I don’t disagree with anything you’ve said but I do wonder whether the typical crypto “investor” does realize the risk. In many cases (like Tether, for example) I’m not sure the risk has been adequately disclosed prior to purchase.
Who is the typical crypto "investor", though, that is getting into these schemes?
I personally know people who have gotten into the GME craze, I know people who are stupid enough to day-trade options, and I know people who spent a paycheck on buying dogecoin. They are all relatively normal people, and while some of them should not have gotten into these transactions, given what I understand of their personal finances, I understand why this happens. They live in America, where nobody's stopping you from spending your rent money on buying dumb meme stocks, and RobinHood has a cool mobile app for trading options, and maybe you win, or maybe you get burnt, it is what is, yolo, etc.
But of all those people, I don't know of anyone who dipping their feet into borrowing tethers to trade crypto on margin, or investing into crypto ponzi schemes. Who, exactly, is getting roped into that sort of thing? Posters on the crypto equivalent of r/wsb? Day-traders? Or is it Joe Average?
There's so many ways to screw up buying or selling options, that I believe retail investors should stay away from them, period. There are a lot fewer ways to screw up buying stocks.
