The absence of guidelines for sales of tokens, SAFT and secondary futures contracts on SAFTs means that it is virtually impossible to determine with certainty the tax treatment of the various instruments in the United States and to determine whether a constructive sale takes place at the conclusion of one or more of these agreements. Therefore, SAFT holders entering into a secondary futures contract for the FTSA should consult with their tax advisors to determine whether the conclusion of the secondary futures contract on the basis of the actual facts of the transaction will likely lead to a constructive sale of the FTSA for tax purposes and the applicable tax reporting obligations. That same year, Kik Interactive, a Canadian mobile news start-up, raised US$50 million after filing securities with the SEC and selling SAFT securities to accredited investors. However, when the same company launched its second round of financing a month later, they did not do so through SAFT agreements and instead sold digital tokens that could be used as utilities for its service. The company argued that tokens were no longer an investment. Now, two years later, Kik is facing an SEC complaint about a $100 million unregistered ICO. This shows why more and more crypto-projects are turning to SAFTs to raise funds – everything else seems to mean legal recursions on the street. The use of this two-tiered model is intended to provide a funding model for symbolic investments that serve the company`s purpose. If successful, token exchanges can allow investors to participate financially in the (new) development of the network, without taking significant financial risk. In addition, these agreements are intended to encourage more institutional investors to participate in the markets. The Court also found that Kin`s IPO filled the final sample of the Howey test, as the investors in the public offering had a reasonable expectation of profits from the efforts of others, Kik. The Tribunal found that Kik had spoken several times and had attempted to expand Kin`s “profit potential,” including initially limiting the amount of kins that public offering participants could acquire, allowing first-time buyers to make a profit due to increased demand and value for Kin.