Post
Topic
Board Altcoin Discussion
Re: Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”?
by
Hyperme.sh
on 14/09/2017, 19:02:17 UTC

As you may know, I was in the BCT thread in 2014 where he defending his stance towards the SEC inquiry.

But the linked Trilemma blog post above is inapplicable to this issues raised in this thread, other than the point that the SEC has no legal jurisdiction in Romania.

That blog post is correct that Bitcoin was issued (via proof-of-work that was not an obfuscated instamine like Dash or Steem) such that it is not a security and thus the SEC has no jurisdiction over BTC tokens. But the analysis of the OP's linked blog concludes that ICO issued tokens are securities. Obfuscated instamines (such as Dash and Steem) are economically the same as ICO issued tokens (i.e. the insiders end up with nearly free tokens which they sell to speculators to raise funds), thus are likely to be also judged to be securities.

Also the author of that quoted linked blog post is entirely unconcerned about whether BTC would become delisted from every exchange in major nations. Whereas, those who are speculating on ICO issued tokens, do very much need the liquidity of the the exchanges and need for those tokens to be legally tradeable in major nations, so they have a steady supply of greater fools to buy these ICO issued (scam) tokens.

EDIT (after the reply that follows from @Last of the V8s): Additionally the exchange and securities issuance practiced by the author of that blog (unrelated to the issuance of the Bitcoin tokens), was limited to offerings to high net worth individuals who were sophisticated investors, thus even if he was selling such securities to USA persons, he was likely under a Regulation D, 506 Rule exemption. And afaik, never did such blog author's securities trade to on unregulated exchanges to non-accredited investors.

Even btc is not that legal, is it?

Bitcoin is not a security because it was issued by competitive proof-of-work ongoing over decades. Meaning there is no issuer who was able to obtain the tokens for nearly free and sell them to raise funding for the developing Bitcoin.

Also be aware that the IMF is proposing to eventually make the global currency using blockchain technology:

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/the-coming-one-world-currency/

https://steemit.com/money/@anonymint/get-ready-for-a-world-currency