Crypto is Shafting Minority Communities
plus where homes sales are falling; Arnault's wonderchild speaks
07/18/2022
For those of you who have followed my work for awhile, you obviously know that I am a Boomer no-coiner. Do I think it’s mostly just a pyramid scheme? Yep. But do I know where crypto as an asset class is going? Not a clue.
What I do know, though, is that countless vulnerable people are getting scammed out of their hard-earned savings, especially racial minorities in America. Mainstream media articles profess not to know why these groups are more enthusiastic about crypto. To me, the answer is obvious: it’s a classic case of affinity fraud on a grand scale, which is what we discuss in this week’s feature.
And btw, a shitcoin is not a community, as they often refer to themselves. Get tf outta here with that nonsense.
Peace out.
Mike
Featured Article
Crypto Affinity Fraud is Shafting Minority Communities
by Mike, Tycoonist Creator
Crypto
As reported by Cointelegraph, the vast majority of cryptocurrencies have lost over 90% of their value. Seeing as most (all?) cryptocurrencies are basically pyramid schemes, this represents a permanent loss of capital.
Biggest Victims: Data shows that racial minorities in the U.S. are more enthusiastic about crypto and hold a disproportionate share of the market. A few not-so-fun facts from recent surveys:
Hispanics account for 24% of cryptocurrency ownership but make up 16% of the U.S. population.
Asians account for 6% of crypto ownership vs. 5% of the general population.
Blacks are more than twice as likely to invest in crypto than the stock market.
Financial devastation of minority communities due to crypto can likely to traced to affinity fraud, which is an investment scam that targets members of identifiable groups such as race and religion.
Infamous Ponzi schemer Bernie Madoff, for example, largely stole from wealthy Jewish people and organizations.
A recent article in the 150-year-old Boston Globe newspaper unironically celebrated crypto for its diversity, apparently oblivious to the staggering fraud and losses taking place in the space.
Business Bites
News, Memes, and More From Around the Internet
Where Home Sales Are Sliding
Real Estate
A recent report from Redfin found that U.S. real estate sales are falling off a cliff, especially in the Bay Area. Of the top ten housing markets in the country where sales volume is slowing the fastest, five are located in northern California.
One particularly interesting tidbit:
“More than half the buyers I see in San Francisco are tech workers, and many of them have seen their employers’ stock prices tumble over the past few months–in a lot of cases, that has cost people six figures.”
-Redfin real estate agent
Analysis: Back in December 2021, we discussed the problem with stock-based compensation and how this form of self-reference paradox would come back to bite tech companies. Now, it appears that this negative wealth effect is filtering down into local real estate markets.
The Redfin article notes that for a $450,000 home, a monthly mortgage payment with 3% interest rates would come out to about $1,900, while a 6% rate results in a $2,600 payment—a 37% increase.
Meanwhile, real estate markets in areas that didn’t witness as much of a pandemic bubble, such as the Northeast and Midwest, have cooled more slowly.
The Crown Prince of Luxury
Business Leaders
As the interview of “Mr. Arnault” got underway at The Oxford Union, the young guest of honor quickly interjected.
“Please, call me Alexandre.”
Maybe being addressed as mister seemed a tad ridiculous for a guy who just turned 30. Yet, listening to him field questions in the car, I would have thought that the speaker was a seasoned 50-year-old executive, not a dude who would have been in the grade above me in school.
Alexandre Arnault is, of course, the son of Bernard Arnault, the CEO of luxury goods conglomerate LVMH and the world’s third-richest person. The elder Arnault, nicknamed the Wolf in Cashmere by the French media for his hardball business tactics, is a known stickler for detail.
The younger Arnault seems to have picked up on some of dad’s habits. When the unsuspecting teenage interviewer casually mentioned some of LVMH-owned Tiffany & Co.’s “low end” products, Alexandre cut across him immediately.
“Not low end.”
Chip off the old block.
Memes and Sarcasm
When is HYPEBEAST gonna get on this?
Musk poop emoji now officially a part of legal history (from Twitter, Inc. v. Elon R. Musk filing)
Rolling into the weekend META 0.94%↑ style
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Contact
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