That just isn't a reasonable statement. No one forces someone to participate in a ponzi scheme.
The problem with SPACS is these were companies that did not go the IPO route because they would not pass SEC approval. Companies should go public even if they are unlikely to survive, but what we saw was mostly fraud. They received absurd valuations based on exaggerated growth claims combined with imaginary non-GAAP accounting -- things you can't do in an IPO.
Some of these participants will get in trouble. Enforcement is not immediate. a16z is probably going to end up in a lot of trouble over their cryptocurrency shenanigans. I think these guys pretty much burned their reputation in exchange for things like owning a $177m house in Malibu.
The consequences will be felt by everyone, not just the shitco and shitcoin hucksters.
Fair enough, I didn't realize SPACs were effectively an end-run around SEC approval & GAAP accounting - and I worded too strongly for what was effectively an uninformed take.
The problem with SPACS is these were companies that did not go the IPO route because they would not pass SEC approval. Companies should go public even if they are unlikely to survive, but what we saw was mostly fraud. They received absurd valuations based on exaggerated growth claims combined with imaginary non-GAAP accounting -- things you can't do in an IPO.
Some of these participants will get in trouble. Enforcement is not immediate. a16z is probably going to end up in a lot of trouble over their cryptocurrency shenanigans. I think these guys pretty much burned their reputation in exchange for things like owning a $177m house in Malibu.
The consequences will be felt by everyone, not just the shitco and shitcoin hucksters.