Illegal? A fad? A scam? Unregulated? This expertly researched, engaging and informative guide separates fact from fiction in the wild world of crypto by tackling the top common myths of this emerging asset class.
With well sourced data and facts, and “ripped from the headlines” examples about the promise and pitfalls of crypto assets, well-respected legal, policy and crypto education expert Dr. Tonya M. Evans, tackles misinformation and fear, uncertainty, & doubt (aka FUD) to right size the conversation with an economic empowerment and financial inclusion approach to the in the decentralized web’s future of work, wealth, and creativity.
Digital Money DEMYSTIFIED empowers investors and future-forward business owners to go from crypto curious to confident while avoiding the scammers, carnival barkers and status quo hawkers. The right book. The right voice. The right time. This is a myth busting manual to help you go ‘From Cash to Crypto®’ safely, legally and confidently. Stay connected to be the first to know when the book is available for pre-order and to find out when I will be signing books in your area.
In my December newsletter, I talked about FTX crypto exchange founder, Sam Bankman-Fried’s, arrest in the Bahamas and the list of charges from the Department of Justice, SEC and CFTC. SBF is not the only one in legal jeopardy.
Celebrities Tom Brady (geez, he’s had a BAD year, huh?), Larry David and Kevin O’Leary are on the wrong side of legal action, as well.
Days after SBF filed for FTX bankruptcy, attorney Adam Moskowitz of The Moskowitz Law Firm, a South Florida litigation boutique, and Boies Schiller Flexner filed actions in Miami federal and state court against Bankman-Fried and celebrity promoters of the exchange.
The federal class action suits allege that FTX’s yield-bearing accounts (YBAs), which pay interest on crypto holdings, were actually unregistered securities in violation of both state and federal securities laws and that celebrities who promoted them should therefore be on the hook for investor damages.
The Moskowitz action, filed on Nov. 15, claims damages are over $11 billion (yes, with a B).
A separate state action in Florida names Brady, Shark Tank TV personality Kevin O’Leary and former Boston Red Sox star David Ortiz — all Florida residents — as defendants. That suit was filed by the law firm of Boies Schiller, seeking a declaratory judgment on whether FTX YBAs are unregistered securities and if, by extension, celebrity promoters violated consumer laws by promoting them.
Bottom line: let the celebrity endorser … beware. Because they may be the only deep pockets accessible to investors, who likely won’t see a satoshi returned from the bankruptcy proceedings.
Reminder: Do NOT keep your assets on centralized exchanges. They are not banks. They are a marketplace where you trade cryptos. Learn to self-custody your assets. That’s the true power of digital ownership in the new economy.
November 30, 2022 Copyright 2022. Tonya M. Evans. All rights reserved.
Evolve or die. That has been a consistent and persistent thread running through messaging from staunch crypto advocates regarding the disruptive purpose and impact of bitcoin and the over 22,000 different types of native crypto coins and tokens in the decentralized finance (defi) ecosystem. The point is well made and correct. But I think the fear-based framing is counter-productive and misses the incredible opportunities community banks (publicly or privately owned by local community members) and credit unions (privately owned by its members) can provide in the form of better, faster, less expensive and more creative savings and loans products and features that provide greater access to banking.
Although it is true that with every passing day fintech companies, digital banks, and crypto assets, become more ubiquitous as more investors and consumers access these alternatives to traditional banking and capital asset accumulation. These technological advances in finance continue to create a customer service issue for traditional financial entities (tradfi) because some consumers—especially those who have been historically marginalized—see fintech and blockchain-enabled banking solutions more viable as an alternative to the legacy banking system.
For example, an annual Black Investor report published by Ariel Investments and Schwab, one-quarter of Black Americans (25%) currently own cryptocurrency, and among Black investors under 40, that figure jumps to 38%. Black investors are more than twice as likely to say cryptocurrency was their first investment (11% of Black investors compared to 4% of white investors).
What is a Community Bank?
Community banks are smaller banking institutions (fewer than one hundred branches) devoted to nurturing relationships and prioritizing community care, impact and involvement to provide stability and opportunity to individuals and businesses within a specific local or regional area. Contrast Community banks like credit unions with super-regional banks like PNC and Truist Financial and mega-banks like Bank of America and JPMorgan, that began to proliferate in the late 1990s.
With the increased demand for 24/7/365 access to a variety of banking services (and assets) and the ability to review, move, and manage value digitally on feature-rich platforms quickly and securely.
Banks (and the agencies charged with disclosure, compliance, and consumer protection oversight) that are ready, willing, and able to commit time, talent, and resources to reskill and increase digital and new technologies competency, will also be poised to increase positive relationship-based impacts for customers in the communities in which they serve.