From Tim Bukher’s Hackernoon article:
Last week the SEC hit Kik Interactive with a federal complaint alleging violations of the Securities Act in connection with Kik’s ICO of its digital “Kin” token. I tweeted my gut check of the allegations while the story was fresh, promising to provide a more nuanced impression once I’ve had a chance to digest.
TLDR:
- Assuming the case doesn’t settle prior to some sort of court and/or jury judgment, we’ll finally get an update on what “the efforts of others” (from the Third Howey Factor) means in the context of digital token sales.
- Kik seems to have done too much wrong for this case to provide much clarity on whether there is a right way to legally issue a digital token.
The original Hackernoon article is available here.
Please note: The above-linked article encompasses Tim Bukher’s personal opinions regarding the matter. It does not constitute legal advice nor, necessarily, the opinion of the Bukher LLC firm.