Pantera Capital Braces for SEC Action Against 25 Percent of ICO Investments

Pantera Capital Braces for SEC Action Against 25 Percent of ICO Investments
фото показано с : news.bitcoin.com

2018-12-15 15:15

Increasingly frequent action taken by the SEC against initial coin offerings is expected to lead to more cryptocurrency projects being forced to refund investors. Among those expected to be affected is the first U.S.-based cryptocurrency investment firm, Pantera Capital, with the company bracing to receive refunds on a quarter of its ICO investments.

Also Read: BTI Claims Only Two of Top 25 Crypto Exchanges Accurately Report Volume

Pantera Capital Anticipates a Quarter of ICOs in Portfolio May Be Targeted for Securities Violations

In a letter written by Dan Morehead and Joey Krug, Pantera’s co-chief investment officers announced the company’s expectation that one in four of its ICO investments will be deemed to comprise unlicensed securities. If that proves to be the case, the projects may be compelled to issue refunds to investors. The concerns have been sparked by the SEC’s Nov. 16 announcement that coin offerings Paragon Coin and Carriereq had issued tokens to non-accredited investors in violation of securities laws.

The letter states: “While we believe the vast majority of the projects in our portfolio should not be affected, approximately 25 percent of our fund’s capital is invested in projects with liquid tokens that sold to U.S. investors without using regulation D or regulation S,” adding “If any of these projects are deemed to be securities, the SEC’s position could adversely affect them.”

Further elaborating regarding the projects of concern, the letter estimates that “about a third (approximately 10 percent of the portfolio) are live and functional,” noting that “while they could technically continue without further development, ending development would hinder their progress.”

Pantera-Backed Paragon Coin Targeted by SEC

Paragon Coin, an ICO that received backing from Pantera, was fined $250,000 by the SEC on Nov. 16 for having failed to register its token sale with the agency. The company is also required to compensate investors who sold the tokens at a loss, in addition to those who are still holding Paragon Coin.

The SEC then described the action as comprising “the commission’s first cases imposing civil penalties solely for ICO securities offering registration violations,” adding that “Both companies have agreed to return funds to harmed investors, register the tokens as securities, file periodic reports with the commission, and pay penalties.”

Do you think we will see widespread refunds being issued by ICOs as regulatory pressure mounts? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Pantera Capital Braces for SEC Action Against 25 Percent of ICO Investments appeared first on Bitcoin News.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Action Coin (ACTN) на Currencies.ru

$ 0.0001401 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.02 %, 7d: 0.04 %
Cегодня L: $0.0001401 - H: $0.0001401
Капитализация $0 Rank 8535
Доступно / Всего 0 ACTN / 2.003b ACTN

ico investments against capital action pantera sec

ico investments → Результатов: 85


Swinca ICO

Swinca is a platform offering the opportunity to instantly invest in real estate. Allowing anyone to become a multi-properties owner. By tokenizing real estate assets located worldwide, Swinca allows anyone to create and manage their own portfolios by investing in the properties desired.

2018-11-16 15:50


TheFund.io ICO

TheFund.io is an investment fund created to open access to earnings on investments for a wide range of people on the basis of a smart and safe system of capital distribution, powered by AI. Our mission is to maximize investors’ profits through investments in promising ideas and transform those ideas into commercially effective business projects.

2018-10-18 13:08


Фото:

Are ICO’s The Right Way To Solve Bitcoins Problems?

The Initial Coin Offering is a controversial platform. In their essence, ICOs are positive and exciting, though as many will know, they open us up to a whole host of potential problems and risk. In the growing cryptosphere, we want to minimise risk in order to secure our investments, therefore ICOs are considered by many, as a total no go, although even with this in mind, ICOs still run, they still happen and they still bring in heaps of investment for new and budding crypto projects.

2018-10-1 15:00


XResearch ICO

XResearch, Crypto Online Media is an online media platform for news, market information, and research on cryptocurrency markets worldwide. We seek to provide investors with free content as well as paid, independent, proprietary research for cryptocurrency markets, initial coin offerings (ICOs), and blockchain investments.

2018-9-25 20:03


Fidelity Investments хочет выпустить свои криптопродуты к концу года

Генеральный директор Fidelity Investments Абигайль Джонсон сообщил, что компания работает над рядом продуктов и предложений, связанных с криптовалютами и блокчейн, причем их выпуск предварительно устанавливается на определенное время.

2018-9-19 11:41


Фото:

The ICO Bubble Collapsed. Why Your ICO Would Not Be Able To Attract Investments?

Due to stagnation on the ICO market and doubts around the existing investment model, investors prefer to abstain from major moves while waiting for a more favorable climate in the industry. The previous investment boom led to the collapse of the ICO bubble with Venture Capital traditions wrongly projected on the emerging ICO market.

2018-9-18 12:30


Фото:

Cryptocurrency Market Outlook: Do Celebrity-Endorsed ICOs Perform Better Than Others?

In 2017, at the hight of the ICO boom, several celebrities – with little to no cryptocurrency experience – were recruited by blockchain startups to promote their token sales. While this helped to boost fundraising efforts, as it gave projects more attention that they would have otherwise gotten, it also creates concern that unknowing investors were being roped into investments...The post %%POSTLINK%% appeared first on %%BLOGLINK%%.

2018-9-14 23:00


ELAD ICO

ELAD (Equity Ledger Assets Decentralized) is a decentralized blockchain that aims to transform investment strategies and the real estate market. Using blockchain technology, smart contracts and innovation, the equity ladder of ELAD will create a crypto and real estate portfolio to combine the liquidity of the world’s biggest asset class with the velocity of the newest.

2018-9-5 08:07


Фото:

To Buy or Not to Buy? 3 Lifehacks for Investing in Blockchain Projects

Bitcoinist shares a few lifehacks that could help investors not to repeat the lessons ICO and blockchain investors learned over the past year.   [Note: This is a guest article submitted by Alexander Borodich] Many people have begun to forget that, in the last few years, crowdfunding has been a well-loved tool for attracting investments.

2018-8-26 04:00


Cremit ICO (CRMT Token): Crypto Volatility Insurance & Exchange?

With more investors joining the crypto world, there is a growing need to secure investments and offer a trusted and comprehensive risk management solution. That is why Cremit has been created. It offers a robust and researched solution that will help business owners and investors secure crypto investment. Why Cremit Matters As crypto continues to […]

2018-7-29 08:37


Фото:

Crypto Scams, And The Scammers Who Scam The Stats

Bloomberg Research recently published a study from the Satis Group, an ICO advisory service, purporting to show that crypto is a minefield for bad investments. But not only was the reporting selective to the point of being misleading, some of the research itself was clearly gleaned from a cursory Google search – and it was dead […] The post Crypto Scams, And The Scammers Who Scam The Stats appeared first on Crypto Briefing.

2018-7-24 19:56


NETZ ICO

NETZ invests in and develops Green Energy Power Plants within Waste to Energy and Aquaculture with underlying collateral and highly profitable Renewable Energy Assets (ESG - Profitable Impact Investments), which gives NETZ a tangible real world asset value in contrast to other crypto currencies.

2018-7-23 12:13


Togacoin ICO

Togacoin's endeavor is to separate the mining operations from the electricity costs, as well as diversifying investments to make the business safer and more independent from any market variable. This guarantees a complete payout to the token holders: in case mining become no longer profitable, it will be gradually replaced by our other activities (hosting/housing, application design/development and electricity sales).

2018-7-21 13:21