Polkadot admitted its DOT token was originally sold as a security but claims it has now "morphed" into software to avoid SEC regulation. The project excluded U.S. investors from its ICO, suggesting awareness of legal risk. The speaker warns this "morphing" defense could invite SEC action.
Is the Polkadot crypto next to be sued by the SEC? Just a few days ago, Polkadot came out with a very weird statement. They said that Polkadot's native token DOT was initially sold and delivered to purchasers as a security, and they're saying that it has now morphed and is no longer a security, it is software. So right there you can see them admitting to selling Polkadot tokens as a security in the beginning. This is absurd. They are now saying that it has morphed into a software and this is why the SEC should not look at it as a security anymore. So they're assuming and kind of it looks like they're preparing for the SEC to come at them for being a security. The interesting thing here is that the Polkadot ICO excluded the USA, which is very interesting and probably why they feel so confident calling themselves a security. But they're not anymore. They have morphed. Are we going to see the popularity of this morphing term pop up soon. We'll have to see what happens.
