The Commission on securities and exchange Commission (SEC) forced two cryptostroma to register their tokens as securities. Companies will have to return money to investors and pay fines of $250 thousand.
We are talking about projects Airfox and Paragon, which raised $15 million and $12 million in ICO. In the opinion of the SEC issued tokens fell under the definition of securities and violated the legislation.
Experts believe that this incident marks the end of the ICO market in the United States. Lawyer Steven Palli noted that the SEC may apply similar sanctions to 95% of all tokens issued in the last two years. His opinion is shared by Nick Carter of the venture capital Fund Castle Island Ventures. In his opinion, the regulator will continue to displace from the market of ICO projects.
“My advice to all ICO is to realize the situation and stop the sale, return all of the money collected and go to a conventional business model, which does not need the token”, — said Carter.
Previously, the SEC began an investigation in respect of the Salt of a startup and its co-founder Eric Voorhees.