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CryptoOracle Co-Founder James Haft: All Tokens Will Be Security Tokens



James Haft:

We're focused on investing in tokens and about three or four months ago we recognized that all tokens are going to be security tokens. We don't think the US Government is going to support the concept of utility tokens in the short-term. And with all the confusion in the market, it's better just to focus on security tokens and make yourself fully compliant and figure out whether there's holes in the regulatory framework later. And what this has done is it's really formed a bifurcated market where you now have people either in the United States or not. And this is a really phenomenon because historically to do a large organized transaction you had to be in the United States. You needed to access US organized finance. Actually, in the ICO world and in the crypto world, there's a lot of large transactions, important transactions that are just completely avoiding the United States in order to avoid the regulatory environment here. And that's a very negative development for US investors, which we think, we hope is not long term. We hope that the US comes up with a strategy for how people can be compliant and how the US investor can participate in the global security tokens offer.

We invest in companies that are supporting the tokenized environment. We invest primarily in what are called dags. A dag is a platform that performs consensus just like the block chain does but does it without carrying all of the information a block chain carries. You have faster, more flexible, more reliable and more private decision making on the internet. There's a need from the Government to make new products look like the old products. What we're trying to do right now is the Government seems to be trying to shoehorn this new development, the capital markets into the old framework of stocks. And this is probably something you can anticipate as happening. We hope it's a short-term phenomenon. And we hope that the ability and the added excitement of the tokens and the flexibility and the democratization of securitization that the tokens offer is able to shine through over the long-term.

And in the short-term, that the regulatory environment that's forcing the tokens to look more like stocks and to fit into our existing security structures, we're hoping that doesn't kill the market. Because this is right now what we're going through is the fastest and biggest redistribution of creation of wealth in humankind. And it's very important for job creation and for wealth creation and for the United States to maintain its position in the global capital markets that we figure out how to support this new asset class.