Craig Wright Tweetstorms On Unregistered ICO Securities, ERC20 Tokens and Specified Investments

Craig Wright's Twitter Tennis – On Securities, Specified Investments, ERC20, ICOs and ETH preaching

Previously, we shed a light into the nine simple rules for getting on and up with Bitcoin, where we saw Craig Wright helping to inform members of the newcomer community on how to engage with the evolving world of Bitcoin.

To say this is rare, coming from Dr Wright would be exceedingly wrong; he's always been known as a highly outspoken individual, in person, in conferences, in debates, in anywhere and anything really, Twitter included.

Over the course of August 6th, he shed a bit more light into some nuanced areas of cryptocurrencies as a quintet of rebuttals, both against particular Twitter users, and some as a general rule of thumb to the community paying attention.

1 – Thinking happy thoughts won't take you home, and thinking ERC20 is anything other than a security won't be true either

In the United States, among other countries at least, has had a number of its institutions come out in providing a legalistic definition to cryptocurrencies, which would [kind of] apply to Ethereum and ERC20 tokens.

But in Wright's mind, just because the Securities and Exchange Commission (SEC) had previously branded them securities due to their function, when thinking that this was a misplaced ruling, Wright took to Twitter to state otherwise.

Original comment –

Wright's response –

2 – The US definition of cryptos as a Security on a broad basis can't be true, right?

“Form over function” is the way that cryptocurrencies ought to be measured in the eyes of any government or regulatory agency, which is only fair considering that Bitcoin, Ethereum or Litecoin are not exactly the same in any way, and even how they're used on a domestic level can change what definition they come under.

According to Wright, turns out that the Security definition is the one that most closely resembles the function of a great many tokens out there, and to suggest otherwise is to be foolish.

Wright points out that if the SEC were to take a more ‘case by case' perspective of each cryptocurrency, then they would be given a different definition.

3 – ERC20's operate like Securities, simply put.

In the manner in which they operate, ERC20 tokens, despite anyone what their users may think, functions with the same style as securities commonly do. They're exchanged under the understanding that they will be repaid with its value or a form of service.

4 – Ethereum falls into the pitfall it was so cautious to avoid

Ethereum and those that refer to it as a currency, according to Wright, have fallen into the same trap they were so keen to avoid, as he rebuked @Bharathrao. Stating that the function of ETH's ERC20 token functioned in the same way as a security, referencing the way in which they work in terms of home ownership.

Wright –

5 – The Parting Shot – Avoid the Dogma and Cultist Behaviours surrounding Cryptocurrencies

Irony thus displayed by Wright on the subject of Ethereum and ERC20, he finishes with a few simple words:

Ouch.

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