But the tokens are not equity. Its not like "Kickstarter or your favorite JOBS act crowdfunding service" can't give you a little digital token (on blockchain or off blockchain) next to the equity or next to whatever you get on Kickstarter and then the business can claim you have a token to sell as protection if your not happy with the team's progress.

They don't have to be equity, and even if they were equity it wouldn't make a difference to his point.

If you think the tokens (equity or not) are likely to become worthless, you can sell them to somebody else, as long as there is anybody willing to buy. It doesn't matter that it's not equity.

Even if it was equity, at the point where it was a dead cert that the tokens would be worthless, they'd still be worthless, regardless of how hard the SEC ensures that you own a slice of that worthlessness.

Sure, but that's really no different than just selling transferable vouchers.