Since the asset is initially distributed to investors as part of an ICO, Ethereum must be classified as a security. This was stated by Michael Saylor, head of MicroStrategy, in an interview with Altcoin Daily.

“Ethereum is a security, I think that’s pretty obvious. […] The asset was released during the ICO, it has a management team, it was pre-dug. There are hard forks, there are hard forks constantly, there is a complexity bomb whose activation is delayed,” he said.

Sailor explained that periodic updates to the software of the Ethereum network, with the development team behind it, indicate that the asset is a security.

According to him, for a cryptocurrency to be considered a commodity, it must not have an issuer or someone to “decide”. He stressed that such digital assets are based on “completely decentralized protocols”. As an example, the head of MicroStrategy cited bitcoin.

“If you want to position a product as a commodity, you are trying to create something that looks like gold in the digital realm,” he said.

Sailor also stated that tokens of all Proof-of-Stake networks are securities. According to him, investing in these assets is “extremely risky” due to potential problems with regulators. He added that this is one of the main reasons MicroStrategy only invests in Bitcoin.

The company previously bought another 480 BTC at an average price of around $20,817. The organization holds 129,699 BTC (~$2.76 billion at the time of writing) on ​​its balance sheet and spends $3.98 billion to purchase them.

Recall that in June, Saylor said that MicroStrategy does not intend to sell the cryptocurrency even in adverse market conditions.

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