Dear John,
Crypto is crashing and could take your savings with it.
Recently, major cryptocurrencies like Bitcoin have plummeted in value -- with nearly $300 billion wiped out across the entire market in a short period of time.
In the murky world of crypto decentralized finance, known as DeFi, it’s hard to understand who provides money for loans, where the money flows, or how easy it is to trigger currency meltdowns.
There are no transparency requirements. Investors often don’t know how their money is being handled. Deposits are not insured.
It’s a Ponzi scheme, where getting rich depends on how many other investors follow you into it -- until somebody’s left holding the worthless crypto coin.
Our latest video uncovers the crypto Ponzi scheme, and explains how the unregulated nature of crypto leaves investors vulnerable.
Why isn’t this market regulated? Follow the money.
Super PACs with ties to the industry have spent $31 million in primary races ahead of the midterms.
The crypto industry has also hired scores of former government officials and regulators to lobby on its behalf.
Crypto industry leaders (and their lobbyists) love to trumpet that the growth of crypto assets will “bolster” financial inclusion by providing low-income people easier and cheaper access to financial services. But as Sen. Sherrod Brown (D-OH) has said, "Allowing more people to trap their money in risky, speculative investments isn’t the kind of financial inclusion we need."
If we learned anything from the crashes of 1929 and 2008, it’s that regulation of financial markets is essential. Otherwise they turn into Ponzi schemes -- leaving small investors with nothing and endangering the entire economy.
It’s time for the Biden administration and Congress to end the crypto Ponzi scheme.
Thanks for watching,
Robert Reich
Inequality Media Civic Action
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