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"In Ethereum, a centralized group of people put together a public sale of the token, promising great returns in exchange due to their visionary ideas. This is a
by nnx 3y ago
"In Ethereum, a centralized group of people put together a public sale of the token, promising great returns in exchange due to their visionary ideas. This is all perfectly fine, except they didn't register their sale as a security"
If I write a book with visionary ideas that promises to change your life (great returns) and continue to work on revisions as I come up with new ideas - should I register it as a security before I can sell my book?
The whole concept of securities laws makes little sense if you try to expand its reach beyond narrow traditional finance use cases... if even those cases make sense in the first place.
Might be better off repealing all this complexity/bureaucracy and better enforce existing generic laws about theft/fraud...
- refulgentis 3y agoYou nailed it, securities law doesn't make sense if you don't apply it to finance. Not sure that really advances the rest of the claims.
- H8crilA 3y agoOwning the book does not promise returns.
- dlubarov 3y agoHow about, say, Pokemon cards? Lots of people buy them with an expectation of profit, which relies on the efforts of The Pokemon Company (among others) to continue to grow the player base.
- H8crilA 3y agoThey very well could be. I'm knowledgeable enough to answer. I also wonder how does it work with one-of-a-kind collectibles, such as old letters written by famous people, paintings, rare/unique coins, ..., and NFTs.
- squirtlebonflow 3y agoNeither does owning Ethereum. You could lose money.
- JumpCrisscross 3y ago> If I write a book with visionary ideas that promises to change your life (great returns) and continue to work on revisions as I come up with new ideas - should I register it as a security before I can sell my book Is there an expectation of profit in those buying your book? No? Then it’s not a security. It’s a multi-prong test. Investor protection laws are substantial; everything is constantly being challenged in courts as a security.
- knewter 3y agoEveryone buying a book expects to profit at least as much as the cost of the book from it
- JetSpiegel 3y agoBut not in actual money. "Profit" in utility, not in cash.
- deleted 3y ago[deleted]