Leister

or an ITO, something where you're generating a presale, you're generating for the purposes of getting money from people.

And so that initial transaction is an investment contract because the only reason somebody would buy in the presale is the expectation of a return on their investment.

It goes further to state once that token has been purchased by a person,

If the purchaser then turns around and resells it on the secondary market, that resell does not qualify as an investment contract.

It is a secondary market routine transaction, no different than any other commodity.

I actually support this.

I support the idea because what it does is it puts the burden on the token issuer.

It puts the burden on that project.

When you're putting a pre-sell out there, the moment you do that, you are creating an investment contract.

You are therefore subject to regulatory scrutiny and that's protection for the people buying the pre-sale.

I have no problem with that.

I have no problem with it being temporary.

Because once again, once the investment is resolved, meaning I sell that asset to somebody else, once I've sold it, that person's off the hook.

The original issuer is off the hook because there's no longer a contract implied contract between the two.

The other part of this one, which I do somewhat like is it expects that this is all part of an actual product.

So if you have a presale where they're telling you, it's going to be a blockchain, there's going to be a blockchain for this.

They're saying that all of this is contingent on the maturity prospect.

So if you get to a point, if you say, I'm going to do a presale, I'm going to give you a blockchain.

And I say, and this goes to claims.

If I say the blockchain is going to do X, Y, Z, it'll do D apps.