Michael Saylor: Ethereum is a security

Ethereum should be classified as a security because the asset was originally distributed amonginvestors within the ICO. This was stated by the head of MicroStrategy Michael Saylor in an interview with Altcoin Daily.

“Ethereum is a security, I think it’s quiteobviously. […] The asset was released during the ICO, there is a management team, there was a pre-mine. There are hard forks, hard forks on a permanent basis, there is a difficulty bomb, the activation of which is delayed,” he said.

Saylor explained that periodic updates to the Ethereum network software, which is backed by a team of developers, indicate that the asset is a security.

In his opinion, for cryptocurrency to be consideredcommodity, it should not have an issuer or someone who would "make decisions". He emphasized that such digital assets are based on "completely decentralized protocols." The head of MicroStrategy cited bitcoin as an example.

“If you want to position a product as a commodity, you are trying to create something that looks like gold in the digital space,” he said.

Sailor also stated that the tokens of all networks onProof-of-Stake is a security. According to him, investing in these assets is “extremely risky” due to potential problems with regulators. He added that this is one of the key reasons why MicroStrategy only invests in Bitcoin.

Previously, the company purchased an additional 480 BTCat an average price of about $20,817. The organization holds 129,699 BTC (~$2.76 billion at the exchange rate at the time of writing) on ​​its balance sheet - it spent $3.98 billion to purchase them.

Recall that in June, Saylor said that MicroStrategy does not intend to sell cryptocurrency even under adverse market conditions.

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