The double standards are just incredible. Bill Sherman says people should not invest in risky assets like Crypto but should instead invest in stocks, and these are the kind of stocks that the US regulators allow to IPO in the USA, allowing gullible US citizens and investors access to shady companies that dont even bother disclosing an ongoing investigation during its IPO. And voila, just 2 days after its IPO, heading into the long weekend, China banned this app from its app stores.
But for the same Bill Sherman, bitcoin and crypto is just gambling, while investing in shady Chinese stocks that are approved by US regulators is "investing". This is not even the first time that a Chinese company is exploiting US people's money. Couple of years ago, Luckin Coffee pulled the same thing by fudging its numbers and when the scam was exposed, all the US investors lost heavily. Dozens of other shady Chinese companies still continue to be listed in US public markets, without any oversight or monitoring. These scams will bust right in front of the SEC's eyes, but the SEC wont be least bothered by what these shady entities are upto.
After Luckin Coffee scandal, lots of talk was in the air about tightening access to US markets for Chinese companies looking to raise funds. Hardly 2 years later, Didi pulls this soft scam now by not even disclosing an ongoing investigation during its IPO. First of all, what is the need to allow a Chinese company to raise funds in US markets?
But for the regulators and legislators like Sherman, these shady companies in less than transparent offshore jurisdictions are good investments while anything associated with Crypto is automatically termed a scam, even though he does not know much about crypto at all.
These regulators and legislators dont care at all about people's safety or finances. If they really care about investors safety (muh investor protection), junk companies like Luckin Coffee and Didi wont ever be allowed to raise funds from Americans in a blatant manner suppressing vital information about their operations. Investor protection only comes into the picture when its Bitcoin – an asset class that has grown by 10,000% last decade.
You see, investor protection only exists to protect people.. from becoming rich and financially successful.