Social NFT Token for Membership

A Social NFT Token used for membership must not pass the howey test otherwise the NFT token would be considered a security and is required to be registered with the SEC.

Important factors to ensure the Membership Token is not interpreted as a security are,

  1. Once acquired, cannot be exchanged or traded
  2. No expectation of financial gain or profit
  3. No monetary value

There are other factors to consider…