Tokenization protocol BarnBridge’s BOND token surged in price over the weekend after the project announced its intention to comply with unspecified demands from the U.S. Securities and Exchange Commission (SEC).
According to BarnBridge’s legal counsel, the project has been under investigation since at least July this year, although very few details about the investigation are known.
BarnBridge’s social media channels have remained silent since the news of the investigation broke in July, and no announcement of the decision to comply with the SEC requirements have been made through these channels.
The news was first reported by CoinDesk on Saturday.
According to the report, a key figure has granted the project’s founders, Tyler Ward and Troy Murray, the authority to undertake any necessary actions to meet the SEC’s requirements.
This reportedly includes the possibility of paying a fine, marking a significant shift for the project.
Notably, concerns were voiced within the crypto community about whether the decision and process that led up to it aligns with the decentralized principles of crypto.
A poll that was central to the decision was reportedly made up of a single vote from a team-linked wallet, prompting questions about the extent of community involvement in the decision-making process.
Decentralization concerns
Nelson Rosario, an attorney specializing in crypto law, questioned the decentralization aspect of this decision, asking whether it is consistent with the spirit of the crypto space for a community-binding proposal to take effect based on a single vote.
“Is this the decentralization we want to see,” Rosario asked, according to the report.
BOND token
From a low on Thursday of $1.6, BOND traded at $4.64 as of press time on Monday, a gain of close to 190%.
The price surge came amid an explosion in trading volume in the BOND/USDT market on Binance, which is by far the most active market for trading in the BOND token.
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