Crescent Moran Chasteen

Promising tokens before they exist is a common practice in the crypto industry – but also has the potential of becoming a legal and economic landmine. A recent Seoul court ruling against Wemade Co. shows how quickly a ‘future token’ promise can harden into liabilities. When does a promise become a liability? For South Korea’s Wemade, the answer was clear: the moment it told employees they would receive WEMIX tokens. A Seoul court recently ordered the company to deliver over $7 mn worth of tokens after failing to honor those commitments. While this ruling is not binding in the US,…