CoinWorld News, January 17 — Backpack founder and CEO Armani Ferrante posted on social media that many projects claiming to be part of the "new generation of internet finance" are actually products with severely limited functionality, degraded user experience, higher fees, and weaker protections. Some tokens are essentially stocks but lack dividends, voting rights, or Securities Investor Protection Corporation (SIPC) insurance. Some projects are essentially banks but do not support direct deposits, check issuance, payroll processing, or transfers to accounts in others' names. While charging investors layered fees, they do not provide any investor protection and openly disclose personal data to the world.
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CoinWorld News, January 17 — Backpack founder and CEO Armani Ferrante posted on social media that many projects claiming to be part of the "new generation of internet finance" are actually products with severely limited functionality, degraded user experience, higher fees, and weaker protections. Some tokens are essentially stocks but lack dividends, voting rights, or Securities Investor Protection Corporation (SIPC) insurance. Some projects are essentially banks but do not support direct deposits, check issuance, payroll processing, or transfers to accounts in others' names. While charging investors layered fees, they do not provide any investor protection and openly disclose personal data to the world.