There are still many lingering questions regarding crypto projects raising money during an ICO in the past. Both Cardano (ADA) and EOS (EOS) did so, although their success varies greatly. Max Keiser still expects both to be on “borrowed time”, as they should be considered unregistered securities.
EOS And Cardano So Far
The ICO craze of 2017 and 2018 has given birth to many projects. Although over 99% are no longer relevant today – and most never even got started – some have remained relevant. That is a feat, as Bitcoin and Ethereum remain the two core networks people focus on. Of course, that doesn’t mean other projects cannot succeed, but they may not necessarily get their share of the spotlight either. Nor should projects try to compete with these behemoths either.
Two projects recently being mentioned on Twitter include Cardano and EOS. Although they both had an ICO, they raised very different amounts. EOS secured billions of dollars, whereas Cardano opted for more modest numbers, just below $70 million. At the time, raising nearly $70m was quite a feat, and Cardano has remained popular ever since. More importantly, it has a market cap of roughly $10 billion.
Interestingly #Cardano raised $68M. Despite bad press and endless attempts to devalue development efforts, Cardano is now the 3rd biggest Smart Contract platform and has a market cap of $10B. Well done @IOHK_Charles https://t.co/ZzbzbXuz03
— MCJ (@matthewjura) December 10, 2022
That makes Cardano one of the top smart contract and staking crypto networks. On the other hand, EOS has seen its market cap retrace to roughly $1 billion, despite raising four times as much in its ICO. While both projects have dedicated communities, very few onlookers get excited about either network. That can always change in the future, as Cardano notes strong development. EOS has one of the leading dApps – AtomicAssets – on its network, which seems promising.
Despite their focus on smart contracts, both networks continue to struggle for “positive attention”. Cardano’s 300% growth in smart contracts in 2022 is spectacular, yet very few people pay attention to it. For EOS, besides AtomicAssets, there doesn’t seem to be much focus on building top-tier decentralized applications. Again, that can all change in weeks, but attracting developers and users remains a hurdle for both projects.
Max Keiser Weighs In
One thing to consider if the ICO nature of both EOS and Cardano. Max Keiser thinks both projects are unregistered securities and should be classified as such by the SEC. Assuming that happens, both projects could be nuked into the ground. However, they may both be fined and continue their operations. EOS was forced to pay $24 million in 2019 for an “unregistered ICO”. Therefore, it remains doubtful a second investigation will be launched, although one never knows what the SEC has planned.
Both Cardano (ASA) and EOS are unregistered securities. Their days are numbered. If you still have money in these, prepare to lose it. https://t.co/0fxbBQeQRP
— Max Keiser.independent journalist.always have been (@maxkeiser) December 11, 2022
Many of the 2017-2018 ICOs are on the list of “unregistered securities“. Although it was convenient to raise millions of dollars through crowd-based funding, it wasn’t necessarily legal. Both Cardano and EOS may find themselves in hot water if the SED decides to press further. That won’t diminish the success of these projects, but it would cast a shadow over these ventures.
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