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It does seem to be ambiguous. If you read the qualifications in section III: https://www.sec.gov/litigation/investreport/34-81207.pdf https://www.sec.gov/litig
by brucephillips 9y ago
It does seem to be ambiguous. If you read the qualifications in section III: https://www.sec.gov/litigation/investreport/34-81207.pdf https://www.sec.gov/litigation/investreport/34-81207.pdf, they seem to apply to voucher tokens as well. Especially "A reasonable expectation of profit".
- josaka 9y agoThis seems like an important distinction, i.e., between an ownership token and a "voucher token," assuming the latter is a token that gives the holder the right to some service. Curious how a groupon isn't a security if a voucher token is.
- brucephillips 9y agoA groupon doesn't appreciate when the company succeeds.
- josaka 9y agoMaybe a better example would be a concert ticket, beanie babies, or baseball cards.
- Animats 9y agoThe Howey test for "is it a security?" * an investment of money has been made, * in a common enterprise and * the investor has the expectation of profits, which profits are expected to arise solely, or substantially, from the efforts of the promoter or third party.[1] That pretty much covers all "make money fast" schemes. [1] https://www.americanbar.org/content/dam/aba/publications/blt/2005/05/but-is-it-a-security-200505.authcheckdam.pdf https://www.americanbar.org/content/dam/aba/publications/blt...
- ThrustVectoring 9y agoIf Valve decided to fund the creation of Team Fortress 3 in part with exclusive pre-order hats, would that now violate securities law?
- brucephillips 9y agoRead the rest of the conversation before you comment. It's already been answered why pre-orders aren't securities.