How Does the 'Expectation of Profit' Criterion Apply to Utility Tokens? ⎊ Path

How Does the ‘Expectation of Profit’ Criterion Apply to Utility Tokens?

The 'expectation of profit' criterion of the Howey Test is met if purchasers buy the token with the primary goal of financial gain, not solely for its utility. If a project heavily markets the token's potential price appreciation or if the token is purchased before the utility is functional, it suggests an investment motive.

Projects try to demonstrate that buyers are primarily seeking access to the network's service.

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