Did the SEC just pull the rug on ALTseason!?XRP the big target and it were hit but is XRPthe only one!? Let the altcoins hit the floor, let the altcoins hit the floor, let the altcoin hit the floor. Its time for Chico Crypto! Yes, Indeed, out of nowhere the SECpulled out the stone-cold stunner on the XRP.
Like I said last week as the treasury news was dripping. Regulators!! Mount up. As this administration is leaving, they aren’t getting what they want…Thus they are going to smack crept across the face on the way out.
Which clearly has been happening. But for the most part, BITCOIN is holding up. Holding above 23k, in the 22 to 24krange we’ve been sitting in for over a week. But ALTCOINs… not faring so well, especially that XRP, over the past 24 hours down over 30 percent, with many coins between 10 to20 percent down 24 hours actually out of the top 100 coins, 85 performed worse than BITCOIN So today, I’m going to be the only YouTuber who analyzes this, hopefully, understands it, and identifies the coins who could be in the sights of Regulators.
So, the BIG obvious one should be, If the altcoinran an ICO, it raised funds from the public, especially US investors, with no KYC. They just might have a big target on them.
And I’ll be fully transparent about the ones who did the top 10, the information is out there online finance Coin-No KYC, Money Raised Chainlink-No KYC, Money RaisedPolkadot-KYC, Money Raised Cardano-KYC Money Raised So 40 percent of the coins in the top 10, may have some questions, Cardano & Polkadot, with KYC are more in the clear, but Binance Coin and Chain Link have the most to worry about, as they possibly took US investors.
Although, Chainlink and its token within its network of Oracles obviously have utility, thus it is nothing like XRP, which was a pure fundraising device, with no utility. Binance Coin started out as a pure fundraising device, but as time has gone on, they have been scrambling to find a utility for it. But here is what I find interesting about this.
Over 1 year ago. Something similar to the scenes. September of 2019, the SEC announced their suit against another crypto in the top 10back then. As we can see they were number 8, that’s EOS, September 30th 2019 SEC orders block.to pay a 24 million dollar civil penalty for running the EOS ICO.
And EOS, it has hurt it, token price back then was 3.24 cents, and rank #8…today, the token price is 2.67 cents and ranks #16, losing nearly a billion in market cap, while the markets have been bullish. But here is what’s interesting about that SECcase…The block covered it and said The penalty? A $24 million civil penalty payable to SEC for transfer to the “general fund” of the U.S.
Treasury. No disgorgement. No rescission order. No bar. No… anything else. Given the amount of money raised and the size of the penalty, this is remarkably short order and it’s hard to draw many profound lessons from it.
An administrative settlement of an SEC violation is precedent. No lawsuit was ever filed.Block.one agreed to the civil penalty and agreed that the tokens it sold to U.S.persons were securities under U.S. law It means, Block. One ticked the treasuries-sack…remember this 24 million was deposited to the general fund of the US treasury.
SteveMnuchins department? So, what is the general fund? From this 1970 CIA document its where cash available for governmental use is kept, and it’s not really a general fund in the accounting sense, because money credited to it is not restricted to general governmental purposes, but other fund obligations.
Another name for it…as we can see the CIA calls it Treasury Cash Money, and from what I can see, they get to do with it, what they please And since no precedent or law was set…no lawsuit ever filed.
EOS has been able to hold on. Before their settlement with the SEC & Treasury was announced, EOS got added to Coinbase in May of 2019. Well check the Coinbase APP, EOS is still tradeable, even though blockhouse agreed that the tokens they sold to US persons were securities under US law. So Ripple & XRP obviously didn’t tickle the b-sack of someone, as they are getting hit harder than with just a civil penalty, they are getting hit with the lawsuit.
And the litigation has begun with it being filed. The evidence mounted against them is fierce, and this time precedent could be set as the lawsuits in Federal Court with the SEC. The outcome will have ramifications not only for Ripple, XRP and all those involved but for those that fall within this security basket. And this case will decide which ones do. The precedent will be set.
Although, it’s also obvious, if the altcoin or project raised no funds from investors, they more than likely don’t have much to worry about right now. And even better, is when the project is run by a DAO, decentralized autonomous organization..Thus there is no company aka Ripple to go after.
Where does Chico like to go for the DAOs? TheDAO tracker…DeepDAO.io and obviously, DAOs are growing substantially. Assets under management, surged by over 275 million in the past month, with 178 million of that coming in the past week.
And DAO members are getting ready to break 13k So obviously DAOs are getting looks, and they will only get more looks as nefarious centralized entities fall to regulators. Sodeepdao, it ranks the top DAOs and there is one that is hitting the top on multiple marks, Assets under management & the number of members.
That is Pie DAO, ranked #3 AUM & #2 based on members, over 3300 of them or over 25 percent of the total amount tracked on DeepDAO. And PieDAOhas been supporting my channel as well, putting forward sponsorships, like this one & the full details of that can be found in the description. So obviously PIEDAO is governed by the members. But what do they govern?
