Quote from: boomboom on August 30, 2017, 12:35:04 PM

Quote from: leea-1334 on August 30, 2017, 12:25:26 PM

Quote from: boomboom on August 30, 2017, 11:23:21 AM

I think Speed's plan included an item for 'legal', and I would not be comfortable doing anything that would attract unwanted attention also. If the CKO was issued to players without any 'sale' then I think it would be ok, but always better to get that confirmed by an expert.

Quote

There are three tests to determine when an investment contract is a security. They are:

Is it an investment of money?
Is it in a common enterprise?
Are its profits to come solely from the efforts of others?

This definition comes directly from the language of a United States Supreme Court decision in the case of United States v. W.J. Howey Company in 1946. The words from the decision were; "The test is whether the scheme involves an investment of money in a common enterprise with profits to come solely from the efforts of others."

Do all three tests have to be passed or ticked to qualify the investment is a security? I mean, what if 1) yes investment of money 2) yes common enterprise 3) no, profits also come from your own effort.

If all three tests must score yes, then actually it is easy to make it NOT a security. Just make the system require effort from you also to make profit. You MUST update portfolios and surveys each payment to contribute to statistics, etc.

I think all three conditions must be met, but I'm not an expert.

edit: https://www.coindesk.com/every-token-snowflake-secs-ico-guidance-isnt-enough/

You still need a way to implement work, monitor that the work was done and be able to seize tokens if the work was not met. Can't imagine anyone wants to deal with the hassle on either side of the equation. NOW, if you implemented it as a backend mining of cryptonote token....that would be a more efficient proof of work, but an untradeable item as trading doesn't constitute work from the SEC's perspective.