Constructing ERC20 token that would violate Howey test yet would protect investor more than regulator does. Part 2. "Regular" investor protection.
Since writing previous article I’ve tried to research what exact protection does regular markets offer. So far I wasn’t excited.
They operate on several premises:
- Identities of all participats are known
- You can litigate against other party
- You can sustain litigation
Within the corporation structure itself there are no special means to influence the funds usage. All you can do is to:
- Have some information rights. Sometimes.
- Vote for Directors that sometimes have some influence on the Board of Directors.
Would be great to know that I’m wrong. Please, share some insight in comments.