# 1929 vs 2022

**Published by:** [Poet Network](https://paragraph.com/@poet/)
**Published on:** 2022-09-20
**URL:** https://paragraph.com/@poet/1929vs2022

## Content

Through 2021, consumers lost more than USD $1 bn (add reference in Notion) in Crypto scams. In 2022, the collapse of Terra triggered more than USD $70 bn to be lost (add reference). While a large part was institutional, consumers were also hit hard. Losing homes and suicides were common, but not talked about much. These events were eerily similar to those that occurred in 1929. Speculation was at an all time high, information asymmetry was rampant. It’s rumoured the Kennedy fortune began by Joseph Kennedy selling his entire stock portfolio in 1928 after his taxi driver gave him stock advice. He knew this was a sign of a massive bubble. The SEC was quickly formed after the crash, and they ruined the future of corporate America by banning equities all-together. America fell off the map as a future superpower. No. Not really. The SEC passed two pivotal acts in ensuring equities (and later securities as a whole) were fair for all participants. What they solved was simple: if you were a company, you had to report truthfully or risk being fined or shut down and any insider of the company had to abide by a set of rules to ensure information was fair. The result was that America ended up with the most robust financial sector of the 20th century. This insurance gave investors more confidence in the sector, and money from all over the world poured in. We believe that accepting regulation in Crypto will create a much better ecosystem for companies, builders and investors. Most of the large institutional money is not in Crypto and won’t be without significant protection. The trust in Crypto is at all time low and most people associate it with scams (especially those not building in the space). To be clear, we’re firm believers in the value system that Crypto brings: transparency, ownership, decentralization. We simply believe that rules of engagement matter. To start, we’re building a Fully Compliant National Securities Decentralized Exchange. Where transactions will be transparent on chain, there will be no custodial activities, and will be decentralized from day 1. Our hypothesis is that building a compliant DEX will reduce the fear of trading tokens as securities. Reducing this friction will increase the amount of money being poured into crypto in a safe way, allowing for companies to raise from more sources around the world.

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