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.

Can a Project Migrate from Being a Token to Having Its Own Coin?
How Does the Secondary Market for Used Mining Hardware Influence the Overall Network Hash Rate?
How Does the Classification Impact Secondary Market Trading of the Token?
What Are the Risks Associated with Centralization in a Blockchain’s Security Model?
What Is the Concept of ‘Miner Centralization’ and Its Risk to PoW Security?
How Does the Centralization of Liquidity Affect Market Depth across Crypto Exchanges?
What Is the Role of the Secondary Token’s Market Depth in the Stability of the System?
What Happens to the Secondary Token’s Value during a “Death Spiral” Event?