Massachusetts to Halt 5 ICOs

18moons, Across Platforms, Mattervest, Pink Ribbon and Sparkco are engaged in the distribution of unregistered securities, Massachusetts authorities belive
28 March 2018   534

The Massachusetts state authorities decided to suspend five ICOs, because they believe that their organizers are engaged in the distribution of unregistered securities. This is reported by CoinDesk.

The Secretary of Massachusetts William Galvin ordered the organizers of ICO 18moons, Across Platforms, Mattervest, Pink Ribbon and Sparkco to suspend the fundraising after studying each of the campaigns.

Officials found that these campaigns were conducted in violation of the "General Law" of the state, according to which shares, bonds and investment contracts that guarantee profitability are recognized as securities. These five ICOs were identified during a larger state market inspection conducted by the state.

The organizers of the above mentioned ICOs are required to return the money to investors within 30 days. Companies are given another 45 days for direct transfer of funds, after investors are notified of ongoing activities.

According to the order, startups must provide detailed accountability after settlement with investors.

In addition, their organizers must permanently abandon the sale of unregistered securities in the state. At the same time, they are invited to go through official registration and distribute securities on legal grounds.

It is noteworthy that the regulators decided to abandon further investigation until the said ICOs return money to investors. However, if they refuse to comply with the demands of the authorities, the case will be referred to law enforcement agencies that "can take appropriate measures."

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CFTC to Issue ICO Investor Advisory

Before buying coins, you need to thoroughly study their nature and understand what factors can affect their price, CFTC advises 
17 July 2018   116

The US Commodity Futures Trading Commission (CFTC) published a document with recommendations for potential investors in ICO projects and token buyers. This is reported by Coindesk.

The agency's document says that before buying coins, you need to thoroughly study their nature and understand what factors can affect their price.

Also, a potential buyer should remember that, depending on the structuring, some tokens can be derivatives, commodities or securities.

Buying digital coins or tokens only because you expect to sell them at a higher price later is the definition of speculation and carries considerable risk, regardless of how good a white paper, application or business plan sounds. Unfortunately, fraud is another significant risk to consider. Your best protection is to thoroughly research digital coins or tokens and exercise caution. 

CFTC ICO Advisory

The guide also states that before investing in the ICO, it is necessary to find information about the organizers of the project, and also to find out whether they themselves participate in their  ICO.

Representatives of the agency also refer to the study, according to which more than 50% of ICO start-ups ceased to exist during the first four months after the end of the token.