I don't understand how the token burning would make this a security. But constant token burning would probably be an annoyance when dealing with coinmarketcap and the total amount of the tokens
Burning tokens can make it an calculated investment like for example dividend. with burning tokens we mean tokens that get burned based on for example revenues not unsold tokens.
Yes, regular token burning is basically the same as paying a dividend. By doing this you reduce the supply which in turn leads to an increase in value of the remaining tokens. A slippery legal slope.
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Really? Even this counts as security?
I didn't think this before. But in SEC point of view, every ico is security. And people mostly buy these things to gain profit at some point, not spend in-app. If they would spend in-app, they would probably wait for the full version.
The chance is big yea, and you better not kick the Bull. We can make fancy models that reduce suppy with 90% and burn and pay dividend, but our goal is much better! Get adoption for the platform and that bring value on its own.
We really want this to serve as a utility token for the platform.
Aren't you based in Netherlands and probably not accepting any US citizens in ico.
So you are out of SEC's juristiction area which means they can't touch you.
We're indeed a dutch based and registrated company. We dont accept US and Chinese citizens in the ICO.
I dont think it's that easy, cause eventually the whole product need to be global and that include people from the US and China.
1) We want to be accepted on exchanges and exchanges dont list security's (if they do this can suddenly change in the future).
2) People from the US are allowed to buy utility tokens, just in the ICO it's different. If you make a dividend/burn system this can still be considered a security.
I don't think exchanges would make a problem about accepting a token with a burn program or buyback program because most of the exchanges applying this for their tokens. Like binance and kucoin. And also they are accepting others too for example utrust.
But it would be problematic for US people buy and use at one point which would something you don't want as i understand.
Better to prevent something than to cure it, Some exchanges like Bittrex already changed this.
It can suddenly be that exchanges starting to delist coins with security (features) to prevent claims etc. We would never want this
cause that would be awefull for the end product! Better to create a system where people get rewarded for performing tasks that benefit the metaverse.