IMO the bigger scam here was not Anchor but Stablegains. They gave magnitudes more everyday people access to the Anchor scam who had no idea what they were getting in to.
For the people who actually went through the process of opening a Coinbase account, depositing USD, buying UST, transferring to an Ethereum wallet, bridging to a Terra wallet via shuttle bridge, and depositing in Anchor protocol… they knew full well the risks involved.
If you read any crypto forum, the people there know very well that their investment could go to zero.
The SEC’s “accredited investor” laws are often criticized as discriminatory, since they legally restrict some of the best investment opportunities to only the 1%. In the same vein, while the crypto space needs more regulation, I think it would be a mistake to ban all retail investors from buying crypto.
> The SEC’s “accredited investor” laws are often criticized as discriminatory, since they legally restrict some of the best investment opportunities to only the 1%.
Note: the “accredited investor” restrictions are for US persons. I think foreigners don’t have the same restrictions (although the max 500 investors rule is likely to kick in instead if too many small foreign investors). For example[1] “The Investor is: (i) an ‘accredited Investor’ as such term is defined in Rule 501(a) of Regulation D under the Securities Act; or (ii) not a U.S. person within the meaning of Rule 902 of Regulation S under the Securities Act.”
Correct, different countries have different laws in this area, but many/most have some sort of provision about what can and can't be marketed to the public as an investment, and how that marketing looks.
For the people who actually went through the process of opening a Coinbase account, depositing USD, buying UST, transferring to an Ethereum wallet, bridging to a Terra wallet via shuttle bridge, and depositing in Anchor protocol… they knew full well the risks involved.
If you read any crypto forum, the people there know very well that their investment could go to zero.
The SEC’s “accredited investor” laws are often criticized as discriminatory, since they legally restrict some of the best investment opportunities to only the 1%. In the same vein, while the crypto space needs more regulation, I think it would be a mistake to ban all retail investors from buying crypto.