ICO tokens to recognise as securities?

future-of-payments

Raising funds through the ICO you have to work hard to protect the rights of the investor…
Pavel Kravchenko

Yesterday, the Securities and Exchange Commission (SEC) began an investigation against the ICO of the DAO project (thanks to the hacking, many people lost money, and Ethereum was forked). The Commission recognized the token which was sold on the ICO as a security. Obviously, it was offered to investors not in line with the rules, it means that the founders of the project seriously violated the law and could theoretically go to jail. This seems plausible that all ICO tokens will be recognized as securities with all ensuing consequences. The crypto community is in shock – the state is against innovation! But it was yesterday. And looking at my morning message, I do not have a feeling that the US is fighting against innovations. For some reason, Satoshi Nakamoto had no problems with the SEC (the same concerns creators of Monero). And there will not be problems. Maybe, the fact is that entrepreneurs really want to pretend that they play by the rules (perfectly realizing that it is not very much – the ICO is actually a collection of other people’s funds), meanwhile, averting all the responsibility for the consequences. My opinion is that if it is decided to establish the company, marketing, team, raising funds through the ICO you have to work hard to protect the rights of the investor. Otherwise – or do not pre-sell (like Bitcoin) or raise funds anonymously for projects not related to the physical world.

Illustration by Katerina Krashtapuk

Pavel KravchenkoCryptographer, founder of Distributed Lab