00:00:00
Well, I think we've seen a lot of fraud
00:00:01
and manipulation and other problems for
00:00:03
two reasons. One is it is an unregulated
00:00:06
sector largely and it's also easy to
00:00:08
enter. You can be, you know, 18 or 20
00:00:11
years old and in college and create a
00:00:13
token or create an app and launch that
00:00:15
and make a lot of money at it. But you
00:00:17
also therefore have a lot of people as
00:00:20
you do in any kind of area of financial
00:00:22
activity who are looking to make a quick
00:00:25
buck and often not through the most
00:00:27
ethical means. And so you have pump and
00:00:30
dump schemes. You have a lot of wash
00:00:33
trading on platforms. Wash trading is
00:00:35
where people essentially trade with
00:00:37
themselves to push up the price or to
00:00:40
make it appear there's more interest
00:00:42
than there is.
00:00:43
>> It's surprising from the point of view
00:00:46
of you know our current markets some of
00:00:48
the most visible parts do not appear to
00:00:50
be rife with fraud. Now that's I think
00:00:53
in part because of our securities regime
00:00:55
going back to the 30s. But the point is
00:00:57
people forget that that's protecting us
00:00:59
from what would otherwise be probably
00:01:02
rampant fraud in traditional securities
00:01:04
as well. So crypto developed and it
00:01:06
didn't really have this backing. Part of
00:01:08
the issue is that we don't have the
00:01:09
regulations. But you know there's plenty
00:01:12
of fraud in the sort of dark corners of
00:01:14
the equity markets too with very small
00:01:16
equity securities that don't trade on
00:01:18
exchanges.
