Whether Ether is a security

Disclaimer: English lawyer, not practising this year, yes in England “practise” is spelled with an “S” when used as a verb, ergo I’m not your lawyer and this blog post is not legal advice.¬† I am often asked, directly, whether I think this coin or that one is a security (and thus required to be registered with the SEC before being offered to the public) or not. Virtually every time I demur. Part of the reason for this is that although I am a securitization lawyer by training, I am not, as yet, U.S. qualified and the Howey¬†test is a…

Stablecoins are doomed to fail, Pt. III: SAGA

Previously on this blog, I’ve predicted that stablecoins are doomed to fail and I’ve pointed out when they do in fact fail. Logic, however, appears to have done little to curb the market’s enthusiasm for these schemes, nor does the prospect that the more ridiculous these schemes’ marketing becomes, the more likely it is that they will catch my attention and be summarily pilloried on this blog. With that said it is my great pleasure to introduce you to SAGA Coin, through the medium of interpretive dance: This is without a doubt the least informative piece of cryptocurrency marketing I…

The American ICO is Dead

Disclaimer: I’m not your lawyer, this is a blog, this is not legal advice, and I’m admitted only in England and Wales. Before we talk about ICOs, let’s talk about marmots. Writing last August, I predicted an event which I call the “Zombie Marmot Apocalypse” – a regulatory binge whereby the American federal authorities would decide that the whole “utility token” thing was cute but ultimately completely illegal. And whither America, whither the world. At the time, this was an unpopular opinion, and not widely held. I argued that: The list of enforcement actions in the various categories mentioned above…

Live Free or DAICO

If you want to lose your liberty in a hurry, there’s no better way to do it than a DAICO. What’s a “DAICO,” I hear you ask? Well, it’s a new kind of automatic, Ethereum-based investment scheme that allegedly combines “the best aspects of DAOs” – “distributed autonomous organizations,” a long-winded neologism for “software that runs on a blockchain” – and ICOs, or “initial coin offerings,” schemes where companies launch their own “coins” and sell them as investments to the public without filing a registration statement or publishing a prospectus. Oh, I should add that Vitalik came up with the…

The Cryptopocalypse

Recorded last week, out this morning. Hash Power continues w/ my conversation with @prestonjbyrne, the most consistent skeptic in crypto. We cover: -Nakamoto schemes-his overall bear case-stablecoins-regulation of crypto-assets-potential catalysts for a crashhttps://t.co/eFDMM3Mpqq pic.twitter.com/lobsThUswT — Patrick OShaughnessy (@patrick_oshag) January 16, 2018 “Cryptopocalypse.” Quite timely title for it, too: Listen to the whole thing.