For a long time, Bitcoin has remained the most dominant cryptocurrency. While other alternative cryptocurrencies have grappled for the second place, Ethereum has remained successful in defending that position for a longer time than it has not.
Joseph Lubin, the co-founder of the Ethereum project, recently spoke to Forkast News regarding the reason why other projects have fallen so far behind and face an uphill task if they must remain competitive or eventually usurp Bitcoin or Ethereum.
According to Lubin, Bitcoin, and Ethereum’s dominance primarily is a result of the fact that both projects achieved decentralization and built healthy communities when there were no regulatory obstacles.
True to that assertions, several crypto projects, notably including Telegram and EOS has been called to book by the United States Securities and Exchange Commission (SEC) for selling what the regulator perceives as ‘unregistered securities.’
To date, neither Bitcoin or Ethereum has been categorically listed by global regulators as security, something that Lubin believes played a significant part in their adoption.
Regarding new projects and the regulatory hurdles, Lubin said in the interview that the developers or promoters of these systems generally have to promise investors that the tokens they’re selling would appreciate.
The problem is the regulatory peace [...] Usually by the action of the developers or promoters of the system, by definition, that’s a security. And so securities law is then implicated and now you can’t sell a utility token as it’s not a utility token, it’s a tokenized security.
It was based on the regulatory definition that Lubin emphasized when he said that it would be “very, very difficult” although not impossible for even a technically active project to challenge the early head start and the massive network effect that the Ethereum project has.