A systemic effect is currently unfolding in the digital space. Stable coins have been hit, then coins, then lenders, then hedge funds and now crypto exchanges. Unfortunately, the lack of regulation, of regulator, of risk constraint, or even capital buffer will make the fall even more painful.
$11 Trillions worth of hedge funds, half the industry, is barely disclosing any information to the general public. The SEC, which already has valuable information on this well-performing universe, is requesting more disclosure in their Forms PF.
The party is still going, but the band’s tune has changed.
Regulators are investigating the Buy Now, Pay Later (BNPL) industry.
Pump-and-dump are ubiquitous in crypto currencies. The schemes are well organized online groups, acting for the explicit purpose of manipulating currencies.
Organizers are front-running their groups and make great returns for themselves, so why would other participate? For hubris and gambling fever, say academics.
Regulators are absent, and the situation will deteriorate. This is the long-form review of this Far West of modern ages.
The credit card processor was actually a purpose-built money laundering scheme.
Wirecard tricked its auditors, its board, external investigators. It retaliated against whistleblowers. With the support of its regulator.
That wouldn’t happen over here, but could it? Thoughts?
On February 5th, 2018 (Volmageddon) the volatility reverse ETF XIV lost 96% of its value in the space of a few hours. Its iNAV was also miscalculated for an hour.
We have now discovered why: S&P Dow Jones was understaffed and did not release an ‘auto hold’ safety.
This human error contributes to current debate on the need to regulate index providers as investment advisors.
SPACs, the new blank check companies are not delivering their unicorn promises. Even the prophet’s recommendations are not performing. Surprisingly, Chamath Palihapitiya is nowhere to be seen.
The cannabis industry is growing up, getting sophisticated. Perceptions are changing, but regulations are inconsistent. The smart money has arrived.
Here are the regulatory, financial, and investment challenges, as well as the opportunities, driving this rapidly evolving market.
The blank check companies are raising billions in IPOs… but for how long? Here is the SPAC 101 manual: nature, popularity, ego crisis… and even options!