What Is the Role of Secondary Market Trading in Proving Expectation of Profit?

The existence and promotion of secondary market trading for a token strongly indicates an expectation of profit. If the issuer facilitates or advertises the token's liquidity on exchanges, it suggests that the token is intended to be traded for capital gains.

The ability for investors to easily sell their tokens for profit reinforces the investment contract nature. Conversely, a lack of secondary market access can support a utility-only argument.