The test has two basic questions to determine whether the blockchain based token or cryptocurrency is a security or not.  

The first question is about whether the token provides its holder an opportunity to contribute towards the startup’s capital and in the process the holder gets a share of the startup’s profits?

The second question pertains to whether the project having a fund raising ICO generates profit completely from the work of individuals other than the creators or the founders of the project?

Incase the answer is yes to any of the above two questions, it most likely would be termed as a Security.