Read the full article here, authored by Richard A. Friedman.
An excerpt:
“I. A few general things to consider – tokenality:
- Is the token being acquired by investors seeking a return on investment (ROI)?
- Is the token being acquired by investors in order to become a member and/or be admitted to a group (i.e., includes an offer of benefits, perks, and privileges)?
- Is the token being acquired by investors to hold, store and/or use (i.e., like gold)?
- Is the token being acquired by investors for sentimental value and for appreciation (i.e., baseball cards have limited editions, historical significance)?
- Can the token being acquired by investors be used in a manner similar to Frequent Flyer Miles (i.e., tokens can be earned for certain actions (i.e., every mile travelled or for every dollar spent), encouraging loyalty through those rewards?
- Can the token being acquired by investors be used/redeemed as a Digital Coupons?
- Is the token being acquired by investors be different than a coin – they are distinguishable as follows:
A coin is a cyrptocurrency which represents a store of value, a medium of exchange, and a unit of account within the blockchain. There are only two things you can do with a coin:
- Use it to pay the transaction fees in a
- Trade it to someone
If it does something more, it’s a token.”