SEC to Sue Kik Due to 2017 ICO

Watchdog believes Kik was performing unregisted securities sales, thereby violated the provisions of section 5 of the Securities Act of 1933 
05 June 2019   521

The US Securities and Exchange Commission (SEC) filed a lawsuit against the company-developer of instant messenger Kik, accusing it that during the ICO in 2017, it led an unregistered sale of securities. It is reported by CoinDesk.

In particular, the Canadian Kik Interactive Inc. accused of violating the provisions of section 5 of the Securities Act of 1933, under which the placement of securities requires registration.

By selling $100 million in securities without registering the offers or sales, we allege that Kik deprived investors of information to which they were legally entitled, and prevented investors from making informed investment decisions. Companies do not face a binary choice between innovation and compliance with the federal securities laws.

Steven Peikin

Co-director, SEC’s Division of Enforcement

The suit itself says that in October 2016, Kik hired an investment bank, which was supposed to help with identifying companies that could acquire its business. The investment bank contacted 35 market participants and signed non-disclosure agreements with seven companies that wanted more information about Kik.

By February 1, 2017, however, all seven bidders refused to buy Kik. Faced with the problem of diminishing reserves and not having the prospect of making profits from their current business, Kik's management discussed the idea of ​​launching a digital token as a means of raising capital. As a result, it was concluded that the ICO will be the only possible option for raising capital.

As a result of the ICO project, Kik raised $ 98 million, using these funds to develop its Kin token and the ecosystem based on it, in which users, it was claimed, could earn and spend cryptocurrency.

In January, the startup management announced that it intends to judicially challenge the decision of the US Securities and Exchange Commission (SEC) to recognize the token Kin as a security.

In addition, in May, Kik, with the support of Coinbase, launched a special fund to cover potential legal costs.

Algorand to Raise $60M in 4 Hour Tokensale

The project was founded by a MIT professor and a Turing Award winner Silvio Micali and is designed to solve the problems of scalability and consensus in the DLT
20 June 2019   797

The blockchain-project Algorand, aimed at creating an “borderless economy ”, announced the successful completion of the  ALGO tokensale, during which it raised over $ 60 million, CoinDesk reports.

The campaign was held on the CoinList platform and was conducted in the format of the so-called “Dutch auction”, in which the highest price is first announced, after which it gradually decreases.

Simultaneously with the completion of the tokensale, it was announced the launch of the main network of the Algorand. The platform processes 1000 transactions per second with a delay time of less than 5 seconds, which, as noted, puts it on par with such major payment networks as Visa and Mastercard.

In his work entitled The Monetary Experiment: Algorand A Thesis For Algo Currency Markets, the head of Arrington XRP Capital, Michael Arrington writes that Algorand is a project where macroeconomics meets cryptocurrencies. He also notes that Algorand, as a blockchain-resistant Proc-of-Stake algorithm, is distinguished by a combination of advanced cryptography and a smart economic model.

The Algorand project was founded by a professor at the Massachusetts Institute of Technology and a Turing Award winner Silvio Micali. The main task of Algorand is to solve the problems of scalability and consensus in the blockchain.

As noted, the exact number of buyers who participated in the auction remains unknown, but because of high demand, the campaign lasted less than four hours. In total, 25 million ALGO tokens were distributed with a starting price of $ 10 and a closing price of $ 2.40.

Representatives of the project also stated that since tokens are distributed to customers' wallets and are not available on stock exchanges, there is no need to talk about any value of Algorand market capitalization.

Algos are being dispersed to wallet right now (for successful bids).  Therefore – there are non on exchanges. [Therefore, no market capitalization is available for Algorand, though some have speculated it sits around $6 billion.] Which is still a top 10.

Algorand Team

Earlier, the project announced plans to auction 600 million ALGO tokens per year, and in the first five years it is planned to release 10 billion tokens.

Also note that over the last year, Algorand raised $ 66 million in venture capital from investors such as Union Square Ventures and Pillar Venture Capital.