I saw this news on coindesk and it's clear that regulations are gradually creeping into crypto space. Well, it's not a bad idea, SEC could not have charged them if the kik ICO
was registered
Topic: SEC charges Kik ICO for issuing unregistered ICO - page 2. (Read 346 times)
I do not like the fact that such organizations climb into the cryptocurrency sphere, but they just do their job. Kik's actions are too hard to justify.
I agree that there should be laws that protect the investors and they should be able to not get scammed. However sometimes it gets way too much, for example people invested into kik themselves and the token is going for half of what it used to be is still fine, there are people who invested into bitcoin that lost 70% of their money as well, going to SEC and telling them to get kik and get their money back is just a cheap way of complaining.
I do not think it should be done like this, maybe add rules beforehand and then start since that would at least put the rules in both the company and the investor and if the price still goes lower than we would at least not have this type of SEC involvement.
I do not think it should be done like this, maybe add rules beforehand and then start since that would at least put the rules in both the company and the investor and if the price still goes lower than we would at least not have this type of SEC involvement.
@vit05. ICOs are not a stupid way to raise funding. It is a democratized way of taking money directly from willing investors without needing the banks. Also, what the American government should do is stop the scams but stop regulating the whole cryptospace by making threats and gross overreach.
This was expected. Several assets will suffer similar punishments. And many exchanges are already adapting to these rules than the SEC imposes. Honestly, this punishment seems reasonable to me since it is not really possible to acquire anything with this token. It was just a stupid way to raise money.
This is really a difficult case. But we also cannot defend Kik while they are misusing investors' money and continuing to offer lower prices in the next rounds. It is not a good strategy and the SEC is doing its job properly.
If you continue to let Kik grow and let them continue to run out of money, what will happen next? they will lose all their capital and so will investors.
such a lack of transparency in calling capital and selling tokens is not acceptable in a big project.
If you continue to let Kik grow and let them continue to run out of money, what will happen next? they will lose all their capital and so will investors.
such a lack of transparency in calling capital and selling tokens is not acceptable in a big project.
The cryptospace has developed faster than the regulators have created laws on how to regulate it. I reckon ICO issuers should be allowed to issue tokens as investment as long as they are not a real scams similar to Bitconneeect.
Also, citizens should also by allowed to invest their own money in anything they want as long as they do not call the regulators if they lose their investment.
The Securities and Exchange Commission today sued Kik Interactive Inc. for conducting an illegal $100 million securities offering of digital tokens. The SEC charges that Kik sold the tokens to U.S. investors without registering their offer and sale as required by the U.S. securities laws.
As alleged in the SEC’s complaint, Kik had lost money for years on its sole product, an online messaging application, and the company’s management predicted internally that it would run out of money in 2017. In early 2017, the company sought to pivot to a new type of business, which it financed through the sale of one trillion digital tokens. Kik sold its “Kin” tokens to the public, and at a discounted price to wealthy purchasers, raising more than $55 million from U.S. investors. The complaint alleges that Kin tokens traded recently at about half of the value that public investors paid in the offering.
The complaint further alleges that Kik marketed the Kin tokens as an investment opportunity. Kik allegedly told investors that rising demand would drive up the value of Kin, and that Kik would undertake crucial work to spur that demand, including by incorporating the tokens into its messaging app, creating a new Kin transaction service, and building a system to reward other companies that adopt Kin. At the time Kik offered and sold the tokens, the SEC alleges these services and systems did not exist and there was nothing to purchase using Kin. Kik also allegedly claimed that it would keep three trillion Kin tokens, Kin tokens would immediately trade on secondary markets, and Kik would profit alongside investors from the increased demand that it would foster. The Kin offering involved securities transactions, and Kik was required to comply with the registration requirements of the U.S. securities laws.
Read in full https://www.sec.gov/news/press-release/2019-87
Also, citizens should also by allowed to invest their own money in anything they want as long as they do not call the regulators if they lose their investment.
The Securities and Exchange Commission today sued Kik Interactive Inc. for conducting an illegal $100 million securities offering of digital tokens. The SEC charges that Kik sold the tokens to U.S. investors without registering their offer and sale as required by the U.S. securities laws.
As alleged in the SEC’s complaint, Kik had lost money for years on its sole product, an online messaging application, and the company’s management predicted internally that it would run out of money in 2017. In early 2017, the company sought to pivot to a new type of business, which it financed through the sale of one trillion digital tokens. Kik sold its “Kin” tokens to the public, and at a discounted price to wealthy purchasers, raising more than $55 million from U.S. investors. The complaint alleges that Kin tokens traded recently at about half of the value that public investors paid in the offering.
The complaint further alleges that Kik marketed the Kin tokens as an investment opportunity. Kik allegedly told investors that rising demand would drive up the value of Kin, and that Kik would undertake crucial work to spur that demand, including by incorporating the tokens into its messaging app, creating a new Kin transaction service, and building a system to reward other companies that adopt Kin. At the time Kik offered and sold the tokens, the SEC alleges these services and systems did not exist and there was nothing to purchase using Kin. Kik also allegedly claimed that it would keep three trillion Kin tokens, Kin tokens would immediately trade on secondary markets, and Kik would profit alongside investors from the increased demand that it would foster. The Kin offering involved securities transactions, and Kik was required to comply with the registration requirements of the U.S. securities laws.
Read in full https://www.sec.gov/news/press-release/2019-87
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