Quote:
Originally Posted by Planetrain
https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3
I marveled over how risky SPACs were after some enlightening on this forum. I can now tell crypto has no place for my investing stomach either. Thanks for the article.[/QUOTE]
one reply big risk on SPACs is if you buy warrants that have been stripped prior to bringing the SPAC to market. If the SPAC cant bring a company to market...the money is returned to investors. If you bought the warrants ( usually a 5 year option to buy the stock at around 11.5) and the spac doesn't debut...u lose it all
Additionally on the warrants(more leverage,less money) there is usually a call provision. If the dpac comes to market and trades above 18 for 20 out of 30 days(nominally) the can be called.
I have 5 spacs that I gambled on 5 days ago...cumulative they are up 20%...risky ...yes..
rewarding...possibly
DYODD