Founders

Curious what this channel's consensus is on the legal risks of projects that have a token but can't be easily defined as a security.

Ex: A token-gated app that only has value when a broad % of members are actively contributing, but there is no onchain governance and the project relies on a centrally-controlled server.

TLDR: only launch a token *after* the product fully works, never to build the product.

These might help.

musician: gigameshmusic.com | dev: github.com/gigamesh

TLDR: only launch a token *after* the product fully works, never to build the product.

These might help.

https://paragraph.xyz/@thatalexpalmer/what-makes-token-security

https://paragraph.xyz/@thatalexpalmer/when-token-is-not-security

Productizing RWAfi @plumenetwork. Letting you earn from all RWAs on Plume using https://nest.credit. Hosting /rwa, /plume, /nest and https://palmer.earth

Would you say tokens that aren’t securities are almost like digital Chuck E. Cheese tokens?

summoning the swarm @operator. mod /dacc, aixcryp.to

Had to look those up, but yes, good analogy. Also:

- AWS or Azure credits
- AMEX, Visa, any credit card points
- Starbucks points

Essentially, “company native currency that only works inside that company”.

Can’t be exchangeable for USD under any circumstances (through a mechanism the company built themselves).