This Thursday, Pantera Capital CEO Dan Morehead sent his clients a newsletter saying that 25% of their investments may qualify as securities that require registration.
Although we believe that the majority of projects in our portfolio will not be affected, approximately a quarter of our fund's capital is invested in projects with liquid tokens that are sold to U.S. investors without compliance with Regulation D or Regulation S. If any of these projects are determined to be a security, they could be adversely affected by the SEC's position. Of these projects, about a third (roughly 10 percent of the portfolio) are live and functional, and while they can technically operate without further development, stopping their further development will hinder their progress.
As reported by Bloomberg, the Securities and Exchange Commission (SEC) announced on November 16 that two ICO projects that raised millions were not legal under current securities laws. One such project was Paragon, in which Pantera invested. The team was forced to register the token as a security, pay violation fees, and must now regularly report to the SEC. The news has Morehead concerned about the future of his firm's investment projects.
In April of this year, Bloomberg reported that Pantera had more than a billion dollars in its crypto fund, making it the first official fund to do so for digital assets.
However, based on Pantera's own analysis, it is possible the group will shift its investments from security tokens to regular tokens, given recent regulations SEC.
In addition to this, ICOs are declining in value and demand as the SEC shuts down projects that have not registered their proposals. The more this policy is implemented, the lower the interest will be. US investors will soon be avoided to avoid dealing with the SEC.
According to unhashed.com
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