😬 Uh-oh, Ethereum is a security?!

Ethereum could be a security and Inveniam & Tokeny signed a partnership!

We have a new STO going live very soon on the CryptoSX marketplace!

The company is Dignity Gold and the security token is backed by United States-based gold reserves!

Did I mention the security token is backed by $6B+ in gold reserves?!

Gooood morning, Rainmakers! ☀️

Out of respect to Martin Luther King Jr - here is an inspirational quote from him that I respect:

As always, I have two captivating topics for you to dive into:

1️⃣ Ethereum might actually be a security: It is up for debate whether or not Ethereum is a security, but would that decision be more adverse than letting Ethereum do its thing?

2️⃣ Another partnership secured, but a legit one: Tokeny Solutions and Inveniam have entered into a strategic partnership to build out the secondary market for private assets!

Without further ado, it's time to…

Get liquid 💧

😬 Ethereum might actually be a security

Ethereum, the brainchild of Vitalik Buterin, has been under scrutiny for years now on whether or not it is deemed a security.

Just this last week, SEC Chairman Gary Gensler, during a CNBC interview neither confirmed nor denied that Ethereum is a security, which means there is an absolute chance it could be one.

Interestingly enough, while teaching crypto-related topics in 2018 at MIT, he stated that Ethereum would pass the test for being deemed a security:

“I think Ether, when it was done in 2014, would pass this [Howey] test. When I say ‘pass,’ it means it’s a security..."

This would cause absolute pandemonium throughout the global crypto market.

It might look a little bit like this:

The reality is we are in unchartered territory and no one seems to know how to keep the ship going.

As a result, Gensler has recently hired a senior advisor for crypto policy, so hopefully, this can help bring some regulatory clarity.

But, can you imagine if Ethereum is actually a security?!

It would 100% make investors worse off.

After all, one of the main prerogatives of the SEC is to protect investors.

So I thought...

Thinking back to the ongoing battle between Ripple and the SEC, this is exactly what happened to XRP hodlers.

A few months ago, John Deaton of Deaton Law Firm, who happens to be an XRP holder himself, had filed a motion with the SEC to dismiss this case and deem XRP not a security.

At the time when the SEC announced the allegations against Ripple, Deaton claimed XRP holders had suffered over $15 billion in losses!

The funny thing is…

The definition of a security was established in 1946 and obviously did not take into consideration any digital currencies.

In the year 1946, we were celebrating the end of WWII, and infatuated by Marilyn Monroe 😍

This tells me we need a major revamp of what constitutes a security.

On top of that, what we need even more is for Chairman Gensler (with all due respect) to stop monkeying around and actually provide regulatory clarity to enable blockchain-focused industries to move along.

The fact that Canada and other jurisdictions have a live-trading Bitcoin Spot ETF and the U.S. doesn't is absolutely disgusting.

Innovation is leaving the U.S. at a faster rate every day - what are you going to do about it Chairman Gensler?

🤝 Another partnership secured, but a legit one

Is it just me or am I constantly scrolling through my newsfeed to see partnerships left and right, with most of them being an irrelevant 'announcement'?

That's usually the case for companies whenever they don't have anything productive going on.

Well, fortunately for us, I came across a very impressive strategic partnership this past week!

Via this partnership, Tokeny Solutions raised €5M from Inveniam, Apex, and K20!

It appears that it was a strategic investment via Inveniam, as they aim to develop a more efficient secondary market for private assets!

For those of you who don't know, Inveniam is essentially a price oracle for private assets that acts as a third party to ensure accurate valuations for issuers to raise capital, as well as many other use cases.

Inveniam's core business delivers trusted valuation and pricing data to our clients using AI and blockchain technology. This data underpins private market digital assets and gives these assets integrity upon which market participants can establish price discovery. Our platform enables asset owners and managers to benefit from a more liquid asset, whose value is easier to unlock.

On the other side of the partnership, we have Tokeny Solutions!

Tokeny is one of the premier issuance platforms that handles issuance, investor management, secondary liquidity, and much much more.

In fact, Tokeny Solutions was selected as the exclusive issuance platform by the Principality of Monaco! 🇲🇨

Now, that seems like a sweet gig to me 😎

This partnership will bring together data integrity for the security token ecosystem, as well as a clear path to secondary liquidity for private assets.

In short, per Michael Nadeau again:

Tokeny provides the tokenization and fund administration - from Token to Investor.

Inveniam provides the trusted data for our clients - from Asset to Token.

Michael Nadeau

It's always great to see capital injected into the ecosystem.

I am super excited to witness the development of these key ecosystem players!

💦 What else is Drippin’

  1. El Salvador Bitcoin Bonds: El Salvador plans to create a security token regulatory rulebook as early as February!
  2. INX Announces Completion of Reverse Takeover: The INX equity will now be trading on NEO Exchange; whereas, the profit-sharing token will still trade on INX Securities.
  3. Prometheum Details Approved Digital Asset Securities Resource: The Prometheum ATS has received regulatory approval!

✍️ 📹 Content from the team

  1. State of Security Tokens 2022 by Peter Gaffney (Full industry deep-dive!)
  2. Keep an eye out for 'Spilling the NFTea', featuring Jessica Burns and Megan Nyvold! Every other week, they will be talking crypto, NFTs, and how women can get into tech!

Here's a teaser! ⬇️

Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗‍♀️

Disclosures:

• 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

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