Bitcoin price started a major downward move below the $8,200 and $8,000 supports against the US Dollar.The price even broke the key $7,600 support level and it is currently recovering higher.There are two major bearish trend lines forming with resistance near $7,950 and $8,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair is likely to struggle near the $8,000 and $8,200 resistance levels in the near term.Bitcoin price is facing an increase in selling pressure against the US Dollar. BTC might correct higher, but it is likely to fail near the $8,000 or $8,200 resistance levels.Bitcoin Price AnalysisThere was a steady decline in bitcoin price below the $8,500 and $8,400 support levels against the US Dollar. The BTC/USD pair even broke the key $8,000 support level to enter a bearish zone. Moreover, there was a close below the $8,000 level and the 100 hourly simple moving average. Finally, there was a drop below the $7,600 support level and the price traded to a new weekly low at $7,441.Recently, bitcoin price started an upside correction above the $7,600 level. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $8,578 high to $7,441 low. On the upside, there are many resistances near the $7,900, $8,000 and $8,200 levels. There are also two major bearish trend lines forming with resistance near $7,950 and $8,200 on the hourly chart of the BTC/USD pair. An intermediate resistance is near $8,000. It coincides with the 50% Fib retracement level of the recent decline from the $8,578 high to $7,441 low.Therefore, a successful break above the $8,000 level might push the price towards the $8,200 resistance. If there are more upsides, the price could recover towards the $8,400 level or the 100 hourly SMA. Conversely, if bitcoin price fails to move above $8,000, it could decline once again. An initial support is near the $7,600 level. If the bulls fail to hold $7,600, there could be a sharp decline towards the $7,400 support area.Looking at the chart, bitcoin price seems to be following a bearish path from well above $8,400. In the short term, there could be an upside correction, but the price is likely to struggle near $8,000 or $8,200. Only a successful close above $8,200 could kick start a fresh increase in the near term.Technical indicators:Hourly MACD – The MACD is currently gaining pace in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving higher towards the 50 level.Major Support Levels – $7,600 followed by $7,400.Major Resistance Levels – $8,000, $8,200 and $8,400.
Archives for June 4, 2019
ETH price started a steady decline and broke the $252 support area against the US Dollar.The price traded towards the $230 level and formed a new swing low at $233.There is a major bearish trend line forming with resistance near $246 on the hourly chart of ETH/USD (data feed via Kraken).The pair could either recover above $250 or decline again towards the $230 level.Ethereum price moved into a bearish zone versus the US Dollar, but was stable vs bitcoin. ETH price is currently recovering higher, but it might face sellers near $250.Ethereum Price AnalysisIn the past two days, Ethereum price remained in a bearish zone below $265 against the US Dollar. The ETH/USD pair formed a couple of swing lows and declined below the $260 and $250 support levels. There was even a close below the $250 level and the 100 hourly simple moving average. The price traded below the $246 support level and formed a new weekly low near the $233 level. Recently, it started an upside correction above the $235 level and the 50% Fib retracement level of the downward move from the $252 high to $233 low.However, there are many hurdles near the $244, $246 and $250 levels. Moreover, there is a major bearish trend line forming with resistance near $246 on the hourly chart of ETH/USD. The 61.8% Fib retracement level of the downward move from the $252 high to $233 low is also near the $244 level. Besides, the main resistance for the bulls is near the $250 level. Therefore, if there is an upside break above the trend line and $250, the price could recover further towards the $255 and $260 levels.Conversely, if the price fails to break the $250 resistance, there is a risk of a fresh decline. An initial support is near the $240 level. If there is a downside break below $240, the price could move back towards the $233 swing low in the near term. Below $233, the price might continue to slide towards the $225 support area.Looking at the chart, Ethereum price is clearly trading with bearish moves below the $250 level. Therefore, a proper close above the $250 barrier is needed for the bulls to gain control. The next key resistance is near the $255 level and the 100 hourly SMA, where sellers may emerge. Above $255, the price might test $260.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is slowly moving back in the bullish zone, with a few positive signs.Hourly RSI – The RSI for ETH/USD is currently moving higher towards the 50 level.Major Support Level – $240Major Resistance Level – $250
The U.S. Securities and Exchange Commission has sued messenger app maker Kik for its $100 million ICO – which the agency contends was an unregistered securities sale – and the regulator appears to have built up a strong case in its initial court move.
