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๐Ÿงต

A beginner's guide to securities in the world of #crypto! ๐Ÿš€

๐Ÿ”’ What is a #security?

In simple terms, a security is a type of financial asset or investment instrument.

It represents something of value that you can trade, like stocks or bonds. ๐Ÿ“Š๐Ÿ’ฐ
๐Ÿ”’ How is a #crypto determined to be a security?

Well, it depends on its characteristics and how it's offered to investors.

In the US, the Securities and Exchange Commission (SEC) uses the "Howey Test" to evaluate this. ๐Ÿงช
๐Ÿ”’ The #Howey Test asks:

Does the investment involve putting money into a common enterprise with the expectation of profits primarily from the efforts of others?

If the answer is yes, it's likely considered a #security. ๐Ÿ“โœ…
Read 10 tweets
I've been seeing a lot on #BRC20
and #Bitcoin Ordinals and I'll be honest, I don't have a clue what these were. So I decided to change that.

Let's talk about it! ๐Ÿงต

Understanding BRC-20 Tokens and Bitcoin Ordinals ๐ŸŸ ๐ŸŸข

#crypto #cryptothread
BRC-20 tokens are a new experimental standard for creating and transferring tokens on the #Bitcoin blockchain. They work similarly to Ethereum's ERC-20 tokens but with some differences. However, it's important to note that BRC-20 tokens are still in the experimental stage.
BRC-20 tokens were made possible through the Ordinals protocol, which allows for the inscription of data on individual satoshis (the smallest unit of Bitcoin). This enables the creation of fungible tokens on the Bitcoin network. #Ordinals #Bitcoin
Read 16 tweets

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