John Reed Stark Slams Crypto Industry, Calls it ‘Multi-faceted Grift’
John Reed Stark, the ex-Chief of the SEC Office of Internet Enforcement, addressed the crypto community with his ideas about the “crypto-Ponzi” schemes. Stark stated, “I believe the design language of the crypto-Ponzi scheme is a multi-faceted grift, comprised of a wide range of falsehoods, all calculated to dupe consumers/investors.”
Having served for 11 yrs as Chief of the SEC's Office of Internet Enforcement, I believe the design language of the crypto-Ponzi scheme is a multi-faceted grift, comprised of a wide range of falsehoods, all calculated to dupe consumers/investors. Here are 12 egregious examples:🧵— John Reed Stark (@JohnReedStark) January 24, 2023
Diving further into the matter, Stark started his arguments by claiming that crypto is another example of “Predatory Inclusion.” The ex-Chief of the SEC Office of Internet Enforcement also mentioned that crypto is called “affinity fraud” orchestrated to dupe the poor, disadvantaged, and disaffected.
Stark continues to lash out at the crypto calling it incapable of displacing legitimate currencies. Moreover, when it comes to decentralization, Stark proclaimed that wealth and power in DeFi are more concentrated than in traditional finances, which creates conflicts of interest and affords huge exploitation.
In the matter of crypto acting as a currency, Stark criticized it as false. Stark further gave his reasons that crypto fails as a “currency” because the price is too volatile, with high fees and taxes, and the risk is too high.
Stark also pointed out that crypto fails as an investment due to the lack of regulatory frameworks. Furthermore, Stark accused the crypto industry of becoming a haven for market manipulation, insider trading, and fraud.
After sharing a well-thorough Twitter thread, Stark announced,
The cult of crypto turns victims into victimizers, vulnerable/desperate investors stand little chance against the barrage of crypto chicanery, fraud, and hocus-pocus.
Stark then concluded that Ponzi schemes like crypto have thrived for centuries. Stark ended his Twitter thread by warning users to stop the hustle of crypto.
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