How might the SEC rulling ENG tokens to be securities effect Enigma's business model?


#1

The US Securities and Exchange Commission has stated:

  • ICOs… may be securities offerings, and fall under the SEC’s jurisdiction of enforcing federal securities laws.
  • ICOs that are securities most likely need to be registered with the SEC…
  • ICOs, or more specifically tokens, can be called a variety of names, but merely calling a token a “utility” token or structuring it to provide some utility does not prevent the token from being a security.
  • If you choose to invest in these products, please ask questions and demand clear answers.

How would token holders and the project be effected should the SEC rule ENG tokens to be securities?

link to full SEC page on ICOs


#2

This is probably the most important question in the entire section!


#3

Enigma is working towards building a decentralized network that for the first time exhibits strong privacy guarantees. Our efforts are focused not on increasing the revenue of the company, but rather - the usage of our network. If our vision is truly met, then a good fraction of the world’s applications would be running on Enigma (ranging from small dApps to Enterprise loads), paying for the network’s work and security through ENG fees.

Based on what we’ve seen with other blockchains such as Bitcoin and Ethereum, securing a decentralized network via a cryptocurrency does not constitute a security - and we at Enigma (as well as our excellent legal advisors) share the same position.


#4

The question still remains though:
How would token holders and the project be effected should the SEC rule ENG tokens to be securities?


#5

Or do you mean there is 0% possibility that enigma is a security?