Swaps “Shares” for “Keys” Amid SEC Securities Concerns

Key Points:

  • has renamed core tokens from “Shares” to “Keys” to avoid appearing as security.
  • Legal experts warn that influencers must avoid promoting tokens as profit-generating to avoid SEC rules.
  • The platform continues rapid adoption despite concerns over incentives and tokenomics.

Popular social token platform has renamed its core digital asset from “Shares” to “Keys” just months after pivoting its model. The change comes amid warnings that calling the tokens “Shares” could categorize them as securities subject to SEC regulation.

Pivot to Social Tokens

Launched this August on Coinbase’s Base layer-2 network, lets users purchase tokens tied to influencer accounts. Holding the tokens unlocks exclusive chatroom access with those influencers.

The app has enjoyed meteoric growth, attracting celebrities beyond just crypto. But its original “Shares” branding for the social tokens may have been problematic legally.

Renaming to Avoid SEC Scrutiny?

By labeling the assets as “Shares,” risked meeting the criteria for securities under the SEC’s Howey Test. Calling them shares implies token holders, like stocks, acquire ownership stakes with profit potential.

To avoid inadvertently falling under SEC authority, has now renamed “Shares” to “Keys.” The change clarifies that tokens are purely utility-based in-app items rather than speculative securities.

While this renaming may clarify legal issues in the US, experts note risks remain depending on how influencers market and structure the benefits of holding their tokens. Promises of profit-sharing or fund distribution to token holders could still draw SEC attention.

Rapid Growth and Controversy

Despite nascent legal concerns, has seen massive adoption since its launch. The app has attracted over 300,000 users and amassed millions in trading volume.

But its exponential growth has sparked criticism. Skeptics have compared it to a Ponzi scheme, citing issues like rapidly inflating token prices. Others worry its incentives are misaligned, with creators benefitting far more than users. maintains its sustainable model, with plans to expand functionality and utility for token holders. But regulating uncertainties persist in interpreting how securities laws apply to emerging crypto social media platforms.


While renaming its tokens may reduce regulatory risk, still faces challenges in balancing growth and legal compliance. As the SEC advances into crypto, expect more decentralized social apps to grapple with shoehorning Web3 concepts into traditional securities frameworks.

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