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Food app calls off ICO after SEC declares its tokens are unregistered securities

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Munchee, a San Francisco-based company, had told investors that they were buying a “utility” token, because the digital coin could be used within the app to buy goods and services at a later stage.

In a whitepaper, Munchee had also told investors that the token “does not pose a significant risk of implicating federal securities laws.”

But the SEC said that the company led investors to believe that the value of tokens would increase and be traded on secondary markets — thereby classifying them as securities, which must be registered with the regulator.

From Food app calls off ICO after SEC declares its tokens are unregistered securities

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