The digital assets industry has grown exponentially since Bitcoin was first introduced in 2009. (Wulf Kaal, Digital Asset Market Evolution). Though the digital assets market value is infamous for its volatility, the worldwide market capitalization of digital assets reached over $3 trillion at its height in November 2021. (Joanna Ossinger, TIME). As investors and the public more frequently use cryptocurrencies, non-fungible tokens (“NFTs”), and decentralized finance, the risks associated with digital assets increase…
Read MoreA novel type of entity has emerged in the world of global finance. It is called a Decentralized Autonomous Organization (“DAO”) and it was created to offer several benefits over traditional corporate structures. DAO’s are digital organizations built on blockchain technology and managed by their members in a democratic voting environment, DAO’s reduce transactional costs by removing the need for third parties, and DAO’s spur innovation in small business by making access to banking and capital more equitable…
Read MoreStefan Qin could face more than seven years in prison for fraudulently operating his hedge fund which allegedly derived profits from price gaps between cryptocurrencies on global exchanges. (Chris Dolmetsch, Bloomberg Law, Southern District of NY). In 2016, Qin dropped out of college to form the Virgil Sigma Fund. (Alexander Osipovich and Jeong Eun-Young, Wall Street Journal). Expectations were high for Qin, previously a high school math whiz, to dominate the cryptocurrency world with his price-monitoring algorithm called Tenjin. Id. . .
Read MoreIn 2020, investors looked to make a quick buck using novel investment schemes such as driving up the price of “meme-mania” stocks using social media. (Russell Investments, Seeking Alpha). One of the most popular get-rich-quick schemes in 2020 was to invest in special purpose acquisition companies (“SPACs”). Id. SPACs are “blank check” public companies established to use investors’ capital to find and purchase private companies—a process known as a reverse merger—which private companies then become publicly traded. (Scott Deveau, Bloomberg Law; David Stein, Money for the Rest of Us). By May 2021, initial public offerings (individually, an “IPO”) of SPACs raised $100 billion in capital, already matching the total capital raised for SPACs in 2020 and setting a record for capital raised in SPACs in a single year, with over six months remaining in calendar 2021. (Russell Investments, Seeking Alpha; Emily Graffeo, Business Insider). . .
Read MoreSeventy percent of American consumers in 2021 want their favorite companies to make a positive social and environmental impact. (Business Wire). A willingness to socially and environmentally improve society is therefore more than good ethics—it is good business. Beyond consumer sales, many companies raise capital by attracting investments based on their environmental, social, and governance efforts (“ESG”). (James Chen, Investopedia). ESG investing criteria represent the broad non-financial factors investors increasingly apply to their analysis of potential investments. (CFA Institute). Although traditionally ESG standards are not a formal part of financial reporting requirements, ESG is rapidly becoming a commonly recognized investment metric. . .
Read MoreAs the economy progresses into an era marked by concern for climate change, investors and consumers are increasingly demanding action and focusing their attention on climate change. Publicly traded companies are not currently required to disclose information explaining their exposure to climate change to investors and the public. (Rachel Layne, CBS News). However, this voluntary disclosure may become mandated by the Securities and Exchange Commission (“SEC”) in the immediate future. (Dave Michaels, Wall Street Journal). . .
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