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Todd R. Kornfeld Quoted in CoinDesk Article, 'So Long ICOs, Hello Airdrops: The Free Token Giveaway Craze Is Here'

3/16/2018
Todd R. Kornfeld Quoted in CoinDesk Article, 'So Long ICOs, Hello Airdrops: The Free Token Giveaway Craze Is Here'

Todd R. Kornfeld, of counsel in the Financial Services Practice Group of Pepper Hamilton, was quoted in the March 16, 2018 CoinDesk article, "So Long ICOs, Hello Airdrops: The Free Token Giveaway Craze Is Here." The article discusses "airdrops," token giveaways to broader interested community members with the idea that if people hold tokens, they'll be interested in seeing the network, and the token's price, grow and promote the platform just the same way as a public sale. However, issuers in the U.S. are still skittish about doing airdrops to promote platforms.

"We can't be sure," said Todd Kornfeld, counsel at the law firm Pepper Hamilton LLP, pointing to SEC actions from 1999 which targeted companies giving away free traditional equity.

"Perhaps the SEC thought there was some kind of quid pro quo in giving those securities away and that resulted in a benefit to the issuer," Kornfeld said. "And that fact pattern is similar to the fact pattern of an airdrop."

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