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"That makes sense, but isn’t quite supporting the crypto-world’s preferred narrative." What gives you that impression? This article is about memecoins, not 're

"That makes sense, but isn’t quite supporting the crypto-world’s preferred narrative." What gives you that impression? This article is about memecoins, not 'real' cryptos like ethereum or bitcoin.

ForTheKidz 2y ago
> Meme coins typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation. In this regard, meme coins are akin to collectibles. This reads to me like "we won't treat your crypto like a security if you tie it to pop culture". Intent in purchasing crypto for novelty purposes doesn't change what it is or how people will use it.
- adastra22 2y ago
  Memecoins fail the Howey test, so they are not securities. App coins pass the Howey test, so they are securities. It's not complicated.
  - hiq 2y ago
    You haven't defined what a memecoin is though, so I'm not sure how that helps.
    - bavell 2y ago
      Memecoin = something that looks like a cryptocurrency when squinting but fails the Howey test
  - ForTheKidz 2y ago
    > Memecoins fail the Howey test Surely this would depend on use. There's nothing essentially different about memecoins that would imply a distinct outcome from say bitcoin. Of all the ways you could use this test, differentiating between "memecoins" and "legitcoins" seems like the worst possible scenario: there isn't actually any qualitative difference to find in the first place. Hence, why this will eventually fall on courts to figure out. I've never even heard of the term "app coin" before but surely it's just yet another crypto token with similar constraints and lack of obvious use.
    - adastra22 2y ago
      > I've never even heard of the term "app coin" before but surely it's just yet another crypto token with similar constraints and lack of obvious use. It's in the name. It's a token for use in an app. It derives value from the utility of that app and therefore the need to acquire the token to use the app. E.g. Filecoin. That pretty directly meets the Howey test. A memecoin is explicitly pointless and of no utility. Its only purpose is to be a collectable associated with some pop culture. There is no expectation of value derived from its creator's efforts. Bitcoin and ethereum are more complicated. Note that the SEC has previously ruled that bitcoin was not a security issuance, but ethereum was (though grandfathered in: the SEC declined to prosecute).

ForTheKidz 2y ago

> Meme coins typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation. In this regard, meme coins are akin to collectibles. This reads to me like "we won't treat your crypto like a security if you tie it to pop culture". Intent in purchasing crypto for novelty purposes doesn't change what it is or how people will use it.

adastra22 2y ago
Memecoins fail the Howey test, so they are not securities. App coins pass the Howey test, so they are securities. It's not complicated.
- hiq 2y ago
  You haven't defined what a memecoin is though, so I'm not sure how that helps.
  - bavell 2y ago
    Memecoin = something that looks like a cryptocurrency when squinting but fails the Howey test
- ForTheKidz 2y ago
  > Memecoins fail the Howey test Surely this would depend on use. There's nothing essentially different about memecoins that would imply a distinct outcome from say bitcoin. Of all the ways you could use this test, differentiating between "memecoins" and "legitcoins" seems like the worst possible scenario: there isn't actually any qualitative difference to find in the first place. Hence, why this will eventually fall on courts to figure out. I've never even heard of the term "app coin" before but surely it's just yet another crypto token with similar constraints and lack of obvious use.
  - adastra22 2y ago
    > I've never even heard of the term "app coin" before but surely it's just yet another crypto token with similar constraints and lack of obvious use. It's in the name. It's a token for use in an app. It derives value from the utility of that app and therefore the need to acquire the token to use the app. E.g. Filecoin. That pretty directly meets the Howey test. A memecoin is explicitly pointless and of no utility. Its only purpose is to be a collectable associated with some pop culture. There is no expectation of value derived from its creator's efforts. Bitcoin and ethereum are more complicated. Note that the SEC has previously ruled that bitcoin was not a security issuance, but ethereum was (though grandfathered in: the SEC declined to prosecute).