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SEC Shuts Down Munchee ICO (techcrunch.com)
The Securities and Exchange Commission has shut down Munchee, a company that built a $15 million token sale. According to TechCrunch, "The Munchee ICO aimed to fund the MUN coin, a payment system for restaurant reviews." However, the company "received a cease and desist from the SEC on December 11" because it constituted the offer and sale of unregistered securities. From the report: Within the SECs findings they noted that Munchee touted itself as a "utility" token which means that the company believed the MUN token would be primarily used within the Munchee ecosystem and not be used to fund operations. However, thanks to an application of the Howey Test (a Supreme Court finding that essentially states that any instrument with the expectation of return is an investment vehicle), the SEC found the Munchee was actually releasing a security masquerading as a utility. "Munchee offered MUN tokens in order to raise capital to build a profitable enterprise," read the SEC notice. "Munchee said that it would use the offering proceeds to run its business, including hiring people to develop its product, promoting the Munchee App, and ensuring 'the smooth operation of the MUN token ecosystem.'" The stickiest part? Munchee claimed that its coins would increase in value thanks to a convoluted process of growth.
In short, Munchee was undone by two things: depending on the token sale as a vehicle to raise cash for operations and using the typically spammy and scammy marketing efforts most ICO floggers use now, tactics taken directly from affiliate marketing handbooks. Fortunately, Munchee was able to return all $15 million to the 40 investors that dumped their coins into scheme.
In short, Munchee was undone by two things: depending on the token sale as a vehicle to raise cash for operations and using the typically spammy and scammy marketing efforts most ICO floggers use now, tactics taken directly from affiliate marketing handbooks. Fortunately, Munchee was able to return all $15 million to the 40 investors that dumped their coins into scheme.
I can pictures Trump chasing female staffers around the White House yelling this.
Remember, even Goatse has an ICO.
Now I can't get the MUNCHEEs. The FCC is such a buzzkill.
".. that's a lot of Muns!"
- Tems
"But if you tell them it's a bubble and worth nothing, we'll go broke!"
-- Tigger warning: This post may contain tiggers! --
SEC will shutdown bitcoin soon!
So does it strike anyone else as odd that only 40 people invested in this obvious scam and yet they raised $15 million? If there are that many people with that much money lying around that they obviously don't care about, why isn't every investment scam being funded this well?
I'm starting to think that bitcoin can't pop (I'm not a bitcoin fan - check my posting history). The reason I say this is because the 4/transactions per second prevent an actual run starting on the commodity we call bitcoin.
In order to have the bubble pop you need large number of sell-offs. With the miniscule rate of transactions it might not be possible for the bubble to pop spectacularly - it might simple deflate gently instead.
I'm a minority race. Save your vitriol for white people.
If you want mine your own cryptocurrency, you need a motherboard with 19 PCIe 1X slots to plug in 19 GPUs and a couple of 1200W PSUs.
M out M `BRO . PYXIS in PYXIS . WHIPPER `DRYISH in PYXIS .
YD in M . M . M out M `M out M `M we bes M out M `M out M `
M M . M . M . M we bes M we bes M we bes M out M `M we bes
M `M `M . M . M `SCOT `M `SCOT `PYXIS in DRYISH in PYXIS .
M . M M . M . M out M `M out M `M we bes M . M we bes . M `
M in YD . M . M out M `M out M `M we bes M in M . M out M `
M out M `BRO . PYXIS in PYXIS . WHIPPER `M out M . PYXIS .
and use forward looking statements to sell billions of shares and SEC would do fuck all even if all the shareholders lost their lifes savings.
by TheSpoom (715771) Uncaring Linux user here. I have nothing to add to this but please continue. *munches popcorn*
Why is it the Southeastern Conference's business what goes on in the investing world?
Says some clueless fool. It's not true for either.