In this scheme, VCs are cleverly exploiting the fact that US securities law is designed to protect investors foremost.
They are investors in these web3 shitcoins, so it’s complicated to prosecute them for anything when the law sees them as the victims.
In reality these VCs are co-conspirators in creating these unregulated securities, and hopefully the SEC will eventually make an example out of someone like a16z. Their Coinbase pipeline has been an absolute sham because they’ve had board-level influence on Coinbase which they’ve used to make the crypto exchange list all the shitcoins that a16z just happened to buy six months earlier. This shouldn’t be legal.
They are investors in these web3 shitcoins, so it’s complicated to prosecute them for anything when the law sees them as the victims.
In reality these VCs are co-conspirators in creating these unregulated securities, and hopefully the SEC will eventually make an example out of someone like a16z. Their Coinbase pipeline has been an absolute sham because they’ve had board-level influence on Coinbase which they’ve used to make the crypto exchange list all the shitcoins that a16z just happened to buy six months earlier. This shouldn’t be legal.