This has been bugging me to no end.
Investors require personal information of the business during IPO.. If the business is in the US, then it is already breaking the SEC laws. Do investors know this?
Yes. Which is why investing in bitcoin stocks is so shitty.
You only have two options:
A. Invest in anonymous company which will run away with the coins.
Or
B. Invest in company with names and wait for the SEC to shut them down.
And then after you choose one of these options, you are betting that the stock gives a greater return than if you just held BTC, which historically has not been the case for many.
This really only leaves opportunity for day-traders, or for potential s-c-c-c-cammers.
I disagree. I think there's also scope for:
- Investors who are short on Bitcoin
- Investors looking to diversify their cryptocurrency holdings
- Fiat investors who don't want to hold crypto, but want to invest in Bitcoin-based or Bitcoin-involved businesses
- Fiat investors who don't care about crypto, want to invest in a company, and are happy to to use Bitcoin as a medium of exchange when investing and when earning dividends