Tokens Can Be Securities? Even ICO Advisors Agree with the SEC | CoinDesk

Allowing investors to participate in the upside of Blockchain Capital’s venture fund, the key advantage the tokens provide is allowing investors to have liquidity long before more traditional venture capital shares mature. If we assume that tokens are an investment, the question naturally arises: When are token-based investing strategies worth pursuing – both for issuers and for potential investors? Channing’s take on this question, from the perspective of the issuer’s advisor, is instructive. First, Argon doesn’t take on what Channing calls “two-guys-and-a-piece-of-paper” ICOs.

For the banking firm to consider a company for an ICO, Channing said, it must have an existing product, at a minimum, and an existing team. They also must have, ideally, revenue and profit.

According to Channing, Argon does not believe ICOs are appropriate for companies raising Series A or Series B financing. In some cases, she said, ICOs are appropriate for Series C and Series D rounds.

Source: Tokens Can Be Securities? Even ICO Advisors Agree with the SEC – CoinDesk