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Yeah, that's true. They have to also be able to make a reasonable argument that they don't fit the legal definition of "security" or that they're exempt. Even then, regulators may see things differently or even contradict themselves. Sometimes I really want to leave this country...

Have you seen this one?
https://www.rootproject.co

I'm confused by these projects that have a "pre ICO" before the real ICO. I just don't get it. It does seem like any interesting project though. I like the idea of cryptocurrency helping impoverished people.

It's just a pre-sale with a bonus. They also said they "needed to do the pre-ICO before legally forming because the nonprofit element brings in a whole other sector of law, and requires 50k-ish of lawyer bills."

I am not a lawyer and don't understand how RootProject can claim to be so well protected. Just asked in their slack. Hopefully they've got more than that statement on the website!