Security Coins Are Safe Only In A Centralized Market, Says Tone Vays
Since the beginning of this year, the introduction of security tokens has been making a fuss in the crypto space all over again.
AMBCrypto reports that Vinny Lingham, the CEO of Civic has recently said that as these security tokens are entering the mainstream crypto ecosystem, the crypto bubbles will probably disappear.
The place of securities in the virtual asset industry
But Tone Vays has a completely different perspective on the matter.
He sees another place of security tokens in the virtual asset industry.
He said that it’s definitely much safer for a token to be a security on a centralized market instead of a decentralized ecosystem.
Digital assets are based on a decentralized blockchain and Tone said that it would be impossible for Bitcoin to be a security because it would open up the blockchain.
He continued and said that if Ethereum were to achieve the security status, this would likely be not safe on the decentralized blockchain of Ethereum.
He said that BTC will probably survive in the market for the next 25-30 years but in the case of Ethereum or EOS, security tokens in their blockchain would be in danger regarding safety.
Technological risk is the main issue
According to Tone, in the event of a hack or bad smart contract in the Ethereum blockchain, the government would directly hold the users responsible for making a bad decision.
This is unless the government validates the Ethereum blockchain’s legitimacy and takes responsibility on itself in ETH were to disappear or lose value.
He explained that “The tokens can be given regulatory compliance which is already very difficult if your token is being traded on anonymous exchanges. The main issue remains that there is still a technological risk on which database the token would be sitting on and how secured that database would be.”
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.