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Crypto tokens are effectively the modern version of penny stocks, the thing you'd see garish ads on MotleyFool.com years ago. It's selling the dream of above av
by rchaud 3y ago
Crypto tokens are effectively the modern version of penny stocks, the thing you'd see garish ads on MotleyFool.com years ago. It's selling the dream of above average returns to retail investors who don't know any better, a game as old as time.
If films like Boiler Room and Wolf of Wall Street were to be made today, they wouldn't show brokers cold calling retirees, but rather people furiously typing away in Discord rooms, inflating the mirage until the insiders are able to cash out.
- nradov 3y agoThe difference is that most penny stocks aren't scams themselves and represent ownership of actual revenue generating businesses. There are some completely fake businesses, and low market capitalization increases the risk of pump-and-dump scams, but those are the minority. Whereas cryptocurrency doesn't generate any revenue: it is always a scam and valuations can only ever be sustained by the greater fool theory. https://www.investopedia.com/terms/g/greaterfooltheory.asp https://www.investopedia.com/terms/g/greaterfooltheory.asp
- W-Stool 3y ago"Boiler Room" is really an excellent film, and not widely seen. A great lesson on how some (but certainly not all) stock brokerages work.