EddieJayonCrypto
17 Mar 23
• $1B class action lawsuit targets nine YouTube influencers for promoting unregistered securities and the collapsed exchange FTX• SEC fails to secure stay on Voyager deal as judge overrules motion• First Republic bailout includes tiered cash infusion strategy with big banks like JPMorgan and Bank of...
• $1B class action lawsuit targets nine YouTube influencers for promoting unregistered securities and the collapsed exchange FTX• SEC fails to secure stay on Voyager deal as judge overrules motion• First Republic bailout includes tiered cash infusion strategy with big banks like JPMorgan and Bank of America contributing $5B each• European regulators express displeasure with the US handling of banking failures, calling it "total and utter incompetence."• FDIC denies whoever purchases Signature Bank must divest crypto business after public outcry and current banking situation create bad timing• Billionaire Mike Novogratz advises Bitcoin and gold investments during current banking crisisInfluencers must be rethinking their respective revenue models with a class action stemming from the FTX debacle looming. Here is what is on my mind today.1. YouTube influencers are being slapped with a $1B class action lawsuit over their promotion of FTX. Overall, nine influencers are being called onto the carpet, including Ben Armstrong and Graham Stephan. The lawsuit states the influencers were involved in shilling unregistered securities to their viewers and subscribers, and promoting the collapsed exchange. Ben Armstrong says he never got paid by FTX and can prove it. That's half the case. What about the other half. 2. The SEC tried to get a stay on the Voyager deal and a judge has slapped them again, overruling a stay motion while they appeal the original ruling. The SEC is taking it on the chin all over the place it seems. I have said time and time again that regulation through enforcement is a short-lived tool to reign in anything. At some point you must take a pragmatic approach to create guardrails. Taking a heavy-handed approach to crypto could prove to be the biggest lesson yet. Let's hope the SEC finally gets it. 3. The First Republic Bailout is comprised of a tiered cash infusion strategy with the big banks like Citi, JPMorgan and bank of America having to kick in $5B each. Another tier with smaller but still big banks like Morgan Stanley and Goldman Sachs have to kick in $2.5B each with the smallest set of banks having to kick in $1B each. 4. We all know there are major bailouts underway. Admittedly, some are more creative than others, but they are going on nonetheless. European regulators are more than displeased with how the US is handling the banking failures. That is what they are. Those banks failed. One anonymous European regulator called the moves "total and utter incompetence". Remember, there is an international rulebook that provide general guidelines one what to do and not to do during such situations. I think I will sit back and watch how Europe handles their own crises. 5. The FDIC is on its heels as they deny whoever purchases Signature Bank must divest the crypto business. There is no doubt in my mind that is exactly what they wanted, but public outcry and the current banking situation has grown larger than they expected and creates a bad time for such an obvious move. The market can only handle but so much panic. Mind you Signature Bank was not insolvent when they stepped in. So there's that, too. 6. I don't know about you, but when a like-minded billionaire shares their thoughts on the current banking situation and says Bitcoin and gold are where you want to be, I kind of listen. Mike Novogratz says the current banking situation has created the moment to move. I have to say I agree. It is times like this that consider strategic moves to help solidify my future gains and protection against continued failures.