cryptoglobe.com
Dan Gambardello, the founder of Crypto Capital Venture, has said that he believes Cardano ($ADA) is unlikely to be considered a security in the eyes of the U.S. Securities and Exchange Commission (SEC).
In a tweet Gambardello shared with his over 239K followers on the microblogging platform, he shared that the Cardano initial coin offering (ICO) was in Japan and wasn’t available to investors in the United States.
Moreover, he noted that a judge recently ruled in a LBRY case that secondary sales of its $LBC tokens weren’t securities, and said that it set an “important precedent for things like $ADA.”
ADA will likely not be considered a security. 2 simple reasons:
— Dan Gambardello (@cryptorecruitr) February 14, 2023
1. #Cardano ICO was in Japan, not available to US investors.
2. A judge recently ruled in LBRY case that secondary sales of $LBC tokens were not securities. This sets an important precedent for things like $ADA.
Gambardello referenced the SEC’s lawsuit against LBRY. The SEC sued the firm in March 2021 over the platform’s sale of its LBC tokens without registering with the regulator. Although the LBRY team didn’t offer the tokens through an initial coin offering (ICO), they kept some tokens for themselves before releasing them on secondary exchanges to fund operations.
The summary judgment of that legal case saw a judge argue that LBC tokens incentivized the project’s team to keep building on the network, which suggested to investors it would be a profitable investment on the secondary market.
Late last month, during an appeal hearing in New Hampshire, a judge clarified that $LBC are only considered securities at the time of direct sale. The clarification saw the price of LBC surge, and fueled speculation for XRP itself, as Ripple has been sued by the SEC over its XRP sales.
Gambardello’s words come at a time in which the Cardano network just underwent a new hard fork, which most community members barely noticed as there were no interruptions on the network.
The Valentine HFC event just happened with the least amount of fanfare or issues I think we've ever seen. If you're an #SPO make sure you check all your relays and everything else are upgraded appropriately 🙂 The road to greater chain interoperability on #Cardano starts now.
— Adam Dean (@adamKDean) February 14, 2023
Last year Gambardello said that Cardano “silently positioning itself as the most sound, secure, & scalable blockchain.”
As CryptoGlobe reported, the recently launched Cardano-powered algorithmic stablecoin Djed ($DJED) is now backed by over 31.5 million ADA tokens, as its adoption keeps on growing and its reserve ratio remains high.
The project’s $SHEN reserve coin is meanwhile currently priced at 1.07 $ADA and has a circulating supply of 23.69 million tokens. By buying and selling SHEN, users can contribute to the stability of the USD currency peg of Djed, and earn a share of transaction fees in the reserve pool. Holders of SHEN can also potentially profit from its short-mid term price fluctuations.
Djed itself is a formally verified algorithmic stablecoin for Cardano that is backed by cryptocurrency, IOG, the company behind the development of Cardano, designed the stablecoin, while COTI Group is responsible for issuing it. The stablecoin was announced back in September 2021, and launched last week.