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The CEO of Social Capital and Virgin Galactic believes that token sales are too often built on fraud, and regulators will certainly soon be interested in them.
Chamath Palihapitiya (Chamath Palihapitiya) on the All-In podcast warned that the next stage of the purge by industry regulators may soon come, which will affect not only crypto companies, but also venture funds using digital assets. Palihapitiya said that one day lawsuits could be filed against those involved in the unfair or illegal distribution of tokens, which will negatively affect most of the industry.
“We see a huge number of cases of fraudulent activity on the part of venture capital companies conducting transactions. You invest a little capital by buying a token at a crazy low price, and you can sell the tokens on the same day. As a result, it becomes meaningless to assess the value of the token, because as soon as it is sold, the price of tokens falls, and you sell it and leave the market, “explained an experienced venture capitalist.
The billionaire claims that regulators can identify fraudulent infrastructure elements behind the scenes of the project in one day, indicative of insider trading.
“If they really want to find ‘lures’ in the projects, it won’t be difficult. After all, how much insider trading occurs between the organizations that manage exchanges and their branches, which exchanges use to manage liquidity. This is often found in the crypto industry, “assures Palihapitiya.
Recently, the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler(Gary Gensler), called for the creation of a single set of rules for cryptocurrencies that will unite the efforts of regulators and strengthen control over the industry. Gesler is confident that the participants of the cryptocurrency market skillfully take advantage of loopholes and imperfections of the regulatory legislation in order to earn illegally.
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