Australia crushes on Fraudulent and Deceptive ICO

Australia’s financial regulator is repressing on misleading initial coin offerings (ICOs), referring on “a serious breach of the Australian law”
03 May 2018   672449

In the result of the regulator’s requests, some issuers have stopped their token sales or are updating their structures. On Tuesday the Australian Securities and Investments Commission (ASIC) declared  that it is taking measures “on misleading or deceptive conduct in the marketing and selling of digital or virtual tokens via initial coin offerings (ICOs).” ASIC is an independent Australian governmental structure that conducts as the country’s corporate regulator.

ASIC is issuing inquiries to ICO issuers and their advisers where we identify conduct or statements that may be misleading or deceptive. This is in addition to our inquiries where we identify potentially unlicensed conduct. As a result of our inquiries, some issuers have halted their ICOs or have indicated the ICO structure will be modified.
ASIC
(The Australian Securities and Investments Commission)

ASIC has also refreshed its information sheet on ICOs and cryptocurrency which defines “misleading or deceptive conduct.”

If you are acting with someone else’s money, or selling something to someone, you have obligations. Regardless of the structure of the ICO, there is one law that will always apply: you cannot make misleading or deceptive statements about the product. This is going to be a key focus for us as this sector develops. 
John Price, 
Commissioner, ASIC

The Commission presented 4 examples of what this conduct may entail. “The use of social media to generate the appearance of a greater level of public interest in an ICO” is the 1 on the list, then “undertaking or arranging for a group to engage in trading strategies to generate the appearance of a greater level of buying and selling activity for an ICO or a crypto-asset.” Also, “failing to disclose adequate information about the ICO” and “suggesting that the ICO is a regulated product or the regulator has approved the ICO if that is not the case” are banned as well.

Chainlink May Sell Big Amount of Own Tokens

According to the experts' research, $30M worth tokens were sold by the ICO team itself
12 August 2019   213

The Chainlink team was suspected of large-scale liquidation of LINK tokens. For a month and a half, the project capitalization decreased by $ 600 million, Trustnodes reports.

On July 6, a recruitment message was posted on the project’s Twitter page, which, according to some observers, was the beginning of the dump.

We do sincerely appreciate our community’s continued support and understanding as we expand the number of people working on Chainlink, and we will of course do our best to ensure that our expansion plans are accomplished responsibly, carefully managing the company's resources, capital and LINK, with a focus on continuing to create an overall positive effect on the Chainlink network over the long-term.
 

Sergey Nazarov (old message in the company's blog)

Chainlink team

Following this message, a schedule was circulated on social networks showing the alleged token sales of 700,000 LINK at each price rebound after reaching a peak at the end of June.

Alleged Chainlink Dump, Aug 2019
Alleged Chainlink Dump, Aug 2019 

According to Etherscan, 14 transactions of 700,000 LINK were made, which totaled 9.8 million tokens, or about $ 30 million.

After going through a small chain of addresses, these tokens were sold on Binance, noted in Trustnodes.

Chainlink Selling, Aug. 2019
Chainlink Selling, Aug. 2019

Observers believe that at the end of June the daily trading volumes of ChainLink on the Binance exchange were artificially boosted. So, with a capitalization of only $ 1.4 billion, this figure amounted to $ 863 million. According to some, the price movement chart for the mentioned period looks unnatural, especially considering that volumes in favor of sales were recorded on one of the green candles. There is a possibility that the unknown wanted to provoke FOMO, but could not achieve the goal.

Some believe that the message about the expansion of the staff was only an attempt to hide the large-scale liquidation of tokens.

It is worth noting that in 2017 Chainlink raised $ 32 million through the sale of 350 million LINK through an ICO. At the same time, the team saved 650 million LINK for the further development of the project.

According to a recent analysis of the ICO market, Chainlink entered the top five most successful ICOs in terms of growth in bitcoin.