Building infrastructure for tokenized capital markets.
What makes something a security is its stated purpose and the reason you have for its existence. We provide concise descriptions for every term under the 1933 Act that means "a security".
TLDR: Token is less likely to be a security when: 1) it launches on a fully developed product/protocol/network, 2) token is meant for consumption and use within that product, 3) token value stays the same over time instead of appreciating.
TLDR: An investment contract is a type of security. Many securities exist, and they don’t have to be typical stocks and bonds. Investment contracts promise future returns of value for money invested today.
TLDR: If you sell someone an instrument or a contract that promises future returns because of the work you’ll do with their money, you are selling a security. Most tokens are securities. And that's okay.