The following article originally appeared in Institutional Crypto by CoinDesk, a weekly newsletter focused on institutional investment in crypto assets. Sign up for free here.
Ever since U.S. Securities and Exchange (SEC) commissioner William Hinman said last year that a digital asset could start out a security but cease to be one when it was “sufficiently decentralized,” token issuers and investors have been eager for a quantification of what that means.
The recent SEC action halting the distribution of Telegram’s TON blockchain tokens may finally have shed light on that – just not in the way we expected.
The end result could be a new type of token financing that mirrors an emerging trend seen in traditional markets.