The co-founder of Ethereum Joseph Lubin is in the latest cryptonews updates, talking about regulation and how the two leading cryptocurrencies did not have to comply with regulation. In an interview with the industry news outlet Forkast published on November 18, he noted that the amount of regulation is now stronger than before.
During the interview which was held at the Hong Kong FinTech Week, Joseph Lubin noted that the new projects need to comply with regulations. He further explained the impact of the application of security law to the cryptocurrency space.
Joseph Lubin also noted that in order to attract investors, any project has to promise that its token will increase in terms of price. Furthermore, seeing that the appreciation is usually obtained through the work of developers, by definition, that an asset is being sold as a security.
“And so securities law is then implicated and now you can’t sell a utility token as it’s not a utility token, it’s a tokenized security. You can’t sell it broadly and equitably,” he said.
Overall, Lubin highlighted that Ethereum had a first-mover advantage. More precisely, he suggested that the developers behind ETH had the opportunity to sell their cryptocurrency without complying with the securities regulation because it operated in a largely regulated industry.
The competing projects, on the other hand, cannot simply claim that what they are selling is a utility token which is why they avoid registering it as a security.
Lubin was in the news before this for stating that Ethereum needs to improve in all segments, explaining that ETH 1.0 was just a starting point – and developers were aware that it would not be scalable.
Known for being in the news all the time, Lubin noted that because of regulation, it is possible “but very, very difficult for even a technically very strong project to challenge the early head start and the massive network effect that the Ethereum project has.”
Meanwhile, today’s market cap is at $234 billion and the 24 hour volume is at $60 billion which is very low compared to other days. The Bitcoin dominance rate has fallen too and is at 65.9%. Ethereum is trading at around $185 for a couple of days in a row now.
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