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Here's a great video by Patrick Boyle on SPACs[1]. TL;DW SPACs favor promoters and early (usual institutional investors) at the cost of later investors. [1] ht

• FollowingTheDao 4y ago
  Sounds like Bitcoin.
  • benreesman 4y ago
    Nah, losing money on BitCoin has almost always been a straight-up asset bubble situation, like housing in 2007 or something. A much better example would be tech startups where founders sell equity in subsequent rounds and get rich while employees are locked up. Adam Neumann is a billionaire, even though Jared Leto is playing him in a biopic about how it all went so terribly wrong.
• aabhay 4y ago
  It’s even worse that this. A SPAC is basically like an inverse bullshit detector. If a company can raise private capital then it would, given the lower scrutiny. If it was mature and low-risk, it would IPO to lock in major institutional capital. So SPACs are in a Goldilocks situation for scams. The companies that all seemed to be trying to SPAC were companies that quacked and waddled like real companies, hoping to profit off of the speculative fervor that was gripping real but overhyped companies. In other words, it actively incentivized a ponzi system where the public markets were a cushion for speculators.