Why the Birb Signal Flipped
The Birb Signal has been flipped on
Hey there! Are you curious about why the Birb Signal was flipped and how it is related to securities law and the recent attention that cryptocurrency has been receiving from the SEC? Let's take a closer look at some key concepts and events.
First up, what is the Birb Signal?
The Birb Signal is one of the powers of the Pixel Pooly NFT. When Crypto is under threat or the Pro-crypto Flock needs to signal to organize, a unifying image is passed to the NFT. This image is a layer on top of the existing Pixel Pooly, so when the signal is flipped your Pixel Pooly will update the signal image. You can update your metadata on all your favorite NFT markets/showcases and the signal will be displayed. Your traits are not lost, they’re in the background. The Birb Signal is only flipped for a limited time to garner attention and rally behind, when the signal turns off, your Pixel Pooly will revert to it’s former glory.
The Birb Signal is experiencing its first flippening due to the increase of anti-crypto sentiment expressed by US politicians and the issuance of Wells Notices to many different protocols and persons involved in Crypto. Our response is a crypto-native one, unite behind an NFT, organize through the powers of decentralized async efforts, and continue the unceasing battle against Moloch and its ensconced position.
A Wells Notice? What’s that?
A letter that a securities regulator sends to someone they're investigating. It lets them know what the regulator is planning to charge them with and gives them a chance to respond to the allegations. Even though there's no law that says the regulator has to send a Wells Notice, it's usually done as a courtesy. The SEC and the NASD both provide these notices when they find an entity has committed fraud or other illegal activities that fall within their oversight of securities.
How is a Security defined?
Without diving into laws and regulations from the 1930’s, a quick test called the Howey Test is frequently used as a rule of thumb to determine if something is a security. This is a set of four criteria that help determine whether something is considered an investment contract, which would make it subject to SEC regulation and securities law. These criteria are:
An investment of money
In a common enterprise
With an expectation of profits
That come from the efforts of others
In a more storied form: If someone makes a investment of money in some enterprise where there is an expectation to make profits on that investment through the efforts of others. Then that investment is an investment contract and thus subject to securities law.
What does all this have to do with Crypto and the Birb Signal?
Recently the SEC has begun a much more aggressive crackdown on crypto. In 2020, the SEC sued Ripple for an unregistered securities offering. Since then, the SEC has been going after more and more crypto projects. Most recently, they've issued Wells Notices to Coinbase and many others. The cadence of these prosecutions has increased steadily and we, as a community, have still not seen clear, concise measures from the SEC or other US governing entities in regards to cryptocurrencies, NFTs, etc.
This crackdown is a big deal for many reasons. The SEC handles protecting investors, but some people believe that they're using these actions to control the crypto industry without providing clear guidance. Utilizing precise, targeted tactics to frame a public narrative in stark opposition to a thriving crypto ecosystem. In the past, we've seen similar actions taken by the government, like Operation Choke Point, which was criticized for being unfair to certain industries. Some are beginning to call these coordinated efforts Operation Choke Point 2.0.
So, what can we do about this?
As a crypto-native community, we need to stay informed and spread the word about any actions taken by the SEC or other governmental organizations in opposition to crypto. We must be able to educate others on why these tactics are unjust and educate what crypto and our communities bring. We should read from reliable sources like CoinCenter, CoinDesk, or Blockchain Association and support successful crypto regulation like the EU's MiCA. We should also get involved with organizations like Friends of Pooly, Coinbase, HodlPAC, Lobby3, and LexDAO. These groups can help build an ecosystem that advocates for crypto and its supporters. Finally, we need to stay informed and know when to act through tools like Crypto435, to speak out and reach out to our representatives when we have concerns or ideas for how to improve our industry.
