Michael J. Saylor, Co-Founder, Chairman, and CEO of Nasdaq-listed business intelligence company (NASDAQ: MSTR), says that it’s “pretty obvious” that $ADA, the native token of proof-of-stake (PoS) blockchain, is a security.
Saylor noted during an interview with a crypto market commentary show that he believes the native tokens of Proof-of-Stake networks are securities and therefore “very risky.” In comparison, Saylor argued that Bitcoin is a “digital commodity,” and could therefore be treated differently from a PoS coin such as $ADA. He said:
“To 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’s pretty obvious it’s a security. It checks all the boxes, so I don’t know how you actually get around intellectually to convincing yourself that it’s anything other than a security.“
He warned that selling unregistered securities could lead to legal consequences, and that developers would not be able to hide behind their technology.