1
Cryptocurrency is a form of code representing value, functioning as an electronic version of money or a store of value (e.g., Bitcoin).
2
Coins or tokens are bits of code used within a specific system to perform a particular function, such as paying for decentralized data storage, restaurant meals, or ride-sharing.
3
Initial Coin Offerings (ICOs) or Initial Token Offerings (ITOs) involve selling tokens for a system that does not yet exist to raise capital for its development.
4
ICOs are conceptually similar to pre-selling inventory rather than selling stock, meaning buyers typically do not receive voting rights.
5
ICOs raise significant legal questions regarding whether they constitute sales of securities that must be regulated by the United States Securities and Exchange Commission (SEC).