Lubin made his opinion known in an interview to commemorate Hong Kong FinTech Week while giving an insight into how the Ethereum network has survived over the years amidst strict regulatory policies and stronger competitions.
The Ethereum boss noted that new crypto firms need to fully understand the crypto laws and operate according to the rules while maintaining the “regulatory peace.” As long as new crypto firms are doing what is expected by regulators, they will not be slammed with any sanction, Lubin explained.
He went on to state that unlike Bitcoin and Ethereum, developers of new projects would need to gain public trust and assure investors that the price of a newly launched token will increase in price over time. By so doing, the project would grow its community.
However, he explained the difficulty which lies in the fact that the assurance given to investors that the token price would eventually increase in the future implies that the token will not be classified as a utility token, but as security, governed by security laws.
Bitcoin and Ethereum Were Not Victims
Later in the interview, Lubin acknowledged that new crypto projects are not as fortunate as Bitcoin and Ethereum because, at the time of their launch, the global crypto space is still unregulated, which saw both projects got an early head start and sold without any regulatory bottleneck.
In this regard, Lubin noted that it would be difficult for a new project to usurp the dominance of BTC and ETH. Regarding the possibility of that happening, He said:
It’s going to be very, very difficult. Not impossible, but very, very difficult for even a technically robust project to challenge the early head start and the massive network effect that the Ethereum project has,”
Meanwhile, Coinfomania reported earlier this month that Ethereum, in collaboration with top tech firms, published the token taxonomy framework to enable businesses and developers to blockchain-based tokens and how they are implemented.
Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!