· March 13, 2018 · 3:30 pm
5 Things the SEC Wants You to Know About ICOs
Initial Coin Offerings (ICOs) are everywhere in the unregulated cryptocurrency space and have already proven themselves to be an incredibly effective means of crowdfunding projects with digital currency. Sometimes, however, ICOs are little more than fraudulent scams aiming to liberate investors from their hard-earned Ethereum (ETH). Because of this, the U.S. Securities and Exchange Commission has provided a list of ‘Things You Need to Know About ICOs.”
ICOs May Be Securities
First and foremost, the SEC wants investors to know that Initial Coin Offerings are — in many cases — securities. As such, these specific ICOs must operate under the rule of federal securities laws or risk invoking the SEC’s wrath. the regulatory body:
ICOs, based on specific facts, may be securities offerings, and fall under the SEC’s jurisdiction of enforcing federal securities laws.
Some ICOs Need to Register
Those ICOs which do qualify as securities must, therefore, legally with the SEC — whether they want to or not. Explains the SEC:
ICOs that are securities most likely need to be registered with the SEC or fall under an exemption to registration.
If It Looks Like a Token and Smells Like a Token
Of course, many ICOs would rather not have to register with the SEC and, thus, change the naming or structure of their tokens to appear as something else. In most cases, however, they still qualify as a security. Says the SEC:
ICOs, or more specifically tokens, can be called a variety of names, but merely calling a token a “utility” token or structuring it to provide some utility does not prevent the token from being a security.
Your Capital Is at Risk
Cryptocurrency is still often called a ‘Wild West,’ in which losses are rarely covered and runs rampant. As such, it is important to always do your own research, exercise a correct amount of skepticism, and carefully manage your investments. As noted by the SEC:
While some ICOs may be attempts at honest investment opportunities, many may be frauds, separating you from your hard-earned money with promises of guaranteed returns and future fortunes. They may also present substantial risks for loss or manipulation, including through hacking, with little recourse for victims after-the-fact.
Reach Out to ICOs
Finally, if you’re seriously considering investing in an ICO, the SEC recommends you reach out to the individuals running the project with questions. If they don’t give you clear answers, they probably aren’t capable of launching a successful product. Notes the SEC:
If you choose to invest in these products, please ask questions and demand clear answers.
What the SEC didn’t include in its friendly list, however, is a stern reminder that those getting involved in ICOs are also putting themselves at legal risk. Only last week, SEC Chairman , “Abide by the law. We are watching. Others are watching.” Wonder why the regulators left that one off the list?
What do you think of the U.S. Securities and Exchange Commission’s advice? Let us know in the comments below!
Images courtesy of Shutterstock, Bitcoinist archives, and AdobeStock.
Published at Tue, 13 Mar 2018 19:30:41 +0000
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Crypviser’s CVCoin Trades on OpenLedger; Bigger Exchanges Coming
Crypviser has recently finished the token distribution process, allowing the CVCoin token to be traded on the OpenLedger Decentralized Exchange. Plans for centralized exchanges have also been revealed.
Crypviser, CVCoin and the ICO
Online privacy is one of the most pressing issues of today’s internet. Although access to privacy-oriented tools continues to improve over time, other applications that do not focus on privacy often present themselves as a more intuitive alternative. has been on the fringe of financial privacy and now, thanks to the , it may play an important in communications privacy and its mainstream adoption.
Focusing on privacy and end-to-end message encryption, is leveraging the advantages provided by the blockchain technology to create an all-in-one network for secure social and business communications. The platform’s native token, CVCoin, will be required in order to interact with the communications platform and for in-chat payments.
Following a successful Initial Coin Offering (ICO) period, he token distribution process has been completed with campaign participants receiving their CVCoins in the form of a . A previous made by the team explains why the BTS blockchain was chosen:
Crypviser chose the Bitshares platform powered by OpenLedger based on its key features, which match Crypvisers technical requirements and ideology. The Bitshares platform is one of the most powerful, secure and scalable blockchain networks available today.
The team has also released some that show just how popular privacy tools can be. The campaign gathered over $3.4 Million in several cryptocurrencies and distributed 5.5 Million CVCoin tokens to roughly 3000 unique investors. Since then, the Crypviser community has grown at an outstanding speed and currently counts with more than 8000 members in various multi-lingual sub communities.
Bitshares & Openledger
Since the Crypviser network will use the Bitshares blockchain, the can be freely traded with no counterparty risk on the . The Facebook post reads:
The Crypviser team believes that the future of exchanges and trade platforms in decentralized blockhchain world belongs the decentralized exchanges.
Although trading hasn’t been officially announced by the Crypviser team, trades are already taking place within the OpenLedger exchange. The team has warned that the prices seen on these “pre-markets” may not reflect the real market price of the CVCoin token, given their low volume and the lack of availability on traditional platforms.
What is next for Crypviser?
With the CVCoin token distributed to ICO participants, Crypviser moves on to the next stages of development, including getting the token listed on traditional exchanges. Although the CVCoin is available on the OpenLedger DEX, Crypviser announced a plan which involves starting with the bigger exchanges like Bittrex, and , and moving on to smaller markets like C-CEX and others.
Crypviser will also commence the development of their own wallet which will provide token holders with an intuitive interface for token interaction. Along with the development of a new wallet, they will also launch an official website for the project and the CrypNews media channel, a platform that will feature the latest news in the world of Blockchain Tech & Cryptography.
Further down the line, the team will release an early Alfa version of the Crypvise App for social communication which will be available for to CVCoin ICO early bird participants.
Can Crypviser help shape the future of online privacy? Let us know what you think in the comment section.
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