BREAKING: This Could Lead to Another ICO Boom...
We just heard some breaking news about how the SEC have fined the guys at EOS over $24 million for an unregistered initial coin offering aka ICO.
Despite this seeming quite bearish at first glance, I want to talk about how this news could actually lead to a potential resurgence of the ICO boom that we witnessed back in 2017.
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Wasn't the ICO done by a foreign company and weren't US persons prohibited from taking part? EOS seriously tried preventing Americans from investing. If that is the case, isn't this really about the SEC violating boundaries? The details are crucial here.
I was wondering the same thing. The whole point to avoid being sued was to make sure U.S investors weren't even allowed to invest so what was the fine for I wonder?
@louisthomas, Now upcoming ICO's have to take all the Precautions and with that in my opinion we will going to see more genuine and projects with practical use cases. Stay blessed.
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Great point!
Thank you.
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Why are we assuming the fine will be 1% when it could just as easily resemble a flat fee that has to be negotiated down? We only have one data point.
1% fine seems very low if laws have been broken, it doesn’t seem like much of a deterrent so maybe we will start seeing more ICOs and hopefully ethereum will benefit. Thanks mike
Thanks for sharing your thoughts Mike :)
No thank you, keep the videos coming. Cheers mike
May be this is good for EOS as they are not a security and it is good for investors of EOS. But from the side of SEC i don't know why they charged a so low fine for Blockone
Anything that is not registered is certainly against the rules. It's good to do the control.
Wasn't the fine related to the original ERC tokens used for raising capital, for violating securities laws? Which were then exchanged for the EOS coins at a later date? Which is also why the EOS coin is not considered a security now.
Blockone came forth to submit and take the fine. there are founders who went the opposite way. Blockone knew this was coming and there are a number of things they put in place to mitigate the risk and only knock on a 24mil fine, the SEC only got them because of their advertising at consensus saying it could be directed to US investors.
Other ICO's that didn't have a product or aren't a utility token and have US investor money in the raise will be fined more, even up to double what they raised. This is more of a way to shut down projects than find ways to regulate them.
I don't see this is a way for people to raise capital via ICO, IEO or any sort of initial capital raised from public funds. Projects will now need to be self-funded or VC funded and then use a tokenized mechanism when their product is in Beta to get around it and ensure the token as a utility within the platform.
I can see plenty of ERC-20 token projects being taken out before they even had a chance now because of this rulling
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