Topic: SEC v. Munchee App ICO (Read 70 times)
Lots of misinformation out there about what went wrong at Munchee - as an advisor, I decided to punch up a summary of what I heard and saw: https://medium.com/swlh/what-went-wrong-at-munchee-ico-sec-subpoena-a468cba42e10
sorry to offer the unsolicited opinion, but my take is Munchee likely had a good argument as a utility token but their pennystock-like pump and dump advertising campaign sunk them. Any thoughts?
https://youtu.be/h-O1Hbz0hC8
https://youtu.be/h-O1Hbz0hC8
It seemed like a pretty solid idea to me as a utility token, but the arguments from the SEC make me think they are now taking a conservative stance vis-a-vis utility arguments. Indeed, it's obvious that the promises of future returns were the "smoking gun" in this case, from looking at the SEC order:
Quote
In addition, Munchee made public statements or endorsed other people’s public statements that touted the opportunity to profit. For example, on or about October 25, 2017, Munchee created a public posting on Facebook, linked to a third-party YouTube video, and wrote “199% GAINS on MUN token at ICO price! Sign up for PRE-SALE NOW.” The linked video featured a person who said...“Pretty much, if you get into it early enough, you’ll probably most likely get a return on it....a $1,000 investment could create a $94,000 return.”
That's pretty egregious stuff. Unfortunately, the SEC went for the easy kill, so we can only glean so much from this regarding precedent.
sorry to offer the unsolicited opinion, but my take is Munchee likely had a good argument as a utility token but their pennystock-like pump and dump advertising campaign sunk them. Any thoughts?
https://youtu.be/h-O1Hbz0hC8
https://youtu.be/h-O1Hbz0hC8
Jump to: