The Commission on securities and exchange Commission (SEC) conducted an investigation against Russian website ICO Rating, which releases the cryptocurrency related projects and tokens. According to sources, now the resource will have to pay a huge fine for touting unregistered securities for remuneration and were not informed about it. According to the statement, the founders of the website have agreed to pay the fine and chose not to reveal any information about the received amounts.
What’s the matter?
The Commission directed the cryptocurrency ICO Rating monitoring to provide data on the fees that they received for the listing and promotion of the ICO projects are not registered with the SEC. In the period from December 2017 to July 2018, there were several violations of the law. In turn, not recognizing and not denying the allegations – a guide to ICO Rating, agreed to pay a fine in the amount of $ 998 268 and terminate further advertising of the unregistered projects for money.
Now the site is visited by more than 110 thousand people per month. Although the site claimed to conduct independent analytical studies, in fact the information about the number of ICO projects are published for a fee.
Read on: What key features have fraudulent ICO? The response of the FBI.
To trade securities this is simply unacceptable, especially if we are talking about unregistered tokens. According to the law, such a platform needs to make clear that some of the subjects advertised for the money. Let me remind you, last year, similar charges were brought against several celebrities. One of the most famous cases is the is a Scam-project Centra famous boxer Floyd Mayweather and rapper DJ Khaled. Here is what it says about the Deputy Director of the SEC division of enforcement Melissa hodgeman.
The securities act requires promoters, including both individuals and legal entities to disclose the amounts that were received from the advertising of investment projects. This is necessary so that potential investors understood that you are viewing paid content. Moreover, this requirement works no matter has been released by the advertised securities in the traditional certificate or the blockchain.
Paid ranked resources have too much influence in the world of investing in tokens. However, as we wrote not so long ago, the ICO is modern projects is now worth pennies, but many members of kriptonyte sure that this industry has outlived its usefulness. However, it will be replaced by other schemes. Perhaps they will be more legitimate, perhaps not — time will tell. Apparently, one of the main replacements ICO today considered IEO. We are talking about the initial exchange offer (Initial Exchange Offerings). The title should be clear that unlike ICO, IEO is conducted under the control of the crypto currency exchange. Sounds safer, doesn’t it?
See also: Binance will hold a new IEO. How to participate in the cryptocurrency win the lottery?
How do you think sites with ratings of cryptocurrency projects can be trusted? And how likely is that after several penalties monitoring really starts to transparently talk about what the project is advertised without compensation? All your thoughts suggest to Express in our cryptodata. There’s talk.
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