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ICOs and Terms and Conditions of Contract.......

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The business community investors and regulators alike will benefit from a better understanding of the underlying factors why cryptographic token sales (also known as initial coin offerings, or ICOs) are so revolutionary and integral to future economic development.

What is a token?
A token = value that powers a network.

One difference between old-school small business launches and startups and projects in the crypto space is that the latter are all about networks from the get-go.

Crypto projects seeks to scale up into a vast network from nothing, beginning with facilitating transactions that would already be taking place.

Crypto business models are geared toward connecting community members who exist at this moment, and then activating these connections into immediate network expansion.

The holy grail here is, of course, to get as many people involved as early as possible and encourage them to become stakeholders in the project.

Stakeholders combine features of customers, investors, speculators, and network participants (traditional categories) all in one. By purchasing and holding a project's tokens, stakeholders are staking a claim within project territory. Value enhancement of the shared network resource – a token – flows to everyone involved: founders, token purchasers and developers alike, provided that longevity and sustainability stay in focus.

An ICO creates a community

In the old-school scenario, investors rely on a project's lead or core team to realize profits. In our world, growth is all about stakeholders.

Post-ICO, we suddenly see a big motley crew of smart people from any number of countries chomping at the bit to contribute to open-source code development, share about their interest with others, and signal to core team personnel and developers on matters ranging from business roadmaps to community guidelines to decisions at forks in the road (not just in the code) – not to mention whatever else we figure out how to optimize.

Let's call this whole phenomenon "stakeholdering."

By now everyone in the crypto community can recite the legal test designed to identify a security, as announced in 1946 by the U.S. Supreme Court in SEC v. Howey: whether a scheme (the court's word) "involves an investment of money in a common enterprise with profits to come solely from the efforts of others."

The government’s most detailed crypto guidance to date – an analysis by the SEC of whether tokens offered by "The DAO" comprised securities – is encouraging, at least insofar as it appears to acknowledge that utility tokens may qualify as something other than securities.

This conversation will continue later today

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