Venture firms may not be practicing enough diligence while creating tokens and also taught teams the process of creating tokens without performing any work or due diligence, which led to a lack of governance in the creation process.
The speaker expresses concern about a trader owning an exchange and a market maker as it may lead to a conflict of interest. They also highlight the mysterious source of cash flow for the trader's market maker, Alameda.
Billionaire Tom Steyer's announcement of donating $1 billion to the Democratic party raises questions about reputation laundering and buying political protection. Steyer's response to a recommendation from an investment firm to create a board, dual class stock, and reps and warranties around affiliated transactions also raises red flags.
The need for clarity around the political issues in the US is leading to an impetus to build companies in the US, which in turn will serve the rest of the world. The hope is that local companies will be helped to improve long term prospects.
The absence of governance and diligence in investing is becoming a recurring problem as witnessed in the recent FTX situation and in the lack of effort and diligence from venture firms in Silicon Valley along with their complacency in teaching teams to create tokens without investigation.