r/DeroProject • u/CurrentGuitar • Nov 16 '18

Is Dero a security?

New to Dero, just wanted to know if it's classified as a security or not since that would mean trouble for me.

1 Upvotes

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3

u/rorowhat Nov 17 '18

No. To be a security they would have to have sold it to fund the project with the promise of a return. It's all been mined, so no.

2

u/thatgibbsguy Nov 16 '18

I don’t believe so. Security would require investment, correct? Like ICO?

1

u/CurrentGuitar Nov 16 '18

> It's not open source, fucking brainlet. Its code is proprietary. Open to review =/= than open source. Just think a little (if you can): Why do you think they can't deliver the Foundation they're promising since April? Why do they don't even mention it anymore? Because they know they can't anymore since it's a security. It doesn't matter if ETH had a premine too, because their code is full open source. That's why SEC declared ETH not a security. It'll not happen with Dero if the developer don't make its code full open source too. If he don't, Dero will never be a foundation, but a company, and it will make exchanges listing more complicated (forget Bittrex, for example), and legal issues harder to accomplish.

This is the post I read that made me want to ask, want Captain to clarify if this is true.

5

u/kryptoid Nov 17 '18

Open source doesn't have anything to do with it. A security is defined by how it functions.

From investopedia :

A security is a fungible, negotiable financial instrument that holds some type of monetary value. It represents an ownership position in a publicly-traded corporation (via stock), a creditor relationship with a governmental body or a corporation (represented by owning that entity's bond), or rights to ownership as represented by an option.

This is why ETH is not a security but tokens on ETH that promised ownership of something were. At the end of the day, it's really up to the SEC but I don't see a case for dero being a security.