Filecoin has just begun the first SEC regulated ICO for accredited investors after raising some $52 million in a pre-sale to venture capitalists like Union Square and Sequoia Capital.
But there is already some controversy following scathing criticism by Stefano Bernardi, a VC, who complains Filecoin gave “an amazing deal to their buddies.”
We don’t know if Bernardi was left out of the deal, was too late to take part, or is taking a principled stand. And, regarding Filecoin’s behavior, we’ll say little there too, leaving it to your judgment.
But this may show just what ICOs are like under SEC regulations as Filecoin is the first significant ICO after the SEC judgment last month. Many have tried to say their decision was actually good news, but we expressed skepticism.
And perhaps we are being proven right because what we may now be seeing is that the very rich get in early, shutting out the just rich and perhaps closing the door fully to the rest.
In effect creating a barrier for the ordinary people, who are assumed to have no ability towards judging risk, even though much of this nation’s money is held in some pretty risky stocks – like the banks that went bankrupt.
While the rich are given full liberty, presumably because their higher intelligence is assumed, even though they give $50 million to a product that does not yet exist.
As such, what might be next Google is denied to you by the force of the law, which exclusively keeps potential wealth only for accredited investors. See if you meet the requirements:
“To be an accredited investor, a person must demonstrate an annual income of $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income.”
The pool of such accredited investors must be incredibly small. Allowing them to pick and choose as they please what they fund, in a diluted master and slave relationship. With the random gene pool lucky treating like socks what could be the next Steve Jobs.
While the rest of us are now being shut out of the game, for our own protection. So that we can buy a Filecoin at 10 dollars or $100 instead of $0.75.
That’s if London doesn’t have a say. When asked about their approach towards ICOs, UK’s Financial Conducts Authority told trustnodes:
“As you are no doubt aware, we don’t regulate digital currencies and the [Distributed Ledger Technology] infrastructure beneath them. We can’t give a steer on future policy work.”
Unlike the SEC, they are holding a public consultation on the matter, which may hopefully consider such questions as why should it be the rich arguing among themselves as we saw above, rather than us all.
That is, why should stupidity be assumed for the masses, but intelligence for the rich, when one of the main reason for their richness might be the legally enforceable barriers that keep the rest out.
And if it is to be one law for us while another for them, why should we heed any such law at all, instead of the one law that must rule, reasonableness and common sense.