While checking to see what's going on with the SEC crackdown, I saw a post about what type of token seems to be a security.
According to Held, the vast majority of the tokens classified as securities by the SEC in its lawsuit against Coinbase and Binance were proof-of-stake coins, or tokens with a pre-mined distribution, meaning they have more centralized ownership.
The statement made here is essential and well-known among crypto users. Everyone knows that tokens with pre-mine are bad for the ecosystem. Same with having a centralized and unfair distribution.
But what I can't seem to be able to wrap my head around is the proof of stake part. And let's not forget that ETH just moved from their initial proof of work system to proof of stake.
Moreover, a platform like Hive operates a proofofstake system. What this means is unclear to me, but I think some proofofstake tokens can prove not to be securities, as Bitcoin OG Held has stated.
Or what do you think about proofofstake tokens like Hive and ETH?
However, the case may be, it's evident that some (or most)tokens won't be able to survive after this, and I see neither Hive nor ETH among them.
To me, the clampdown will largely focus on pre-mined tokens and not classify all proofofstake tokens as security. Or what do you think? Share your thoughts in the comments.