Pal tech renames token to Keys amid hypothesis of SEC scrutiny

Decentralized social media platform Pal.tech has renamed its token to “Keys” to higher align with its function, based on an Aug. 21 assertion.

Pal.tech, a decentralized app primarily based on the Base Layer-2 community, stated the unique identify, Shares, was a placeholder that wanted to be modified to replicate its function higher.

Nevertheless, the identify change is but to replicate on-chain, with its contract code nonetheless exhibiting “buyShares” and “sellShares.”

The decentralized social media functions allow customers to transact keys (previously shares) linked to their most well-liked personalities. These keys grant customers entry to non-public in-app chatrooms and unique content material with the related particular person.

Since its Aug. 10 launch, over 100,000 individuals have been given entry to the platform, with the protocol producing greater than $1 million in charges on Aug. 21.

Neighborhood hyperlinks identify change to SEC

A number of crypto group members speculate that Pal.tech’s current actions purpose to mitigate potential authorized actions from the U.S. Securities and Change Fee (SEC).

DeFi dealer 0xSisyphus populated the idea stating an alternate interpretation of Pal.tech’s assertion; 

“The unique identify was good however our authorized crew has suggested us that possibly it’s not a good suggestion to make use of phrases related to monetary markets.”

Lawyer and Seedstarter founder, Jesse Hynes, identified that the platform seemingly didn’t get authorized recommendation earlier than selecting its earlier placeholder identify. Hynes stated:

“Anybody who determined “shares” was a placeholder identify both didn’t get authorized recommendation or blatantly ignored authorized recommendation.”

In the meantime, a number of others argued that the identify change won’t cease the SEC from coming after the platform if it chooses to take action. In keeping with them, the monetary regulator at present targets “all the pieces tradable with worth” beneath its heightened scrutiny of the crypto business.

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