Nestor Dubnevych
@nestor
Many projects are now using meme tokens in their go-to-market strategy. While these tokens often have lack utilities and are used for entertainment, I would suggest founders to consider a few aspects of such launches that might help mitigate legal and compliance risks. So I've put together a checklist for meme token launches that might be helpful to founders launching soon. (not legal advice!)
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Nestor Dubnevych
@nestor
Design tokenomics with a community focus: structure the tokenomics to emphasize community-building, avoiding features like dividends, rewards, or investment returns that could potentially classify the token as a security. Adopt fair token launch practices: ensure a fair token launch for your Token Generation Event (TGE) to maintain transparency and equity. Use airdrops for distribution: opt for airdrops over token sales for distributing tokens to minimize regulatory concerns and promote user engagement. Avoid financial and regulated use cases: steer clear of token applications related to financial or other regulated activities such as swaps, buybacks, staking, or yielding to avoid regulatory scrutiny.
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Nestor Dubnevych
@nestor
Refrain from promising investment returns: do not make any promises regarding financial returns as this may result in the token being classified as a security. Evaluate compliance of blockchain networks and launchpads: assess the financial and sanctions compliance of the blockchain network and launchpads you choose for deploying and distributing your meme token. Ensure marketing compliance: review all marketing and promotional materials to ensure they adhere to financial promotion regulations. Consider legal entity registration: register an entity to protect project developers during the pre-TGE stage. Plan for decentralized governance: If implementing decentralized governance, consider registering a legal wrapper for the token holder community in the post-TGE stage. Again, not legal advice! Happy to hear if you have any comments or feedback.
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