SEC Details Reasons For ICO ‘Suspensions,’ Warns About Pump-And-Dump

SEC Details Reasons For ICO ‘Suspensions,’ Warns About Pump-And-Dump

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The US Securities and Exchanges Commission (SEC) has issued a warning about ICOs and reasons it could “suspend” them in future. A circular from the regulator’s Office of Investor Education and Advocacy Monday focuses on “potential scams involving stock of companies claiming to be related to, or asserting they are engaging in” ICOs. In the bulletin, the SEC highlights three reasons it could “suspend trading” for “public interest” if an ICO provider is found to have fallen short of the law. These are: “A lack of current, accurate, or adequate information about the company – for example, when a company has not filed any periodic reports for an extended period; Questions about the accuracy of publicly available information, including in company press releases and reports, about the company’s current operational status and financial condition; or Questions about trading in the stock, including trading by insiders, potential market manipulation, and the ability to clear and settle transactions in the stock.” The update follows legislative clarifications from the SEC last month, in which it stated it would look at tokens on a case-by-case basis to establish whether or not each constitutes a security under its jurisdiction. In an explicit nod to some of the more volatile tokens which have entered …

Initial coin offerings have raised $1.2 billion and now surpass early stage VC funding

Initial coin offerings have raised $1.2 billion and now surpass early stage VC funding

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The amount of money raised by start-ups via so-called initial coin offerings (ICOs) has surpassed early stage venture capital (VC) funding for internet companies. ICOs are a way for start-ups to raise money by selling investors tokens in exchange for equity, similar to an initial public offering (IPO). Getty Images The amount of money raised by cryptocurrency and blockchain start-ups via so-called initial coin offerings (ICOs) has surpassed early stage venture capital (VC) funding for internet companies for the past two months. ICOs are a way for start-ups to raise money from users, similar to crowdfunding, by allowing them to buy a stake. In return, the user will receive a token or digital currency, which are equivalent to shares in the firm. ICOs are popular among cryptocurrency and blockchain start-ups and have exploded in the past few months. The total amount of money raised via ICOs in April was just under $100 million, but by May this had more than doubled to almost $250 million, according to Coinschedule, a website that tracks such data. In June, ICO funding had hit over $550 million and it was the first month ever that it surpassed angel and seed VC funding. This was …

Why Ethereum May Grow Higher in Value Than Bitcoin

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In May 2017, investors and spectators alike saw Bitcoin price pass the value of $2,300. This figure marks the highest peak of Bitcoin’s value in its entire lifetime. Due to the success of Bitcoin over the years, many investors have been attracted to it and other cryptocurrencies as well. However, Bitcoin is not the only cryptocurrency that has risen in value. Another leading cryptocurrency known as Ethereum has also ascended in value since January 2017. From its original value of $8.24, it has recently gone on to attain a figure of $203, which represents a rise of 2,367 percent. Investors worried It has been within the last few years that cryptocurrencies have gained much favor among investors who are looking for alternative means of investing other than the traditional investment mediums. While most investors still have their money invested in traditional financial markets, such as the stock market and the forex market, a lot of these investors have become worried about the economic climate of the world economy. With recent events pointing to its inherent instability, many investors have been looking to other means of investment where they can put their money. With the creation and popularization of cryptocurrency, as well as its sharp rise in value, many …