Thailand SEC Releases Warning Statement On ICOs

  • The Securities and Exchange Commission of Thailand recently released a report about the legality of certain initial coin offerings (ICOs) and other cryptocurrencies.
  • In it, it warns that some of them have not met regulatory standards and may put investors at risk.

Thailand’s Securities and Exchange Commission (SEC) has released a warning to the public about investing in initial coin offerings (ICOs). The report explains that some of the coins being offered did not receive SEC approval, which means that investing in them could carry serious risk.

Additionally, the Thai SEC detailed that the tokens in question have not had their smart contracts audited by official ICO portals, increasing the risk of investment, according to local news outlet the Bangkok Post.

The report identified nine digital tokens and ICOs that were not authorized by the SEC, including: Every Coin, Orientum Coin (ORT Coin), OneCoin and OFC Coin, Tripxchain Coin (TXC Coin), TUC Coin, G2S Expert ICO, Singhcom Enterprise ICO, Adventure hostel Bangkok ICO and Kidstocurrency ICO.

 Many of these coins have been promoted on social media platforms like Facebook and YouTube, which set off red flags for the Thai SEC. The regulator also warned that some of these cryptocurrencies are operated like Ponzi schemes, encouraging users to sell the cryptocurrency to their friends and family in exchange for referral bonuses.

Although not explicitly named, this could be in reference to OneCoin. OneCoin has previously been shut down by the Chinese government. The organization, widely believed to be a Ponzi scheme, has received scrutiny online. Operated as a “private blockchain,” some see it as little more than a scheme, especially after countries like China, India, and Italy issue warnings about OneCoin.

There are opportunists who persuade individuals to invest in digital assets by assuring investment returns generated from digital tokens that are structured like pyramid schemes.

SEC of Thailand

The regulator’s move represents the continuing involvement of federal governments in the cryptocurrency space. The ICO boom of 2017 put the fundraising method under regulatory scrutiny.

This new financial instrument doesn’t fit under any one regulatory body, and confuses many regulatory bodies. Despite these challenges, governments are stepping in to police the space. Earlier this month (October 19, 2018), the United States’ SEC announced that it would be launching a new “Finhub” division to engage with ICO startups.

NBA-China Controversy Tanks the Price of Nike Sneaker-Backed Token

Michael LaVere
  • NBA's ongoing controversy with China has led to a crash in price for a Nike sneaker-backed crypto token.
  • The Air Jordan-backed token has fallen more than 34 percent since Daryl Morey's infamous tweet supporting the Hong Kong protests.

The National Basketball Association’s (NBA) ongoing controversy with China has made its impact on cryptocurrency, crashing the price of a Nike sneaker-backed token. 

The NBA has become entangled in controversy with China following comments made by Houston Rockets General Manager Daryl Morey supporting the protests in Hong Kong. In response, the Chinese government canceled media coverage for NBA preseason games that were held in the country last week, kicking off a wave of conversation surrounding free speech. 

Even the crypto markets have not been immune from the fallout. According to a report published Oct. 16 by Reuters, a cryptoasset backed by the price of Nike’s Air Jordan sneakers has fallen more than 34% since the start of the controversy. 

Chinese investors are bailing on the price of the sneaker token for its connection to the NBA, leading one trader to conclude, 

It’s clear sneaker speculators were pulling money out of the market.

The trader told Reuters the price decline was in part a backlash from Chinese investors upset over how the NBA has responded to Morey’s open support for the Hong Kong protests. Several sneaker influencers told Reuters that the anger of basketball fans in mainland China has been “unprecedented,” with one sneaker fan saying “political factors do affect my choice,” in making purchases. 

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