4 ms·
Under US law (Howey test) a security is something that 1. You invest money in 2. Along with others 3. With the expectation of profit 4. Derived from the eff
by ianferrel 4y ago
Under US law (Howey test) a security is something that
1. You invest money in
2. Along with others
3. With the expectation of profit
4. Derived from the efforts of others
ETA: (the others in #2 need not be the same others in #4)
- deleted 4y ago[deleted]
- ForHackernews 4y agoUnder this definition, surely all cryptocurrencies fail test #4. Everyone is going to get rich and nobody is going to have to put in any effort, just HODL. WAGMI! To the moon!
- unicornmama 4y agoThere are some projects run by corporations who create and sell tokens, and whose founders have made claims promising returns derived from ongoing operations and investments.
- ianferrel 4y agoMost cryptocurrency promotors claim that they have this brilliant team and a great roadmap and in the future all the activity they're going to promote is what will make the token worth something, etc. Which is actually what does make them a security. The claim in the article is that Bitcoin is mostly not like that. There's a protocol and a bunch of users, but there's no one who's leading the enterprise and causing the value to do something. Not sure I buy that claim, but it's not totally crazy.