Speculating on oil doesn’t make oil security, Says Cardano founder
Charles Hoskinson explained why we should not consider PoS Layer-1 cryptocurrencies as security assets and also he clarifies his recent statement on Ripple & SEC facts.
Charles Hoskinson is the founder of Cardano blockchain and also he is the CEO of IOHK. IOHK is a team of developers, who remain active to bring new development works to the Cardano Blockchain ecosystem. In the early phase of the Ethereum blockchain project, Charles was one of the contributors as a founder but he left the project because he was not agree with the vision of the other founders.
On 8 October, Charles Hoskinson took to Twitter to share his opinion on PoS Cryptocurrencies’ nature and said that he was trolled by some of the XRP supporters because of his recent statements on some of their SEC issues.
Hoskinson said that he always supported all the Layer-1 cryptocurrencies as non-security assets as long as they provide the utility with their respective token & technology and it keeps founders to remain away from the Howie test.
Further, Hoskinson explained his point of view and said that if anything will be speculated by people then it doesn’t mean that thing is security.
“People speculating on oil doesn’t make oil security anymore so than baseball cards. You can always securitize oil or baseball cards, but then you have obvious issuers and information asymmetries,” Cardano founder said.
On the Ripple XRP token, Hoskinson admitted that the ecosystem built under Ripple is better enough to save, survive & separate Ripple Founders from each other as a decentralized system.
In short, Hoskinson tried to explain that Ripple or even another genuine crypto project like Bitcoin or Ethereum blockchain network is totally decentralized, and participants in this decentralized ecosystem are independent to do activities individually, So decisions on any crypto asset to consider as a security should be independent of individual participants.
Read also: Mt.gox Trustee will release 141,000 Bitcoins to former users in January of next year
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