I am writing this today because I have some concerns about projects like “Hot-or-Not” and how they are handling certain issues. One major problem is the overwhelming presence of “soft-core pornography” videos on the platform. These videos appear to be uploaded by fake or catfish accounts, which is a significant problem considering the foundation’s goal of directly paying content creators for their work. Essentially, the platform has turned into a marketplace for stolen videos, allowing those who uploaded them to potentially profit while the original creators receive nothing. This not only taints the foundation’s vision but also exposes the project to potential lawsuits and cease and desist orders. It could also attract attention from regulatory bodies like the FCC and SEC, which could lead to serious consequences for the project.
Another issue I’ve noticed is that many of these videos are clearly stolen from the popular app TikTok, and they don’t even attempt to hide the TikTok label. This is a clear infringement on copyright laws, and it’s surprising to see that the application’s community, developers, and content moderators take no action to prevent or remove such infringements. This lack of enforcement is a significant concern and highlights a disregard for copyright regulations.
Moreover, there’s a possibility that this project could be considered an unregistered security offering. Although this is a topic of debate, I believe it’s worth addressing the potential legal ramifications, particularly in highly regulated areas. While I am excited about the progress and potential of this technology, I feel that the community is too eager to launch and gain funding support without fulfilling their ethical obligations to the community, the projects they claim to develop for, and the original content creators. It’s crucial for them to create effective safeguards for investors and content creators, but it seems they are neglecting these responsibilities.
I believe Coinbase US, Binance US, and other major exchanges might delist the ICP token until the legal situation surrounding these concerns is resolved. This would be a tragic outcome for me and other investors, as it would render our investments worthless unless we move to a location where selling the tokens is allowed without penalties. One possible workaround could be to swap the accumulated ICP on a decentralized exchange (DEX) with CkBTC or the upcoming CkETH, and then sell them on Coinbase as Bitcoin or Ethereum. However, this approach implies participating in a “tax-evasion-like scheme” in regulated areas, as DEXs currently do not provide adequate reporting to demonstrate the taxable event of swapping ICP for other cryptocurrencies. Furthermore, it suggests engaging in transactions involving “unregistered securities” in areas where such ownership is not permitted, potentially leading to criminal offenses. This overlooked and underestimated issue is concerning, and I feel that both users and investors, especially in the US, are not giving it enough attention and consideration.
Overall, I want to clarify that I don’t intend to diminish the progress made by the community in the IC ecosystem. However, I believe it’s essential for current developers, investors, and community members to be less driven by excitement and impatience and instead hold themselves accountable for the biases and shortcomings present within the IC. The community needs to address these concerns and develop effective plans of action, rather than relying solely on the DFINITY foundation to handle legal matters. This reliance raises questions about the level of control and influence DFINITY has over the blockchain, and it’s important to address these ethical concerns as well.