4. the largest music monetization company is MUSE
What the fuck is that?
Okay this is
Peertracks and apparently the Bitshares asset is MUSE.
Peertracks runs on the Bitshares block chain, which means it can't scale[...]
The Peertracks Note features is interesting. It might turn audiences in P&D targets though, so I am not sure it is desirable. It is also not clear if these are illegal unregistered securities under SEC law in the USA. I do know that in the case of airplane VIP memberships the Supreme Court ruled they were not subject to the Howey test. I will need to study that more.
[...]I just don't think the masses are going to be tuned into Notes as something they are interested in. You are basically trying to turn the serious music fans into speculators. A rule of Marketing 101 is don't assume you can change an Apple into an Orange. You must target a real existing need, not a fantasy. Yeah speculators here will think Notes are cool, but the actual music fans I think will perceive it to be a negative feature and an insult to love of music. You basically corrupt the musicians teaching then to do P&D instead of produce great music. Sigh.
C. Expectation of profits "significantly" due to efforts of others.When tokens are created and issued (whether it be an ICO or tokens created+assigned during mining), if they are acquired primarily for investment and not primarily for use (in what ever ways a token can be used other than for holding for appreciation of value), then there is an expectation of profits due to appreciation of value.
The fact that no investor is in control of the decentralized collective "common enterprise" qualifies for the "due to efforts of others" clause of this criteria of the Howey test:
https://scholar.google.com/scholar_case?case=4524095741732962732&hl=en&as_sdt=6,33&as_vis=1&kqfp=10330650611816444522&kql=132&kqpfp=14710406364156655404#kqinvestment contracts may be found where the investor has duties that are nominal and insignificant or where the investor lacks any real control over the operation of the enterprise
So the only way a crypto-token can potentially avoid qualifying for this criteria is for there to be no expectation of profits, either because the tokens are never obtained for investment or always the primarily consideration is the use value and not the appreciation of value. As documented in my prior post and here in another example, if the primary consideration is the use value, then there is no expectation of value appreciation:
http://law.justia.com/cases/oregon/court-of-appeals/1975/535-p-2d-109-2.htmlJet Set is a nonprofit corporation, organized under the laws of Washington in 1970 for the purpose of owning and operating an airplane in order to provide vacation travel for its members. The club scheduled flights to fixed destinations. Members were permitted to reserve space on any flight on a first-come, first-served basis; however, scheduled flights were often canceled if there were insufficient reservations. Members, in addition to membership fees, paid approximately one-half the cost of commercial airline fares for their flights. Flights were limited to particular dates and destinations. Membership also included participation in certain social activities sponsored by the club, including parties, ground accommodation packages and social activities at some destinations. Memberships in Jet Set were transferable.
After Jet Set was incorporated in 1970 "select memberships" were sold for a price of $1,000. The proceeds from the sale of these memberships were placed in escrow until Jet Set secured the use of an airplane. Approximately $70,000 was raised from the sale of these memberships, which were lifetime and nontransferable in nature, and entitled the holder to fly on any Jet Set flight for $20. These memberships were also subject to monthly dues.
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