[Talyen42]

Most of the SEC's concerns about ICOs are related to marketing promises (amazing returns, we won't just steal your money and run away, etc etc.), and justifiably so.

I'm actually impressed with how well the SEC has been able to differentiate between legitimate cryptocurrencies and scam projects.

[dzdt]

I suggest you read the article. The point of it is that, in this case, the SEC does not object to marketing promises (though they probably could have).

The SEC objects that this ICO has an investment component. That is, that it is sold to people hoping to make money from it.

Basically they are enforcing that if there is an investment component, the coin is a security and needs to comply with security offering law.

[amarkov]

It sounds like the basis for claiming this ICO has an investment component was that Munchee made marketing promises about how much money you'd stand to gain from participating.