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IMO governance/voting rights are an essential part of capital formation.

If you give somebody else governance/voting rights as part of the transaction - you might've created a security. That's why I mentioned capital formation.

There was an SEC paper which deemed "The DAO" (the first DAO) as a security.

I think most "governance tokens" also deemed as securities.




I can't know what they're doing, but it doesn't look like they're giving the lender any voting right. They're just borrowing some money and returning them in the following years. And I still can't see why this imply that the likelihood of the company failing is high.




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