Is Cardano (ADA) a security? Bitcoin (BTC) billionaire Michael Saylor analyzes eighth largest cryptocurrency by market capitalization
Bitcoin (BTC) bull and Microstrategy CEO Michael Saylor says he considers the evidence-by-effort blockchain Cardano (ADA) to be a security.
In a new interview on the Altcoin Daily YouTube channel, Saylor says that there is a difference between Cardano and proof-of-work blockchain Bitcoin.
“My opinion is that Bitcoin is a digital commodity. I think all proof-of-stake networks are securities, and they are all very risky. Regulators will decide whether to let them continue or not.”
Saylor then explains why he thinks proof-of-stake projects like ADA are securities and not digital goods.
The token is a responsibility if it is not a commodity, and so fundamentally all this comes down to a question of “can you establish your network as a commodity network?”
To be a commodity network, there must be no issuer, no initial coin offering (ICO), no central organization, and if you study Cardano’s history, it’s pretty obvious that it’s a security. It checks all the boxes, so I do not know how you actually get around intellectually to convince yourself that it is something other than a security. ”
Saylor warns that selling unregistered securities comes with potential legal consequences regardless of the token’s technological offerings.
“Technology, however, will not save you. Ultimately, if you sell a security to the public without a disclosure statement, the fact that it is technically advanced will not save you from securities liability, so I would say that technology is not a problem. .
The question is really going to be how the securities regulators will handle crypto networks that are based on the security token. I do not know, that’s not my case. I’m not in the business. I will leave it to others. “
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Featured image: Shutterstock / MassyCG