In a complaint filed Tuesday, the SEC alleged that Kik violated federal securities law by not registering its kin token sale. In a response, Kik’s general counsel, Eileen Lyon, said that the SEC’s complaint makes a number of inaccurate assumptions which “stretch the Howey test well beyond its definition” and that the agency’s push will not withstand judicial scrutiny.
Nelson Rosario, a principal at Smolinksi Rosario Law, told CoinDesk that the SEC’s complaint against Kik was similar to others brought against other initial coin offerings, in particular with respect to the evidence that the regulator is putting forth.
“Obviously this is a very sophisticated kind of token offering, done by a company that was already established [and not a token startup] but [the] kind of evidence that the SEC brought to bear is very much the same that it’s brought against [other ICOs],” he said.
However, the most distinguishing feature of this case may be that it strictly focuses on an alleged violation of Section 5 of the Securities Act of 1933.
“Until now, all of the SEC’s contested enforcement actions have involved some element of fraud or intentional misconduct,” said Jake Chervinsky, general counsel at Compound Finance. He told CoinDesk:
“The Kik action is significant because it represents the SEC’s first enforcement action for a pure regulatory violation – that is, a case where a token issuer simply failed to register with the SEC based on its good faith interpretation of the law.
Rosario concurred, noting that this case did not involve any sort of alleged fraud, as did Stephen Palley, an attorney with Anderson Kill.
“This is a straight up ‘you didn’t register,’ this isn’t securities fraud, the allegation here is ‘you had a security and you didn’t register it,’” Palley told CoinDesk.
Drew Hinkes, an attorney for Carlton Fields and general counsel to Athena Blockchain, said the SEC included a great number of facts in its case.
The regulator provided evidence sourced from YouTube, Slack messages, Twitter and even a roadshow that Kik conducted in the early stages of its token sale.
“The SEC has a ton of documentary evidence and a ton of facts,” he said.
This argument was repeated by Palley and Katherine Wu, an independent legal researcher.
“[It] reminds me of the Carl Sandburg quote: If the facts are against you, argue the law. If the law is against you, argue the facts. If the law and the facts are against you, pound the table and yell like hell,” Hinkes said, adding:
“Seems like there’s a lot of strong facts in the SEC’s favor … now the issuer gets to argue the law.”
The facts are likely to be the same facts that Kik will use to argue that it did not violate the Securities Act though, Wu said.
Moreover, Hinkes noted that “facts aren’t as crucial as the way the law is applied to the facts.”
On the facts, though, is where a precedent may be set.
Wu said that, in her view, Kik’s 2017 token sale “was very typical” of other ICOs at the time. The facts that are being used by the SEC to allege Kik violated securities registration requirements could then implicate other token sales, particularly those that conducted sales after the DAO report was published that year.
“If this is a win for the SEC, it will force a ton of the similarly problematic ICO projects to either have to register or disgorge any profits they made,” she said.
What’s more, the DAO report was actually referenced in the SEC’s complaint Tuesday.
‘Carrot and stick’
To some, the SEC’s lawsuit Tuesday was all but inevitable.
Chervinsky noted that the regulator has invited crypto startups to work with it, giving companies a chance to comply with federal securities laws.
He noted that the regulator has been investigating “dozens or hundreds” of companies that conducted ICOs, but Kik is the first one to go to court for a registration violation.
“The SEC has taken a ‘carrot and stick’ approach to crypto regulation … That invitation was the carrot. This enforcement action is the stick,” he said.
Similarly, Palley said this case should not be a surprise, and Kik likely anticipated the complaint.
This anticipation may even be the reason why the company started crowdfunding its legal defense, he noted, referencing the recently-announced Defend Crypto campaign that Kik launched last week. He added:
“I would be surprised if this whole thing shocked anyone.”
Indeed, Michael Arrington, one of the sponsors of the campaign, said in a statement that, “I don’t speak for the company and haven’t spoken to them since the news, but from our perspective this was anticipated and was the entire point of the campaign. We continue to fully support their right to a proper defense and hope that cases like these bring regulatory clarity to this burgeoning industry.”
Kik essentially told the SEC that it should sue by making the SEC’s Wells Notice and its subsequent response public, Chervinsky said.
“By publishing its Wells response, Kik essentially threw down the gauntlet and challenged the SEC to file suit. The fact they did so today shouldn’t surprise anyone. Kik got what it wanted: a fight in open court instead of behind the SEC’s closed doors,” he said.
The fact that Kik was already an established company prior to its ICO – regardless of its financial status – means that the outcome of this case could have a broader impact compared to others. Rosario noted that Kik’s sale “involved some very sophisticated parties.”
