While the US Securities and Exchange Commission has gone after a handful of token-based offerings in recent years, Calacanis predicts that a much bigger blowback is coming after trillions of dollars have been wiped off the crypto market and as valuations in Silicon Valley fall:
“Sure it would be better if they had given us clear guidelines, but having been in the room for these discussions over the past five years, people suspended disbelief. They shopped for attorneys who told them what they wanted to believe about tokens … The tide’s gone out. And those people [who bought tokens] essentially got a free option because, you know, this is the cynical view, but they got to buy the cryptocurrency. If it went up, they could sell it, like these retail investors. And now that it’s gone down, since it was illegal, all of them can now go after these companies. And so that’s just starting and we’re like two pitches into the first inning. We, we are not even close to the second ending of this … If what I learned from the dotcom era is any guide, it’s going to be years of litigation and pain and suffering….
‘Enforcement 40’ for 2020
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