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Under the Howey Test, a transaction is an investment contract if: - It is an investment of money - There is an expectation of profits from the investment - T
by dpiers 9y ago
Under the Howey Test, a transaction is an investment contract if:
- It is an investment of money
- There is an expectation of profits from the investment
- The investment of money is in a common enterprise
- Any profit comes from the efforts of a promoter or third party
There is no expectation of profit from a Kickstarter contribution. You are buying a product, and have no stake in the company.
- dagw 9y agoYou are buying a product You're not even doing that, since there is no guarantee of delivery.
- vasilipupkin 9y agowhat about airline miles? the only reason to get airline miles is an expectation of profit - if it's cheaper than paying cash. that difference is a profit. ( I don't think miles are a security, just as ethereum isn't ).
- Sleeep 9y agoNo airline miles are not a security. They are non-negotiable, you can't sell them, they expire, they don't represent an ownership interest.
- vasilipupkin 9y agonegotiability, ability to sell, expiration and ownership interest are not part of howey test op described