4 ms·

Probably named after the Howey Test (https://consumer.findlaw.com/securities-law/what-is-the-howey-test.html https://consumer.findlaw.com/securities-law/what-is

Probably named after the Howey Test (https://consumer.findlaw.com/securities-law/what-is-the-howey-test.html https://consumer.findlaw.com/securities-law/what-is-the-howe...) which is pretty clever.

setr 8y ago
Isn't it more likely derived from honeypot
- chimeracoder 8y ago
  > Isn't it more likely derived from honeypot It's almost certainly derived from the Howey Test.
- true_religion 8y ago
  Then they might have called it Honey Coins. That the SEC named it Howey, after a test that determines if something is a security---thus actually under SEC regulation---seems way more likely.
- pba 8y ago
  I wouldn't think so, its "Howey" with a 'w' rather than "honey".
- agr1277 8y ago
  https://www.coinist.io/the-howey-test-the-sec-and-ico/ https://www.coinist.io/the-howey-test-the-sec-and-ico/
senthil_rajasek 8y ago
I posted this article that answers this question and provides some more background info... https://news.ycombinator.com/item?id=17085208 https://news.ycombinator.com/item?id=17085208 https://www.marketwatch.com/story/the-sec-created-a-mock-ico-website-to-show-just-how-easy-it-is-for-investors-to-get-fleeced-2018-05-16 https://www.marketwatch.com/story/the-sec-created-a-mock-ico...
dane-pgp 8y ago
> Under the Howey Test, a transaction is an investment contract if: > 1. It is an investment of money > 2. There is an expectation of profits from the investment > 3. The investment of money is in a common enterprise > 4. Any profit comes from the efforts of a promoter or third party I don't know if the crypto-currency community have a widely accepted view of how this applies to specific currencies, but I feel that "store of value" / HODL coins are dangerously close to failing the Howey Test and thus not being accurately classed as currencies.
- Alex3917 8y ago
  Most people in the crypto community know that the majority of ICOs are illegal securities offerings. And by ‘in the community’ I mean people who run funds and regularly go to industry events with other fund managers, not people subscribed to random crypto subreddits. People in the industry generally know who is dirty and likely to get indicted.
  - JumpCrisscross 8y ago
    > Most people in the crypto community know that the majority of ICOs are illegal securities offerings The SEC has already said as much in respect of ICOs.
    - Alex3917 8y ago
      As far as I can tell, the SEC statements have changed almost nothing. Most people understood the situation even before the SEC said anything, some people still refuse to acknowledge reality even afterwards. I have yet to meet anyone who has changed their opinion on the legality of ICOs as a result of the SEC statements. In this respect professional fund managers are basically no different than redditors, where you show them an SEC statement and they see whatever they want to see in it.
      - JumpCrisscross 8y ago
        > I have yet to meet anyone who has changed their opinion on the legality of ICOs as a result of the SEC statements Sure, but there is a difference between “I had a different interpretation of the law when I issued securities” and “I blatantly violated SEC guidance.” The latter is easier to prosecute and litigate.

Probably named after the Howey Test (https://consumer.findlaw.com/securities-law/what-is-the-howey-test.html https://consumer.findlaw.com/securities-law/what-is-the-howe...) which is pretty clever.

setr 8y ago

Isn't it more likely derived from honeypot

chimeracoder 8y ago
> Isn't it more likely derived from honeypot It's almost certainly derived from the Howey Test.
true_religion 8y ago
Then they might have called it Honey Coins. That the SEC named it Howey, after a test that determines if something is a security---thus actually under SEC regulation---seems way more likely.
pba 8y ago
I wouldn't think so, its "Howey" with a 'w' rather than "honey".
agr1277 8y ago
https://www.coinist.io/the-howey-test-the-sec-and-ico/ https://www.coinist.io/the-howey-test-the-sec-and-ico/

senthil_rajasek 8y ago

I posted this article that answers this question and provides some more background info... https://news.ycombinator.com/item?id=17085208 https://news.ycombinator.com/item?id=17085208 https://www.marketwatch.com/story/the-sec-created-a-mock-ico-website-to-show-just-how-easy-it-is-for-investors-to-get-fleeced-2018-05-16 https://www.marketwatch.com/story/the-sec-created-a-mock-ico...

dane-pgp 8y ago

> Under the Howey Test, a transaction is an investment contract if: > 1. It is an investment of money > 2. There is an expectation of profits from the investment > 3. The investment of money is in a common enterprise > 4. Any profit comes from the efforts of a promoter or third party I don't know if the crypto-currency community have a widely accepted view of how this applies to specific currencies, but I feel that "store of value" / HODL coins are dangerously close to failing the Howey Test and thus not being accurately classed as currencies.

Alex3917 8y ago
Most people in the crypto community know that the majority of ICOs are illegal securities offerings. And by ‘in the community’ I mean people who run funds and regularly go to industry events with other fund managers, not people subscribed to random crypto subreddits. People in the industry generally know who is dirty and likely to get indicted.
- JumpCrisscross 8y ago
  > Most people in the crypto community know that the majority of ICOs are illegal securities offerings The SEC has already said as much in respect of ICOs.
  - Alex3917 8y ago
    As far as I can tell, the SEC statements have changed almost nothing. Most people understood the situation even before the SEC said anything, some people still refuse to acknowledge reality even afterwards. I have yet to meet anyone who has changed their opinion on the legality of ICOs as a result of the SEC statements. In this respect professional fund managers are basically no different than redditors, where you show them an SEC statement and they see whatever they want to see in it.
    - JumpCrisscross 8y ago
      > I have yet to meet anyone who has changed their opinion on the legality of ICOs as a result of the SEC statements Sure, but there is a difference between “I had a different interpretation of the law when I issued securities” and “I blatantly violated SEC guidance.” The latter is easier to prosecute and litigate.