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People should understand that companies going forward will just issue crypto tokens instead of deal with the securities regulations that have protected investors for a century. There will be no disclosure of things like income, assets, ownership structure, and risks.
The #SEC has already changed the rules so that a company that wants to issue a token to raise money can just say "this is not a security and thus is unregulatable" and if the SEC does not object within 60-90 days then that company is in the clear permanently.
Mark my words, we're going to see #SpaceX, #Tesla, #OpenAI, and all the other opaque private companies burning insane amounts of money issuing tokens in the not to distant future.
@cryptadamist I feel like a token that isn't ownership in a company is worthless.
@cryptadamist I am not an expert but why would anyone do this instead of buying a single stock ETF on their local exchange?
@chantaryu2 SpaceX and OpenAI are not publicly traded companies, meaning they have never gone through the extreme disclosure process that is required by the securities laws before you are allowed to sell shares in a company to the public.
@cryptadamist ok. So tokens are like nft bullshit parading as shares of private equity firms?
@chantaryu2 close but not quite - they're not shares of private equity firms, they're just shares of any company (which could be PE but could also be SpaceX). they will come with none of the rights that are automatically ascribed to actual shares though, and none of the required financial disclosures will have to be made for selling them to the public.
@cryptadamist thank you, that's super interesting. The grifting will never end and I guess some people are both gullible and greedy enough to buy the tokens, like they do meme crypto and like they did NFTs.