That being said, the case has only just begun.
The SEC may have a strong complaint, but that does not necessarily mean that the case will proceed to a jury trial, Palley said, adding:
“Complaints always look bad … you always read them and think ‘that’s not good,’ that’s the whole point.”
Wu noted that “complaints are always written in a super-biased way,” as they are designed to make an argument.
A court or jury may not read the complaint as a scathing indictment (in a non-legal sense), and it is entirely possible that Kik and the SEC will come to a settlement prior to reaching a jury trial.
Further, the way the SEC opened its complaint moves away from its remit, said Diego Zuluaga, of the Cato Institute think tank.
In his view, the first few pages of the SEC’s complaint are criticizing its business model, which is not its job.
“They’re trying to bias people against [Kik],” he said.
The complaint discussed how “the Kik corporation was declining and its messaging app was losing revenue and losing users,” but the company suddenly launched a cryptocurrency, he said, concluding:
“That may or may not be the case, and I’m not taking sides … but it’s not the SEC’s job to judge business models. That’s designed to make the jury think they have fraudulent aims.”
Image via Brady Dale for CoinDesk
Yesterday, Cupertino-based tech giant Apple held its annual Worldwide Developers Conference (WWDC) where it gave an update on its product lineup, and while new products were revealed to the public for the first time, the event skews heavily toward talk of future development on Apple software development kits. One such crypto-focused dev kit, dubbed CryptoKit, was debuted by Apple and is the first major sign of the company supporting the budding technology.
By CCN: Bits of Gold, Israel’s largest broker of bitcoin and Ethereum, can keep its bank account with the country’s biggest bank. That’s the decision from Israel’s Supreme Court on Monday. It overturned a district court’s earlier decision to allow Bank Leumi to close the Israeli crypto exchange’s account.
Bits of Gold’s Second Court Victory
This isn’t the first time Bits of Gold has run into trouble with Bank Leumi; neither is it the first time Israel’s courts have sided with the crypto exchange over the big bank.
Finance Magnates reports that the courts ordered Bank Leumi to continue doing business with Bits of Gold in February 2018. The injunction, however, was temporary. A recent crackdown on Israeli banks servicing gambling companies triggered a second restriction on the crypto exchange’s bank account. That’s because of Bank Leumi’s decision to classify cryptocurrency exchanges under the umbrella of gambling.
Bits of Gold CEO Yuval Roash celebrates the recent court victory. He notes that it’s not only a win for his exchange but paves the way for other crypto businesses in Israel. The nation’s crypto industry can now rest assured that its bank accounts won’t be locked:
“This is an exciting moment for us as a company and for the [cryptocurrency] community in general. We worked hard to set up a company which met regulatory requirements, in a new industry, and those efforts paid off. I am proud to be a part of this flourishing industry and push it towards the right regulation.”
Israel’s Largest Crypto Exchange
According to CrunchBase, Bits of Gold is the Mideast nation’s largest and most active seller of bitcoin and Ethereum. With both Hebrew and English-language websites, the Tel Aviv-based crypto exchange caters to Israeli cryptocurrency markets and has plans to expand into the European market as well.
“The company has a pool of more than 50,000 registered customers, which is constantly growing (an increase of 250% in 2017 only). Clients include private investors, high-tech companies, financial companies, investment houses, hedge funds, non-profit organizations and more.”
Bits of Gold customers can use bank transfer, cash, and credit cards to exchange ILS, USD, and EUR for BTC and ETH. It facilitates over the counter transactions, liquidation of digital assets from ICOs, and payment solutions for businesses.
Bitcoin is a lot of things to a lot of people. It’s a currency outside of government’s reach; it’s a hedge in a dwindling economy; it’s a store of value; it’s a vehicle for money-laundering; it’s a life-changing investment asset. And for some, it’s simply an exciting and emerging technology to tinker with.Such is the case with one crypto enthusiast, who has combined their love for two of his or her favorite technologies together, to run the Bitcoin Core client released by Satoshi Nakamoto on the Nintendo Switch.
