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Worse because unsophisticated investors ("family offices" and "moms and pops") will have unrealistic expectations. Those expectations will have to meet reality
by fra 11y ago
Worse because unsophisticated investors ("family offices" and "moms and pops") will have unrealistic expectations.
Those expectations will have to meet reality sooner or later, and when that happens:
* Life savings will be wiped out
* Liquidity will snap back for startups
* Many otherwise healthy companies will die
It will be the sub-prime equity crisis.
- api 11y agoThat's why I'm in favor of some level of standards on disclosure and some standard warning for these kinds of investments. Another possibility would be a waiting period. People are impulsive, so maybe you have to wait 72 hours from signaling serious intent to actually making an investment. That would help prevent casino-think. I don't think it's wrong to open more investments to more people, but I'm also a bit wary of it being a total free for all shitshow.