Bitfinex has suspended its decision to hold the token sale of the K.im token on its initial exchange offering (IEO) platform, citing regulatory uncertainties.
Announced on Tuesday, the token sale was supposed to be the first IEO on the rebranded platform of Bitfinex Token Sales, formerly known as Tokinex.
“Since we announced the debut of Kimcoin on the Bitfinex Token Sale platform, the regulatory environment has rapidly evolved,” the announcement stated. “The risks associated with raising funds for the K.im token sale have become clear, and we must put our community’s best interest first and foremost.”
Decentralizing digital content
K.im tokens were scheduled to be listed on the exchange on October 28. Supported by Megaupload-founder Kim Dotcom, the project is building a P2P digital content and monetization blockchain network.
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To date, the project has raised $2.5 million in funding from strategic investors such as BnkToTheFuture, Bitcoin Capital, and Max Keiser.
“After careful evaluation, we regret to announce that Bitfinex Token Sales and the K.im team have mutually agreed not to hold the token sale at this time. K.im will defer any decision on whether to create tokens on, or undertake a token issue in relation to the K.im platform until it is fully functional,” Bitfinex added.
The IEO has become very popular recently due to the guarantee of a major exchange for the blockchain project, which otherwise is missing from initial coin offerings( ICOs). Bitfinex also jumped into the lucrative sector and launched Tokinex in partnership with its former sister platform ETHfinex. However, after the split of ETHfinex, Bitfinex retained the IEO platform and rebranded it.
The announcement also detailed that K.im is now likely to hold an equity-based director to private investors to raise money for the project.
“In the meantime, the K.im platform project itself will continue and it is likely that an equity-based offer will be made sometime in the near future to qualifying investors who wish to become involved at this stage of the project,” the exchange added.