Algorand down 10% despite Foundation claims that it isn’t security
Algorand Foundation CEO Staci Warden said they would not respond to other SEC allegations because they are not a party to the lawsuit.
Algorand (ALGO) fell 10.42% in the last 24 hours despite its Foundation refuting the U.S. Securities and Exchange Commission’s (SEC) claim that the asset is a security.
According to CryptoSlate’s data, ALGO dropped to $0.19642 during the reporting, continuing its recent spate of decline — down 14% in the last 30 days.
SEC labels ALGO as security
On April 17, the SEC alleged that Algorand, alongside five other crypto assets, were securities in its charges against the U.S.-based crypto exchange Bittrex.
In its complaint, the financial regulator alleged that ALGO was a security because investors in the token had had a reasonable expectation of profits based on the efforts of others. Besides that, the SEC claimed purchasers of ALGO invested in a common enterprise.
The SEC further alleged that the Algorand Foundation “tied the potential growth of the Algorand blockchain to potential demand for the ALGO token itself and to its own commitment to preserving a price floor for ALGO.”
Algorand Foundation refutes SEC’s claims
In an April 19 tweet, the Algorand Foundation refuted the SEC’s allegations that the ALGO token was a security.
According to the Foundation, ALGOs are not securities under U.S. law. The Foundation continued that it “welcomes clear regulatory guidelines for the advancement and growth of the entire industry.” It added:
“Our priority is to act in the best interests of our community, always. We look forward to seeing what this dynamic community will build next on Algorand.”
The Foundation’s case is also strengthened after a video of the SEC Chair Gary Gensler praising the blockchain network’s technology resurfaced on Twitter.
Meanwhile, CEO Staci Warden also said the Foundation would not respond to other allegations made in the SEC’s lawsuit against Bittrex because it is not a party to the case.