hmmmm. So, kickstarter campaigns are also issuing securities? are airline miles ...

dpiers · on July 27, 2017

Under the Howey Test, a transaction is an investment contract if:

- It is an investment of money

- There is an expectation of profits from the investment

- The investment of money is in a common enterprise

- Any profit comes from the efforts of a promoter or third party

There is no expectation of profit from a Kickstarter contribution. You are buying a product, and have no stake in the company.

dagw · on July 27, 2017

You are buying a product

You're not even doing that, since there is no guarantee of delivery.

vasilipupkin · on July 27, 2017

what about airline miles? the only reason to get airline miles is an expectation of profit - if it's cheaper than paying cash. that difference is a profit. ( I don't think miles are a security, just as ethereum isn't ).

Sleeep · on July 27, 2017

No airline miles are not a security. They are non-negotiable, you can't sell them, they expire, they don't represent an ownership interest.

vasilipupkin · on July 27, 2017

negotiability, ability to sell, expiration and ownership interest are not part of howey test op described