Did the SEC just pull the rug on ALTseason!?
XRP the big target and it was hit…but is XRP the only one!? Let the altcoins hit the
floor, let the altcoins hit the floor, let the altcoin hit the….floooooorrrrrr!
It’s time for Chico Crypto! Yes Indeed, out of nowhere… the SEC
pulled out the stonecold stunner on the XRP. Like I said last week as the treasury
news was dripping. Regulators!! Mount up…. As this administration is leaving, they
aren’t getting what they want…thus they are going to smack crypto across the face on
the way out. Which clearly has been happening…. But for the most part, BITCOIN is holding
up. Holding above 23k, in the 22 to 24k range we’ve been sitting in for over a
week. But ALTCOINs… not faring so well, especially that XRP, over the past 24 hours down
over 30 percent, with many coins between 10 to 20 percent down 24 hours…actually out of the
top 100 coins, 85 performed worse than BITCOIN… So today, I’m going to be the
only youtuber who analyzes this, hopefully understands it, and identifies the
coins who could be in the sights of Regulators.
So, the BIG obvious one should be, If the altcoin
ran an ICO, it raised funds from the public, especially US investors, with no KYC…they
just might have a big target on them. And I’ll be fully transparent about the ones who did in
the top 10, the information is out there online… Binance Coin-No KYC, Money Raised
Chainlink-No KYC, Money Raised Polkadot-KYC, Money Raised
Cardano-KYC Money Raised So 40 percent of the coins in the top 10,
may have some questions, Cardano & Polkadot, with KYC are more in the clear, but Binance Coin
and Chain Link have the most to worry about, as they possibly took US investors. Although, Chainlink, and it’s token within
its network of Oracles obviously has utility, thus it is nothing like XRP, which was a
pure fundraising device, with no utility. Binance Coin started out as a pure
fundraising device, but as time has gone on, they have been scrambling to find utility for it. But here is what I find interesting about
this…Over 1 year ago. Something similar hit the scenes. September of 2019, the SEC announced
their suit against another crypto in the top 10 back then.
As we can see they were number 8, that
is EOS, september 30th 2019 SEC orders block.one to pay a 24 million dollar civil penalty for
running the EOS ICO. And EOS, it has hurt it, token price back then was 3.24 cents, and
rank #8…today, the token price is 2.67 cents and rank #16, losing nearly a billion in market
cap, while the markets have been bullish. But here is what’s interesting about that SEC
case…The block covered it and said “The penalty? A $24 million civil penalty payable
to SEC for transfer to the "general fund" of the U.S. Treasury. No disgorgement. No
rescission order. No bar. No… anything else. Given the amount of money raised and the size of
the penalty, this is a remarkably short order and it's hard to draw many profound lessons from it.
An administrative settlement of an SEC violation isn't precedent. No lawsuit was ever filed.
Block.one agreed to the civil penalty and agreed that the tokens it sold to U.S.
persons were securities under U.S.
Law” It means, Block.One ticked the treasuries
b-sack…remeber this 24 million was deposited to the general fund of the US treasury. Steve
Mnuchin’s department? So what is the general FUND? From this 1970 CIA document…it’s where
cash available for governmental use is kept, and its not really a general
fund in the accounting sense, because money credited to it is not restricted
to general governmental purposes, but other fund obligations. Another name for it…as we
can see the CIA calls it Treasury Cash Money, and from what I can see, they get
to do with it, what they please… And since no precedent or law was set…no
lawsuit ever filed.
EOS has been able to hold on. Before their settlement with the
SEC & Treasury was announced, EOS got added to Coinbase in May of 2019. Well
check the Coinbase APP, EOS is still tradeable, even though blockhone agreed that the tokens they
sold to US persons were securities under US law. So Ripple & XRP, obviously didn’t
tickle the b-sack of someone, as they are getting hit harder
than with just a civil penalty, they are getting hit with the lawsuit…and
the litigation has begun with it being filed. The evidence mounted against them is fierce, and
this time precedent could be set as the lawsuit is in Federal Court with the SEC. The outcome
will have ramifications not only for Ripple, XRP and all those involved but for those
that fall within this security basket. And this case will decide which
ones do..the precedent will be set.
Although, it’s also obvious, if the altcoin
or project raised no funds from investors, they more than likely don’t have much to
worry about right now. And even better, is when the project is ran by a DAO,
decentralized autonomous organization..thus there is no company aka Ripple to go after. Where does Chico like to go for the DAOs? The
DAO tracker…DeepDAO.io and obviously, DAOs are growing substantially. Assets under management,
surged by over 275 million in the past month, with 178 million of that coming in the past week.
And DAO members are getting ready to break 13k… So obviously DAOs are getting looks, and
they will only get more looks as nefarious centralized entities fall to regulators.
deepdao, it ranks the top DAOs, and there is one that is hitting top on multiple marks,
Assets under management & the number of members. That is Pie DAO, ranked #3 AUM & #2 based on
members, over 3300 of them or over 25 percent of the total amount tracked on DeepDAO. And PieDAO
has been supporting my channel as well, putting forward sponsorships, like this one & the full
details of that can be found in the description. So obviously PIEDAO is governed by the members.
