Just prior to the recent election, a major player in the world of crypto currency collapsed. When I say major, I mean a firm that had numerous celebrity spokesmen, owned the naming rights to an arena in Miami and was one of the largest political donors in the recent mid-term elections.
The firm was led by a highly educated former Wall Street “genius.” The crypto firm declared bankruptcy and it’s estimated that there may be upward of a million creditors. Good luck collecting, especially since crypto lacks regulatory oversight. It’s a line nobody ever wants to be in and I wouldn’t hold my breath waiting to collect.
For years I’ve been warning investors that the crypto world is essentially the Wild West insofar as guidance and regulation. This is just one of many reasons I have viewed the crypto world more as a speculation than as an investment.
I can assure you that over the coming months we will hear sob story after sob story from people who lost their life savings. Those people really had no business investing in something so speculative. And I mean people from all walks of life. Even several major players on Wall Street were taken in.
I don’t understand why Wall Street firms would invest in an organization that was poorly run or might have been a fraudulent Ponzi scheme. I’ve always encouraged due diligence, but when celebrities and athletes are jumping in willy-nilly, its easy to leap before you look.
When it comes to money, it’s difficult enough to…
