I understand you aren’t saying Yotta is blameless. My following comment is a general one…But as far as press reports go, Yotta wasn't the problem. It was Synapse. (Maybe Synapse and Evolve both). Did Synapse sponsor YouTube videos? Was Synapse, founded in 2014, backed by Andreessen Horowitz, a "sketchy startup?" Do you have any evidence that it had a bad reputation? And did Yotta customers even know of its existence, let alone judge its reputation? …
I don’t think Yotta (or any other fintech) should be off the hook for responsibility because they were “only” the middleman. An eBay model shouldn’t be allowed in the financial world. If Yotta/another fintech is going to rely on Synapse or Evolve to support their platform offerings, Yotta/fintech need to vet the partner’s financial health including controls over safeguarding cash. If they aren’t doing that, they are part of the problem.
Another issue imo is that regulatory agencies haven’t kept up with making changes if needed as new things pop up like crypto and fintechs. It unfortunately usually takes a problem like this one before it receives attention. Kind of reminds me of the dot.com runup where some newco’s were raising capital off a piece of paper that was a business plan involving the internet as a platform or attracting customers with free products with free shipping involving rebates such as cyberrebates.
As a consumer, “buyer beware”. I might gamble trying a new consumer product but I wouldn’t try some of the new alternatives to established financial institutions until there is some proven track record.
Statistics: Posted by HomeStretch — Mon Nov 25, 2024 7:45 am — Replies 343 — Views 42318