3 ms·

"Every tradeable ICO is really an unregulated security." I disagree with this claim. It depends on whether the token constitutes an investment contract. If the

by Donzo 9y ago

"Every tradeable ICO is really an unregulated security." I disagree with this claim. It depends on whether the token constitutes an investment contract. If the token has utility, was sold as a utility bearing token (rather than an investment opportunity), and if the project possesses an open codebase which token holders can theoretically modify, then I don't believe said token is an unregulated security. Yet, the vast majority of tokens do in fact function as unregulated securities, which is why these waters are muddled.

KirinDave 9y ago
If it's a utility then why ICO? Strictly as a fundraising method? To enable resale? None of that requires a centralized consensus chain even in a trustless world. No, you ICO a utility token because you hope it'll go superluminal by interacting with an ecosystem full of unregulated securities.
- Donzo 9y ago
  That may be why you would do it, but many motivations exist in this world. To reduce all these projects to greed-tunnels is to reduce these many motivations and over-simplify the world. You are approaching the ICO as though there were some Boolean value as to whether they are "good" or "bad," and have returned "bad" for you. In reality, to throw them all in the "bad" bin is lazy and the opposite of due diligence. Let me give you some examples of other motivations beyond fast cash that might power an ICO: 1. Ideology 2. Community spirit I will not attempt to encapsulate what these motivations mean to various actors, but I can tell you that it's not "just about money" for everyone. However, I will fully concede that most ICOs are scams. Advertising networks are not being overly cautious by restricting adbuys on ICOs. And most people are not equipped to tell the difference between a scam project and a real one.
  - Donzo 9y ago
    Did down-voters take issue with my position? Please explain. I'd love to learn more about your position. I seek the truth.

by Donzo 9y ago

KirinDave 9y ago

If it's a utility then why ICO? Strictly as a fundraising method? To enable resale? None of that requires a centralized consensus chain even in a trustless world. No, you ICO a utility token because you hope it'll go superluminal by interacting with an ecosystem full of unregulated securities.

Donzo 9y ago
That may be why you would do it, but many motivations exist in this world. To reduce all these projects to greed-tunnels is to reduce these many motivations and over-simplify the world. You are approaching the ICO as though there were some Boolean value as to whether they are "good" or "bad," and have returned "bad" for you. In reality, to throw them all in the "bad" bin is lazy and the opposite of due diligence. Let me give you some examples of other motivations beyond fast cash that might power an ICO: 1. Ideology 2. Community spirit I will not attempt to encapsulate what these motivations mean to various actors, but I can tell you that it's not "just about money" for everyone. However, I will fully concede that most ICOs are scams. Advertising networks are not being overly cautious by restricting adbuys on ICOs. And most people are not equipped to tell the difference between a scam project and a real one.
- Donzo 9y ago
  Did down-voters take issue with my position? Please explain. I'd love to learn more about your position. I seek the truth.