Thousands of small investors have reportedly lost their hard-earned money in China after hundreds of online peer-to-peer lending sites that were reportedly promoted by the government crashed last week.
Lending platforms such as Tourongjia.com promised double-digit returns to its investors, which made them attractive options for a lot of people who wanted to earn some profit.
With Japan at the forefront, bitcoin appears to be doing just fine as it is now trading at $5,610 as of press time.
Based on data from industry website Coindesk, the popular digital currency hit a new record high of $5,856 this morning which saw a 16% massive climb from its previous high of $5,013.91 on September 2.
The Securities and Exchange Commission voted on Wednesday for a resolution that will allow startups to raise funding over the internet from almost every American who wants to invest.
This is the first major step towards equity crowdfunding, which is exactly what it sounds like — crowds of people put up money in exchange for securities in a company that isn’t publicly traded. What could possibly go wrong?
Bill Maris, managing partner and president of Google’s investment fund, Google Ventures, seems pretty sure of some amazing things, like curing cancer and living to be 500. Maris told Bloomberg:
“If you ask me today, is it possible to live to be 500? The answer is yes.”
Billionaire investor Mark Cuban, the outspoken owner of the Dallas Mavericks, posted a warning of sorts on his weblog about why the current tech bubble is worse than the last dotcom bubble of 2000. In his piece, he compares investors from then and today, highlighting one critical factor for why when the bubble bursts — and it will burst — investors will be left worse off for having invested in the startup scene: liquidity.
The startup craze has been burning for a while now. Entrepreneurs are still springing up with any and all business ideas in the hopes of attracting a million-dollar investment from an investor who recently got rich from his Coinbase shares or venture capitalist. Investors are caught up in the fever too and have been criticized for jumping in bed with companies before they’ve demonstrated profitability in the hopes they will grow to be the next Uber or SnapChat. When the bubble bursts, entrepreneurs and their startups will immediately become dust in the wind along with the billions invested. That’s the most dangerous part about investing in startups according to Cuban.
While China may be the world’s next big tech market, startup fever has caught on in India and now the whole world is investing in the Indian versions of Alibaba and Uber.
India’s growth, not to mention its massive population, makes it a new land of opportunity for both entrepreneurs and investors. Matt Turlip, a senior analyst for financial data firm PrivCo, says: