Having worked as a lawyer in the SEC Enforcement Division for 18 years, below are some objective and independent thoughts on crypto’s failures. I’ve no stake in the crypto game, and am a frequent SEC critic, so please don’t shoot the messenger.
Crypto fails as an "investment” because there's no regulatory oversight, transparency, consumer protections, insurance, licensure, net capital requirements, and the crypto rug-pull bazaar is so rife with market manipulation/insider trading/fraud, investors stand no chance from the get-go. https://t.co/qTEQU3olV8
Crypto fails as a “currency” because the price is too volatile; fees too high; taxes too burdensome; and risks too infinite. How can anyone accept crypto as payment when it could be worth a lot less the next day? https://t.co/osyLFUlCQN
Crypto fails as a “store of value” because it lacks utility and intrinsic benefit, the measure of what an asset is actually worth. Crypto has no value to store and its price is solely dependent upon the greater-fool-theory. https://t.co/cv8DJeaVgz
Crypto fails as a “financial panacea for the unbanked” because it’s just another exemplar of “Predatory Inclusion” and affinity fraud, sadly peddled to dupe the disadvantaged and disaffected. https://t.co/Ra1sJxQFWI
Crypto fails as a “safe haven” because there exists no government oversight or protections to provide any semblance of safety. I get it, there have now been several notorious bank failures and those bank failures evidence serious problems within the US financial system. But don’t let crypto promoters lure you in with their disturbing and twisted logic i.e. “See, I told you that you can’t trust banks, buy crypto next time and you will never have to trust a bank again.” This is a classic grift tactic I often saw during my tenure as Chief of the SEC Office of Internet Enforcement. In the rare instance of bank failure, there are statutory guardrails to protect/help depositors, like insurance and federal ownership/takeovers. The US government steps in swiftly and responsibly. But when a crypto platform fails (like FTX, Blockfi, Voyager, Celsius, etc.), there exist no U.S. government protections, and the customer’s access to assets is suddenly locked out or frozen. Bankruptcy becomes inevitable, and the customer most likely (depending on the user agreement and other factors) becomes an “unsecured creditor,” last in line for recovery and possibly left with zero. https://t.co/Ufx80o22CU
In other words, crypto platforms might look like traditional brokerage apps to everyday users, but crypto apps lack the oversight and investor protections built into traditional financial services. For example, Coinbase has specifically acknowledged in SEC filings that the crypto it holds for users might not really belong to those depositors if push comes to shove, stating, “Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings, and such customers could be treated as our general unsecured creditors.” Coinbase has promised to remedy this danger and maybe they have or will. But these unpredictable issues are decided in bankruptcy. By contrast, securities held for customers by an SEC registered brokerage firm are legally segregated from the assets of the brokerage, meaning they can’t be touched in bankruptcy, and are protected by SIPC, a nonprofit set up by Congress in 1970, which also insures as much as $500K of customers’ securities and cash in brokerage accounts. https://t.co/xJYh9OjP6v
IMHO, grift, chicanery and fraud are not just common and routine in the crypto-ecosystem — they are modus operandi and inherent criminal characteristics deeply rooted in crypto-ecosystem DNA in perpetuity.
The result? Victims become victimizers, the crypto-contagion spreads, crypto-titans become fugitives, informants and defendants — and fiat vanishes.
@Beluba happy thanksgiving next gen is a great game and is one of the best 2ks. Can we get the drive camera in the city. I dont use it in rec or mycareer because it's not available in the city so I use 2k low to keep my game consistent #NextGenGaming
It’s happening! Introducing The NBA 2K Players Tournament. 16 players will go head to head in the ultimate 2K tournament aired on @espn. We finally get all the trash talking NBA players to face off to find out who’s truly the best..
I’ll leave it at this. In all seriousness we’ve given the neighborhoods a try for 3 years now and to be honest it’s been a flop. Bring back parks, lower the amount of servers so parks are packed and you get games, we need something we can enjoy again!
@LD2K@Ronnie2K