Pump and discharge of Paragon coins based on Ethereum despite the SEC examination

The United States Securities and Exchange Commission [SEC] it has been in the central point since Bitcoin [BTC] and other cryptocurrencies affect their historical maximum. This is mainly due to the ICO boom over the same period of time, which has led several investors to enter the cryptocurrency space. This has also led the regulatory body to become an important figure in the cryptocurrency space.

Since then, the commission has taken several measures to protect investors. The regulatory body has also made a decision on several projects not to comply with the rules on issuing and trading security tokens.

One of these projects that was part of the SEC repression list was Paragon. The project, launched in July 2017, promised investors and enthusiasts a change in the cannabis sector. The team has ensured that it transforms industry into a safer, more transparent and more accessible haven. The company raised over $ 12 million from an approximate of 8,232 investors by selling the green dream.

However, in November 2018, the commission announced that the project was captured under their radar, resulting in an administrative termination and a withdrawal order. In the official announcement, the regulatory body stated that the ICO conducted by Paragon can be classified as an offering of securities. The commission added that this was clearly mentioned in their report on the Digital Autonomous Organization [DAO], the project that led to a division in the blockchain of Ethereum.

Due to the lack of membership in the commission, the company had violated the law on securities. This led the company to opt for an agreement that included a $ 250,000 tax penalty to the centric cannabis enterprise. Along with submitting a monthly report to the commission, the company was also required to compensate investors who have suffered a loss due to their investment in the token. This was for all investors who bought the token and before October 15th 2017.

Immediately after agreeing to settle, the company issued an application form for all investors who had taken part in the ICO. The form had stated that investors would be paid in full, that is, the amount originally invested to buy the token plus interest.

At the beginning of this month, the currency has again attracted the attention of the entire market due to the increase in its price. According to CoinMarketCap, on January 1, 2019, the price of the currency has seen an increase of over 6000%, as the value rose from $ 0.165866 to its high valuation of $ 10.28. The cryptocurrency had a market capitalization of over $ 25 million and a trade volume of over $ 3 million. The highest value of the cryptocurrency was recorded on YoBit, an exchange of cryptocurrencies based in Russia.

The closing value of the currency for the day was recorded at $ 0.389375, over 234% more than its opening price. At the time of printing, Paragon [PRG] it was trading at $ 0.214 with a market capitalization of over $ 14 million. The currency has increased by 107.57 in the last seven days.

Larry Cermak's statement on the pump | Source: Twitter

Vincent Fleuret's post on the commercial activity of the YoBit coin Source: trading view

This pump and landfill scheme has opened a window for arbitrage trading. An arbitrage trading refers to trading in which a trader buys a cryptocurrency from an exchange that is trading at his lowest price, and then sells on the exchange he is trading at his maximum a.

In particular, the exchange platform that the currency was trading at its highest price had announced that they would organize pump and landfill schemes on their official management of social media.

YoBit announcement regarding the pump-and-dump scheme

Post the announcement, the first cryptocurrency that was pumped by the exchange was PutinCoin, which has increased over 800% in a few minutes. They had also stated on Twitter:

"Next YoBit Pump in 20 hours! Timer: https: //yobit.net/en/pump/timer/ It's high risk! Never invest money that you can not afford to lose. (The most important investment rule) There are no more refunds. "