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Title: What is the defintion of a "Utility Token" according to SEC? Post by: magpie_lover on January 26, 2018, 07:47:46 AM Been reading some stuff about SECs intrepretation of tokens of late. According to this article (https://www.dlapiper.com/en/us/insights/publications/2017/12/sec-eats-away-at-munchee-utility-tokens-guidance-for-icos/):
"the concept is that a token with "utility" should carry an expectation of use, not an expectation of profits" IMHO, every token carries an expectation of use, right? and expectations of profits is a subjective thing, some might want to sell & profit, some might want to use it to build dapps etc. Title: Re: What is the defintion of a "Utility Token" according to SEC? Post by: Vit83 on January 26, 2018, 01:25:02 PM See a lot of ICO that dont want to work US citisens is this bad for investors? Looks like they to fool investors if they are afraid of SEC? Am I right?
Title: Re: What is the defintion of a "Utility Token" according to SEC? Post by: 左 on January 26, 2018, 01:30:13 PM See a lot of ICO that dont want to work US citisens is this bad for investors? Looks like they to fool investors if they are afraid of SEC? Am I right? It's mostly affecting american people so it doesn't really matter for the rest of us. Title: Re: What is the defintion of a "Utility Token" according to SEC? Post by: magpie_lover on January 26, 2018, 05:47:06 PM SEC has described utility tokens as the services or units of services that can be purchased. Utility tokens that a startup would issue to finance future customer's purchase should not be securities, since their purpose is to facilitate the purchase. See this link for further information. https://medium.com/startup-grind/understanding-the-difference-between-coins-utility-tokens-and-tokenized-securities-a6522655fb91 Thanks for the link. But I'm not sure whether this article necessarily addresses the latest developments in this space e.g Munchee. Munchee claimed that it was a "utility token" and SEC shut them down. Here's the article (https://techcrunch.com/2017/12/12/sec-shuts-down-munchee-ico/) Munchee said that it would use the offering proceeds to run its business, including hiring people to develop its product, promoting the Munchee App, and ensuring ‘the smooth operation of the MUN token ecosystem. Hence they went on to conclude that Munchee was actually releasing a security masquerading as a utility. Seems like SEC doesn't like the idea that the token sale proceeds will be used to fund the project. |