Cryptocoin. com, Ripple Labs and the US Securities and Exchange Commission (SEC) have been in a legal battle for more than six months over whether XRP is a security. This has led many investors to wonder if their favorite token is also a security. An expert responded to this issue and listed the altcoin projects he thought were in danger.
Expert: Cardano and DOGE are safe
Cardano and DOGE are among the largest cryptos in terms of both user base and value. According to Hogan, ADA holders can rest easy as Cardano is very unlikely to be on the SEC’s radar. According to Hogan, Cardano’s move to primarily sell ADA tokens on the Japanese market was a genius move. “About 95 percent of the ICO was owned by Japanese citizens,” the lawyer said. ADA then went to America via exchanges. This removed Cardano from the scope of the SEC. He gave Cardano a hazard rating of 2.5/10.
The situation, on the other hand, looks much better for DOGE owners. “I think it would be more of a joke if the SEC sued a meme coin, so I don’t see any issues on the horizon,” the lawyer said. Hogan gave DOGE a hazard rating of 2/10.
Endangered altcoin projects: Polkadot and Uniswap
The lawyer then reviewed two of the most exciting projects in the industry – Polkadot and Uniswap. For Polkadot, the problems stem from the Web3 Foundation, which created the project and raised over $200 million in funding. , sold some of the tokens before the DOT token was issued, which made the situation even more incriminating. He mentioned that this situation put Polkadot directly on the SEC’s radar. The project also claimed in its initial documents that it prevented Chinese and American investors from purchasing DOT tokens. According to the expert, Polkadot scores 5/10 on the SEC hazard score.
Uniswap is mixed. Stephen Palley, a lawyer, stated that he believes Uniswap’s UNI token is “almost certainly a security.” Fortunately for Uniswap, UNI never sold its tokens and gave it to users via an airdrop. Therefore, according to the expert, Uniswap Labs had no profits to spare should it lose against the SEC. According to the expert, Uniswap receives a hazard rating of 4/10.