Which Cryptos Are At Risk?
SEC recently revealed that it considers nine cryptocurrencies to be securities
What exactly the sec’s criteria are for classifying a cryptocurrency as security and Which cryptos are at risk?
First is based in the united states five of the nine cryptocurrencies the sec classified as securities are based in us which puts them within arm’s reach of the regulator.
The second reason is conducting an ICO, especially an ICO where the founders and or team retain a significant amount of the token’s initial or future supply.
Incomplete platform or protocol clearly the sec doesn’t like projects raising money before anything has been built
The coin or token could appreciate in price at some point in the future.
This includes social media posts, blog posts, and especially what’s said in the white paper heck even retweets are enough to attract the sec’s attention.
Fifth is the involvement of a centralized entity in the project’s development and management be
It directly or indirectly via voting power in a dow. Even if the team doesn’t hold the majority voting power in said DAO.