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The test does not include any specification of what must be an investment contract, though. Things like fields of orange trees have failed to pass the Howey tes
by pclmulqdq 3y ago
The test does not include any specification of what must be an investment contract, though. Things like fields of orange trees have failed to pass the Howey test.
- Dylan16807 3y agoThe orange trees are there for the purpose of producing and selling oranges. In the case of a plain NFT, all labor associated with a piece of art is done before the NFT is sold. There is no enterprise generating profit for the owner. It's just an asset where they hope the value will increase.
- echelon 3y ago> It's just an asset where they hope the value will increase. If a16z invested in crypto / NFT companies that fail the Howey test, are they by extension culpable too?
- pclmulqdq 3y agoSure it is. And all that language about how you are buying into a project or this will be part of a future game with an economy is all part of that art too, right? And all the promises of airdrops are part of the art done beforehand, as are all of the promises that early buyers will be the "1%" of the new ecosystem?
- Dylan16807 3y agoI would say that a plain NFT doesn't have a game or airdrops. Impact Theory is not a plain NFT.
- pclmulqdq 3y agoI would agree with you that an NFT in itself does not constitute a security. An NFT as it was actually used by crypto people is a different story, though. And I would say that the "NFT as a pre-investment in a project" is the norm, not the exception in that regard.