Is Hedera (HBAR) A Failure?

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In this video, I discuss Hedera (HBAR) and its status as an unregistered security.

Unlike Bitcoin, Hedera has a headquarters, board of directors, governing council, VC investors, a foundation, and a road map-- all of which are signs that this is a centralized project.

There's nothing wrong with this-- apart from the glaring fact that Hedera illegally funded its operations by selling unregistered securities in the form of HBAR. This was, in my opinion, an unethical way to raise money.

So what if Hedera still has cool tech?

The question that you have to ask yourself is why they ever had to introduce a token into the mix. If they were going to be a centrally controlled corporation all along, why go the ICO route (2018) and take advantage of retail investors?

Why not just sell shares to fund their software development?

Well, that's because issuing and selling shares requires making lots of disclosures and also waiting for an IPO to get liquidity.

Tokens like HBAR are so much more fun and easy to dump on retail investors in order for the VCs to get liquidity for their LPs-- and for executives to exit without having to file with the SEC.

By contrast, Bitcoin is a completely decentralized project without VC investors, a premine, or any other attack or control vectors that come with being a centralized project.

Not investment advice! Consult a financial advisor.

Hedera Hashgraph VC backing:
https://www.crunchbase.com/organization/hashgraph/company_financials

Hedera headquarters:
https://dallasinnovates.com/hedera-hashgraph-moving-global-headquarters-to-richardsons-3400-at-cityline/

Hedera board of directors:
https://hedera.com/about

Hedera global governing council:
https://hedera.com/council

The HBAR Foundation:
https://www.hbarfoundation.org/

Hedera's roadmap:
https://hedera.com/roadmap

Gary Gensler on crypto projects like Hedera:
https://twitter.com/coryklippsten/status/1629700076120739840/photo/1

Mainnet nodes run by governing council:
https://messari.io/asset/hedera-hashgraph/profile

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#hedera
#hbar
#bitcoin

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