U.S. Regulator Halts Trading in Three Firms for Cryptocurrency Involvement
- SEC told the first blockchain ETFs in the last minute to tweak their names and erase the word ‘blockchain’
The U.S. Securities and Exchange Commission on Friday suspended trading in shares of three companies due to questions about their recent PRs which advertised the buyout of cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe -related assets.
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The financial regulator cited concerns regarding the accuracy and adequacy of information about acquiring top rated assets from a cryptocurrency investor, among other things. Perhaps that piqued the regulator’s concern, in particular after on of the suspended firms also announced plans to arrange an Initial Coin Offering (ICO) Initial Coin Offering (ICO) An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco ).
The US top regulator warned investors against throwing money into the digial crowdsale because the organizers intended to launch a cryptocurrency-based investment scheme without even attempting to follow US securities laws.
The Commission temporarily suspended trading in the securities of Cherubim Interests Inc. (CHIT), PDX Partners Inc. (PDXP), and Victura Construction Group Inc.
The SEC’s decision comes as interest in the technology that underpins bitcoin and other virtual currencies has emerged as a powerful investing theme. Several firms saw its stocks price almost triple in a day just for adding the word ‘blockchain’ to their brand names or announcing plans to launch technology-based products.
Ironically, in January, the SEC told the first blockchain ETFs in the last minute to tweak their names and erase the word ‘blockchain’.
The regulator insisted on the name changes as investors seem desperate for any kind of blockchain exposure, to the point where many startups that put the word blockchain, or other cryptocurrency terms, into their name have seen their share prices soar.
Analysts compared the trend with what happened during the tech bubble, where many the technology firms got a strong boost just for adding ‘dot-com’ to their brand name.
Michele Wein Layne, Director of SEC’s Los Angeles Regional Office, commented: “This is a reminder that investors should give heightened scrutiny to penny stock companies that have switched their focus to the latest business trend, such as cryptocurrency, blockchain technology, or initial coin offerings.”
The U.S. Securities and Exchange Commission on Friday suspended trading in shares of three companies due to questions about their recent PRs which advertised the buyout of cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe -related assets.
Discover credible partners and premium clients at China’s leading finance event!
The financial regulator cited concerns regarding the accuracy and adequacy of information about acquiring top rated assets from a cryptocurrency investor, among other things. Perhaps that piqued the regulator’s concern, in particular after on of the suspended firms also announced plans to arrange an Initial Coin Offering (ICO) Initial Coin Offering (ICO) An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco ).
The US top regulator warned investors against throwing money into the digial crowdsale because the organizers intended to launch a cryptocurrency-based investment scheme without even attempting to follow US securities laws.
The Commission temporarily suspended trading in the securities of Cherubim Interests Inc. (CHIT), PDX Partners Inc. (PDXP), and Victura Construction Group Inc.
The SEC’s decision comes as interest in the technology that underpins bitcoin and other virtual currencies has emerged as a powerful investing theme. Several firms saw its stocks price almost triple in a day just for adding the word ‘blockchain’ to their brand names or announcing plans to launch technology-based products.
Ironically, in January, the SEC told the first blockchain ETFs in the last minute to tweak their names and erase the word ‘blockchain’.
The regulator insisted on the name changes as investors seem desperate for any kind of blockchain exposure, to the point where many startups that put the word blockchain, or other cryptocurrency terms, into their name have seen their share prices soar.
Analysts compared the trend with what happened during the tech bubble, where many the technology firms got a strong boost just for adding ‘dot-com’ to their brand name.
Michele Wein Layne, Director of SEC’s Los Angeles Regional Office, commented: “This is a reminder that investors should give heightened scrutiny to penny stock companies that have switched their focus to the latest business trend, such as cryptocurrency, blockchain technology, or initial coin offerings.”