What's the deal with Exodus stopping EOS exchanges through Shapeshift
I love the exodus wallet but the latest update has a few people spooked, I admit I got a little upset myself at first. @harleymechanix posted an article that got my attention earlier today, and I thought I would do a little digging around to see what I could find out.
The detailed release notes say that EOS (and others ) is now exchangeable using the built-in shapeshift functionality, but when users in the US try, we are presented with the message 'Unavailable in your jurisdiction'
Release note snippet regarding EOS
EOS, BAT, and EDG Make a Triumphant Return
Astute holders of EOS, BAT, and EDG may have noticed that these assets have been unavailable for use in our built-in Exchange tab; as much as we’d love to offer worldwide exchange support for these tokens within Exodus, our exchange partner is taking proactive steps against future regulation that may classify certain tokens as securities which, until this point, left EOS, BAT, and EDG unexchangeable for Exodus users.
It turns out that users in the USA are not able to exchange EOS due to potential regulatory issues. The actual 'issue' is not with exodus, but with shapeshift, they have stopped exchanging EOS while it is in the ICO phase which will more than likely be changed when EOS goes live in a few months.
I followed up with an email to their support team (who are always fantastic btw) and I get a very quick and detailed response explaining the situation, he is a summary:-
Hi Adam,
Thank you for reaching out to us about this issue and I'm sorry for the trouble you're having. Let me explain the reason behind this unavailability.
Due to increased U.S. regulatory laws defining some crypto-assets as securities and preventing them from being exchanged, our exchange partner, ShapeShift, will be taking the initiative to disable affected assets for U.S. customers. EOS is one such asset.
For an in-depth look at the impact of regulation on the exchange function in Exodus, please read this release from our exchange partner:
https://info.shapeshift.io/blog/2018/04/02/shapeshift-services-change-based-customers%E2%80%99-jurisdiction
In the future, more assets may become unavailable depending on how your local jurisdiction classifies certain crypto-assets. However, the good news is that soon we'll be able to offer many new assets to our customers outside the U.S.
This regulation does not prevent you from storing, sending or receiving EOS in Exodus and only affects the built-in exchange feature. You will still have 100% control over your assets, since you control your Private Keys.
Is this really an issue, well for me it is not. I have never used shapeshift for trading as it is far too slow and extremely cost ineffective. Nothing else is impacted by this, you can still store the EOS and register the tokens using the 1-Click process. All in all, crisis over....... for me anyway.
What do you think about this?, let me know below.
United States the most communist country. Hell even North Korea can probably use shapeshift.
lol, once we are out of the ICO phase it will be reintroduced, only a week or so to go now.
As for North Korea, I would be amazed if they even allowed to know what shapeshift is, I would guess it would it would be renamed KimShift-un either way.
yeah lol north koreans probobly use pirarted south korean or chinese internet signals anyway LOL dude north koreans probobly would be able to use it
but americans can use exodus's shapeshift eos feature just fine using a VPN :D
Good investigative work. Its good to know I can still use the wallet functionality. Wondering if its worth to set up a VPN for later? I have been shying away from it for a while now. But might have to bite the bullet.
Indeed it is mate, you can bounce off any European proxy or VPN endpoint, take that regulation ;-)
It all depends on how you want to utilize your coins/tokens. IMO wallets are made for holding, securing forks/airdrops and long term investors. Sure everyone gets scared about keeping things on exchanges, but theres risk anywhere; just potentially less in a wallet if you are smart with it. Though i do feel it has gotten better.
Exchanges get hacked, wallets get hacked, computers get hacked thats the high level of it. The best thing you can do with your coins is understand your goals and research the best option for YOU. Wanna trade/exchange coins/buy the dip/sell the top? Keep'em on the exchange. Want to hold your investment, ensure you get those forks and airdrops? Keep it in a wallet.
Thats not to say that exchanges wont give you those forks and airdrops, but what i am saying is the best thing to do with whatever you want to call your "things" (investment, coins, tokens, chumpchange, fun money, crypto) is
Understand what your goals (short term, long term, risk, buys, sells, limit, investments, diversity or any other factor.
Research the best way to obtain, transact and secure your "things" to reach your goals.
I guess to add more clarity around the subject matter, for me I dont feel this change impacts me as im holding/securing my tokens in Exodus. No need to shapeshift. If i wanted to change anything out I'd just move to an exchange but based on my goals, itll take a lot for me to make a drastic move.