Cryptocurrency, Initial Coin Offerings (ICOs) –Even if the crypto commercializes the fall of the last two weeks of price reduction, with a minimum of respite in the past day, the panorama of the Initial Coin Offerings continues to make news but goes hand in hand with the Commission's regulatory body for security and trade in the United States (SEC).
While the ICOs have come to constitute a large "Wild West" space within the already obscure legal landscape of the crypt, the development of fundraising assets has aroused criticism and intrigue throughout 2018, partly due to of the profit obtained by pumping coins before launching. In the case of two high-profile celebrities, their entanglement in the ICO network of obscurities drew the ire of the SEC.
Second Bloomberg, boxing legend Floyd Mayweather and music producer DJ Khaled have been implicated in a massive SEC action that targeted characters who had been accused of launching coin projects without adequately disclosing that they were rewarded for their opinion,
"Boxer Floyd Mayweather and music producer DJ Khaled have been accused of not disclosing the payments received for the sale of initial coin offerings, making them the biggest names sanctioned by the scrupulousness of digitized records by US regulators."
Despite being known to the boxing world as Mayweather, the undefeated and probably the greatest boxer of all time has agreed to pay more than $ 600,000 to settle his case with the SEC, according to an announcement by the agency published on 28 November. DJ Khaled has improved slightly in the situation, coming to an agreement to pay over $ 150,000. While the panorama of cryptocurrency regulation has been somewhat unpredictable, the SEC has clarified that the profit from the initial promotion of the supply of coins, such as those that Mayweather Khaled has been accused through their social media accounts, must be explicitly disclosed. Both Mayweather and Khaled failed to indicate correctly that they had been compensated in exchange for the promotion of the ICO projects in question, which the SEC perceived as a manipulation that also runs through the regulatory deadlines surrounding cryptography.
Unfortunately, Mayweather and Khaled are not the only two celebrities and high-profile names to benefit from the manipulation of investors, with the ICO-based view of specializations becoming more and more popular as cryptography markets peaked at the end of 2017 and the beginning of this year. Considering the lack of consumer knowledge surrounding the cryptocurrency, in addition to the FOMO of the significant investor that was generated during the bull run, it became commonplace for the coins to pump double-digit percentage points from the exposure of a single tweet.
The flickering of prices led the SEC to set up an explicit warning last November that ICO promotions, without disclosing the exchange of compensation, would be penalized by the regulatory agency. Despite being high-profile celebrities, Mayweather and Khaled represent the first case of SEC punishment against individuals who advertise ICOs that violate previous guidelines.
According to Stephanie Avakian, the co-head of the SEC, the recent cases against Mayweather and Khaled,
"It highlights the importance of full disclosure to investors … Without the disclosure of payments, Mayweather and Khaled & # 39; s ICO may appear to offer promotions as impartial rather than paid endorsements."