A recently planned initial coin offering or ICO by Blackest LLC and its founder Reginald Buddy Ringgold III was advertised as its token being approved by the SEC – but it was not. According to the SEC, Blockvest has repeatedly violated anti-fraud and securities registration provisions, in what seems to be a bad actor in this market. Since the SEC does not support or endorse financial products, getting the court order to halt this ICO was easy.
This specific case underscores the type of battle the the SEC and other regulators must fight in the digital asset space – one that we call the Wild Wild West as there are too many bad actors in the ecosystem. Combine the two points that are challenging to control, massive and non-stop volatility and bad characters issuing bogus ICOs, and it is easy to understand the challenges that regulators face in Europe, the US, China and Japan.
Some cryptocurrency exchanges have falsely claimed to be sponsored by regulators and others have made a wide virility of claims that, in the end, cost them hefty fines. Here at Classiarius, we see 2018 and 2019 being two year period of calming down in this ecosystem. The next generation of coins will be the ones that will likely be taken seriously, again after the bogus coins have been flushed out.