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
