RE: Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”?
SEC settlements. Sia coin pays a relatively heavy penalty but EOS waltzes away relatively unscathed paying only a $24 million penalty.
And both tokens aren’t forced to be registered. But former securities now significantly driven by decentralized market factors no longer need registration.
Remember EOS lawyer-ed up and raised enough money to presumably pay for influence. Also remember I had noted they separated the EOS Token ICO from the EOS Platform token.
But remember it’s unlikely that EOS raised $4.1 billion because much of that can be the issuers buying the ICO sale from themselves to drive FOMO.
Also this is only a settlement with the SEC. It’s unknown whether EOS will have to have to settle with the EU at some point.
Essentially I think what I wrote above 2 years ago remains the primary conclusion:
Note I don’t think all the more muddled cases of “ICO-issued” equivalents tokens such as ETH, STEEM, DASH, NEM will necessarily be regulated immediately. I think first regulators are likely to prioritize purely ICOs such the Xerox copy ICOs issued on Ethereum. The outcome for other purely ICO issues such as NEO and Qtum is less clear to me. So the Armageddon may be a muddled outcome that meanders for a year, couple of years, or so before eventually all tokens with a scam-like history are perhaps doomed (and not just because of possible securities regulation rather that failure of execution is endemic to scams). Thus, I think the free market might actually kill STEEM, DASH, and ETH before the regulators need to
The altcoins appear to be dying if you look at their price pairings relative to BTC. Significant dead-cat bounces are possible along the way.
This “good news” (settlement without requiring registration) may reignite some dead-cat bounce FOMO for alts, and it appears altcoins have bottomed or nearly so: