Simple Agreement for Future Tokens (SAFT)

A Simple Agreement for Future Tokens (SAFT) is a type of investment contract that allows investors to purchase tokens in a blockchain-based project before the tokens are fully developed. SAFTs are often used by startups that are still in the early stages of development and do not yet have a working product. By selling SAFTs, startups can raise capital to fund their development efforts.

SAFTs are similar to traditional securities in that they represent an investment in a company. However, SAFTs are not subject to the same regulations as traditional securities. This is because SAFTs are not considered to be securities under the U.S. Securities Act of 1933.

The lack of regulation surrounding SAFTs has made them a popular choice for startups looking to raise capital. However, the lack of regulation also means that SAFTs can be risky investments. Investors should carefully review the terms of any SAFT before investing.

Here are some of the key features of SAFTs:

* SAFTs are a type of investment contract that allows investors to purchase tokens in a blockchain-based project before the tokens are fully developed.
* SAFTs are often used by startups that are still in the early stages of development and do not yet have a working product.
* By selling SAFTs, startups can raise capital to fund their development efforts.
* SAFTs are similar to traditional securities in that they represent an investment in a company.
* SAFTs are not subject to the same regulations as traditional securities.
* The lack of regulation surrounding SAFTs has made them a popular choice for startups looking to raise capital.
* Investors should carefully review the terms of any SAFT before investing.