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People worry about the classification into security or not, precisely because securities, if unregulated are a perfect vehicle for scams! Let me rephrase the ho

People worry about the classification into security or not, precisely because securities, if unregulated are a perfect vehicle for scams! Let me rephrase the howey test for you: “Hey just buy this thing from me, and trust me that I will do something great with your money and eventually return it to you, I promise!” Well, surprisingly there is a looong history of people exploiting a system like this to scam people. We learned, we have to regulate that kind of thing.

oblio 3y ago
You don't get it. Regulation is always bad and dumb people falling for scams... that's just their problem :-)
GoblinSlayer 3y ago
Then everything is a security, because you can exchange anything for money while saying words.
- Terretta 3y ago
  Saying certain words, yes. The “Howey Test” referenced by GP is based on a ruling from SEC v. W.J. Howey Co., which reached the Supreme Court in 1946: An investment contract exists if there is an "investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others." https://www.investopedia.com/terms/h/howey-test.asp https://www.investopedia.com/terms/h/howey-test.asp If the words sound like that, careful.
TekMol 3y ago
No. "trust me that I will do something great with your money and eventually return it to you, I promise" is not part of the deal when you buy a token. 1: Some of the deals are "Someone built this thing which is now out of their control. But this thing can be used with these tokes. Want some?". 2: Some of the deals are "I built this thing which is now out of my control. But this thing can be used with these tokes. Want some?". 3: Some of the deals are "I built this thing which is now kinda out of my control. I might be able to change it later, but only if the community stays behind me. Anyhow, this thing can be used with these tokes. Want some?". The SEC argues that many tokens fall into category 3 and that 3 is close enough to a security that the SEC should have a say in this.
- itsoktocry 3y ago
  These deal descriptions may be the ideal origin, but this is not how 90% of coins are dealt with today. Hard not to assume deliberate deceit from those claiming otherwise.
- GoblinSlayer 3y ago
  Some nocoiners equate cryptocurrency to tulips, but tulips aren't securities? On the other hand if you want a tulip, you will buy it on amazon, you won't grow it yourself.
nova22033 3y ago
“Hey just buy this thing from me, and trust me that I will do something great with your money and eventually return it to you, I promise!” Sounds like SBF talking about "the box" on the Odd Lots podcast..

oblio 3y ago

You don't get it. Regulation is always bad and dumb people falling for scams... that's just their problem :-)

GoblinSlayer 3y ago

Then everything is a security, because you can exchange anything for money while saying words.

Terretta 3y ago
Saying certain words, yes. The “Howey Test” referenced by GP is based on a ruling from SEC v. W.J. Howey Co., which reached the Supreme Court in 1946: An investment contract exists if there is an "investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others." https://www.investopedia.com/terms/h/howey-test.asp https://www.investopedia.com/terms/h/howey-test.asp If the words sound like that, careful.

TekMol 3y ago

No. "trust me that I will do something great with your money and eventually return it to you, I promise" is not part of the deal when you buy a token. 1: Some of the deals are "Someone built this thing which is now out of their control. But this thing can be used with these tokes. Want some?". 2: Some of the deals are "I built this thing which is now out of my control. But this thing can be used with these tokes. Want some?". 3: Some of the deals are "I built this thing which is now kinda out of my control. I might be able to change it later, but only if the community stays behind me. Anyhow, this thing can be used with these tokes. Want some?". The SEC argues that many tokens fall into category 3 and that 3 is close enough to a security that the SEC should have a say in this.

itsoktocry 3y ago
These deal descriptions may be the ideal origin, but this is not how 90% of coins are dealt with today. Hard not to assume deliberate deceit from those claiming otherwise.
GoblinSlayer 3y ago
Some nocoiners equate cryptocurrency to tulips, but tulips aren't securities? On the other hand if you want a tulip, you will buy it on amazon, you won't grow it yourself.

nova22033 3y ago

“Hey just buy this thing from me, and trust me that I will do something great with your money and eventually return it to you, I promise!” Sounds like SBF talking about "the box" on the Odd Lots podcast..