321 sats \ 0 replies \ @Spartan 12 Jul 2022 \ on: If You Aren't Trying to be Money, Why Do You Need a Coin? bitcoin
The projects that create a new coin to fund their development are unregistered securities. Full stop.
Here is how the Howey Test is used to determine if something is a security. It is a simply pass / fail test. If you satisfy these 4 prongs, you pass. Passing means you are a security.
1. An investment of money

2. With the expectation of profits 

3. In a so-called “common enterprise” (roughly meaning: investors and the company rise and fall together)

4.From the efforts of a promoter or third party (Ex. a "Team")
write
preview