If you got a few hundred k lying around feel free to steal this. The business plan for the hypothetical company is to use a shell penny stock via a reverse merger take advantage of the hype pertaining to web 2.0 companies and bitcoin. Web 2.0 is like dotcom bubble 2.0 but the public cannot invest. They want to but cannot. The idea is to create a traded investment vehicle to allow the public to indirectly invest. Such a penny stock would be worth $100's of millions in a short period of time when people bid it higher. Such a stock would rise from $1 to $100 in months and raise money in secondaries to invet in Uber, snapchat, bitcoin and other startups. Surprised that after 5 years no one has done this.
Web 2.0/bitcoin SPAC
- Thread starter bitfiend
- Start date
Why would anyone buy stock in a company whose price is tied to bitcoin instead of just buying their own bitcoin?
You are basically just increasing the risk associated with the investment and decreasing the return, without really doing anything else for the investor...
You are basically just increasing the risk associated with the investment and decreasing the return, without really doing anything else for the investor...
Because they just use their existing investment funds and in a few clicks it's all done.
So basically buy a penny stock and swap it out for a Bitcoin index?
1) The Winklevi already have a $15 million bitcoin ETF
2) There's probably a reason they chose ETF. Namely that SEC is most likely to treat Bitcoin as a security, if/when they ever begin to regulate it, and you can't use a penny stock as an investment vehicle for a separate, distinct security. You need to use something like an index or other derivative security.
Maybe if you can find a "penny ETF" this is a good idea. Although it sounds pretty retarded (spread-the-word-to-end-the-word). If you're going to sink a few hundred k into this, you're much better off doing it legitimately.
1) The Winklevi already have a $15 million bitcoin ETF
2) There's probably a reason they chose ETF. Namely that SEC is most likely to treat Bitcoin as a security, if/when they ever begin to regulate it, and you can't use a penny stock as an investment vehicle for a separate, distinct security. You need to use something like an index or other derivative security.
Maybe if you can find a "penny ETF" this is a good idea. Although it sounds pretty retarded (spread-the-word-to-end-the-word). If you're going to sink a few hundred k into this, you're much better off doing it legitimately.
