RE: Explainer: Value Flows on Steem with SMTs [VIDEO]
I agree on the ICO issue with it's sketchy perception by SEC, Media, and public in general with the wave of pump and dumps.
@ned Maybe instead of labeling that function of fundraising as an ICO - since it's not really independent "Coin Offering" for a new platform or chain, the name of that function could be evolved away from that idea that they "might" be a form of securities/investment and towards something more positive along the lines of "crowdfunding" and focus it on how SMT can raise funds for projects and communities here on Steemit and the related caused they support in the "real world". *Like a kickstater or indigogo campaign.
A lot of communities/projects create UIA on Bitshares for that very same reason so I think finding a way to bring that terminology and focus to SMTs will be a positive thing to move that function over internally to Steemit.
It's a thin line with the SEC since over time the token value most likely will increase in time.
Or if it's going to be an ICO then put in the infrastructure to allow for a fully legal crowd funding launch to take place via an SMT. Partially legal or push a button to possibly break the law only confuses the situation. Let each issuer determine their own jurisdiction and announce their jurisdiction to investors. Let issuers put forth terms of service agreements and other legal protection mechanisms which investors can click to sign. Let issuers choose which investors to include or exclude from their ICOs so as to reduce their level of risk exposure.
If an issuer in a country where it's legal to crowdfund is trying to avoid SEC problems then all they have to do is put up a legal defense and an exclusion notice telling US investors not to participate. Just exclude US, South Korean and Chinese investors to reduce your risk if you're doing an ICO.