Bitcoin (BTC) bull and Microstrategy CEO Michael Saylor says he considers proof-of-stake blockchain Cardano (ADA) to be a security.
In a new interview on the Altcoin Daily YouTube channel, Saylor says there is a distinction between Cardano and proof-of-work blockchain Bitcoin.
“My opinion is Bitcoin is a digital commodity. I think that all the proof-of-stake networks are securities and they’re all very risky. The regulators will decide whether or not they allow them to continue or whether or not they don’t allow them to continue.”
Saylor then explains why he thinks proof-of-stake projects like ADA are securities and not digital commodities.
“The token is a liability if it’s not a commodity, and so fundamentally, this all comes down to an issue of ‘can you establish your network as a commodity network?’
To be a commodity network, there has to be no issuer, no initial coin offering (ICO), no central organization and if you study the history of Cardano, it’s pretty obvious it’s a security. It checks all the boxes, so I don’t know how you actually get around intellectually to convincing yourself that it’s anything other than a security.”
Saylor warns selling unregistered securities comes with potential legal consequences regardless of the token’s technological offerings.
“Technology won’t save you though. Ultimately, if you’re selling a security to the general public without a disclosure statement, the fact that it’s technically advanced won’t save you from the securities liability, so I would say technology is not an issue…
The question is really going to be how will the securities regulators deal with crypto networks that are based on security tokens. I don’t know, it’s not my business. I’m not in the business. I will leave it to other people.”
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The post Is Cardano (ADA) a Security? Bitcoin (BTC) Billionaire Michael Saylor Analyzes Eighth-Largest Crypto Asset by Market Cap appeared first on The Daily Hodl.
