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Earlier quoted context omitted.
You're giving away a security that is still considered a security. That doesn't mean it won't be regulated as a security.
Yet Bitcoin and Ethereum are not considered securities by the SEC. So clearly the same sort of asset is considered a security sometimes but not other times , essentially whenever the SEC decides.
Why is that ?
"The complaint further alleges that Kik marketed the Kin tokens as an investment opportunity. Kik allegedly told investors that rising demand would drive up the value of Kin, and that Kik would undertake crucial work to spur that demand, including by incorporating the tokens into its messaging app, creating a new Kin transaction service, and building a system to reward other companies that adopt Kin. At the time Kik…
Earlier quoted context omitted.
Ethereum also had an ICO (paid in Bitcoin) and it delivered. Cosmos held an ICO and delivered. Not all ICOs are scams.
I think the point is those are the outliers and the majority are scams.
Ethereum is the reason there have been so many ICOs in the past 3 years.
Earlier quoted context omitted.
You're giving away a security that is still considered a security. That doesn't mean it won't be regulated as a security.
Yet Bitcoin and Ethereum are not considered securities by the SEC. So clearly the same sort of asset is considered a security sometimes but not other times , essentially whenever the SEC decides.
Earlier quoted context omitted.
Yet Bitcoin and Ethereum are not considered securities by the SEC. So clearly the same sort of asset is considered a security sometimes but not other times , essentially whenever the SEC decides.
> Yet Bitcoin and Ethereum are not considered securities by the SEC. Why is that ?
But there is no framework on how exactly one becomes sufficiently decentralized, and because Ethereum had an ICO and is not a security, we know there is a way to do an ICO without needing to be registered. Unfortunately the current regulatory framework is opaque. The SEC "knows them when they sees them" so to speak but cannot explain clearly how to avoid becoming a security.
My hope is that this lawsuit will result in clear guidance on how to become a Bitcoin or Ethereum, which will significantly help boost the industry.
The press release says that: "the company’s management predicted internally that it would run out of money in 2017. In early 2017, the company sought to pivot to a new type of business, which it financed through the sale of one trillion digital tokens."
I'm guessing that they spent a decent amount of the money they raised through the ICO. If they have to give it back, will they have to take on even more funding from a VC at even worse terms?
While I look forward to the outcome of this, it's worth noting that the SEC has claimed that "airdrops", or simply giving away tokens to others for free, should also be considered securities, as well as "pre-mines", where you mine cryptocurrency before the public receives it. The SEC has an ever expanding view of what it should be responsible for regulating. I cannot understand how issuing a digital asset without rec…
Regulation is unpopular among the people inside the regulated industry, but it protects society as a whole.
Earlier quoted context omitted.
Yet Bitcoin and Ethereum are not considered securities by the SEC. So clearly the same sort of asset is considered a security sometimes but not other times , essentially whenever the SEC decides.
> Yet Bitcoin and Ethereum are not considered securities by the SEC. Why is that ?
https://www.sec.gov/news/public-statement/statement-clayton-...
Earlier quoted context omitted.
You're giving away a security that is still considered a security. That doesn't mean it won't be regulated as a security.
Yet Bitcoin and Ethereum are not considered securities by the SEC. So clearly the same sort of asset is considered a security sometimes but not other times , essentially whenever the SEC decides.
Going through these measures to understand if what you are issuing is a security is not unusually difficult. It does take time, and often requires seeking good legal advice.
The strategy many of the worst ico's used, of trying to write their way around the very real considerations of securities laws, was poorly thought out and now they are paying the price.
There are many instances of projects that went about this the right way, I.e Filecoin, Ocean Protocol, Cardstack.