Bitcoin (BTC) and the aggregated crypto markets are currently experiencing a bout of major volatility that appears to have put the upwards momentum that they have incurred over the past several weeks in grave danger.Despite this, one analyst is quick to note that Bitcoin is still holding above the upwards parabola that it has been forming throughout the course of its recent uptrend, which – in combination with several other bullish factors – may signal that further gains are imminent.Bitcoin Struggles to Hold Above $8,000 as Selling Pressure Ramps UpAt the time of writing, Bitcoin is trading down nearly 6% at its current price of just over $8,000, which appears to be a relatively weak level of support.After BTC first incurred a large amount of selling pressure late yesterday, it tumbled from highs of nearly $8,600 to lows of $7,900, where it found some levels of buying pressure that allowed it to climb to its current price levels.It is important to note that this downwards pressure first began after Bitcoin quickly surged to highs of $9,000 late last week, at which point it faced an insurmountable level of selling pressure that put its upwards momentum in jeopardy.As for where this current bearishness may send Bitcoin next, UB, a popular cryptocurrency analyst on Twitter, explained that he believes BTC may visit the lower $7,000 region in the near future.“$BTC – Typically when Bitcoin breaks a Series of Higher Lows it retests the Origin of the HL. The Origin of the HL is confluent with Daily Support between $7.2k – $6,975. Looking to short the next bounce and ride it down to Daily Support,” he explained.$BTC – Typically when Bitcoin breaks a Series of Higher Lows it retests the Origin of the HL.The Origin of the HL is confluent with Daily Support between $7.2k – $6,975.Looking to short the next bounce and ride it down to Daily Support.
#Bitcoin pic.twitter.com/zr3noOJvOs— UB (@CryptoUB) June 4, 2019Analyst: BTC’s Upwards Parabola Still IntactAlthough there is a strong possibility that further losses are imminent, other analysts are currently noting that the combination of Bitcoin’s upwards parabolic formation – which appears to still be intact despite the recent drop – and other bullish factors may lead BTC to surge higher.Rhythm Trader, another popular analyst on Twitter, shared a somewhat bullish sentiment regarding BTC that is quite rare at the moment, noting that he believes its parabola and bullish fundamentals will help lead it higher.“This $BTC parabolic rise is still on-going and has yet to break. – Less than a year to the halvening – Volume all-time highs – Hash rate at all-time highs. Bitcoin rose from 5,000 to $20,000 in only two months last parabolic move,” Rhythm said.This $BTC parabolic rise is still on-going and has yet to break.– Less than a year to the halvening– Volume all-time highs– Hash rate at all-time highsBitcoin rose from 5,000 to $20,000 in only two months last parabolic move.Let’s chat about it:https://t.co/zS6tF6XBrJ pic.twitter.com/dq6jGsnSEi— Rhythm (@Rhythmtrader) June 4, 2019Although only time will tell as to whether or not the market’s will be able to extend their upwards momentum further, Bitcoin is still in a firm uptrend and has significant room to fall before it once again nears bear market territory.Featured image from Shutterstock.
Two of CNBC’s regular trading pundits have today discussed their preferential store-of-value asset. Appearing on the network’s Futures Now segment, Jim Iuorio and Anthony Grisanti speculated on whether Bitcoin (BTC) or gold had the greater short-term upside potential.Although not particularly interesting from a short-term technical perspective – the two traders differed on which direction they thought each asset was heading – the message hinted at by one was most interesting. Bitcoin has much greater potential for gains than gold.The Past Was Gold’s, The Future is for Bitcoin?Bitcoin has once again become the topic of conversation on CNBC. This time, two of the network’s regular trading pundits have opined on whether they would rather hold gold or Bitcoin.First to speak on the Futures Now show was trader, investor, and managing director of TJM Institutional Services, Jim Iuorio. Iuorio represented the gold camp:“I’d much rather be gold for a couple of reasons – the first one’s technical. When gold moved, its recent move, it broke out of a fairly severe downtrend, and I think it’s heading up to about $1,360ish.”Gold’s place as store-of-value could be under threat from Bitcoin.He continued, stating that gold not dropping despite the strong dollar was a good sign for the asset’s future performance.Iuorio then turned his attention to BTC. He stated that he found it hard to believe that Bitcoin was going to head over $10,000 anytime soon. He called that price point a “line in the sand”.The interesting part of the discussion came when Iuorio’s counterpart, trader and investor Anthony Grisanti, got the opportunity to speak about his preferential store-of-value:“Jimmy, I’m taking the modern currency versus the medieval currency right now, and I’ll tell you why. There has been a wider implementation of Bitcoin, the transaction has speeded up [sic.], as far as the cost has speeded up, and also the number of transactions has speeded up. Hedge funds are back in to start buying this thing, and