LBRY just lost the SEC's summary judgement motion that its offering of LBRY credits breached US securities law.
https://odysee.com/@lbry:3f/secvslbrysummaryjudgementruling:a
The Court rejected the utility tokens are not securities argument.
Expect a purge of utility tokens where they were offered in any aspect (even small) as an investment.
The United States is clearly an anti-crypto jurisdiction - the establishment won't let go of their power easily.
Only completely decentralised blockchains like Bitcoin and Hive will survive.
My recommendation to all US based crypto companies is to move out to more friendly jurisdictions ASAP.
El Salvador has fixed its crime problem has a legitimate President with massive genuine popularity and its economy is booming. See @edicted's recent post.
Also a recent Court decision in Australia on funded class actions has significantly narrowed the scope of Australia's securities laws with application to cryptocurrency. A "managed investment scheme" (equivalent of US "security") is much narrower and thus many crypto projects that would be illegal in the US may be legal in Australia.
Please vote for my Hive witness. (KeyChain or HiveSigner)
They fear what they don't understand. The US dollar has competition and they don't like that.
Yikes glad I didn't get involved with that one. Anything that was a ICO is a security it's not that complicated lol
They can't ban crypto outright, so the tactic is a death by a thousand cuts.
I heard that El Salvador and the BTC Experiment have failed in the general news cycle, meaning it has really worked quite well probably.
It's too bad to hear that this happened. Can't Lbry appeal this decision? I guess it could be costly though.
Posted Using LeoFinance Beta
They can appeal.
what happens now with the LBC tokens? Are those frozen or what? Odysee interface seems to still work.
I think that the LBC tokens will continue to exist but that the company LBRY will have to return all funds raised from sale of the LBC tokens and thus may sink them.
If they haven't decentralised the LBRY blockchain sufficiently and created a sustainable rewards structure for people running nodes then the blockchain will die without the external support the LBRY company was providing.
It may lead to a new decentralised blockchain or they may die. Time will tell.
somehow it is quite open, which level of decentralisation is needed...
The answer to that question is that the founders have to disappear (like Satoshi) or be forked out (like Hive) so that there is no one to sue. The blockchain has to be decentralised and self-sustaining prior to that happenning.
a fork would be too simple imo. There are people behind hive (basically everybody who showed up to the last hive fest). Would be pretty easy for lbry to just fork the chain and continue running it.
And on top, Ethereum (foundation) seems to get a free pass as well. Vitalik is still around...
Ethereum foundation is already bought by those powers that be
proof
There are a lot more people behind Hive than who turned up at HiveFest. Anyone from Africa or South America couldn't get Visas to the EU. And accommodation was so expensive (because Amsterdam banned AirBnB) that most could not afford it.
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