But what do they govern? Well the last video we covered, how they were governing these
sponsorships, their risk adjusted version of Bitcoin on Ethereum, BTC++, and the other PIEs,
aka tokenized indices, DeFi +L, lareg cap DeFi +S, small cap, DeFi++ a mixture of the two and
more, and their risk adjusted stablecoin USD++ Well since that video, they have launched more.
Including the Balanced Pie, which is made up of ⅓ wrapped bitcoin, ⅓ ethereum and ⅓ DeFi ++ the
mixture of small and large cap DeFi projects.
Widening the scope of their indices, and this
balanced PIE is slowly becoming their number 1 baked on market cap. But if you look above
there is another new piece of the pie…dao, PieVaults, which are yield bearing and
meta governance enabled pies and the first one launched is called the YPIE, which gives
exposure to the yearn ecosystem. YFI and Sushi are the dominant pieces, but it also has smaller
amounts of KP3R, Cover, Cream, Akro & pickle. So Yield bearing & Meta
Governance…what does this mean? Well it’s added DeFi features to the
PIEs, and the TVL locked up in it. So many of the tokens, being locked up
in PIEs, are governance tokens…Uniswap, Compound, Yearn, and more.
They are used to
vote within each of their respective protocols. Part of the problem with DeFi is having to move
tokens around, in and out of pie for example, paying the high gas fees to even vote.
Not worth it for your average smallholder. PieDAO vaults metagovernance solves
this with their DAOs $DOUGH token. Users participate in governance across
all the DeFi ecosystem projects held in enabled pie vaults, with just one
ERC-20, the governance token DOUGH. And this metagovernance is
powered on with Dough on Snapshot, which occurs gas free, completely
removing the economic barriers to governance participation. Thus votes for
compound or votes for synthetic could happen, Dough acting as a passport, allowing you
to vote across governance as you please. Although, it extends further than just governance
into just the protocols like Compound, but into the pie vault itself and it’s yield bearing
strategies. As you can see, some of the assets within ypie, are earning an APY, adding to the
PIEs value…and then to the right is the strategy for the asset.
Going back to the flow chart, we
can see strategies are also voted on, which does affect the pies overall yield. Not one person
has a say in how yield bearing assets are used, but Dough Holders and the DAO do. And the vaults
automatically bounce around to the best performing lending or borrowing platform, always
getting the best APY for the vault. And YPIE, is just the first vault, in
the works is the DeFi Index Yield vault, which adds a new strategy into this PIE,
Staking with Sushi, providing HIGH APYs. And it adds other assets like Uniswap,
Compound, Synthetic, AAVE and Maker.
So you ready to BAKE some warm apple
Pie? Well PieDAO’s oven is hot and cheap. Checking out this product, the PieDAO Oven
its where ETH is piled together in bathes, and then the PIES are issued once
full, doing it as one smart contract, and massively saving users on GAS, which as we
can see is over 97 percent…and at the dashboard, they have ovens open for DeFi ++, the
balanced crypto pie, and even the ypie vault. So bake it baby now, all links for their growing
DeFi product list, is in the description!! So DAOs, and governance tokens from those DAOs,
I see as safer than those centralized entities and using Deepdao, you can spot the other…but
What else do I see personally as ALTCOIN safe?? Well if they raised funds…
The ones that got
prior approval from the SEC of course. Who is one of those projects? Energy Web Chain! Hillrise
Capital had an AMA in may of this year, and this question was asked “I have seen somewhere about
EWT being one of the projects approved by the SEC? CEO Walter KOK responds “egarding regulatory
aspects, for us to create impact, regulatory compliance (both energy and financial) is a must.
We are building real solutions that connect to the electricity grid leveraging the Energy Web
Because we operate globally we have directly reviewed the Energy Web project with
multiple regulators in different jurisdictions including financial regulators in Switzerland
(via FINMA) and the U.S. (via the SEC).” How about another project?
Well back in July of last year, Blockstack put together the first SEC
qualified token offering to the public in history of the US…they did this
using Regulation A+, the mini IPO. So blockstack, they are definitely in the
clear…and blockstack is healthy, in the top 100… But there was also another project,
that received regA+ approval, YouKnow’s Prop’s token…but going to their stats,
the token looks dead in the water, only just over 6 thousand bucks in volume, and coingecko
still doesn’t know the circulating supply, thus they marketcap can’t be calculated?
You would think for an SEC ok’d token, that information would be a given??
Thus, having this REG A+ isn’t a given for success…unless I’m not
seeing something with Props.
So, DAOs, no money raised, Reg A+, what is another
token type that might just be safe? Airdrops, as usually they are just governance tokens
& of course no money was raised. So Uniswap is most likely safe…but this is Chico
& we bring the hottest content..well, well, well guess who just updated their github
with a token and the contract was deployed to the ethereum blockchain….as we can see 1inch.
You might just wanna use their products… But the point of this video was to
re-evaluate tokens, based on the new climate emerging for cryptocurrencies.
I re-evaluate what I hold all the time, and there may be some tokens you’re holding
onto, that the SEC has in their crosshairs, thus re-evaluation is a good thing.
Cheers I’ll see you next time!