{"id":23105,"date":"2022-07-17T06:53:16","date_gmt":"2022-07-17T06:53:16","guid":{"rendered":"http:\/\/egrowonline.com\/?p=23105"},"modified":"2022-07-17T06:53:16","modified_gmt":"2022-07-17T06:53:16","slug":"microstrategy-ceo-michael-saylor-pretty-obvious-cardano-ada-is-a-security","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=23105","title":{"rendered":"MicroStrategy CEO Michael Saylor: \u2018Pretty Obvious\u2019 Cardano ($ADA) Is a Security"},"content":{"rendered":"


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Michael J. Saylor, Co-Founder, Chairman, and CEO of Nasdaq-listed business intelligence company\u00a0MicroStrategy Inc.<\/a>\u00a0(NASDAQ: MSTR), says that it\u2019s \u201cpretty obvious\u201d that $ADA, the native token of proof-of-stake (PoS) blockchain, is a security.\u00a0<\/p>\n

It is worth remembering that on 11 August 2020, MicroStrategy announced via a\u00a0press release<\/a>\u00a0that it had \u201cpurchased 21,454 bitcoins at an aggregate purchase price of $250 million\u201d to use as a \u201cprimary treasury reserve asset.\u201d<\/p>\n

Saylor said at the time:<\/p>\n

\u201cOur decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program \u2015 risks that should be addressed proactively.<\/em>\u201c<\/p>\n

Since then MicroStrategy has continued to accumulate Bitcoin and its CEO has become one of Bitcoin\u2019s most vocal advocates. MicroStrategy\u2019s latest $BTC purchase, which Saylor tweeted about on June 29, means that the firm is now HODLing around 129,699 bitcoins, which were \u201cacquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin.\u201d<\/p>\n

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MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin<\/a>. As of 6\/28\/22 @MicroStrategy<\/a> holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTR<\/a>https:\/\/t.co\/leQYTXn817<\/a><\/p>\n

\u2014 Michael Saylor⚡️ (@saylor) June 29, 2022<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

And yesterday (July 16), he boasted about how his company\u2019s stock had performed since August 2020, when it made its first $BTC purchase.<\/p>\n

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On August 11, 2020, @MicroStrategy<\/a> embarked on its #Bitcoin<\/a> Strategy, acquiring 21,454 bitcoins at an aggregate purchase price of $250 million.<\/p>\n

Performance since that time: $MSTR<\/a> is +73%, GOOG is +51%, AAPL is +33%, MSFT is +23%, AMZN is -27%, META is -37%, NFLX is -61%.<\/p>\n

\u2014 Michael Saylor⚡️ (@saylor) July 16, 2022<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Anyway, on July 7, according to a\u00a0report<\/a>\u00a0by The Daily Hodl, the MicroStrategy CEO, who is a well-known Bitcoin maximalist, made his comments during an interview with crypto market commentary show \u201cAltcoin Daily\u201d. Saylor explained his belief that native tokens of PoS networks are securities and are therefore \u201cvery risky.\u201d In comparison, Saylor argued that Bitcoin is a \u201cdigital commodity,\u201d and could therefore be treated differently from a PoS coin such as $ADA.\u00a0<\/p>\n


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Saylor said:<\/p>\n

\u201cMy opinion is Bitcoin is a digital commodity. I think that all the proof-of-stake networks are securities and they\u2019re all very risky. The regulators will decide whether or not they allow them to continue or whether or not they don\u2019t allow them to continue.<\/em>..<\/p>\n

\u201cThe token is a liability if it\u2019s not a commodity, and so fundamentally, this all comes down to an issue of \u2018can you establish your network as a commodity network?\u2019<\/em><\/p>\n

\u201cTo be a commodity network, there has to be no issuer, no initial coin offering (ICO), no central organization and if you study the history of Cardano, it\u2019s pretty obvious it\u2019s a security. It checks all the boxes, so I don\u2019t know how you actually get around intellectually to convincing yourself that it\u2019s anything other than a security.<\/em>\u201c<\/p>\n

He warned that selling unregistered securities could lead to legal consequences, and that developers would not be able to hide behind their technology:<\/p>\n

\u201cTechnology won\u2019t save you though. Ultimately, if you\u2019re selling a security to the general public without a disclosure statement, the fact that it\u2019s technically advanced won\u2019t save you from the securities liability, so I would say technology is not an issue\u2026<\/em><\/p>\n

\u201cThe question is really going to be how will the securities regulators deal with crypto networks that are based on security tokens. I don\u2019t know, it\u2019s not my business. I\u2019m not in the business. I will leave it to other people.<\/em>\u201c<\/p>\n

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