Well, the last video we covered, how they were governing these sponsorships, their risk-adjusted version of bitcoin on Ethereum, BTC++, and the other PIEs, aka tokenized indices, DeFi +L, large-cap DeFi+S, small-cap, DeFi++ a mixture of the two and more, and their risk-adjusted stable coin USD++ Well since that video, they have launched more. Including the Balanced Pie, which is made up of wrapped bitcoin, ethereal and DeFi ++ the mixture of small and large-cap DeFi projects.
Widening the scope of their indices, and this balanced PIE is slowly becoming their number baked-on market cap.
But if you look above, there is another new piece of the pie…dao, PieVaults, which are yield-bearing and metal governance enabled pies and the first one launched are calling the YPIE, which gives exposure to the yearn ecosystem.
YFI and Sushi are the dominant pieces, but it also has smaller amounts of KP3R, Cover, Cream, Akro & pickle. So Yield bearing & MetaGovernance…what does this mean?
Well its added DeFi features to the PIEs and the TVL locked up in it. So many of the tokens being locked up in PIEs are governance tokens…Uniswap, Compound, Yearn, and more. They are used to vote within each of their respective protocols. Part of the problem with DeFi is having to move tokens around, in and out of pie, for example, paying the high gas fees to even vote. Not worth it for your average smallholder.
PieDAO vaults metagovernance solvesthis with their DAOs $DOUGH token. Users participate in governance across all the DeFi ecosystem projects helping enabled pie vaults, with just one ERC-20, the governance token DOUGH. And this meta governance ispowered on with Dough on Snapshot, which occurs gas-free, completely removing the economic barriers to governance participation. Thus, votes for compound or votes for synthetic could happen, Dough acting as a passport, allowing you to vote across governance as you please. Although, it extends further than just governance into just the protocols like Compound, but into the pie vault itself and its yield-bearing strategies.
As you can see, some of the assets within pie are earning an APY, adding to therapies value and then to the right is the strategy for the asset. Going back to the flow chart, we can see strategies are also voted on, which does affect the pies overall yield. Not one person has a say in how yield-bearing assets are used, but Dough Holders and the DAO do.
And the vaults automatically bounce around to the best performing lending or borrowing platform, always getting the best APY for the vault. And YPIE, is just the first vault, in the works is the DeFi Index Yield vault, which adds a new strategy into this PIE, Staking with Sushi, providing HIGH APYs.And it adds other assets like Uniswap, Compound, Synthetic, AAVE and Maker.
So you ready to BAKE some warm apple pie? Well, PieDAOs oven is hot and cheap. Checking out this product, the PieDAO Ovenits where ETH is piled together in batches, and then the PIES are issued once full, do it as one smart contract, and massively saving users on the gas, which as we can see is over 97 percent and at the dashboard, they have ovens open for DeFi ++, the balanced crypto pie, and even the pie vault.
So bake it, baby, now, all links for their growingDeFi product list is in the description!! So DAOs, and governance tokens from those DAOs, I see as safer than those centralized entities and using Deepdao, you can spot the other…But what else do I see personally as ALTCOIN safe?? Well if they raised funds…
The ones that got prior approval from the SEC of course. Who is one of those projects? Energy Web Chain! HillriseCapital had an AMA in may of this year, and this question was asked I have seen somewhere about being one of the projects approved by the SEC? CEO Walter KOK responds regarding regulatory aspects, for us to create impact, regulatory compliance (both energy and financial) is a must.
We are building real solutions that connect to the electricity grid leveraging the Energy WebChain. Because we operate globally we have directly reviewed the Energy Web project with multiple regulators in different jurisdictions including financial regulators in Switzerland(via FINMA) and the U.S. (via the SEC). How about another project? Well back in July of last year, Blockstack put together the first SECqualified token offering to the public in the history of the US? They did this using Regulation A+, the mini IPO.
So block stack, they are definitely in the clear and block stack is healthy, in the top 100 But there was also another project, that received regA+ approval, YouKnows Props token but going to their stats, the token looks dead in the water, only just over a thousand bucks in volume, and coingecko still doesn’t know the circulating supply, thus they market cap can’t be calculated? You would think for an SEC old token, that information would be a given?? Thus, having this REG A+ isn’t a given for success…unless I’m not seeing something with Props.
So, DAOs, no money raised, Reg A+, what is another token type that might just be safe? Airdrops, as usually they are just governance tokens& of course no money was raised. So Uniswapis most likely safe…but this is Chico& we bring the hottest content.
Well, well, well guess who just updated their GitHub with a token and the contract was deployed to the ethereal blockchain. As we can see 1inch. You might just want to use their products.
But the point of this video was to re-evaluate tokens, based on the new climate emerging for cryptocurrencies. I re-evaluate what I hold all the time, and there may be some tokens you’re holding onto, that the SEC has in their crosshairs, thus re-evaluation is a good thing. Cheers, I’ll see you next time!
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