So how are Beanie Babies doing these days? Might as well buy Dutch tulips. Either one has more underlying fundamental value than crypto. Coinbase tells judge that buying crypto is just like collecting Beanie Babies https://finance.yahoo.com/news/coinbase-tells-judge-buying-crypto-152500930.html Coinbase told a judge that buying cryptocurrencies is just like collecting Beanie Babies. The crypto exchange is facing a lawsuit from the SEC accusing it of selling unregistered securities. But according to Coinbase, cryptocurrencies are more similar to collectibles than they are to stocks or bonds. Buying cryptocurrencies is just like buying Beanie Babies, a Coinbase lawyer told a judge on Wednesday. Coinbase is facing a lawsuit from the Securities and Exchange Commission accusing it of selling unregistered securities, but Coinbase made the case that the crypto tokens on its platform are more like collectibles than stocks and bonds. Coinbase lawyer William Savitt said that when a cryptocurrency is bought, the buyer doesn't gain any rights like they do when they buy stocks or bonds. "It's the difference between buying Beanie Babies Inc. and buying Beanie Babies," Savitt argued. In addition to the crypto sector, the court case could have wide-ranging implications for the collectibles market depending on how US District Judge Katherine Polk Failla rules on the case. "I am presented with the specter of collectibles being regulated by the SEC," Failla said. Beanie Babies were the subject of a late 1990s boom and bust that coincided with the dot-com bubble. People speculated on the value of Beanie Babies toys, briefly pushing some of the rarer stuffed animals into the thousands of dollars versus the retail price tag of just $5 a piece. In recent years, everything from shoes to trading cards to watches have experienced a surge in value amid the COVID-19 pandemic, though some of those booms have since turned into busts. The SEC argued that unlike collectibles, when a crypto token is purchased, the owner is invested in the network or enterprise behind the token. "When they buy this token, they are investing into the network behind it. One cannot be separated from the other," SEC lawyer Patrick Costello said. The SEC has leaned heavily on a 1946 Supreme Court decision that defined a security as an "investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others." Whether that argument holds up in this court case remains to be seen. Failla ended the hearing without a ruling. Read the original article on Business Insider
No this is the argument, and judge was very friendly to Coinbase. Imagine what floodgate this will open if Coinbase wins. Anyone tech savy will begin launching their own crypto
They have to say this of course.theyre trying to save themselves a substantial fine for pushing the envelope. SEC need to show toughness after the ETF situation so I dont think they will fare well.
They are not so silly to believe it. They have made billions in the decade. They are trying their luck at avoiding/mitigating their penalty. Sort of similar to an investor who observes 20,000% profit and is happy to be out at 15,000% profit if things go pear shaped...
I'm gonna leave this here for you and Aunty Sun-T.The italics are my earlier comments:: semperfrosty 1,262 Posts 851 Likes A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. A financial bubble is a situation where the prices of an asset or an asset class rise rapidly and excessively above their intrinsic or fundamental value. This is usually driven by speculative demand and irrational behavior. Bitcoin is more of a bubble than a fraud. As to who's recruiting me to invest, well aside from the ET bitcoiners, there's dozens of Youtubers and soon to be major players like Vanguard and Blackrock. Anything the Government gives you is a ponzi, and if they run out of money they print more. FWIW it think BTC is a bubble and will end badly for the HODLers. I'm long BITO until the trend changes. More... If its a bubble,its only part of an everything bubble that may level off before continuing the path that anything of value does. People need to first consider that their rectangle of dirt with a 600 thousand dollar house on it is magically worth 2 million dollars. They then need to realise that that is the case due to time honoured laws of supply and demand. The calibre of people spouting the greater fool theory the last 12 months is beyond laughable. People bask in the glory of their accomplishments,accomplishments provided by the very same factors driving Bitcoin and scoff at those invested. If I had said that Real Estate was in a bubble or a manipulation and waited for a correction,I would never have been invested.I knew it was a no brainer,mainly due to my investment horizon. Talking to nocoiners who try to detract is like to talking to someone who never bought a house 20 years ago when you did,has rented their entire life and tracks you down every time their is a 5% correction to tell you 'things dont look good!i'm glad im not a home owner!' Its annoying. #47 Jan 5, 2024Report Reply Share johnarb and jbusse like this.