Which cryptocurrencies are at risk of being considered securities? — An update
In May 2018 we published our analysis “Which of the top 17 blockchains may be deemed securities?”.
In the fall of 2019 CoinBase, Circle, Grayscale and other founding members have erected the Crypto Rating Council with the same objective. They devised an alternate asset rating approach whereby a score of 1 means the Council’s analysis found that an asset has few or no characteristics consistent with treatment as a security. A score of 5 means the Council’s analysis found that an asset has many characteristics strongly consistent with treatment as a security.
We have compared the 2 approaches in below graph and are happy to see these 2 rating schemes are thus far consistent. Highest ranked (score 1) are Bitcoin Core, Bitcoin Cash, Bitcoin SV (which has since emerged) and Monero. Cryptocurrencies which have performed an ICO such as Ethereum and EOS clearly rate lower. Permissioned cryptocurrencies are obviously most at risk of being considered a security.
Two Hop Ventures is an Amsterdam based venture fund investing in equity of promising teams building solutions on the Bitcoin SV blockchain.
