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https://warpcast.com/~/channel/brypto
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Garrett
@garrett
Crypto Twitter is losing its mind over this $4B Pump ICO
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Zach
@zd
ya the polygon guy is clearly angry - so not gonna comment on that but chainyoda has a point that peter is ignoring: because token price is decoupled from equity value, buybacks don’t necessarily make a company more valuable sure, they may pump the token price, but that doesn’t mean value was created by or for the company
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Zach
@zd
this screenshot encapsulates each persons argument in a nutshell imo chainyoda is focused on the fact that PF isn’t “going public via token sale” bc going public implies equity sale → which implies claim on profits kris and peter are only focused on “extractive or not” → which really comes down to “will this action pump token price or nah” (bc price up = happy holders) seems like two entirely different conversations to me
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Garrett
@garrett
yeah slightly different issues but definitely related what if % of profits are committed to token buy backs? But i guess that’s still just a promise and not a hard requirement if business conditions change
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Steve Pederzani
@ozmium.eth
I studied securities law and practiced some as a lawyer! 👀 I learned from my mentors public offering means sale of securities not equity. Classic example is WOTC MTG Alpha cards. Technically it’s a public offering. SEC would make them do the work to be compliant and define it as that. Equity doesn’t need to be attached, just securities which are situationally defined, and a token absolutely offered like that is a security.
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Garrett
@garrett
So you’re saying a token that’s committing to buybacks via profits would definitely be classified as a security offering?
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Steve Pederzani
@ozmium.eth
Often end up so, but with this current administration… 😂 well, people were more scared during blue terms because the SEC had more bite and exchanges were under fire the more securities risk there was. (Lots of tokens got hauled off listings for this, or like when OpenSea delisted collections advertising staking rewards before staking was desecuritized from the statement released this year I think?) The specific (and public) advertisement of “buy our token we will buy it back which increases value”, even if the result is still lossy, is one of those securities-triggering things.
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