SEC Halts Munchee ICO for Securities Violations

Munchee Inc. has refunded tokens sold in a $15 million ICO following an investigation by the U.S. Securities and Exchange Commission (SEC)
12 December 2017   1779

The SEC announced yesterday that Munchee Inc. had provided refunds to investors after officials made contact and drew issue with its token sale, which the agency said constituted the offer and sale of unregistered securities.

Munchee Platform is a decentralized blockchain food review social platform. In October and November, Munchee carried out the offering of MUN tokens to raise about $15 million.

Munchee ICO2Munchee Platform

According to the report, the SEC argued that the MUN tokens constitute securities because they were investment contracts. The document also notes that the tokens were ultimately deemed a security regardless of their utility when the sale took place.

Even if MUN tokens had a practical use at the time of the offering, it would not preclude the token from being a security. Determining whether a transaction involves a security does not turn on labelling – such as characterizing an ICO as involving a "utility token" – but instead requires an assessment of "the economic realities underlying a transaction".

 

The SEC order

It is stated that agency first contacted Munchee on the second day of the sale and after that the company did not deliver any tokens to purchasers. The SEC decided not to impose a penalty due to the fact that ICO immediately returned the proceeds and cooperated with the investigation.

Recently, we have reported that the SEC shuts down PlexCorp ICO and files charges against the founder.

Brave Browser Start Paying BAT For Ads Viewing

Brave browser ICO was launched in 2017 by the creator of the JavaScript programming language and ex-Mozilla CEO Brendan Eich; it raised $35M in 30 seconds
25 April 2019   73

Users of the new Brave browser desktop version will finally be able to participate in the Brave Ads program.

Brave is developed by the creator of the JavaScript programming language and ex-Mozilla CEO Brendan Eich and is positioned as something more than a “ad-blocking browser”. The implementation of this idea is based on Brave Ads.

Users who decide to take part in the program will be able to receive up to 70% of the profits generated by the advertisements shown to them, TechCrunch reports with reference to the company's statement. Awards will be paid in the form of own tokens of the Basic Attention Tokens project (BAT), which users, in turn, will be able to share with the creators of the content they like on the network.

By default, donations to BAT will be transferred to owners of sites that a user visits most often, however, developers plan to realize the possibility of exchanging tokens for awards, such as vouchers for restaurant visits or hotel accommodations. Also, earned advertising tokens can be exchanged for other cryptocurrencies and Fiat through exchanges. If desired, users can continue to use Brave without receiving a BAT.

A lot of users don’t want to cash out [when they receive BAT]. It’s not a huge amount of value for most people, so they may prefer to just use it to give back. And that’s the real idea: A browser with the user steering it is replacing the ad tech complex.
 

Brendan Eich

Founder, Brave

BAT can only be used to reward publishers. Soon with their help, users will be able to buy additional content and, possibly, some products. The ability to withdraw tokens will be realized after the introduction of the user identification system.