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No one is denying there is a legal risk. However, they got an estimated 600k signups (probably more?). Even converting 10% of those (which a company of their "g
by mbesto 8y ago
No one is denying there is a legal risk. However, they got an estimated 600k signups (probably more?). Even converting 10% of those (which a company of their "growth hacking sophistication" should be trivial to do) could provide a substantial amount of growth for the company. Since they don't charge for order execution (and are likely paying a 3rd party to do so), they're clearly going for volume to make up for it.
As I've mentioned previously in another thread, this is clearly a gamble. When you're on the VC track to justify $4b+ valuations, taking gambles is par for the course.
- duxup 8y agoI guess so as far as taking risks. I just see bringing those customers along after putting out information that could be seen as deceptive / was deleted and already called into question info a recipe for legal and regulator ... pounding. Silly social media stuff is one thing, but financial stuff where you rope in users with stuff that sounds like "bank" but isn't. Whole mess of folks out there with serious legal tools to come down on you, and a lot eager to do so. This just seems unusually risky.
- hannasanarion 8y agoDo you really think it would be easy to convert 10% of the people who were excited by a product that it was illegal for them to announce? Almost all of that 600k is going to be darn angry about it. As a member of the 600k, I am WAY less inclined to give them my money than I ever was before.