Skip to main content

What Factors Can Cause a Token’s Classification to Change?

Several factors can cause a token's classification to change. These include changes in the way the token is marketed and sold, the development of a secondary market for the token, and the degree of centralization of the project.

If a project's team continues to play a significant role in the token's value appreciation, it is more likely to be considered a security.

What Are the Typical Costs Associated with an ICO?
Can a Utility Token Ever Become a Security Token?
What Are the Risks Associated with Centralization in a Blockchain’s Security Model?
How Do Venture Capitalists Evaluate the Choice of a Hashing Algorithm When Funding New Cryptocurrency Projects?