Recently, the U.S. Securities and Exchange Commission (SEC) approved BitcoinHD (BHD) as a security token. As a result, the Singapore-based company behind the blockchain project has applied for listing on Coinbase.
May 11, 2020 | AtoZ Markets – BitcoinHD, a US Securities and Exchange Commission-approved security token, has submitted an application with Coinbase for a listing on the exchange.
Why is BitcoinHD applying for listing on Coinbase?
Announced on May 11, it is the first SEC-approved security token applying for a listing in one of the largest crypto exchanges.
Furthermore, the company highlighted that Coinbase is one of the largest and reputed exchanges, and listing on the exchange requires rigorous scrutiny under the terms of its Digital Asset Framework, which ensures reliability of security and code, compliance requirements, team review, scalability, market demand, and governance.
Moreover, the Singaporean blockchain project received SEC’s approval in late March under the Form D exemption. Form D allows companies to issue securities by disclosing only essential information. However, these companies can only approach accredited investors for raising funds.
In the United States, these investors include individuals with a net worth of $1 million or a consistent annual income of $200,000. For enterprises to fall into this category, they need to maintain $5 million in assets.
What is BitcoinHD bringing to the table?
BitcoinHD is looking for exempt securities in its blockchain-based cryptocurrency of the same name. The crypto, however, uses a ‘Conditional Proof of Capacity’ consensus and mining algorithm.
This consensus mechanism allows nodes in the blockchain network to use available hard disk space to store their mining rights. Usually, the token uses the computing power of their device for this. As a result, power consumption is decreasing, which in turn lowers access barriers for network members and is also better for cryptocurrency decentralization as well as the environment.
What is more, this mechanism is ASIC resistant. This means that there are no additional benefits for mining equipment that uses application-specific integrated chips. Consequently, the cryptocurrency can be mined for a much larger audience, because it can be mined effectively by many more machines. This should also lower the entry barrier for network members.
What do you think of BitcoinHD applying for listing on Coinbase? Let us know in the comments below!