How to determine that a token is not a security?

Many ICO organizers and participants are asking a question of legal security. The US law which can be applied to tokens is considered to be the biggest hurdle. This is a task that must be addressed first and foremost.

When designing a token, you must ensure that it will pass the so-called “Howey test”.

The US Supreme Court has developed a test to determine whether your token is a security.

The Howey test can be presented in the form of three independent parameters. A token is considered a security if it meets all three criteria:

1. An investment of money

2. in a common enterprise 

3. with an expectation of profits predominantly from the efforts of others. 

Certain problems with US laws can arise if the token is recognized as a security. 

The Memessenger project passed this test successfully, completely removing the legal risks of holding and participating in The Memessenger ICO.

To view the results of the Memessenger test and run it for your own token, click on this link: https://goo.gl/SMhHv7