Michael Saylor: Ethereum Is a Security

Ethereum should be classified as a security, since the asset was initially distributed to investors during an ICO. This was stated by MicroStrategy chief Michael Saylor in an interview with Altcoin Daily.

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\”Ethereum is a security, I think that’s fairly obvious. The asset was issued during an ICO, there is a management team, there was a premine. There are hard forks, hard forks on a permanent basis, there is a difficulty bomb, the activation of which has been postponed,\” he said.

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Saylor explained that periodic software updates of the Ethereum network, overseen by the development team, indicate that the asset is a security.

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In his view, for a cryptocurrency to be considered a commodity, it should have no issuer or anyone who would ‘make decisions’. He emphasised that such digital assets are based on ‘fully decentralized protocols’. As an example, the head of MicroStrategy cited Bitcoin.

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\”If you want to position the product as a commodity, you are trying to create something like gold in the digital space,\” he said.

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Saylor also said that tokens of all networks based on Proof-of-Stake are securities. In his words, investing in these assets is ‘extremely risky’ due to potential regulatory issues. He added that this is one of the key reasons MicroStrategy invests only in Bitcoin.

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Earlier the company acquired an additional 480 BTC at an average price of around $20 817. The organization holds on its balance sheet 129 699 BTC (~$2.76 bln at the time of writing) — it spent $3.98 bln on their purchase.

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In June, Saylor said that MicroStrategy does not intend to sell cryptocurrency even under unfavourable market conditions.

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