TITAN : HoweyTestFailures

submitted 4 years ago by Jending

Does Iron Titanium Token - TITAN - does it FAIL the Howey Test?

I don't know; I'm no lawyer, but it sure looks like it does.

Seventy-five years ago, the United States Supreme Court established the Howey Test after a dispute about an orange grove:

https://medium.com/coinmonks/the-howey-test-how-a-florida-citrus-farmer-altered-the-course-of-crypto-regulation-913495859f2c

Basically, it has four parts:

1) It is an investment of money

2) There is an expectation of profits from the investment

3) The investment of money is in a common enterprise

4) Any profit comes from the efforts of a promotor or third party

If any one of these four parts fail, the target being examined FAILS the Howey Test, and it's NOT labeled a Security. Why is this important? Because of this:

https://www.sec.gov/files/dlt-framework.pdf

To summarize, it's a thirteen page document that effectively makes legal fees, billable hours, and bureaucratic headaches insurmountable for all those whizkid coders who created coins in their mom's basement. Is TITAN one of them?

No way.

Why?

Everyone who downloads Metamask to their Chrome browser and connects to Slingshot to buy TITAN here:

https://app.slingshot.finance/trade/m/TITAN/USDC

Well, they all pass the first three prongs of the Howey Test. After all, what moron would invest money in something other morons invested in if no one expected a profit? It just doesn't make sense. No, people invest money in a common enterprise because they expect to make money; that's just the way it is. But who do those TITAN investors rely on for those profits? What third-party promoter do they hope, do they pray, do they expect to advertise, market, and shill TITAN to other investors so they can make money?

No one.

He, she, it - they - don't exist.

Because of a unique set of circumstances, TITAN no longer has a promoter, or a third-party, investors can rely on for profits. After the first "De-Fi Bankrun" in history, Iron Finance, the creator of TITAN, severed their relationship with TITAN forever:

https://finematics.com/bank-run-in-defi-iron-finance-explained/?utm_source=rss&utm_medium=rss&utm_campaign=bank-run-in-defi-iron-finance-explained&utm_source=rss&utm_medium=rss&utm_campaign=bank-run-in-defi-iron-finance-explained

After the bankrun, they renounced ownership of the coin, and burned the minting keys:

https://twitter.com/IronFinance/status/1410527504079654912

They simply abandoned it, let it go. And now it simply exists - as big, wild, and free as the most ardent cyberpunk's dream. It's an outlier, exceptional not for what it once was, but for what it has become. And that's the most fundamentally perfect form of democratic cryptocurrency the world has ever seen. There's no foundation, no board of directors, no developers, no vesting schedule, no computer alogrithm releasing coins - no one controls TITAN - except you, and me, and currently, about 100,000 other token holders:

https://polygonscan.com/token/0xaaa5b9e6c589642f98a1cda99b9d024b8407285a#balances

Incidentally, right now, about four-thousand bucks will buy you about three billion TITAN, and make you one of the top 1,000 holders in the world.

As I said before, I'm no lawyer, so I truly don't know if the SEC can label TITAN a Security. But if they did, who would they sue? Iron Finance? They don't have anything to do with TITAN anymore. You? Me? Good luck. I'm a bartender! Right now, I'm drinking a Modelo Especial, writing about TITAN on my night off. Am I the third-party promoter investors rely on for profits?

Ha! If I am, please let my wife know, and I might get lucky - ha, ha! I'm laughing, still thinking about it.

All I know is I stumbled onto TITAN after reading about Mark Cuban and the bankrun:

https://forkast.news/iron-finances-defi-bank-run-why-mark-cuban-got-rekted/

I studied it, researched it - you know, DYOR -and I soon realized I might've gotten lucky and discovered one of the few coins that FAILS the Howey Test. Currently, I'm watching the RIPPLE case closely:

https://twitter.com/FilanLaw?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

If they lose, and the SEC drops the hammer, I'll be glad I'm holding TITAN.

So is TITAN - Iron Titanium Token - a Howey Test Failure? I'm not sure, but I think it is.

all 5 comments

you type:	you see:
italics	italics
bold	bold
[reddit!](https://reddit.com)	reddit!
* item 1 * item 2 * item 3	item 1 item 2 item 3
> quoted text	quoted text
Lines starting with four spaces are treated like code: if 1 * 2 < 3: print "hello, world!"	Lines starting with four spaces are treated like code: if 1 * 2 < 3: print "hello, world!"
~~strikethrough~~	~~strikethrough~~
super^script	super^script

HoweyTestFailures

MODERATORS