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I still cannot understand what investors were thinking and doing. I thought those people were extremely demanding? You always here these stories of people being
by bmitc 4y ago
I still cannot understand what investors were thinking and doing. I thought those people were extremely demanding? You always here these stories of people being nervous even to present an idea to investors, but here is an example of a company with not a single shred of professionalism or even attempt at doing things properly. Yet, investors were throwing money at them and writing coronation articles about them.
Is there a way where investors are held liable for some things? Their investments and marketing material for FTX, Sam Bankman-Fried, etc. are a large part of what lended credence to FTX and this people putting money in. Will the investors be investigated as well? They are partly responsible, in my opinion. I am not crazy about this world where investors give all this money and see nothing but upsides (aside from losing money that really doesn’t matter to them), but then have no downsides, even when funding fraudulent or incompetent enterprises.
- topspin 4y ago> I thought those people were extremely demanding? Their demands are inversely proportional to the size of whatever profits they're anticipating.
- dahdum 4y ago> I still cannot understand what investors were thinking and doing. Dumb money (like pension funds) was just following "smart money" like Sequoia. Smart money was investing based on his political, media, and regulatory connections and not the financials. They'll say different publicly, but I doubt anyone really cared if the books were cooked and it was all a house of cards, as long as they stood a good chance of getting out before it crumbled. VC's have been riding crypto pump and dump schemes for years now.