A big concern for anyone seriously considering an ICO (initial coin offering) is recent rulings in the US and especially the SEC regarding the view that an ICO is a securities offering and therefore should be handled through a public trading exchange such as the NYSE or NASDAQ.

From what I’ve read, this thinking stems from a court case SEC vs Howie that resulted in a definition of a security that went beyond traditional stock offerings to any situation where the person investing is receiving a profit from their investment without any additional work being contributed by the investor… yes its complicated but reasonable if you give it some time to sink in.

Since really getting to understand this problem I have been working on a ICO’ish model that behaves more like a franchise in that while the investor does get a return on their investment, they also must participate in the business and help grow the value of their business as part of a community… a la a franchise… think McDonalds franchise.

The model has extended benefits for application to app developers so as soon as I lock the mechanics down I’ll publish more. Im calling the model a “Token Franchise Offering".