The risks of Social Tokens

Token value depends on a creator’s ongoing content production. Failing to deliver would be professional suicide. Anecdotal accounts show that influencers can suffer psychological harm from the stress of constantly providing content. As a hypothetical example, would Taylor Swift have gone pop if the “TaylorCoin’s” value might’ve cratered?

Several legal gray areas exist for something as novel as social tokens, ranging from concerns about false advertising to broad liability issues. The SEC is working on defining safe harbor provisions for tokens, which would clarify some elements of the space.