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RE: My Take On SMTs (Steem's Smart Media Tokens) And Why I Think Its The Game Changer For Steem. I Believe Steem Is About Where ETH Was In 2016 But For Social Media.
I like your points on this but one area of concern for me is making steem a target of negative talking points by the pundits who will claim SMT's are somewhat of a 'security' etc ... you have probably heard the same said about ether and neo.
Yes, and they probably are securities at least some of these tokens but it really does not matter unless you are a brick n' mortar business selling tokens as shares. Other countries don't have such insane laws as US does and much more lenient about raising capital without any SEC organization. Software tokens like Steem are Internet based and decentralized so almost impossible to shut down just like Bitcoin would be impossible to kill.
Yes, SEC is a b**** ... what I am actually picturing as a worst case scenario is that they would simply target Steemit Inc since there is a physical location along with any figure heads. But this of course would be an asinine over reach of authority and I wish it never happens!
Yep, its possible it could happen but extremely unlikely they would ever take it that far unless investors were getting out right fraud. I know Wyoming already passed a utility token bill. There's also a hole in the US securities law that says software tokens are not securities.
Do you have a reference link to the sec law you read regarding sw tokens? I want to read more about the current loophole as it stands now.
A prime example is how EOS structured their ICO.
https://strategiccoin.com/difference-utility-tokens-equity-tokens/
Simply put, while both equity and utility token prices may fluctuate, the key difference is that equity tokens entitle the holder to ownership rights, while utility tokens function as coupons and do not provide holders with an ownership stake in a company’s platform or another asset.