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I'm sure Bancor couldn't care less about their token price collapsing. They've already got all of the "investors'" money. In fact, they could just walk away ri
by joosters 9y ago
I'm sure Bancor couldn't care less about their token price collapsing. They've already got all of the "investors'" money.
In fact, they could just walk away right now instead of carrying on developing the system. The brave new world of ICOs offers no protection against companies failing to follow through on their ICO roadmap. Maybe Bancor could use the token collapse as an excuse to quit now?
- everdev 9y agoThe SEC might say otherwise. There are plenty of civil and criminal options for recourse if they simply "walk away".
- s73ver_ 9y agoThey're based in Israel, though. What does the Israeli SEC say about that?
- 21 9y agoIsrael recently banned offering binary options to foreigners because a lot of such companies were based in Israel and I guess a lot of people complained to Israeli authorities about being scammed, and impacted the country reputation. https://www.timesofisrael.com/the-wolves-of-tel-aviv-israels-vast-amoral-binary-options-scam-exposed/ https://www.timesofisrael.com/the-wolves-of-tel-aviv-israels...
- elorm 9y agoWhat's the SEC got to do with this? Bancor isn't a US company
- QML 9y agoIf a company has American investors, you can expect the SEC can get involved.
- EGreg 9y agoWhat would they do?
- bdcravens 9y agoBring US charges. How hard they pursue extradition is the real question.
- craftyguy 9y agoIs there a precedent of the SEC causing extradition?
- bdcravens 9y agoGiven Bancor is in Israel, this case is interesting: http://www.reuters.com/article/us-israel-fraud/israel-approves-extradition-to-u-s-of-two-securities-fraud-suspects-idUSKCN0Y01E6 http://www.reuters.com/article/us-israel-fraud/israel-approv...
- deleted 9y ago[deleted]
- decentralised 9y agoSEC oversees securities trading, which Bancor does not deal in.
- totalZero 9y agoThe SEC ruled earlier this year that some coins are indeed securities and has brought charges against multiple ICOs. From https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_coinofferings https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_co...: Depending on the facts and circumstances of each individual ICO, the virtual coins or tokens that are offered or sold may be securities. If they are securities, the offer and sale of these virtual coins or tokens in an ICO are subject to the federal securities laws.
- Hermel 9y agoIronically, it is the SEC and it's regulation that made Bancor structure their ICO the way they did. To escape being classified as a security, you have two options: either give the tokens away for free, or promise nothing. Most crypto startups do the latter.
- totalZero 9y agoNot quite. In the USA, classification as a security is usually determined using a four-pronged legal standard called the Howey Test. A security is: 1. An investment of money, 2. In a common enterprise, 3. With an expectation of profits, 4. Predominantly from the efforts of others. Selling something without making any promises doesn't necessarily preclude expectation of profits.
- decentralised 9y agoBancor's ICO is not covered by SEC.
- decentralised 9y agoSEC covers securities which are defined in the US as meeting all four properties of the Howey test. Bancor has a stable coin framework which means they create currencies and have an automated market making algorithm. Currencies are classed as commodities in the US. The people downvoting my comments without volunteering a counterargument could probably use some time doing a bit of reading on the topic.
- decentralised 9y agoThat's just an opinion masked as an argument. The brave new world of crowdfunding is not that new, but the allergic reactions to it seem odd.