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Quiz 5: Token Classification

1.   To "tokenize" something simply means to create a digital representation of an asset, bundle of rights, or thing on a blockchain.

  1.   True
  2.   False

2.   Everything we see on Internet shopping sites is a digital representation of an asset, whether tangible (shoes) or intangible (gift certificates).

  1.   True
  2.   False

3.   Many tokens already fall within a well-developed legal and regulatory regime because they are simply digital representations of existing asset types.

  1.   True
  2.   False

4.   Tokenization changes the fundamental nature of the thing being represented digitally.

  1.   True
  2.   False

5.   If a token is used for payment in one narrow set of circumstances, such as e-money in a video game, it should automatically receive treatment as a generic means of payment.

  1.   True
  2.   False

6.   Which of the following tokenized asset categories can be used for a sensible token classification system?

  1.   Physical asset tokens
  2.   Services tokens
  3.   Intangible asset tokens
  4.   Native blockchain tokens
  5.   Stablecoins
  6.   All of the above

7.   Physical asset tokens are digital representations of tangible (real-world) assets that are created and maintained on a blockchain. For these tokens, the legal and regulatory treatment should be the same as the treatment of the same physical item.

  1.   True
  2.   False

8.   Service Tokens are digital representations of services to be provided by one or more persons/entities to other persons/entities. Which of the following would be examples of service tokens?

  1.   Legal services tokens.
  2.   Cleaning services tokens.
  3.   Concert ticket tokens.
  4.   Restaurant reservation tokens.
  5.   All of the above!.

9.   Intangible asset tokens are:

  1.   Any traditional intangible assets represented on a blockchain. (e.g., stock and other security tokens, real estate ownership, intellectual property, loyalty points...)
  2.   Tokens that buy you real estate in space.
  3.   Digital representations of exclusive collectibles, such as a painting in a private collection.
  4.   All of the above.

10.   Native blockchain tokens are inextricably linked to the underlying blockchain; no existence or purpose without the associated blockchain. These tokens are just a bundle of rights associated with the blockchain with no physical item involved.

  1.   True
  2.   False

11.   Stablecoins are a narrow type of token that is designed to maintain stable value against some underlying, reference or linked asset or pool/basket of assets.

  1.   True
  2.   False

12.   The nature of the asset does not matter. A token's functions and features are irrelevant when determining what regulations apply.

  1.   True
  2.   False

13.   If an activity was unlawful before, it is no longer unlawful once tokenized.

  1.   True
  2.   False

14.   The legal and regulatory treatment should become readily apparent upon an analysis of the functions and features of a particular token, whether fungible or non-fungible. There are many forms by which an asset can be represented. DLTs are just one of the newest.

  1.   True
  2.   False

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