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How The Government Picks Winners and Losers (Accredited Investor Laws SCAM) - YouTube
Channel: BitBoy Crypto
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the deck is stacked against the retail
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investor in the traditional stock market
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and it's not just because the whales
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have more money
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the laws are written in their favor
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believe it or not
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it's actually illegal for you to get a
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decent entry point on privately traded
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companies maybe that's why there's so
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much excitement
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and fear about crypto
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in this video we're going to talk about
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the accredited investor law scam and how
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they allow the government to pick
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winners and losers by giving
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millionaires special treatment in the
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stock market
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let's get it
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welcome to bitboy crypto make sure to
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subscribe to the channel if you haven't
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already if you've been in the game a
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while you've probably figured out that
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the best way to make money investing is
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to identify a good project early in its
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development before the rest of the
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market has taken notice
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and then capitalize on the gains once
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that project becomes a success this is
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why so many of us have been able to make
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such good money in crypto
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opportunities to get in early are
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everywhere but the gains that we've seen
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in this industry are simply not possible
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in the traditional stock market
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at least not for the average person
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investing in publicly traded companies
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this is because the cards are stacked
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against the retail investors
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we're legally prevented from access to
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the private market and other speculative
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investments
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all of this of course is
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for our own protection
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the sec and other bureaucrats in
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washington think that we're too dumb and
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unsophisticated
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to make decisions with our own money
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but they're happy to watch us by
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overpriced bags from the hedge funds
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that they allowed to cut the line
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this sounds crazy but this is actually
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the design of the sec's accredited
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investor laws
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in order to make early stage investments
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in companies or ventures
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that aren't registered and regulated as
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securities
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you need to be an accredited investor
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which basically means that you need to a
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work for a hedge fund b have a series 7
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65 or 82 license
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c be a millionaire or d have an annual
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income of at least two hundred thousand
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dollars
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according to the sec's own estimates
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only 13 percent of the u.s population
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can qualify as an accredited investor
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this creates a situation where all of
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the early investors for every successful
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company are the richest people in the
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country
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this obviously widens the gap between
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the rich and the poor
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making it all but impossible for poor
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middle-class people to get ahead through
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investing
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it's not like their savings accounts
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will ever be able to catch up with
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inflation let alone the accredited
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investors were allowed to get in early
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on companies with upside these market
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dynamics also make these stocks weaker
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assets as well because larger chunks of
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the supply are held in fewer hands
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in other words
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credited investor laws make the supply
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of these stocks far more centralized
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than your run-of-the-mill mutual fund
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it's put more hands in the power of
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fewer people both in the boardroom and
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in the markets where vcs and other firms
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are notorious for dumping on retail
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especially after high profile ipos
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the sec tells us that it's for our own
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good
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that we should wait for our bettors to
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vet the appropriate investments before
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we the plebs can invest because
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otherwise we'll buy into scams and lose
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all of our money
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news flash dirty gary people lose their
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money on the stock market all the time
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though and the sec is never there for
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the retail investor many of the dramatic
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crashes that we've seen in the
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traditional stock market
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involves some of the most trusted
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companies of their time earlier this
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year we saw the stock for facebook
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crashed 26 percent in one day looking
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more like a meme coin than a publicly
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traded company
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think back to the massive economic crash
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in 2008 many of the firms that went
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under
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bear stearns aig and lehman brothers all
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had the full backing and support of the
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u.s government and the establishment
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media we all saw how that worked out
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retail investors and homeowners paid the
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price while the institutions that caused
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the problem in the first place
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were all bailed out
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this is because the stability of the
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system was more important than the lives
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of the little people
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this is the whole idea behind the too
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big to fail excuse that was used to
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justify the bailouts the system was
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never working out for the little people
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though
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financial regulations that keep the
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system stable
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actually just keep most people poor
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the idea that investors with over a
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million dollars in the bank or more
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intelligent or capable on average it's
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laughable
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just turn on the tv you'll see rich
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idiots everywhere
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there are thousands of farmers
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ac repairmen and other working class
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parents that are much better at
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balancing a checkbook than most hedge
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fund managers
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but they aren't playing by the same
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rules
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they don't have the same opportunities
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to better themselves
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the besties over on the all-in podcast
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regularly take shots and the
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accreditation laws and break down how
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ridiculous they are there's really two
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easy ways to do it one is have a test
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and the other is on the roads we have a
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speed limit so if you are a non-affluent
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person already but you want to dabble in
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this it's a very simple way to do it i
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propose have a written test just like
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you have a handgun or a car test a
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driving test and then how about you can
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deploy ten percent
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it's so incredible you just said this
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you could allow an 18 year old person to
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buy an ar give me the name of the gun ar
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15 and a car and go speeding down the
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highway but they're not allowed to
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invest in go puff yeah no they're too
