Cardano (ADA) Unlikely To Be Labeled A Security, Says Expert Dan Gambardello

Feb. 24, 2023
Cardano (ADA) Unlikely To Be Labeled A Security, Says Expert Dan Gambardello

In the midst of the ongoing scandal involving Binance USD (BUSD) and USD Coin (USDC), crypto expert Dan Gambardello of Crypto Capital Venture expressed optimism that Cardano’s native cryptocurrency, ADA, is unlikely to be labeled a security by the U.S. Securities and Exchange Commission (SEC).

Gambardello, a seasoned crypto investor and influencer, took to Twitter to explain his reasoning behind this belief. He cited two key reasons why he thinks ADA will not be considered a security by the SEC.

 

Firstly, the Cardano ICO took place in Japan and was unavailable to U.S. investors. A recent judge ruling in the LBRY case determined that secondary sales of $LBC tokens were not securities. This sets a precedent for other cryptocurrencies like ADA.

What Lies Ahead For Cardano, The Debate Continues

However, some community members have raised concerns about Gambardello’s analysis. One pointed out that LBRY did not conduct an ICO, and its blockchain was fully developed and launched prior to the sale of any LBC tokens. It is not necessarily the case for Cardano, which is still in development.

In response, Gambardello acknowledged that the launch circumstances for ADA and LBC are different. However, he argued that the same two questions apply to both coins: did they launch as a security, and are secondary sales considered securities? He maintains that the answer to both questions for ADA is no.

Despite Gambardello’s optimism, others are not so convinced. Another podcaster pointed out that while ICOs are no longer common in the U.S., ADA will still have to be registered like every other altcoin.

 

Additionally, there is a possibility that the SEC could take issue with Cardano’s promotion. This is because the project’s founder, Charles Hoskinson, is regularly featured on YouTube.

As the debate continues, how the SEC will ultimately treat Cardano and other cryptocurrencies remains to be seen. However, for now, Gambardello remains confident in his analysis and his belief that ADA will not be labeled a security.

Related Reading | Upbit Adds BTC/BLUR Trading Pair, Expanding Reach Of Promising Cryptocurrency

However, when it comes to Cardano (ADA) price action, currently, it is trading at $0.4058 with a 5% increase in the daily chart and 5.07% in the weekly chart. Additionally, the 24-hour trading volume is up by 10.87%, and the market cap by 5%.

Source: CoinMarketcap

 

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.

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