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Book Cover
Author Eagan, John Vincent, author

Title Munchee, the SEC, and utility tokens / John Vincent Eagan
Published London : SAGE Publications: SAGE Business Cases Originals, 2019
Online access available from:
Sage Business Cases    View Resource Record  


Description 1 online resource : illustrations
Series SAGE Knowledge. Cases
SAGE Knowledge. Cases
Summary Munchee, Inc. is a company that created a peer-to-peer food review platform based on blockchain technology. Food reviewers were to be compensated with tokens that could be used at restaurants. In July 2017 the Security and Exchange Commission (SEC) released guidance on initial coin offerings (ICOs) that indicated that some tokens issued in an ICO may be classified as a security. In their white paper, Munchee argued that their tokens were utility tokens and not a security under the Howey test. Munchee launched a token offering in October 2017. The SEC contacted Munchee and Munchee ceased their ICO and returned investor funds. The SEC issued a cease-and-desist order that indicated that Munchee had violated securities laws in their token offering. The primary issue in this case is how students can craft a token to satisfy the "utility token" exception to classifying a blockchain token as a security
Bibliography Includes bibliographical references and index
Notes Description based on XML content
Subject Munchee, Inc
Blockchains (Databases) -- Case studies.
Electronic commerce -- Case studies.
Electronic funds transfers -- Case studies.
Mobile commerce -- Case studies.
Securities fraud -- Case studies.
Genre/Form Case studies.
Form Electronic book
ISBN 1526467844
9781526467843 (ebook)