post #24

TaylorGood wrote: post #14

Ponzi aside, let's say it's the greatest cryptocurrency idea. The SEC has right to use their Howey Test to determine whether it's a security. Based on 1,2,4 below, is this not ICO's? 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 c…

As a crypto-developer working in the blockchain space, my primary company has opted to do an ICO as part of its operations. The company has existing VC backing of between 4-10 million, and the project would benefit from blockchain - for one aspect. By no means is a new token necessary, but that fact seems to have been side-stepped. The product exists, and perceivably the token could be usable upon issuance... I enjoy…

Post by wakamoleguy » Tue, Oct 03, 2017, 9:48 PM UTC

whataretensors wrote: post #21

mitchellst wrote: post #19

Earlier quoted context omitted.

OK sure, but it assumes that young student would be able to discriminate a money-making investment from a money-losing one-- something the best VC's in the business, who vet tech deals all day every day, struggle to do. 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…

Young Warren Buffet could. I can go to Vegas and lose all my money on dice. There aren't laws to prevent this. Why are there laws to prevent my ability to invest? The regulation makes more sense as a way to keep the opportunities exclusive to the powerful, while regulators get to claim a moral high ground.