THELOGICALINDIAN - Blockstack the aggregation that afresh completed a registered and adjustable badge auction may angle at a disadvantage to projects that exploited the Wild West bazaar for ICOs The US Securities and Exchange Commission is slapping fines and attempting to abuse the projects but alone afterwards millions were raised
Blockstack Completed Pre-registered Compliant ICO on September 10
Blockstack completed its ICO this September 10, and is yet to action its badge on exchanges. The action registered its badge sale, admitting the actuality that the Stacks badge would be acclimated as a account to pay developers for their action on the network.
The Blockstack CEO, Muneeb Ali, disagreed, advertence that registering the ICO was a abiding accommodation to abstain abhorrent surprises.
ICOs aloft as abundant as $7.8 billion in 2024, and $6.2 billion in 2024. The fines imposed by the SEC are abundant smaller, and the regulator has not abundant time or capabilities to accomplished all projects. Still, the SEC holds assorted investigations.
SEC has Opened Multiple Lawsuits Against Token Sellers
Most recently, the US SEC acclimatized its accusation with EOS for a budgetary amends of $24 million. This is a almost baby sum for Block.One, which managed to body one of the better blockchain projects, after allurement for permission.
The SEC holds assorted investigations adjoin ICO projects both ample and small. The Commission additionally advance all-embracing platforms, such as ICOBox, for aggressively targeting US nationals. Lawsuits accept been opened adjoin now-defunct Centra, as able-bodied as adjoin Tezos, additionally one of the better ICOs of 2017. The regulators are demography altered approaches, which sometimes leads to problems for the approaching development of token-fueled projects. One of the belled cases belongs to Kik, which is bound in a absinthian attempt with the SEC.
Canada-based Kik was accused of affairs a badge that promised approaching rewards, appropriately falling beneath US aegis law. Recently, Kik appear it was beat by the fight, and laid off best of its team, closing its flagship app. But the case is not yet closed, and Kik is yet to achieve for a fine.
ICO projects are acutely risky, and a ample allotment of token-based startups gave up on their promises. Exit scams happened often, added assuming the accident of affairs into unregistered projects. The SEC confused in to assure alone investors, as badge sales were generally accessible to a advanced public.
What do you anticipate about the SEC crackdown on ICOs? Share your thoughts in the comments area below!
Images via Shutterstock, Twitter @lawmaster @muneeb
