Earlier quoted context omitted.
What's the SEC got to do with this? Bancor isn't a US company
If a company has American investors, you can expect the SEC can get involved.
SEC oversees securities trading, which Bancor does not deal in.
Bancor has lost more than half its value since June ICO
91–100 of 107 posts
Re: Bancor has lost more than half its value since June ICO
#92Earlier quoted context omitted.
Very few ICOs do right by investors. We're one of the few offering equity positions and dividends. The law conveniently provides an excuse to them, see Tezos even outright calling it a donation! As an EJC the laws don't apply in the same way, so we directly offer shares in our startup. Few ICOs are willing to do the ethical thing because they're just cash grabs. Hire a small team to try to make your whitepaper vision…
You could say the same thing about "traditional" startups though - investors often invest just based on the combination of the idea, founders/team and maybe an early prototype. If the startup fails - nothing "bad" will happen to you either. Shares in a startup thats not publicly tradable don't really offer you that much security. Unless you've committed fraud - but - I've been following the ICO market closely for the…
Have you compiled your thoughts on ICOs?
Re: Bancor has lost more than half its value since June ICO
#93Earlier quoted context omitted.
Very few ICOs do right by investors. We're one of the few offering equity positions and dividends. The law conveniently provides an excuse to them, see Tezos even outright calling it a donation! As an EJC the laws don't apply in the same way, so we directly offer shares in our startup. Few ICOs are willing to do the ethical thing because they're just cash grabs. Hire a small team to try to make your whitepaper vision…
You could say the same thing about "traditional" startups though - investors often invest just based on the combination of the idea, founders/team and maybe an early prototype. If the startup fails - nothing "bad" will happen to you either. Shares in a startup thats not publicly tradable don't really offer you that much security. Unless you've committed fraud - but - I've been following the ICO market closely for the…
There's an ICO scam tracker here - https://etherscamdb.info/scams/
There seems to have been quite a few.
Re: Bancor has lost more than half its value since June ICO
#94Cryptocurrencies were created to allow people to opt out of society's current power structures.
That might explain why Bancor, a cryptocurrency backed by traditional power brokers doesn't work as a cryptocurrency.
Re: Bancor has lost more than half its value since June ICO
#95Earlier quoted context omitted.
If a company has American investors, you can expect the SEC can get involved.
SEC oversees securities trading, which Bancor does not deal in.
The 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_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.
Re: Bancor has lost more than half its value since June ICO
#96Earlier quoted context omitted.
The SEC might say otherwise. There are plenty of civil and criminal options for recourse if they simply "walk away".
Ironically, 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.
Not 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.
Re: Bancor has lost more than half its value since June ICO
#97Earlier quoted context omitted.
You could say the same thing about "traditional" startups though - investors often invest just based on the combination of the idea, founders/team and maybe an early prototype. If the startup fails - nothing "bad" will happen to you either. Shares in a startup thats not publicly tradable don't really offer you that much security. Unless you've committed fraud - but - I've been following the ICO market closely for the…
There's an ICO scam tracker here - https://etherscamdb.info/scams/ There seems to have been quite a few.
Note that this is a database of fake phishing websites that impersonate legit projects (and try to steal your money) - its not a database of scamy ICOs. As mentioned - there are certainly those too - but I don't remember any with bigger/reputable projects lately.
Re: Bancor has lost more than half its value since June ICO
#98Earlier quoted context omitted.
You could say the same thing about "traditional" startups though - investors often invest just based on the combination of the idea, founders/team and maybe an early prototype. If the startup fails - nothing "bad" will happen to you either. Shares in a startup thats not publicly tradable don't really offer you that much security. Unless you've committed fraud - but - I've been following the ICO market closely for the…
Have you compiled your thoughts on ICOs?
No. I was doing a lot of research into ICOs over the summer, but its incredibly time consuming and there are so many now. I spend too much time behind the screen as it - need to live in the "real" world every once in a while - I'm trying to quit :) Will try putting my money on autopilot/fund for a while.
Re: Bancor has lost more than half its value since June ICO
#99Earlier quoted context omitted.
SEC oversees securities trading, which Bancor does not deal in.
The 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_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 subje…
No it didn't it made a pronouncement which is different from a ruling.
The ICOs that it has charged so far didn't have an actual token associated with them so they were scams with a popular (edit: fashionable) name.
I really hate that people on HN will down vote comments based on misunderstanding of information freely available.
Re: Bancor has lost more than half its value since June ICO
#100Earlier quoted context omitted.
The SEC might say otherwise. There are plenty of civil and criminal options for recourse if they simply "walk away".
Bancor's ICO is not covered by SEC.
SEC 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.