Charles Hoskinson has refuted US Securities and Exchange Commission (SEC) claims that Cardano’s native token, ADA, is a security
Cardano founder Charles Hoskinson has firmly denied US Securities and Exchange Commission (SEC) allegations that Cardano’s native ADA token is considered a security.
“Facts might be inconvenient for the SEC but they are facts,” Hoskinson tweeted, pointing out that no ADAs were sold in the US and that the initial funding was done in Japan with vouchers that went on. were converted to ADA during an airdrop in 2017.
His tweet came in response to lawyer and crypto enthusiast Bill Morgan who argues that adding features and marketing a product, as is done with ADA, does not equate to selling a security. .
Cardano was launched as an open-source public blockchain in 2015 by Hoskinson, one of Ethereum’s co-founders. The project conducted its initial coin offering (ICO) in Japan, earning it the nickname “Japanese Ethereum”.
At the time, Cardano was one of the largest ICOs ever held in Asia, and ADA quickly became one of the top cryptocurrencies by market capitalization.
The project has become known for its rigorous, peer-reviewed approach to blockchain development, but it continues to face criticism for being “vaporware” due to the apparent lack of viable use cases.
The SEC’s allegations against Cardano came in the wake of bomb lawsuits against cryptocurrency exchanges Binance and Coinbase. The regulator has identified ADA as an unregistered title offered on these platforms.
In a statement, IOG responded to the SEC’s claims, saying the ADA token is not a security “under U.S. securities laws.” They claim that they simply improved and added functionality to the Cardano blockchain, much like a software developer improving a product, a process they support does not equate to selling a security.
