Gab is getting into crypto-world

The controversial social media intends to make an ICO
01 February 2018   675

According to the SEC filing of February, 30th alt-right-leaning Gab intends to raise $10 mln in its ICO. The funding is going to be under Reg A+, that allows non-accredited U.S. investors to buy equity in startups.

As Gab CEO clarified, the company already created 2 mln tokens on Ethereum and is willing to sell it as Class B shares in the company, $5 a piece upon release. Because of the company’s ideology that many ICOs are “fraudulently raising funds” by bypassing regulations and standards, it decided to go fully in fiat.

The media brand also is planning to launch its own peer-to-peer social networking infrastructure Exodus. The company says it would allow to “offload the risks of routing data”. The architecture would rely on an existing distributed data protocol Dat and a content addressing system IPFS. It also considers such platforms as EOS and Blockstack.

The reactions on Twitter are all but welcoming:

@bitninja61o8 said «Lol Alt Right lol get real losers. The day I listen to these people for Credible Crypto news is the day I have lost my mind. Lol».

@EduEngineer said «Are there even enough alt-right to devote an online t-shirt shop to? C'mon, it's the crypto world. We can be the ones to not make every god damn thing political». 

@ali said «They’re not alt-right. And even if they were, the promise of $crypto belongs to all. Stop ruining it with shoddy journalism».

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3 ICOs of Extrabit banned by Alabama Securities Watchdog

Alabama Securities Commission (ASC) has ordered alleged cryptocurrency mining firm Extrabit to stop its token sale offering in the state
25 May 2018   57

The U.S. state's securities regulator, the Alabama Securities Commission (ASC), has supported its colleagues in Texas and New Jersey in hitting out at ICOs that are soliciting local citizens. The cease-and-desist order which was published yesterday  claimed that the agency has ordered purported cryptocurrency mining firm Extrabit to cease its token sale offering in the state.

The ASC declared the company has been illegally begging Alabama investors with what it considers an unregistered securities offering after it announced its token sale on the website of WSFA, an NBC-affiliated TV station recognized in the state capital, Montgomery. While presently the online advertisement appears to have been taken down, the agency said in the order that the firm originally claimed that investors in the pre-ICO phase could buy Extrabit's token "EXB" at half price.

The advertisement claimed that in order to take part in the pre-sale, the user should invest $20,000 and after the purchase, the tokens will be sent to MyEtherWallet within 48 hours. Then, Extrabit's white paper states that, since the firm generates its profits chiefly from mining bitcoin, zcash and monero, it pledges a 185 percent return on investment every quarter for investors who maintain a positive balance in their EXB wallet.

As well as offering unbooked securities, the ASC said the project made "materially misleading" suggestions to deceive investors. Extrabit is not the only token project that is targeting residents in Alabama. A Google search for "token sale" on the WSFA website currently comes up with over 200 press release-style ads from various ICO projects. 

The ASC has also checked two other token sale projects, called LEV and Platinum, with cease-and-desist orders entered on May 2 and May 18. Like with Extrabit, the agency charged the two projects of selling unregistered securities in Alabama while making vaporous promises to potential investors over the likely returns on investment.