Grandness of Ethereum (ETH) In Spite Of SEC Examination

Today one of the most important questions of every investor and crypto-trader stays whether Ethereum (ETH) is a security or not. 

At present, a case is under consideration, which may define the classification of the Etherium in safety or not.

The jury will make decisions through ICOs-which are reportedly fraudulent and classified as defendants in the case-about the fate of all existing and future ICOs on the popular Ethereum platform. The case is based on the existing regulatory acts on securities, which are put in place to prevent fraud. But the question is on every Cryto-trader’s mind, can you classify the Etherium or any crypto a security? Do they have a right at all? Are there any laws or definitions of digital assets in regular investment textbooks?

Proceeding from the above mentioned a security is defined as a tradable financial asset. The most essential word here is  ‘tradable’. In fact where is it being traded. It is being traded in SEC regulated stock exchanges. This does not apply to the crypto assets and ICOs.

A financial asset is an unphysical asset, the value of which is determined on the basis of a contractual requirement, like bank deposits, bonds and shares. Financial assets are generally more transparent compared to the other significant assets, like commodities or real estate, and can be traded in financial markets.

Crypto-currencies can not be classified as financial assets unless the laws and regulations are changed.

In two words, the unexpected indirect attack on Ethereum (ETH) via this case does not retain water. Probably the complainants are going to appeal their case using another approach which differs from securities regulations. In fact knowing the risks of doing so everyone gets into ICOs. There are many online guides on how to determine whether the ICO is legitimate. It’s all in due diligence, done before investing.

In fact what this case can do, is establish priority for changes to present laws and regulations to involve digital assets.

However, Ethereum is aiming towards greatness. Especially with the present buzz about solving the scalability problem using sharding (a method for distributing data across multiple machines). Sharding divides the mining network into several shards that can execute transactions in parallel, thereby increasing the network bandwidth.

That $2,500 per Ethereum is a high possibility by the end of the year.

 

 

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