Crypto is a security

Is crypto security?

Security means when the firm wants to raise money for their growth, they will share a part of their business through a document like stock or bond to exchange the money from investors and promise those paper would one day worth more than they invested.

So is crypto a security?

It depends...

If the crypto was created by a group of people or just an individual who wants to raise money for their project, then likely if such crypto purchase later turned out can take profits or lose them all.

Of course, I am very simplified the scenario here.

If that is the case, likely every crypto is a security besides a few like Bitcoin.

And even those few cryptos are at the grey area to play the blurred line between security.

You see, it is really a judgment call here.

There is no really a strict enforcement to make crypto a security even though some are.

Now, the SEC is investigating one by one.

But the funny thing is when crypto was at the hype in 2021, if you worked at crypto companies or DAOs and those founders wanted to offer you crypto as compensation, likely almost everyone would prefer cash mixed with crypto simply because no one knows if those tokens will survive in the long term.

But despite of valuation in long term, crypto is a security alike unless few cases that crypto is only for meme like utility purposes. But again, if you bought it directly from the creator, then it is a security. 

So everyone wants to offer through the crypto exchange.

You see the idea of the business here.

Anyway, I think it is a judgment call.

Photo by Markus Spiske on Unsplash