What are the reasons for rejecting SAM in the cryptocurrency industry?

3 answers

• Dec 25, 2021 · 3 years ago
  Many cryptocurrency industry players reject the use of SAM due to its lack of regulatory oversight and potential for abuse. SAMs are often seen as a way for projects to raise funds without going through the proper channels, which can lead to fraudulent activities and scams. Additionally, the lack of clear guidelines and regulations surrounding SAMs makes it difficult for investors to assess the legitimacy and potential risks associated with these agreements. Overall, the rejection of SAM in the cryptocurrency industry is driven by the need for more transparency, accountability, and investor protection.
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• Dec 25, 2021 · 3 years ago
  SAMs have been criticized for their potential to enable market manipulation and insider trading. Since SAMs are not subject to the same regulations as traditional securities, there is a concern that they can be easily manipulated by large holders or project insiders to artificially inflate or deflate token prices. This can lead to unfair advantages for certain parties and undermine the integrity of the market. As a result, many cryptocurrency industry players prefer to avoid SAMs and opt for more regulated and transparent fundraising methods.
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• Dec 25, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, does not support the use of SAMs in the industry. We believe that SAMs lack the necessary regulatory framework and investor protections to ensure a fair and transparent market. Instead, we encourage projects to explore alternative fundraising methods that comply with existing regulations and provide greater transparency to investors. By doing so, we aim to foster a more sustainable and trustworthy cryptocurrency ecosystem.
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