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The Ethereum ICO: Where did all the tokens go?

by Amy Castor

December 18, 2018, 2:50PM EDT  ·  14 min read

Quick Take

  • Was ether a security at some point? The first place legal experts should look into is the project’s crowdsale
  • More than 40% of the ether sold went to the top 100 purchasers. And the three largest purchasers went home with roughly 1 million ether each
  • The largest beneficiaries of the contributor allotment were the project’s eight co-founders, but the “reward” distribution was egalitarian, according to Ethereum’ creator Vitalik Buterin  
  • Until a judge steps in, the issue will continue to be open to debate

by Amy Castor

December 18, 2018, 2:50PM EDT  ·  14 min read

One nagging question hanging over the crypto space is whether ether, the native token of Ethereum and the third largest cryptocurrency by market cap is—or was—a security.

Bill Hinman, director of the division of corporate finance at the U.S. Securities and Exchange Commission (SEC), in June brought more clarity to the question, saying he did not consider ether a security in  its current “decentralized” form.