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Why? Now instead of a stock cert, I have a token subject to the same restrictions, with fewer possibilities for redeeming.

• SkyMarshal 9y ago
  If the token is tradable on public markets they're immediately redeemable. However, if a startup does an ICO and actually issues the tokens before they launch the platform that uses them (for example, an Ethereum-based ERC20 token), the SEC has said they'll consider that a security.
  • s73ver 9y ago
    "If the token is tradable on public markets" Why would they be? And if they could do that, why bother with the added complexity of that, and just make their stock tradable on public markets?
    • SkyMarshal 9y ago
      >Why would they be? Almost all of the Ethereum-hosted ERC20 tokens are. Instant liquidity, according to @balajis: https://medium.com/@balajis/thoughts-on-tokens-436109aabcbe https://medium.com/@balajis/thoughts-on-tokens-436109aabcbe >why bother with the added complexity of that, and just make their stock tradable on public markets? It's far less complex to write a basic whitepaper and copy-paste ERC20 into an Ethereum smart contract than it is to list a traditional stock on a public stock exchange. You don't even need revenue, or even a working product. https://theethereum.wiki/w/index.php/ERC20_Token_Standard https://theethereum.wiki/w/index.php/ERC20_Token_Standard