Their business model is even more sinister according to Nicholas Weaver. "New A16Z: Securities Fraud as a Business • Invest in several "blockchain" startups

Their business model is even more sinister according to Nicholas Weaver. "New A16Z: Securities Fraud as a Business • Invest in several "blockchain" startups • Startups issue new tokens promising something, eventually • These are unlicensed securities and this is blatantly illegal in the US, just not enforced by the SEC! • A16Z gets a ton of these tokens, sells to retail suckers • Ideally gets listed on Coinbase, but sketchier exchanges will do • They did that just now with "APE" token! • If SEC ever wakes up... • It is the startups that committed the securities fraud, not A16Z! So they are safe with their money! " Link: https://su22.cs161.org/assets/lectures/cryptocurrency.pdf https://su22.cs161.org/assets/lectures/cryptocurrency.pdf