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Ask HN: Can we sell SAFEs for startups as futures contracts?

5 pointsby mixedenalmost 2 years ago

2 comments

nivertechalmost 2 years ago
SAFEs <i>are</i> futures contracts, but they usually aren&#x27;t transferrable (&quot;resselable&quot;, &quot;tradable&quot;, or &quot;marketable&quot;).<p>The resellability of a SAFE depends on the terms &amp; conditions specified in the agreement. Usually SAFEs have restrictions on transferability, meaning they cannot be resold or transferred to another party without the company&#x27;s consent.<p>Also even if the SAFE allows transferability, it might be sold to Accredited Investors only (at least in the US).<p>It&#x27;s a very bad idea for a startup to allow SAFE transferability, as you will not know who are your investors. And it will become a hell to locate all of them once you&#x27;ll do a priced round.<p>There was some over-the-conter trading in Telegram ICO SAFTs[1] though.<p>NOTE: IANAL<p>--<p>[1] SAFT - Simple Agreement For Future Tokens
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b20000almost 2 years ago
a future contract is for the delivery of a commodity, which has some kind of non zero value the market agrees on<p>startups can have zero value and until there is substantial IP there or customer base it remains zero<p>so i don’t see how SAFEs can become futures contracts