Simple Agreement for Future Tokens (SAFT) is a legal framework developed to help cryptocurrency ventures fundraise in compliance with applicable regulations. It gives cryptocurrency developers a tool to launch Initial Coin Offerings (ICOs) by selling digital tokens to investors in the form of a security.

The term SAFT was originally coined by venture capital firm and early seed investor in blockchain companies, Andreessen Horowitz, to describe a framework for use in launching ICOs. SAFT is based on a similar mechanism called the Simple Agreement for Future Equity (SAFE) which allows investors to convert their cash investment into equity in startup companies, but SafT provides more specific features for launching cryptocoins.

The SAFT provides a legal agreement between a cryptocurrency developer and an accredited investor. When signing a SAFT, the investor agrees to purchase the tokens at a later date and the developer agrees to deliver them. The investor and developer do not exchange the tokens until the tokens are officially issued. Until then, the only thing the investor has is an agreement in the form of a SAFT contract.

The SAFT not only protects the investors, but also the developers as they can ensure compliance with certain regulations. This agreement also serves to protect the developers from having to answer to too much regulatory uncertainty and providing a legal environment that is conducive to the launch of a new coin or platform.

In conclusion, the Simple Agreement for Future Tokens (SAFT) provides a valuable and safe mechanism for cryptocurrency developers to launch Initial Coin Offerings (ICOs). SAFT is based on the mechanism of a Simple Agreement for Future Equity (SAFE), adapted to meet the specific needs of launching cryptocoins. The agreement offers a safe, secure, and compliant way to fundraise, which protects the investor, the developer, and provides legal certainty to the cryptocoin launch.