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Is selling new Kanye West sneakers, yeezy's, a security? The resale price is usually 5x the retail price. I know there are some edge cases but how you market it
by ojr 9y ago
Is selling new Kanye West sneakers, yeezy's, a security? The resale price is usually 5x the retail price. I know there are some edge cases but how you market it can be the difference between illegal and legal. I think a problem with the DAO token, there was voting rights. A simple token coming off as a commodity should be safe
- yellowstuff 9y agoNeither of your points (price going up and voting rights) are what determines if something is a security. The article does a good job of running through what the law says makes something a security.
- ojr 9y ago"proportional dispensation of voting rights are important indicators of common enterprise" same author
- stult 9y agoNo, because it doesn't meet the Howey test. You may buy them with an expectation of profit, but they aren't a common enterprise that depends solely on the efforts of a third person. The effort to resell is solely yours. Now if you and your friends pooled money to buy them and you handled all the transactions, then maybe it'd meet the Howey test. The issue with the SEC opinion is that the Howey test may come out differently if applied to Ethereum miners as opposed to purchasers. Since miners are not relying solely on the efforts of others. So it's an odd fact pattern for existing case law.