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they're not sophisticated you can shoot
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the bullets in the air while you're
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going down the road what is going on
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it's well i mean there's no path to it
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that's the frustrating part like in some
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places it's hard to get a gun you got to
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take a eight hour test other places you
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can just buy them on the wherever you
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allow 18 year olds you can allow an 18
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year old to take psychedelics and
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marijuana legally yes open in a market
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they are but they are not taken by
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secondary shares of stripe
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no they're just yes and so this is the
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stupidity of it well here and here's the
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other thing you can have two different
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things you have the test so now you know
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the person's educated but you could also
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say hey listen whatever's on your tax
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return for the last two years you can
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invest 10 percent of that a year in
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you know private companies it's easy to
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see how accredited investor laws hurt
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retail investors but they also hurt
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small businesses and low-income
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communities as well
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because they're often overlooked by
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accredited investors who are more
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focused on bigger companies and they are
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not allowed to raise money from retail
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investors because smaller businesses
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are classified
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as high risk this is why crypto so
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promising and threatening to tradify
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in addition to offering a decentralized
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store of value and medium of exchange
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crypto also promises to decentralize
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investing by allowing anyone with an
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internet connection to make an early
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stage investment in a project basically
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no barrier to entry aside from capital
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this was one of the first major use
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cases for ethereum we had at the time
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icos or initial coin offerings with
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smart contracts on ethereum
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teams were able to easily launch tokens
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and crowdfund their projects with small
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contributions from retail investors
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around the world
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this entirely bypassed accredited
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investor laws allowed the average person
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good entry points on promising projects
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regardless of how much money they had in
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their bank accounts
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as a result
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a lot of people who never had the
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opportunity to build wealth were able to
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get rich very fast
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of course a lot of people lost money too
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but remember this happens in the
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traditional stock market as well
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icos get a bad rap because there were a
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lot of cash grabs and rug pulls but
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again
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this happens all the time with publicly
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traded companies
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you don't need to reach too far back
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into the news cycles to find companies
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like theranose or wework that were
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accused of similar behavior also people
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forget this fact but many of the most
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successful projects in the industry
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actually started as icos and have since
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earned their initial investors
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insane gains projects like xrp cardano
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ave and chain link all launched as icos
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even ethereum technically launched as an
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ico
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unfortunately as soon as icos started
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bringing in money
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the sec came in to crash the party
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claiming that pretty much every token
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that launched as an ico
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is an unregistered security as a result
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many of the initial investments were
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deemed illegal because they were not
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made by so-called accredited investors
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there were plenty of scams that were
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used as justification for the regulatory
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action
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but there were also major lawsuits filed
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against legitimate projects
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as we've seen with ripple labs and xrp
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since the sec started cracking down on
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projects for selling tokens to people
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who weren't accredited investors
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teams have been pushed right back into
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the arms of the vcs and retail investors
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have suffered as a result
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now the crypto markets are starting to
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look a lot more like the traditional
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markets where vcs get in early and then
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dump on us when we go to buy a token the
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first day it's listed on an exchange
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this is why it has become extremely
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important to look at the fully diluted
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market cap of the tokens that you're
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buying
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if there's a big gap between the market
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cap and the fully diluted market cap
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that means that there are a lot of
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tokens held by early insiders who put
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cell pressure on the asset down the road
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there's a standard procedure in the
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traditional stock market and it was one
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of the main things we were hoping to
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avoid in crypto
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but there is a way to fix this
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make investing more open and equitable
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you take a test just like you would for
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your driver's license done a firearm or
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sell real estate
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earlier i mentioned the series 7 65 and
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82 licenses but those are not the same
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as a general aptitude test for all
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citizens the specialized license require
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various sponsorships from the sec itself
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from an employer that is an investment
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company or from someone who's already
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licensed that runs a private firm
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the requirements also vary by state
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compare that to a test that shows you
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have a baseline understanding of risk
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and financial instruments that you could
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be taught in high school
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this would create not just a wave of
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liquidity for the private market but
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would pull millions out of poverty
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change the composition of the middle
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class in america for generations to come
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it's such a simple fix that
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makes the intent behind the accredited
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investor law
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all the more obvious
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to protect the elites keep them at the
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top
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but the good news is
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it's a law and laws can be changed the
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more we talk tweet and comment about it
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the more the idea of change will take
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hold
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representative tom emmer has already
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opened up the discussion on the house
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floor
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the idea is catching on but it'll take
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pressure from you and others to change
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the minds put the sec back in their
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corner where they belong
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check the description for a website that
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will show you who your senator
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representative is
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who you need to contact drop the
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mccurdy's email and explain how you want
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to see investor accreditation reformed
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that's all you got be blessed
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[Music]
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you
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