Another unregistered security disguised as an ICO. What did they expect? There was this mindset in the "crypto" community that they'd found a way to make "take the money and run" legal. They were wrong. SEC info on ICOs: [1] The SEC has been shutting down about one ICO operation a week, starting with the really sleazy ones.[1]
It's possible to have a legit token that's not a security, but it has to mostly be used for something like buying music or games, and not primarily cashed out as a speculative investment. You can ask the SEC for a "no action letter" for a legit token.
The latest thing is virtual reality world ICO tokens. See "Decentraland" and "Sominium Space". They're both frantically trying to put enough reality behind their virtual worlds that they can argue that their "blockchain based virtual land sales" are to people who want to use the VR world, not to people who want to flip virtual land.
It's possible to have a legit token that's not a security, but it has to mostly be used for something like buying music or games, and not primarily cashed out as a speculative investment. You can ask the SEC for a "no action letter" for a legit token.
The latest thing is virtual reality world ICO tokens. See "Decentraland" and "Sominium Space". They're both frantically trying to put enough reality behind their virtual worlds that they can argue that their "blockchain based virtual land sales" are to people who want to use the VR world, not to people who want to flip virtual land.
Howeycoins: https://www.howeycoins.com
[1] https://www.sec.gov/ICO
[2] https://www.sec.gov/spotlight/cybersecurity-enforcement-acti...