Jimmy, when you walk into burger king, you can’t buy a Whopper with a bar of gold. You can buy it with some Bitcoin though in a little bit. I’m liking Bitcoin.”Iuorio reminded Grisanti that you still can’t buy food from Burger King using BTC, to which he responded:“Yeah but Jimmy, they’re going to implement that. They have no plans for implementing it for gold at this point.”Despite the fact that the discussion was not based around any specific time frame, such potential adoption of Bitcoin surely makes it a much more appealing investment than gold in the long-term. The sheer number of developers working to improve the protocol, the fact that regulators like SEC is going after the likes of Kik rather than anyone working on Bitcoin, and the ever-increasing numbers of users and accepting merchants, all hint that Bitcoin is not only not going away but it seems increasingly likely to thrive in the future.Iuorio had no response for such a statement and could not deny that this was indeed positive for the digital currency from an investment standpoint.However, Grisanti wasn’t finished. He went on to state another of Bitcoin’s most alluring qualities – the fact that it is completely uncorrelated to any other asset:“The other thing I like about Bitcoin versus gold is the whole thing about the dollar. That you’re not beholden to the dollar with Bitcoin. So the dollar can make its move and Bitcoin can make its move separate to the dollar.”This latter comment is ultimately what gives Bitcoin its most world-changing potential. No national government has any influence or control over the Bitcoin network. This makes it the most suitable asset to back a truly global financial system in which no single nation or individual needs place trust in another to devise its currency’s monetary policy. That makes Bitcoin pretty much the most exciting asset on the planet. Related Reading: Malaysian Prime Minister Proposes Gold-Backed Currency, But Why Not Bitcoin?Featured Image from Shutterstock.
By CCN: Litecoin may not be immune to today’s crypto market sell-off, but the No. 5 cryptocurrency has been one of the leaders of 2019. In addition to the crypto market’s expanding value, the hashrate – which is a reflection of computing power dedicated to the network – has also been on the rise.
Litecoin’s Hashrate Reaches an All-Time High
Once again, Litecoin has been a standout, with its hashrate achieving a new all-time high, according to Litecoin Foundation Director Franklyn Richards in a recent blog post. While other coins are gaining value alongside LTC, only the fifth-biggest cryptocurrency has reached a new hashrate peak. Bitcoin was close but no cigar now that some consolidation is taking place in the BTC price. Other top coins including privacy coin Monero (XMR) have seen their hashrates fall dramatically, which Richards suggests could be a “potential flagging in longer-term market confidence.”
Litecoin’s bullish hashrate may be a result of a new Litecoin miner becoming available, the Antminer L5. According to the LitecoinTalk forum, the latest generation miner is now available for rent on BitDeer, a computing power-sharing platform. This drummed up some curiosity on the forum.
The L5 Miner Could Be a Game-Changer
BitDeer is a partner with China-based cryptocurrency mining leader Bitmain. While the L5 availability hasn’t been confirmed, Richards says in his blog post that the L5 is “indeed a real thing and is currently being deployed by Bitmain and their mining farms which would include BitDeer.” He goes on to say that the L5 miner has since been taken down from the BitDeer website.
The forum member with the username “nehgekim” says they have been using it and experiencing great results, fueled in part by the rising Litecoin price.
“The mining contracts I have purchased from Bitdeer that use the L5 have performed better than expected thanks to the lift in the LTC price. Sub 5c electric is available but the even there the price of LTC totally needs to trend up for all this to keep being worth anything.”
Richards analyzed the performance specs, saying:
“The stats provided show quite a drastic improvement over the previous generation L3++ more than doubling the hashrate output from 580 MH/s. Perhaps this is why the L4 name is being skipped altogether. It’s certainly not as powerful as Innosilicon’s A6+ however it does appear to be more efficient putting it in a good position for when it does finally retail to the public.”
The Litecoin halvening event, in which the block mining reward will fall from 25 to 12.5 LTC, is planned for Aug. 6. Based on historical performance, the halvening event is typically bullish for the Litecoin price because it is considered a positive for LTC economics. While it should naturally lead to a slashing of the hashrate, Richards expects L5 features including greater efficiency could offset the fact that the rate being cut in half.
When Kik’s board of directors decided to support the company’s pivot to crypto, one of the board members described it as a “hail Mary pass.”
It was early 2017 and the Canadian mobile messaging startup, having depleted its venture funding, was months away from firing everyone and calling it quits. The seven most promising leads for a potential acquisition had balked at buying the startup. Kik was in dire straits.
