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This is why SEC Reg D exists and is important. Most of the money wiped out during the last few years is not coming from wealthy “smart money” investors. The m
by andrewmutz 8y ago
This is why SEC Reg D exists and is important.
Most of the money wiped out during the last few years is not coming from wealthy “smart money” investors.
The money has come from the middle class and mom and pop investors.
- rco8786 8y agoDo you have some data to support this?
- lifeisstillgood 8y agoBoiler room operators have traditionally not called the investment heads of major banks and pension funds. Less evidence and more historical precedent (Having said that, I would love to hear a recording of any such calls.)
- pmorici 8y agoDo you have any stats to back this up. While it seems like there is a boat load of stupid money washing around when you look at studies of coin distribution they tell another story.
- ikeboy 8y agoI think it's come from people who previously made a lot in crypto. Lottery winners are not known for their wise investments.
- lordnacho 8y agoThere's a flip side to this. When something goes well but mom and pop are excluded, the rich get richer.
- empath75 8y agoIf something is going really well, they don't need or want investment from mom and pop. The only people who sell investments to mom-and-pop are ripoff artists. Why else would you chase nickels and dimes from people who don't understand your business?
- joejerryronnie 8y agoExactly! It’s much more efficient to chase millions of dollars from people who don’t understand your business.
- paulgb 8y agoIt's true, but it's not just the SEC that creates this dynamic, it's selection bias. Companies that can take smart money would rather take smart money than mom-and-pop money, and so mom-and-pop investors wouldn't have access to the good opportunities even if the SEC weren't standing in the way.
- deleted 8y ago[deleted]
- test1999 8y agoSEC exists to enforce the caste system. Like how income tax only looks at how much you made, but accredited investor takes into account how much you have. It's regulatory lock in for stealing the future. They are also responsible for a lot of this crash - attacking random ICOs and developers to the tune of 6-7 figures. Keep thanking them.
- gammateam 8y agoMost of the participants are retail, most of the money is institutional And now even more of it is sold to institutional who dont have bills to pay Next!