This thread should be about scoring every ICO and project based on Coinbase's
Securities Law Framework (c.f. page 24).
I will update this list in this OP based on feedback in the thread.
Happy ICO shredding! Here we go...
A total score of 100+ on every one of the 3 major categories means "Very likely" for a token to be an investment security subject to SEC regulation.
The Common Enterprise items are determining whether the token holder has the ability to effect his own destiny without depending on actions of some group that received the Investment of Money.
The Expectation of Profits are if the token holders are expecting to receive collectivized profits from the ongoing operation of the enterprise or system. However the Howey test also refers to expectation of gains, so that would also include investment gains. So IMO the expectation of profits is tied into whether the token holders' potential investment gains depend on some group that received the Investment of Money. If so, then I am going to give at least 100 points for that category.
Note if your project and token is truly decentralized, you will receive a 0 scoring on every category. So please don't tell me this regulation is interring with our ability to have decentralized systems. The law exists
for a very good reason. The authorities are standing back and allowing us to reap what we sow, before they are forced to regulate eventually if we don't build truly decentralized systems.
Crowdsales that sell some product that will be produced by the funding raise (was Kickstarter's original model) are not investments with an expectation of profit. The only expectation is to receive the goods purchased. Selling tokens can be considered a s/w product, if there is no expectation of profit and/or investment gain dependency on the group that received the money invested. Regulatory-compliant crowd equity sites already exist on the Internet for companies that want to raise equity funding.
BitcoinPoints | Item |
0 | Investment of Money: Crowdsale |
0 | Common Enterprise: Pre-deployment |
0 | Common Enterprise: Fully operational protocol, not just a mockup |
0 | Common Enterprise: Live network is operational |
0 | Common Enterprise: egalitarian returns without ongoing effort |
0 | Common Enterprise: variable returns based on ongoing effort |
0 | Expection of Profit: Ownership or equity interest in a legal entity |
0 | Expection of Profit: Entitlement to a share of profits/gains of the enterprise |
0 | Expection of Profit: No function of token |
0 | Expection of Profit: Pre-deployment |
0 | Expection of Profit: Fully operational protocol, not just a mockup |
0 | Expection of Profit: Voting on budgets |
0 | Expection of Profit: Voting on governance |
0 | Expection of Profit: Marketed as an ICO, not as network access token |
Totals | Item |
0 | Investment of Money |
0 | Common Enterprise |
0 | Expection of Profit |
DashPoints | Item |
100 | Investment of Money: Crowdsale (invest money in masternodes in an enterprise run allegedly by "Evan Inc.") |
0 | Common Enterprise: Pre-deployment |
0 | Common Enterprise: Fully operational protocol, not just a mockup |
0 | Common Enterprise: Live network is operational |
25 | Common Enterprise: egalitarian returns without ongoing effort (masternode ROI) |
0 | Common Enterprise: variable returns based on ongoing effort |
0 | Expection of Profit: Ownership or equity interest in a legal entity |
100 | Expection of Profit: Entitlement to a share of profits/gains of the enterprise (masternode ROI) |
0 | Expection of Profit: No function of token |
0 | Expection of Profit: Pre-deployment |
0 | Expection of Profit: Fully operational protocol, not just a mockup |
0 | Expection of Profit: Voting on budgets (there is, but obfuscates that allegedly "Evan Inc." has controlling interest) |
0 | Expection of Profit: Voting on governance (there is, but obfuscates that allegedly "Evan Inc." has controlling interest) |
0 | Expection of Profit: Marketed as an ICO, not as network access token |
Totals | Item |
100 | Investment of Money |
25 | Common Enterprise |
100 | Expection of Profit |
EthereumPoints | Item |
100 | Investment of Money: Crowdsale |
70 | Common Enterprise: Pre-deployment |
60 | Common Enterprise: Fully operational protocol, not just a mockup |
50 | Common Enterprise: Live network is operational |
0 | Common Enterprise: egalitarian returns without ongoing effort |
0 | Common Enterprise: variable returns based on ongoing effort |
0 | Expection of Profit: Ownership or equity interest in a legal entity |
100 | Expection of Profit: Entitlement to a share of profits/gains of the enterprise |
0 | Expection of Profit: No function of token |
20 | Expection of Profit: Pre-deployment |
10 | Expection of Profit: Fully operational protocol, not just a mockup |
0 | Expection of Profit: Voting on budgets |
0 | Expection of Profit: Voting on governance |
50 | Expection of Profit: Marketed as an ICO, not as network access token |
Totals | Item |
100 | Investment of Money |
180 | Common Enterprise |
180 | Expection of Profit |
MoneroPoints | Item |
0 | Investment of Money: Crowdsale |
0 | Common Enterprise: Pre-deployment |
0 | Common Enterprise: Fully operational protocol, not just a mockup |
0 | Common Enterprise: Live network is operational |
0 | Common Enterprise: egalitarian returns without ongoing effort |
0 | Common Enterprise: variable returns based on ongoing effort |
0 | Expection of Profit: Ownership or equity interest in a legal entity |
0 | Expection of Profit: Entitlement to a share of profits/gains of the enterprise |
0 | Expection of Profit: No function of token |
0 | Expection of Profit: Pre-deployment |
0 | Expection of Profit: Fully operational protocol, not just a mockup |
0 | Expection of Profit: Voting on budgets |
0 | Expection of Profit: Voting on governance |
0 | Expection of Profit: Marketed as an ICO, not as network access token |
Totals | Item |
0 | Investment of Money |
0 | Common Enterprise |
0 | Expection of Profit |
SteemPoints | Item |
0 | Investment of Money: Crowdsale |
0 | Common Enterprise: Pre-deployment |
0 | Common Enterprise: Fully operational protocol, not just a mockup |
0 | Common Enterprise: Live network is operational |
0 | Common Enterprise: egalitarian returns without ongoing effort |
-20 | Common Enterprise: variable returns based on ongoing effort |
0 | Expection of Profit: Ownership or equity interest in a legal entity |
0 | Expection of Profit: Entitlement to a share of profits/gains of the enterprise |
0 | Expection of Profit: No function of token |
0 | Expection of Profit: Pre-deployment |
0 | Expection of Profit: Fully operational protocol, not just a mockup |
0 | Expection of Profit: Voting on budgets (yet but controlled by a few whales due to the sneaky mine) |
0 | Expection of Profit: Voting on governance (yet but controlled by a few whales due to the sneaky mine) |
0 | Expection of Profit: Marketed as an ICO, not as network access token |
Totals | Item |
0 | Investment of Money |
-20 | Common Enterprise |
0 | Expection of Profit |
WeTrustPoints | Item |
100 | Investment of Money: Crowdsale |
70 | Common Enterprise: Pre-deployment |
60 | Common Enterprise: Fully operational protocol, not just a mockup |
50 | Common Enterprise: Live network is operational |
0 | Common Enterprise: egalitarian returns without ongoing effort |
-20 | Common Enterprise: variable returns based on ongoing effort |
0 | Expection of Profit: Ownership or equity interest in a legal entity |
100 | Expection of Profit: Entitlement to a share of profits/gains of the enterprise |
0 | Expection of Profit: No function of token |
20 | Expection of Profit: Pre-deployment |
10 | Expection of Profit: Fully operational protocol, not just a mockup |
0 | Expection of Profit: Voting on budgets |
0 | Expection of Profit: Voting on governance |
50 | Expection of Profit: Marketed as an ICO, not as network access token |
Totals | Item |
100 | Investment of Money |
160 | Common Enterprise |
180 | Expection of Profit |