SEC Shuts Down Munchee ICO

Re:SEC Shuts Down Munchee ICO by nostrademons on Tuesday December 12, 2017 @01:19PM (#15907994)

A pure payment system within an app. Say that someone builds a social network that lets you easily get in touch with people who have need of skills that you possess. They then introduce a token system - call it "karma", maybe - that you can grant to people who perform good deeds for you, and then if your karma is positive, you can grant it to others in exchange for favors or services. Since you only receive karma for actions you perform and it doesn't rise in value based on the efforts of the social network, it's not a security. It is a currency, however, and could fall afoul of laws governing currencies.

BTW, a number of games successfully have things like this, eg. Linden dollars in Second Life, gold in WoW, or tokens in FarmVille.

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Re:SEC Shuts Down Munchee ICO by philipodonnell on Tuesday December 12, 2017 @02:31PM (#15908684)

> Since you only receive karma for actions you perform

That wouldn't really be an ICO, though, right? You have to be able to convert it back and forth between another currency, not just "earning" it through use of the software to be spent only there and never changing hands.

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Re:SEC Shuts Down Munchee ICO by detaro on Tuesday December 12, 2017 @03:43PM (#15909279)

You could bootstrap initial distribution through an ICO (e.g. if people need an initial stock to be able to distribute it to others). And e.g. in-game currency commonly can be bought, but not sold through official channels.

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Re:SEC Shuts Down Munchee ICO by collinmanderson on Tuesday December 12, 2017 @10:46PM (#15911857)

Right. The key difference is you're not allowed to sell in-game/app money for USD.

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Re:SEC Shuts Down Munchee ICO by tonysdg on Tuesday December 12, 2017 @02:24PM (#15908618)

Isn't that exactly how bounties work on the StackExchange websites?

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