I kinda of wonder are brc 20 tokens securities? Could they be an attack on bitcoin and an attempt to make bitcoin closer to being labeled a security?
0 sats \ 0 replies \ @Believe 12 May 2023
Pump and dump
reply
0 sats \ 5 replies \ @grayruby 12 May 2023
No they should be classified as collectibles. I think where you get into the issue with securities laws is in the smart contract realm where you are imbedding a number of features where the user relies on a third party to execute in order to profit.
If SEC were really to crackdown on smart contracts BRC-20 could potentially be a work around for the shitcoiners but hopefully they take it to a layer 2 or sidechain.
reply
10 sats \ 4 replies \ @grayruby 12 May 2023
I think a good analogy would be numismatic coins in the gold and silver market. These coins often attract an above market value based on some attribute like age, rarity, design despite holding the same inherent property (1oz=1oz).
reply
10 sats \ 1 reply \ @OneOneSeven 12 May 2023
They are always inscribed to a single satoshi right? So it's like if you could cover a rock with an atom of gold, can't even melt it down for the value underneath because there is none. Although hey, 1 sat = 1 sat
reply
0 sats \ 0 replies \ @grayruby 12 May 2023
Well the sat is still a sat regardless of what you inscribe on top of it. Which is why I think the coin analogy is reasonable.
reply
10 sats \ 1 reply \ @nerd2ninja 12 May 2023
I don't think that's a good analogy at all. I think this, is a much better analogy:
https://en.wikipedia.org/wiki/Company_scrip
reply
20 sats \ 0 replies \ @grayruby 12 May 2023
Agree to disagree. They are taking existing sats and trying to add some feature to them. Definitely seems more like taking 1oz silver coin sticking mickey mouse on the front of it, saying it is 1/1000 and trying to sell it for 3x the price.
reply