Reading MPEx's response to SEC inquiries about SD has got me thinking more about decentralized securities platforms.
Even if all the crypto securities exchanges are eventually shut down or brought into compliance, how will a decentralized
platform for securities issuance and trading give us more liberty to invest what we want, when we want, and with whom
we choose? Won't the SEC just track down and shutdown the issuers themselves?
I mean, before I would want to invest in a crypto security, I'd want to know the details of the offering! This would include
most certainly the identification of the issuing companies' lead personnel. If that is a basic tenet of securities investment,
then how will a decentralized platform help the situation? Won't the governing authorities just go after the security
issuers directly?
I'm just not seeing how a grand decentralization plan for securities is going to make a real difference in my freedom to
invest in crypto securities. Any insights from the professionals around here? Thanks in advance!
Well, look, the crowd is learning!
Decentralized securities will look a lot like Cryptostocks, a haven for scams.
Aside from legalities of an exchange like MPEx or Havelock, or issuing profitshares in bitcoin businesses, the reality of it is that a trustworthy centralized exchange has a lot more to offer than a decentralized one.
They can perform a level of filtering, of due diligence, of guidance, and of overall service that a protocol simply can't.
Remember, the issuer is always centralized anyway.
There may be fringe possibilities of automated derivatives based on mining difficulty and things like that, but even those would need to be programmed and maintained by someone, ultimately giving a centralized source the power and responsibility of controlling them.
You can not remove trust from the equation. Decentralized exchanges serve as automation of a protocol, not a magic bullet to protect people.
This is why people should be focusing on a better WoT, and better WoT integration into web-based services, etc.