Blockstack’s token offering is historic, but its dance with the SEC is not over

Nobody is banned from investing in early-stage businesses except by virtue of their level of risk tolerance, and some of us angel invest regularly. However, just opening up access to everyone doesn't change the fact that a legitimate, well-funded company with great traction and a great idea (the kind of equity you want) has no interest in selling to some random small-time individual with no experience to bring to bear. As a founder, in early stages, I'd want smart money. Just as nobody was required to purchase $UBER nobody is required to sell shares of their startup to small-time investors who have no idea what they're doing and provide no value. I predict if accreditation rules were removed, the same pool of smart money continues to get all the wins, but now dumb money holds all the bags.

Yes, it's possible to make bad investing decisions. That certainly doesn't mean ICOs are a good idea.

It's not, but that's not the point. Offering unfettered access to investing with zero regulation is exactly how more of the Bernie Madoff's of the world would exist. You think the rich are getting richer under the current system now? Just imagine the number of grifter's that would get richer by swindling large swathes of common folk.

No one dumped their stock on the public. They offered to sell it and someone offered to purchase it.

(Granted, "the public" has some ownership because it likely ended up in several funds that people are invested in).

But on an individual transaction level, someone sought to buy it at a price and someone else sought to sell it at that price. What's the problem with that transaction?

That's how every IPO, and to a greater extent - "the market," works.