One of the greatest things crypto has done is to slowly dislodge the concept of “Accredited investor”. Not literarily, but a strong bypass, and in a way that will in fact render that term redundant.
These are people with privileged access to trade securities. They often need to satisfy a requirement in respect to net worth, income, asset size, political status, or professional experience.
Usually, an accredited investor would need to have a net worth exceeding $1m (individually or jointly with a spouse), be a private business or organization with assets beyond $5m.
Clearly, this is reserved for high net-worth individuals, banks, brokers, insurance companies.
These privileged investors are regarded as financially sophisticated; however, it is honestly a way to ensure that the average citizens never level up.
There’s never been a better way to gain experience in the money market than diving balls deep into the market (of course after getting the required sound education).
The Crypto market has unarguably made a lot of people bypass this “Accredited Investor” stigma, thanks to a very low entry barrier.
Truth be told, labeling people “unaccredited investors” is just like saying they’re never going to be smart enough to handle their own money.
There’s no rule against preventing the uneducated from gambling and playing lottery, but they can’t meet standards to invest in securities?
It’s an unfair rule that certainly needs to disappear.