Entrepreneur and television personality Mark Cuban, known for his role as a co-host on the popular show Shark Tank, has shared his perspective on a recent tweet regarding the Securities and Exchange Commission’s (SEC) classification of Filecoin (FIL) as a security.
Filecoin had filed an application to register an investment fund earlier in 2023. The SEC replied that FIL meets the criteria to be a security on May 16.
Mark Cuban has been known for his mixed stance on cryptocurrencies. He has expressed interest in blockchain technology and its potential for various industries, including finance. However, Cuban has also voiced concerns and skepticism regarding certain aspects of the crypto space.
Cuban’ss blend of optimism has definitely made him talk about cryptocurrencies in general. In one of his tweet replies, Cuban suggested how to not fall for the SEC’s grapple.
This won’t work with filecoin or chains that release their own token, but what may come next is for tokens is to release them all, leaving no treasury, take the receipts and use them to provide liquidity using defi for trains the token , and then dissolve the original entity…
— Mark Cuban (@mcuban) May 23, 2023
Mark Cuban shares his idea for true decentralization
Mark Cuban suggests that the approach described, which involves releasing all tokens, utilizing the receipts to provide liquidity through decentralized finance (DeFi) for the token’s ecosystem, and subsequently dissolving the entity responsible for the token release, could potentially lead to true decentralization and eliminate the possibility of shutting down the token.
Crypto lawyer John E. Deaton also commented on Cuban’s tweet, stating that the idea is smart and probably in someone’s playbook at the moment.