The project has entered a critical state and they need to do something in order to turn things around.
Maybe they should consider changing strategies, meet the law requirement and make the tokens an actual security.
If they switch to security that would make things different. For instance, i would love to hold this projects token if it security more than utility. But we don't know, if they are thinking this or not.
Security tokens could accelerate the user adoption as people could hope for dividends along the way so maybe they will consider it.