That’s all according to a complaint filed Tuesday by the U.S. Securities and Exchange Commission (SEC), alleging that Kik conducted an “illegal $100 million securities offering” with a September 2017 initial coin offering (ICO) for its kin token.
Details revealed Tuesday by the SEC show the company knew it faced pushback from regulators, but that didn’t stop Kik from moving forward. Other efforts to keep Kik afloat had failed. To prevent its equity holders from getting wiped out, Kik had to make the cryptocurrency path work, at least according to the version of events presented by the SEC.
In a statement released Tuesday evening, Kik CEO Ted Livingston said the SEC complaint “presents a highly selective and grossly misleading picture of the facts and circumstances surrounding our 2017 pre-sale and token distribution event. We look forward to presenting the full story in court.”
The fact that investors were never apprised of the company’s financial situation seems to be a major sticking important point for Stephan Schlegelmilch and David Mendel, the SEC enforcement staffers who authored the complaint.
Here are seven dramatic findings made by the regulators:
1. Kik was making losing money
And they were shrinking. In a year ending in mid-2016, Kik brought in $2.2 million. In a year ending in mid-2017, it brought in $1.5 million. At the time Kik decided to pursue an ICO, its expenses were running at $3 million per month.
As the complaint puts it, “Despite Kik Messenger’s initial success … Kik’s costs have always far outpaced its revenues, and the company has never been profitable.” Further, the complaint alleges, its “executives had no realistic plan to increase revenues through its existing operations.”
2. No one wanted to buy Kik
The Waterloo-based company was founded in 2009, and the regulators argue that Kik’s real peers were other mobile-first messaging companies. The complaint mentions Snapchat and WhatsApp, which both managed to repay their investors handsomely (WhatsApp with an acquisition by Facebook and Snapchat with an IPO).
According to the complaint, Kik hired an investment bank in 2016 to look for a buyer. The bank met with 35 potential buyers and seven showed interest. “By February 1, 2017, however, all seven potential suitors had declined to buy or merge with Kik,” the complaint reveals.
3. Kik disclosed more information to private-sale buyers than it did to the general public
Buyers who joined Kik’s simple agreement for future tokens (SAFT) got a discount and went through an investor accreditation check. These investors got a private placement memorandum (PPM), with more information about the company. This PPM disclosed that the Kik messenger was losing users quickly.
The complaint gives more detail on that point, saying, “Daily average users dropped from more than 10 million in January 2016 to about 6 million in January 2017.” Neither private investors nor those in the general sale got any information about the company’s financial position.
4. Kik built special e-stickers for its investors
Kik built a system for kin investors to get special digital stickers in its messenger app. According to the SEC complaint, this was an attempt to make it look like there was an actual use for the kin tokens at distribution. One executive emailed other Kik employees in June 2017 saying that “COMPLIANCE” was the only purpose behind the bare-bones sticker product.
The stickers apparently had a honey badger theme. An image of one is included in the complaint. Strangely, investors were not told the system was in development until after the sale was over.
5. CEO Ted Livingston made multiple public statements that token buyers would profit
In a February 2017 email to some employees, Livingston described how they could create a token and then “Buy today, sell tomorrow, profit.”
At a June 2017 Bitcoin Meetup in San Francisco, Livingston said the token boom would be a time in which “people are going to make a lot of money.”
At an August 2017 conference in Canada, Livingston said that “everybody can not only build this amazing new ecosystem and platform but also make a ton of money.”
6. Canadian regulators told Kik that its cryptocurrency would indeed be a security
In fact, because of that advice, Kik didn’t sell the tokens to the general public in Canada. But it never asked American regulators the same question.
Kik reached out to the Ontario Securities Commission (OSC) right after the SEC’s DAO report. By early September, OSC staff had shared the opinion that Kik’s offering qualified as a security. Canadians were barred from the public sale. Americans, as a class, were not (though some states were blocked).
7. A lot of Americans put a lot of money into the public sale
Of the roughly $100 million raised, Americans put in $55 million. Some $16.8 million of that came in the public sale.
The SEC complaint gives more detail about how they were distributed, reporting that “United States-based investors included (a) two purchasers who paid about $1.6 million and about $970,000 respectively; (b) 20 purchasers who paid about or more than $100,000; (d) 223 who paid about or more than $10,000; and (d) 1,853 purchasers who paid about or more than $1,000.”
In the complaint, the SEC seeks a variety of forms of relief, including a demand to “disgorge all ill-gotten gains” with interest and pay a civil fine.
Kik CEO Ted Livingston in April 2018, photo by Brady Dale for CoinDesk