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Last Friday – November 16th, the Securities and Exchange Commission (SEC) issued a statement announcing that it had resolved the allegations against two companies that had carried out ICO operations that fall under the offer of securities. The two companies mentioned by the SEC were CarrierEQ Inc. (Airfox) and Paragon Coin Inc.
The agreement with the SEC included the following:
- Each was fined $ 250,000
- Everyone was ordered to compensate damaged investors who bought tokens in illegal offers
- Both agreed to register their tokens according to the Securities Exchange Act of 1934
- They also had to submit periodic reports to the Commission for at least a year
Social media say that Ethereum is dead
After the verdict, Twitter was full of conclusions about the fact that Ethereum was dead. One of these tweets came from Craig Wright who is also involved in Bitcoin Cash Hash Wars. His exact tweet was as follows.
Any case of use for ETH no longer exists after confirmation by @SEC_News on ICO. All as I tried to say for years.
Next goal, XRP. Another unregistered illegal security platform to be disassembled.
– Dr Craig S Wright (@ProfFaustus) November 17, 2018
Ethereum was simply validated by the SEC
Craig Wright's tweet can be understood in the context in which he is trying to justify his vision of Bitcoin Cash SV as the real version of Bitcoin and Bitcoin Cash. Given the current situation of Bitcoin's hash Cash wars, it is natural that he concludes that Ethereum is dead given the SEC verdict on the two CIOs.
But looking further at the declarations of the regulatory body, we find the following words from the co-director of the SEC Enforcement Division, Stephanie Avakian.
We have made it clear that companies that issue securities through ICO are required to comply with the statutes and existing regulations governing the registration of securities.
ETH is the best for Tokenize Securities on Wall Street
Now, here's what all those who are bearish on ETH do not see: Ethereum is in the best position to fine-tune stocks on Wall Street and other global equity markets.
The proof of why Ethereum will lead the blockchain revolution on Wall Street and other traditional markets can be seen through the following recent events.
- Launch of several stable currencies that are ERC20 token: Tether (USDT), True USD (TUSD), USDCoin (USDC), Gemini Dollar (GUSD), Paxos Standard (PAX)
- The highly anticipated update of Constantinople which aims to increase the throughput of the Ethereum network. High throughput is necessary to manage what the future holds
- Early contracts of Ethereum anticipated by the CBOE exchange by the end of 2018
- The SEC asks the two ICOs to register their tokens as titles. No mention was made of "removing them" from the Ethereum network. The SEC embraces technology wholeheartedly
- Austria uses the Ethereum blockchain to issue government bonds
- Further progress in Europe to tokenize securities on the Etheruem network in a regulated manner. DESICO is one of these projects
In conclusion, the decline in the value of Ethereum can be considered as an overreaction to the ESA regulation with the two aforementioned ICOs mentioned above. There are also the Bitcoin Cash Hash Wars that cause a lot of uncertainty in the whole cryptography market.
However, there is a glimmer of hope as the future is obvious: the tokenizing titles will allow the regular individual to own a slice of large companies (Amazon, Apple, Oracle, etc.). And even the titles of state. Ethereum is in the best position to give a name to that property.
What do you think of the recent verdict on the SEC ICOs? Let us know in the comments section below.
Disclaimer: This article is not intended to give financial advice. Any other opinion present here is purely that of the author and does not represent the opinion of Ethereum World News or one of its other writers. Perform your research before investing in one of the many cryptocurrencies available. Thank you.
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