RE: SEC Going After Binance And It's BNB Shitcoin
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I don't quite see why "BNB is obviously a security" ? It's been issued as a pure utility token: you buy it with fiat and you use it to pay tx fees and your tx fees will be lower - basically like a "gift card" where you "front load" your tx fees - binance gets cash upfront, you get lower tx fees. Are prepaid, gift cards "securities" ? Where's the "investment peddled with a an implicit promise of appreciation" ? I mean, what part of the Howey test does it pass cause I don't see
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Yes and with the advent of BSC the utility went through the damn roof. They've also been around so long (much like XRP) without minting new tokens (in fact they do burns instead) that it's very hard for the SEC to make their case. Like, it's not even a US-based company.
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https://www.businessinsider.com/personal-finance/howey-test
Already we can see a massive amount of holes in the concept that "You're a fucking idiot if you don't understand how this obviously passes the Howey Test." First of all, nothing is obvious when it comes to legal matters. Strike one just for the tone of the message. An investment where the success is linked to Binance corporation? That's not true because there are a ton of random devs working on BSC worldwide. That completely destroys both the vertical approach and the broad vertical approach. The horizontal approach also fails because obviously all the money is not going to the same enterprise, as there are clearly multiple enterprises.
The expectation of profit also completely fails for the reason you stated: utility.
Not only does BNB have utility on the exchange side with reduced fees,
but also BSC opens the doors for infinite utility to be built (again maybe not even by Binance)...
Let's take that point you raise, how does token burning differ from a company buying back their stock?
There are similarities between an airplane and a bird yet that doesn't make a bird an airplane nor the opposite ...
Imagine an issuer of gift cards who has issued 50000 gift cards but only managed to sell 10000 and it says "ok, I didn't manage to sell all the cards I issued, I'll destroy a part of those I printed but didn't manage to sell".