Since Gary Gensler has taken over the SEC, the SEC has charged less than 10 cryptos with offering an "unregistered crypto asset securities offerings," and one of the submissions the the Reddit Great Scaling Bakeoff was one of them. (The SEC has charged more people with offering fraudulent unregistered crypto asset securities offering).
Reddit Great Scaling Bakeoff
The Reddit Great Scaling Bakeoff was held in July 2020 to find the scaling solution that Reddit would deploy RCP on. We all know that Arbitrum won with their Arbitrum Nova solution, and that is what MOON is on today.
There were some doozies of submissions, with a lot of brigading going on. Dragonchain entered with a very wordy submission that did not say a lot of detail other than buzzwords. The comments on the submission require a large bucket of popcorn to go through, with this being an amusing one bringing up the point
Also, WHY DO THEY SELL COINS? Everything they offer is for businesses with closed, trusted setups. License the technology and advise, absolutely no reason to have coins. Scammy vibes and I wasted way too much time on this lol
The SEC was listening
Either Gary Gensler was keeping close tabs on the comment section of The Great Reddit Scaling Bakeoff or Arsen Ablaev of the Crypto Assets and Cyber Unit in the Chicago Regional Office got word of Dragonchain and started an investigation.
Dragonchain sued by the SEC
The investigation came to a head in late 2022 when the SEC sued Dragonchain for selling "unregistered crypto asset securities" (this is a more condensed/user friendly version of the above complaint)
Reddit actually did their research and dodged a bullet
The Reddit Admins were not swayed by a bunch of fancy writing and did not pick Dragonchain as the host of Reddit Community Points. Imagine the mess that would of happened if ~2 weeks after RCPs were launched on mainnet the SEC sued the mainnet they were released on…
(Yes, I was reading the title of all of the cases that the Crypto Assets and Cyber Unit has brought since Gensler took over and recognized Dragonchain from reading the submission to the Bakeoff)
submitted by /u/pbjclimbing
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