The Research unit of crypto-focused FinTech firm, Circle, released a report on the implications of airdrops on the crypto-market and regulatory oversight.
Recently, Stellar announced the largest airdrop in its history. It announced a distribution of 2 billion XLM tokens to Keybase wallet users. The market primarily views this as a move to attain regulatory approval. However, even airdrops raise regulatory concerns of security. The report explained,
For instance, the U.S. SEC can still classify a token as a security based on its issuance or function within a network. If these tokens are then distributed in an unregistered manner that creates value for the issuer (like an airdrop), the event can qualify as an unlawful offering of securities.
Crypto-community has recently alleged…