I’m a former commercial lawyer with experience as a managing editor for several crypto publications. Based on a legal framework, it obvious from the outset that other crypto tokens were entirely different to Bitcoin. However, it was only during my stint in “crypto” media that I saw how the crypto industry outside of Bitcoin really works.
It soon became clear that crypto tokens are best understood as venture capital-backed liquid equity tokens, whereas Bitcoin is a digital commodity. Despite its claims, crypto tokens beyond bitcoin are not decentralised, immutable or uncensorable. Venture capitalists fund projects, allocate themselves tokens at significant discount (a premine) and then sell off their holdings to retail investors at a premium. In addition, unlike listed stocks, crypto tokens don’t provide any disclosures to investors, which is why in my view they are unregistered securities.
Bitcoin is truly decentralised, immutable, uncensorable and is fair. Contrary to its marketing, crypto tokens possess none of those characteristics, it’s a game for insiders.
My mission is to help people understand the difference between Bitcoin and crypto tokens. At the end of the day, I’m a freedom maximalist who supports people investing into whatever they like, provided they are doing so with their eyes wide open.