161–170 of 176 posts
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If they’re “pre-mined” then surely there is already a preset limited amount of tokens?
wouldn't that apply to every trading card and collectible item then?
It's way down, but this strikes me as the key section: --- By and large, the structures of initial coin offerings that I have seen promoted involve the offer and sale of securities and directly implicate the securities registration requirements and other investor protection provisions of our federal securities laws. Generally speaking, these laws provide that investors deserve to know what they are investing in and t…
https://techcrunch.com/2017/12/12/sec-shuts-down-munchee-ico...
Isn't that what Brave did with the BAT ICO?
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This is the (literal) textbook definition of a security: any note, stock, treasury stock, security future, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undi…
> 1. It is an investment of money 2. There is an expectation of profits from the investment 3. The investment of money is in a common enterprise 4. Any profit comes from the efforts of a promoter or third party ------------ Using the "Howey Test" on Bitcoin you find that Bitcoin and almost all other cryptocurrencies should be considered securities. 1. It is an investment of money yes, electricity and hardware are equ…
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> Basically, almost all ICOs so far are illegal. They are only illegal in the US if they allow US citizens to participate, and the majority ban US citizens. So I think you have it backward.
Unless they're using expensive KYC procedures, I doubt that many ICOs have done enough to exclude US investors that the law will excuse them from SEC regulations.
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> if you can't mine it yourself, or get someone independent from the issuer to do it for you, it's a security That's not quite right. You could say that WoW Gold is "premined". You can't "mine" it yourself, and it's only issued by World of Warcraft. Same thing with Walmart gift cards and Disney Dollars. Call it money, or tokens, or scrip, but it's not a security. If you sell it to users primarialy to transact with it…
This is basically correct. If the thing you're buying gives you a claim on the future profits of an organization, it is probably a security under US law. If the thing you are buying has only its intrinsic value, then it is a commodity. An example would be a baseball card (intrinsic value only) vs. a card that entitled you to some fraction of that baseball player's future income over the course of their career. The la…
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Something about that bothers me. Even in this thread some are discussing this as "SEC says". In a way this is a 'pump' for cryptos and that [1] footnote could have been straight up front in the "Public Statement".
Part of what should bother us is that it signals that the law has become too vague to predict, so things are legal and illegal based on the inklings of the law enforcers. This means people are forced to read tea leaves in the enforcer's statements to determine what will be illegal in the future, rather than just reading an objective law on paper.
That, sadly, isn't usually possible either, unless you were implying that a lawyer or team of lawyers would be the person or persons doing the reading. Tho it's still better than being "forced to read tea leaves in the enforcer's statements".
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> The Ethereum blockchain itself was funded from an ICO, and it’s doubtful that as much money would have been raised at such advantageous terms from traditional VC I'm not sure this argument is as strong as you seem to think it is.
Considering Ethereum's market cap is currently 1/2 of a trillion dollars, I'd say it's a pretty strong argument...