The Chief Security Officer at Blockstream has come under fire for backing INX’s security token sale issued on the Ethereum blockchain. Samson Mow has been accused of hypocrisy after previously calling out Ethereum’s impracticalities.
The editor of The Block cryptocurrency news publication, Mike Dudas, provided evidence of Mow’s investment in the INX trading platform project via Twitter earlier today:
— Mike Dudas (@mdudas) August 20, 2019
The above Tweet shows Mow stating in January of this year that “Ethereum is the most impractical thing ever”. 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 CSO’s investment as hypocritical:
— ~C4Chaos (@c4chaos) August 20, 2019
Dudas also included evidence of Mow and other leading cryptocurrency figures’ 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 “WhalePanda” 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.
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 venue’s annual profits.
What do you think about Samson Mow investing in Ethereum-based projects after calling it out in January? Do you think it’s a little hypocritical?
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Images are courtesy of Shutterstock, Twitter.