4 ms·

Good, time to start cracking down on all of the scams so the space can actually flourish.

by russdpale 7y ago

cma 7y ago
The token scheme space?
arcticbull 7y ago
If they actually crack down what would be left? I mean other than my boy Dentacoin naturally haha.
- Nuzzerino 7y ago
  The ideas behind many of the projects are good on paper, but in my experience it seems that many of the people involved can't be trusted. I don't know whether it's because the lack of regulation (or rather enforcement of it) in the space attracts the con artist types, or whether it leads to previously honest people committing frauds when they realize they can get away with it. I've heard ideas about how the industry could regulate itself to keep bad actors out of the way, but I've yet to see any real progress. Whatever regulation happens at this point is deserved imo.
  - pjc50 7y ago
    Something about a firehose of money given on the flimsiest of prospectus seems to cause fraud. Can't think why.
javert 7y ago
I disagree. For me, being barred by the government from making an investment is a bug, not a feature. Although it isn't obvious, I would hold that this is true for any rational investor. In reality, these sorts of regulations only exist to keep reckless people from losing money that they already treat as disposable. That is not a valid reason to block the freedom of genuine investors.
- arcticbull 7y ago
  > This is true for any rational investor. > These sorts of regulations only exist to keep reckless people from losing money. No. It's not. You're barred from investing in fly-by-night scams unless you have more than enough money to do so comfortably. If a poor person, who is naturally desperate to make money, is conned by a snake oil salesman, you know who pays? Literally everyone. They end up on the social safety net collecting on our taxes. As such the public has an interest in making sure, to a reasonable extent, that only those capable of taking huge financial risks do so. Now if your company is established enough to provide the required quarterly disclosures by SEC regulations, sweet. Anyone can invest their last penny. Seems like a fair place to draw the line. > That is not a valid reason to block the freedom of genuine investors. I agree, if you mean a "genuine investor" has over $1M in assets excluding their primary residence or a previous years income in excess of $200K and an expectation they will have the same in the coming year. Accredited investor rules weren't brought in because too many poors were hitting it big and all those new yachts were clogging up Boston Harbor. Literally because not having them caused the great depression. And they didn't call it that because it was just a pretty good depression, ya know.
  - LiquidSky 7y ago
    The cryptocurrency boom has been people painfully re-learning why we have these regulations in the first place.
    - mmilgauss 7y ago
      >"We don't need no government regulators!" Gets frauded >"Where were theeeyyyy to save us?!"
      - arcticbull 7y ago
        Literally though. > Regulations are bad! gets defrauded > HELP POLICE! SEC! FTC! DOJ! How was this permitted in the first place?! Where was the government when we needed them! Privatized gains, socialized losses.

Good, time to start cracking down on all of the scams so the space can actually flourish.

cma 7y ago

The token scheme space?

arcticbull 7y ago

If they actually crack down what would be left? I mean other than my boy Dentacoin naturally haha.

Nuzzerino 7y ago
The ideas behind many of the projects are good on paper, but in my experience it seems that many of the people involved can't be trusted. I don't know whether it's because the lack of regulation (or rather enforcement of it) in the space attracts the con artist types, or whether it leads to previously honest people committing frauds when they realize they can get away with it. I've heard ideas about how the industry could regulate itself to keep bad actors out of the way, but I've yet to see any real progress. Whatever regulation happens at this point is deserved imo.
- pjc50 7y ago
  Something about a firehose of money given on the flimsiest of prospectus seems to cause fraud. Can't think why.

javert 7y ago

I disagree. For me, being barred by the government from making an investment is a bug, not a feature. Although it isn't obvious, I would hold that this is true for any rational investor. In reality, these sorts of regulations only exist to keep reckless people from losing money that they already treat as disposable. That is not a valid reason to block the freedom of genuine investors.

arcticbull 7y ago
> This is true for any rational investor. > These sorts of regulations only exist to keep reckless people from losing money. No. It's not. You're barred from investing in fly-by-night scams unless you have more than enough money to do so comfortably. If a poor person, who is naturally desperate to make money, is conned by a snake oil salesman, you know who pays? Literally everyone. They end up on the social safety net collecting on our taxes. As such the public has an interest in making sure, to a reasonable extent, that only those capable of taking huge financial risks do so. Now if your company is established enough to provide the required quarterly disclosures by SEC regulations, sweet. Anyone can invest their last penny. Seems like a fair place to draw the line. > That is not a valid reason to block the freedom of genuine investors. I agree, if you mean a "genuine investor" has over $1M in assets excluding their primary residence or a previous years income in excess of $200K and an expectation they will have the same in the coming year. Accredited investor rules weren't brought in because too many poors were hitting it big and all those new yachts were clogging up Boston Harbor. Literally because not having them caused the great depression. And they didn't call it that because it was just a pretty good depression, ya know.
- LiquidSky 7y ago
  The cryptocurrency boom has been people painfully re-learning why we have these regulations in the first place.
  - mmilgauss 7y ago
    >"We don't need no government regulators!" Gets frauded >"Where were theeeyyyy to save us?!"
    - arcticbull 7y ago
      Literally though. > Regulations are bad! gets defrauded > HELP POLICE! SEC! FTC! DOJ! How was this permitted in the first place?! Where was the government when we needed them! Privatized gains, socialized losses.