The head of the SEC made it very clear that if you:
1. Give money.
2. With the expectation of profit.
3. From the work of others.
You've invested in an unregistered security and that is illegal in the US
Here is why he also made it clear #bitcoin is not this, but "most" are...
1. Give money.
2. With the expectation of profit.
3. From the work of others.
You've invested in an unregistered security and that is illegal in the US
Here is why he also made it clear #bitcoin is not this, but "most" are...
When bitcoin was released Satoshi posted code. Some people chose to run that code and mine bitcoin. No money was ever invested by anyone to anyone else for the purposes of building anything.
Eventually people chose to exchange bitcoin for money.
Bitcoin was built for free.
...
Eventually people chose to exchange bitcoin for money.
Bitcoin was built for free.
...
Contrast this with #Ethereum
This is a speech from @VitalikButerin to investors. It will eventually be used as evidence by the SEC because it clearly shows: ...
https://twitter.com/Excellion/status/1422789730601627651?s=20
This is a speech from @VitalikButerin to investors. It will eventually be used as evidence by the SEC because it clearly shows: ...
That Vitalik is pitching a room of potential investors. That he has formed a corporation in Switzerland. That he has a business plan and a product roadmap that if successful will increase the market value of #Ethereum. That he presenting himself as competent and trustworthy ...
That they considered basing the company in Panama, but that Switzerland is less likely to consider their actions illegal than the #sec (something @GaryGensler made direct reference to yesterday).
All of this means that #Ethereum, unlike #bitcoin is clearly a security...
All of this means that #Ethereum, unlike #bitcoin is clearly a security...
@GaryGensler When it was purchased investors:
1. Gave money to Vitalik and Co.
2. Hoping the value of #Etherum would go up.
3. Based on the ability of Vitalik and Co to build a successful blockchain with the features he promised.
But it gets even better...
1. Gave money to Vitalik and Co.
2. Hoping the value of #Etherum would go up.
3. Based on the ability of Vitalik and Co to build a successful blockchain with the features he promised.
But it gets even better...
Because @GaryGensler made several references to the fact that the SEC is charged with consumer protection beyond simply making sure things are registered (already illegal if not done).
This means they want to prevent fraud.
Fraud is when...
This means they want to prevent fraud.
Fraud is when...
@GaryGensler Fraud is when someone makes false claims to encourage investment.
#ethereum has been nothing but false claims from the start.
...
#ethereum has been nothing but false claims from the start.
...
In the case of #Ethereum no one would have invested if @VitalikButerin had told people that the entire design is flawed and will not scale even though he later admitted that he knew all along it would not work.
This is the definition of fraud.
...
This is the definition of fraud.
...
@VitalikButerin But it gets even better!
Because right now people that are buying #Ethereum are betting on Vitalik and Co to launch another platform they are calling 2.0
This platform is a complete rebuild that replaces the very foundation of consensus with something called "PoS"...
Because right now people that are buying #Ethereum are betting on Vitalik and Co to launch another platform they are calling 2.0
This platform is a complete rebuild that replaces the very foundation of consensus with something called "PoS"...
@VitalikButerin We all know this is yet again more fraud because PoS can't work, but that isn't even important because it means investors (today!) are purchasing a financial instrument that gives them ownership in a platform that does not exist...
@VitalikButerin With the hope that it will be built by Vitalik and Co and have properties that make it useful.
So #ethereum itself. Even today. Is a constant securities offering.
To contrast this with #bitcoin again...
So #ethereum itself. Even today. Is a constant securities offering.
To contrast this with #bitcoin again...
When someone buys bitcoin today or at any point in the past they are buying something that exists. It may currently scale or it may currently have smart contracts, but whatever it is it exists now and it is not a bet that Satoshi or anyone else will build something magical...
And they are buying something that never required investment. No one ever gave a team money to build bitcoin into something useful.
It is also impossible for anyone to buy bitcoin based on a promise of a team to make it magical...
It is also impossible for anyone to buy bitcoin based on a promise of a team to make it magical...
No one knows if a given upgrade will take place until after the fact because even the term "bitcoin" is defined by the individuals that run their own node software.
So in summary #bitcoin is not a security because no one invested into a team with the hope they would deliver...
So in summary #bitcoin is not a security because no one invested into a team with the hope they would deliver...
But #Ethereum is a security because everyone that participated in the pre-sale and everyone that has invested since is betting that the company Vitalik created will be able to build something that is useful, but does not yet exist.
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