Blockchain Dynamics #61 4/30/2017
Save 40% to Consensus: Singapore. Use the code: CONSENSUS40
Florida Firm Triggers SEC Suspension with Cryptocurrency Claims
Jun 15, 2017 at 12:00 UTC | Updated Jun 16, 2017 at 12:53 UTC
The US Securities and Exchange Commission (SEC) is taking action against a publicly traded venture capital firm in Florida that has issued its own cryptocurrency.
, the top US securities regulator made public its attempts to suspend the trading of
securities offering exposure to the company, called Sunshine Capital, citing "public interest" and the "protection of investors".
Of particular concern to the SEC was the value and liquidity of its 'dibcoin' cryptocurrency, launched
, and the accuracy of statements describing the token and its related opportunities.
The order requested additional information about a petition filed by Sunshine Capital to terminate the trading suspension placed by the SEC
Dibcoin Sec
Sunshine Capital, as part of an effort to create a digital asset that could be used as a "dollar substitute" for real-world purchases.
As the company would intend to hold 5 billion dibcoins, this increase in capital was meant to help the company quickly acquire assets.
"There are only 5 billion dibcoin available and the currency will immediately give Sunshine Capital, Inc massive buying power to make quick acquisitions that will give Sunshine Capital, Inc the ability to list on Nasdaq."
A quick glance at the company's marketing materials, however, raises some concerns.
are claims that a platform for trading dibcoin, called Livecoin.net, is the "fourth largest global cryptocurrency exchange", though this statement is inaccurate.
Further, statements appeared to indicate that the dibcoin launch may have been an attempt for Sunshine Capital to bolster its capital holdings.
"What the investment world needs to understand is that for every penny dibcoin trades at, " the company wrote in April. Dibcoin Sec ," the company wrote in April.
Currently, according to coinmarketcap.com, dibcoin is traded on lesser-known exchanges including Crypto Dao, Livecoin and Crytopia.
Its price dropped in late April from around $1 to $0.10 a little over a week after the company was suspended from trading. It now trades at $0.1747 with a trading volume of $3,320 in the last 24 hours
Yet, in response to our request for comment, Adam Petty, p
resident and CEO of Sunshine Capital and DIB Funding, argued that the SEC's issue is with the "nature of the investment", argued that the SEC's issue is with the "nature of the investment" Dibcoin Sec
"If that was the case, then no matter what our answer was or what hoops we jumped through, the chance of the trade suspension being lifted was indeed low," Perry wrote.
Further, he vowed that the company will press forward with developing dibcoin as part of its broader business plan.
"Whether Sunshine Capital is a privately or publicly held company has no impact whatsoever on the success of dibcoin, nor has it changed our business plan," he said, concluding:
"We are still using dibcoin to buy private companies and other assets; and dibcoin will be used as a method of payment in retail outlets."
CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a Dibcoin Sec , CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Upside Calling? Bearish Bets on Bitcoin Futures Hit Record Low
With Nearly $200 Million on the Line, EOS Is Building A Voting System
$31 Million NEX Project Could Be Biggest Casualty of Blockchain Cuts
0 Reviews:
Post Your Review