What Is a “Common Enterprise” in the Context of a Token Offering?

A common enterprise generally refers to the pooling of investors' funds, where the fortunes of the investors are linked to the success of the promoter's efforts. This can be horizontal (investors' fortunes tied to each other) or vertical (investors' fortunes tied to the promoter's efforts).

In ICOs, the pooled funds used for platform development typically satisfy this prong of the Howey Test.