Did Your Shitcoin Break the Law?

Did Your Shitcoin Break the Law?

A generation of blockchain founders thought they’d beat the system by classifying their tokens as “utilities” (a consumer purchase) rather than “securities” (an investment). The great thing about saying you’re selling a consumer product is that you’re not subject to regulation by the Securities and Exchange Commission (SEC).

tokens don’t break the law. The difference between a crypto coin and token is that the people behind the currency are promising different things. Companies that launch a token mainly offer to create a product and make the token a currency with which you can buy the product. A good example for this is BitDegree, the “Blockchain learning platform”. They launched a token, gathered money to start the company and develop a product behind the token, now people that bought the token can use it to buy courses or books or something. It even sounds legal. Imagine you’re playing FIFA and you buy some “FIFA coins”. That’s basically the same and it does not break the law. For a cryptocurrency, the coin itself is the product and the people behind it most of the time state that they will work towards raising the price of it. There are good practices and there are horrible practices. Ethereum for example, has its own blockchain system allowing other crypto coins or tokens to be built on it, making it valuable. ETH is used to move coins from one wallet to another as well. But there are complete scams like BitConnect as well, we all remember how that went.

Sorry for the long rant, but these tokens that you call “shitcoins” rarely break the law. Consumers buy tokens for a product, as long as the company provides a product that they promised, it can no longer be identified as a scam from a business POV.

I could probably say the same as @oliverdabaws. Tokens aren’t a scam as long as the person behind it delivers a product.

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