😤 The SEC is $AMP'd up
💨 Another crypto bites the dust
The Security Token Market's first-of-its-kind Web3-enabled crowdfund on the Avalanche blockchain continues to trek on! 🔺
In fact, 64 people from 10 different countries and 4 continents have invested!
Gooood morning, Rainmakers! ☀️
As always, I have two captivating topics for you to dive into:
1️⃣ 😤 The SEC is $AMP'd up: The $AMP cryptocurrency has been delisted from Binance.US! Read on to see why.
2️⃣ 🌊 Blockstream is moving upstream: Blockstream is going all-in on Bitcoin L2s for security token issuance! But, can we do that on Bitcoin?
Without further ado, it's time to…
Get liquid 💧
😤 The SEC is $AMP'd up
Would you look at that... another cryptocurrency has entered the SEC's crosshairs.
The cryptocurrency I am referring to is the $AMP token and is a result of an insider trading accusation against a former Product Manager employee at Coinbase.
This is of absolutely no surprise to anyone.
The Howey Test has been around since 1946, so if any uncompliant issuer claims they didn't know about securities laws is either naive or just downright wrong.
Sorry, not sorry. 💁♂️
Of course, there's a valid argument for the Howey Test to be updated that is more representative of modern times, but the reality is it hasn't been yet, so you have to follow the rules regardless of your views.
In the meantime, Binance.US is wasting no time and knows better than to test the SEC.
They just announced they will be delisting the AMP cryptocurrency from their platform on August 15th, but only the Binance.US exchange - it will continue trading on the global Binance platform.
The SEC is becoming fed up with all of these mumbo-jumbo cryptocurrencies.
They see them as no different than securities, so they should be regulated as such.
What's interesting about this accusation is the fact that they aren't targeting the issuer, as they have in the past, but are targeting Coinbase for the listing of these assets.
Attorney Jason Gottlieb, a lawyer with Morrison Cohen LLP, had an interesting take:
The SEC appears to be looking to regulate via enforcement.
Let's see what happens!
🌊 Blockstream is moving upstream
What if we actually don't need a smart-contract-enabled blockchain to facilitate securities issuance or even any sort of application for that matter?
"But, how?" is the question...
It's important to always question the common narrative.
What's fascinating about the Blockstream team is some of them believe 1 BTC = BTC, meaning BTC will become the global reserve currency and you no longer have to price BTC in USD.
But, even bigger than that - they built an L2 on the Bitcoin blockchain to facilitate all sorts of applications like security tokens, stablecoins, and much more.
This L2 is called the Liquid Network.
Let's get basic on L2s:
A layer 2 application is essentially another chain built on top of the foundational chain to improve efficiencies.
From Ethereum's perspective, Polygon is a great example of a layer 2 solution built on top of Ethereum to improve transaction fees.
In Bitcoin's case, issuing security tokens is not possible, so Liquid Network (layer 2) was built to facilitate this.
Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major cryptocurrency networks.
It looks like Blockstream/Liquid Network is making moves into the issuance space as they just launched an asset issuance platform for issuers.
According to them, it can be done in minutes too.
Congratulations to the Blockstream team for this incredible news and product launch!
Don't take it from me though, take it from them if you want to learn more ⬇️
1/ We’re excited to announce our 💎 Asset Issuer platform for @Liquid_BTC. Use the intuitive web UI to issue assets in minutes, without any smart contract programming.
💻 Issue an asset
🖼️ Upload & register your icon
☑️ Perform proof of issuance
— Blockstream (@Blockstream)
Aug 2, 2022
💦 What else is Drippin’
- Crypto Exchange OSL Sold Security Tokens to Professional Investors: OSL making moves with security tokens. Did you know they have the legal licensure to do this?
- Socios.com Invests $102 Million Into FC Barcelona’s Web3 Arm: Sports meet Web3!
- Security Token Show Episode #151: Coinbase Goes To War With The SEC!
Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.
• No money or other consideration is being solicited, and if sent in response, will not be accepted;
• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through the platform of an intermediary (funding portal or broker-dealer); and
• A person’s indication of interest includes no obligation or commitment of any kind.