The organisation behind “Web3 Foundation” announced that the Polkadot’ Dot coin is a software & not a security asset.
Polkadot is a popular crypto project, which was founded by Ethereum co-founder Gavin Wood. The Dot coin went live in mid of 2020. This crypto project focused on connecting blockchains — allowing value and data to be sent across previously incompatible networks (Bitcoin and Ethereum & other leading networks).
On 4 November, Web3 Foundation (W3F), an entity supporting the R&D of Polkadot, as well as overseeing fundraising efforts for the blockchain, announced via a blog post that Dot is software and can’t be considered Security.
Foundation stated that the team talked about this thing with the US Securities and Exchange Commission (SEC) over the last 3 years of the time frame.
“After 3 years of proactive engagement with the @SECGov, W3F announces a landmark step towards the achievement of Web 3.0, a decentralized, trustless, serverless internet.”
Foundation also confirmed that the Polkadot team will work in those ways under which utility & offerings will remain in compliance with Federal securities laws.
It is worth noting that the foundation didn’t talk about Kusama, which is another crypto project from the W3F & Polkadot team. So probably it may create a panic situation for those retail investors who are not ready to face any kind of pain. An example of this case can be seen in a tweet of a user under the W3F Twitter thread.
The dot coin is the native token of the Polkadot project and the current price of this coin is $7.09, which is 1.29% down over the last 24 hours of the global trade price.