LBRY says it ‘will likely be dead’ following SEC loss
The firm behind the decentralized content platform LBRY said its days are likely numbered following its recent loss against the United States Securities and Exchange Commission (SEC) in court.
It is specifically LBRY Inc that must die, the LBRY protocol and blockchain will continue. pic.twitter.com/SWwbqTq9In
The SEC initially took LBRY Inc to court in Mar. 2021 over its LBRY Credit (LBC) tokens, alleging that the firm had been conducting unregistered securities offerings since 2016.
The SEC ultimately won that battle last month on Nov. 7, after a judge deemed the tokens to be securities in a major blow to the industry.
Providing an update on the state of the business via Twitter on Nov. 30, LBRY Inc explained that the company “will likely be dead in the near future,” however the underlying protocol and blockchain will carry on:
LBRY Inc essentially provides a blockchain-based alternative to YouTube that offers less stringent censorship policies on its hosted content. The platform also facilitates direct tips in LBC to content creators as opposed to the standard advertising revenue share model.
In the SEC’s case against LBRY, it alleged that LBC was designed for pure speculation, while LBRY had argued that the tokens served key utility functions for its platform such as tipping, publishing, purchasing and boosting video content.
Despite the SEC winning the court dispute, LBRY suggested on Twitter earlier this week that the government agency has continued to be difficult to deal with in terms of settlement negotiations.
Responding to a post about its Nov. 29 status report on its ongoing SEC negotiations, the company noted that it offered the SEC “everything we have” but this proposal was still rejected.
Defense lawyer and
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