How Does the Token Price Appreciation Relate to Common Enterprise?
Token price appreciation is central to the common enterprise prong, particularly the expectation of profit. If the promoter's efforts (e.g. development, marketing) are the primary driver for the token's price appreciation, it strongly supports the vertical commonality argument.
When all investors rely on the same promoter for the price increase, it also suggests a pooling of interests, supporting horizontal commonality. The token's price is often the measure of the enterprise's shared success or failure.
Glossar
Common Enterprise
Association ⎊ criteria under regulatory review often focus on shared management, common operational control, or unified economic benefit derived from a set of interconnected digital assets or protocols.
Vertical Commonality
Derivation ⎊ Vertical Commonality, within cryptocurrency derivatives, signifies a strategic positioning across options with identical underlying assets but differing strike prices, capitalizing on anticipated volatility shifts and skew dynamics.
Token Price Appreciation
Valuation ⎊ Token price appreciation, within cryptocurrency markets, represents an increase in the perceived economic value of a digital asset, often driven by shifts in supply and demand dynamics or evolving market sentiment.
Price Appreciation
Momentum ⎊ Price appreciation, within cryptocurrency, options, and derivatives, signifies a sustained upward trajectory in asset valuation, often driven by increasing demand and speculative positioning.