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Most of the benefit of doing an ICO is that investors are throwing a ton of dumb money into ICOs.
by ikeboy 9y ago
Most of the benefit of doing an ICO is that investors are throwing a ton of dumb money into ICOs.
- modeless 9y agoExactly. And SEC regulations are designed to stop dumb money from going into risky investments. If you comply then you can't cash in on that dumb money and there's no point to doing an ICO.
- ikeboy 9y agoA lot of that dumb money is being put in by wall street, so not sure you're right.
- modeless 9y agoThis is not my impression. It seems to me that the dumb money is people who made early fortunes in crypto or regular people looking to ride the next pump and dump. If Wall Street money is coming in it's mostly to take advantage of the dumb money for a quick profit, for example by getting preferential pricing or timing so they can sell to later investors).
- ikeboy 9y agoI think most of the money that's going in is by people with more than the 250k limit. Above that you can market pretty much anything as long as you're honest, I think. So I don't think it would be affected much, except that ordinary users wouldn't be able to use it (unless they could get it on exchanges, which may be under different laws?) Not a simple question, I guess.
- username223 9y ago> If Wall Street money is coming in it's mostly to take advantage of the dumb money for a quick profit,... Examples? Is Goldman playing in the current bubble?
- thinkmassive 9y agoYes. https://www.bloomberg.com/news/articles/2017-12-07/goldman-sachs-is-said-to-clear-bitcoin-futures-when-they-go-live https://www.bloomberg.com/news/articles/2017-12-07/goldman-s...
- mrschwabe 9y agoIs dumb money also considered money that is going towards free speech activists? Why do you think the SEC should be arbitrators of what and what is not dumb money?