What Are the Risks of Marketing a Consumptive Use Token as an “Investment Opportunity”?

The risks of marketing a consumptive use token as an "investment opportunity" are significant and primarily involve regulatory enforcement action for selling an unregistered security. The issuer's marketing materials are key evidence for the SEC in proving the "expectation of profit" prong of the Howey Test.

If an issuer emphasizes potential returns or links the token's value to the efforts of the management team, they are effectively undercutting their own defense that the token is a non-security utility. This can lead to massive fines and mandatory rescission offers.