The Chief Security Officer at Blockstream has come under fire for backing INXâs security token sale issued on the Ethereum blockchain. Samson Mow has been accused of hypocrisy after previously calling out Ethereumâs impracticalities.
The editor of The Block cryptocurrency news publication, Mike Dudas, provided evidence of Mowâs investment in the INX trading platform project via Twitter earlier today:
Sponsoredhttps://twitter.com/mdudas/status/1163785609166630912?s=09
Hypocritical, Much?
The above Tweet shows Mow stating in January of this year that âEthereum is the most impractical thing everâ. It, therefore, seems strange that he would back a project based on the Ethereum blockchain, as the INX trading platform is. Some have labeled the Blockstream CSOâs investment as hypocritical:
just another case in point that Samson Mow @excellion is one of the biggest hypocrites in crypto space. be wary of crypto luminaries and always #DYOR đżđđş #StoreOfDramaâ˘ď¸ https://t.co/FIxhQgH9H1
â đC4Chaosđ (@c4chaos) August 20, 2019
Dudas also included evidence of Mow and other leading cryptocurrency figuresâ investments in the regulatory-compliant, institutional-focused trading platform envisioned by INX Limited. Amongst the names are Riccardo Spagni, the lead developer of the Monero project; Charlie Lee, the brain behind Litecoin, and Stephan âWhalePandaâ Jespers.
According to the document posted by Dudas, Mow appears to have invested more than $100,000 in the INX platform. He also sits on the advisory board for the project, alongside other big names from the digital asset industry. These include Stephan Jespers and Jameson Lopp.
Sponsored
Mow Is Keeping It Safe
An SEC filing from yesterday states that the INX token is an ERC-20 token and will be sold via an upcoming IPO. The IPO is fully registered with the SEC, meaning that the project will avoid the kind of regulatory issues facing the likes of Kik and Veritaseum, both of which have been accused of selling unregistered securities by the regulator.
Evidently, the INX team are not taking any chances with regulators. Whereas many ICO operators have argued (often along highly dubious lines) that their tokens offer some unique utility and are therefore exempt from existing securities legislation, INX appears to have done everything by the book. Given its apparent attempt to appeal to institutional investors interested in cryptocurrency, this makes a lot of sense.
The company is hoping to raise almost $130 million from its IPO. Much like Binance Coin, the INX token will allow traders on the platform to buy and sell digital assets at discounted fees. It will also entitle those holding it to a share of the trading venueâs annual profits.
What do you think about Samson Mow investing in Ethereum-based projects after calling it out in January? Do you think itâs a little hypocritical?
Buy and trade cryptocurrencies with a 100x multiplier on our partner exchange, StormGain.
Images are courtesy of Shutterstock, Twitter.
Binance