Connect with us

Bitcoin News

Is this SEC Signalling a Green Light to Start the Crypto Party?

Published

on

The US Securities and Exchange Commission (SEC) announced on Monday that Block.One, the company behind EOS must pay $24 million in penalties for conducting an unregistered securities sale.

Block.One raised a total of $4.1 billion in 2018, that puts the fine to a meager 0.58 percent of the initial raise. The company has agreed to settle the charges, according to the SEC.

Block.One neither secured an exemption from securities registration requirements nor register the sale, the SEC said. The company said the settlement only applies to the sale of ERC-20 tokens, which the network swapped with EOS tokens after its mainnet went live.

“The SEC has simultaneously granted Block.one an important waiver so that Block.one will not be subject to certain ongoing restrictions that would usually apply with settlements of this type. Block.one believes the SEC’s granting of this waiver evidences Block.one’s continuing commitment to compliance and best practices in the United States and globally,” EOS’s statement further reads.

Could this be the sign of the altcoin party?

As Block.One puts in its statement, the SEC has waived the company and it won’t be subject to any restrictions, it might be time for the second phase of the Initial Coin Offering (ICO), that was all the rage in 2017.

Economist and trader Alex Kruger took a dig at this as he said,

“The trigger for the 2018 crypto crash was the SEC prickling the bubble. ICOs did not wither because investors got smart and realized ICOs were money grabs. Money simply stopped flowing..”

“With this fine the SEC is signaling “entrepreneurs” have green light to start another party,” he added.

Recently, we also saw Blockstack completing the first SEC approved token offering. It raised $23 million after spending 10 months and $2 million getting the agency’s approval.

In comparison to Block.One’s 0.58%, this has been close to 9%. When companies can raise billions of dollars with the threat of just getting a slap on the wrist with a tiny amount of fine, why would anyone invest years and a ton of money?

Kruger might be having a “sarcasm joke” here, but it won’t be surprising, in the light of SEC’s move if other projects would try to follow the same path, “better to ask forgiveness than permission,” as Block.one.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading
Advertisement
Advertisement

Recent Posts

Copyright © 2019 The Crypto Report