The escalation of the Securities and Exchange Commission (SEC) crackdown on the cryptocurrency sector in June rocked crypto markets. Specific cryptocurrencies appear to be a target for the SEC, even as others like DigiToads (TOADS) are providing refuge in this period.
DigiToads has raised close to $6 million in its presale, providing a boon for participants. This performance, at a time of market anxiety, is commendable. The SEC filed lawsuits against Coinbase and Binance in early June. These are two of the most recognizable crypto exchanges, and the suit’s outcome will be the focus of traders for now.
Solana, Polygon, and Cardano take a hit
The news of the exchange lawsuits took all the hides, but specific crypto projects also face challenges. In the lawsuit, the SEC named coins Solana (SOL), Polygon (MATIC), and Cardano (ADA). The agency classifies these coins as securities and has sued exchanges for offering them.
To illustrate the SEC’s views, consider a company offering shares to the public. One purchase the shares representing ownership of the company, but the company officials are responsible for running the company and generating profits.
Crypto platforms that operate on this model will likely come under the SEC’s radar. However, the categorization can cause confusion because cryptocurrencies don’t fall under a binary structure of either being secure or not.
The affected tokens lost billions in market capitalization the week after the news broke. It appears that cryptocurrencies like blockchain with sufficient decentralization and the likes of Ethereum with functional utility as the driver of usage are off the hook.
DigiToads relies on its utility for pricing
TOADS is an ERC-20 token and takes inspiration from Ethereum in its creation of utility for developers and users. DigiToads is a utility meme coin and implements a play-to-earn gaming ecosystem for its community to create value. It elevates what meme coins like Dogecoin started by creating sustainability to their ownership beyond just speculative action.
This project does not rely on the investment skills of the development team but instead leaves it to gaming enthusiasts to earn tokens. DigiToads will also entrench decentralization and ensure that the community effectively manages the project in proportion to their ownership of TOADS tokens.
At press time, the presale is at its ninth stage. The token price at this stage is $0.047, meaning that early presale participants have received gains of 370%, with the possibility of 450% gains by the launch date. These figures indicate DigiToads is on track to become the next 100x crypto and one of the positive stories of the year.
Additionally, DigiToads seeks to bring dynamism into the NFT scene by introducing NFT staking. The problem with most NFT collectibles is that their creators mint them and release them to the market with no further use other than trading. Staking NFTs means that the holder can earn from the NFTs without floating them in the market, which can be positive for the overall value of these unique tokens. Accordingly, DigiToads has launched its NFT minting platform to achieve this utility.
Users can now mint DigiToads NFTs at: https://mint.digitoads.world/
Conclusion
Financial regulations are still catching up to the reality of a thriving decentralized sector. The SEC appears to target tokens of a specific profile, and markets are currently going by the developments. The agency has the unenviable task of creating regulations for a sector that existing laws never envisioned. DigiToads provides an alternative for ADA and MATIC whales looking for projects with potential upside. The rise of this project should be a significant player for the foreseeable future.
