Securities law enforcement means the investor’s various ICO project could come in for penalties, Pantera Capital has warned.
According to the company’s most recent newsletter cited by a Bloomberg article Dec. 13, the ongoing crackdown by U.S. regulators means many ICOs, which have already felt the pinch from declining markets, may have to repay investors.
“While we believe the vast majority of the projects in our portfolio should not be affected, approximately 25 percent of our fund’s capital is invested in projects with liquid tokens that sold to U.S. investors without using regulation D or regulation S,” the publication quotes co-chief investment officers Dan Morehead and Joey Krug as saying.
“If any of these projects are deemed to be securities, the U.S. Securities and Exchange Commission’s (SEC) position could adversely affect them. Of these projects, about a third (approximately 10 percent of the portfolio) are live and functional and, while they could technically continue without further development, ending development would hinder their progress.”
Included in the likely victims is cannabis-focused ICO project Paragon, one of two schemes the SEC ordered to repay millions of dollars in refunds and fines in November for breaching securities rules.
Data has since confirmed the downward pressure regulators have had on the ICO industry, with the amount of funding accrued dropping significantly.
“You now have the lack of demand from ICOs and then you have all the sponsors of the ICOs who raised a bunch of Bitcoin (BTC) and primarily Ether (ETH) who are now starting to sell that,” he explained.
Visit the USSA News store!
Click this link for the original source of this article.
Author: William Suberg
This content is courtesy of, and owned and copyrighted by, https://cointelegraph.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact the USSANews.com administrator by using the contact form located in the top-left menu. Your request will be immediately honored. Please visit https://cointelegraph.com for more terrific, conservative content. The owner of this website may be paid to recommend American Bullion. The content of this website, including the positive review of American Bullion, the negative review of its competitors, and any other information may not be independent or neutral.