Synthetix Founder Believes SEC’s Response to ICOs Was Counterproductive
Kain Warwick, the founder of Synthetix (SNX), has criticized the US Securities and Exchange Commission (SEC) for its response to initial coin offerings (ICOs). He argues that the SEC’s actions were “schizophrenic and bumbling” and ultimately had a negative impact on the crypto sector. According to Warwick, by cracking down on ICOs, the SEC inadvertently gave more power to venture capital funds, making it riskier for retail investors to participate. He also believes that new crypto projects are struggling to get started due to limited liquidity from venture capital funds. Warwick suggests that crypto projects should take risks and allocate a significant portion of their supply to retail investors in order to build a massive following.
Regulatory Clarity and Shifting the Narrative
Warwick asserts that regulatory clarity is unlikely to come anytime soon. As a solution, he proposes that crypto projects go for a big retail sale early on, which would help shift the narrative in the industry. However, he acknowledges that US projects may be hesitant to take this approach due to regulatory concerns.
Hot Take: Synthetix Founder Criticizes SEC’s Approach to ICOs
Synthetix founder Kain Warwick believes that the US Securities and Exchange Commission’s response to initial coin offerings (ICOs) was counterproductive. He argues that by cracking down on ICOs, the SEC unintentionally empowered venture capital funds at the expense of retail investors. This has made it riskier for retail investors to participate in crypto projects. Additionally, Warwick suggests that limited liquidity from venture capital funds is hindering the growth of new crypto projects. He encourages crypto projects to take risks and allocate a significant portion of their supply to retail investors in order to build a strong following. However, he acknowledges that regulatory clarity is unlikely to come soon and that US projects may be hesitant to adopt this approach due to regulatory concerns.
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