Recently, Ted Livingston, the CEO of a Canadian-based messaging startup, Kik, spoke about the reason they were being sued by the United States Securities and Exchanges Commission, in an interview for CNBC Crypto Trader. Livingston also spoke about the famous Howey Test and explained why it would not hold in this case.
Livingston was asked about the exact reason the commission was after Kik: whether it was for raising money via an ICO or for having “an instrument in circulation” that does not comply with the commission’s requirements. To this, the CEO stated that in the Wells notice, which they had received in November, the commission’s emphasis was on both the Kin tokens that were sold during the ICO, its current usage and tokens issued by Kin Foundation.
He went on to state,
“they don’t talk about anything to do with Kin being used to or anything to do with Kin foundation. It’s purely about the token sale in 2017. So, to me that’s exciting, they’ve backed down the idea that Kin, today, being used in dozens of apps by millions of people is a security, they made no comment on that today […]”
This was followed by Livingston speaking about another key factor pointed out by the commission, the firm telling investors that they could expect profits and its appliance to the Howey Test. He stated that this was not “what the Howey Test is”, adding that because an asset could become more valuable does not imply that it was a security.
[…] Just because a group of people have a common incentive, does not make it a security. The Howey test makes it very clear from the 1940s. So to us, the announcement is quite clear and that’s why we got excited when the DAO report came out, saying that the Howey test was the correct test […]
Further, he spoke about the commission’s allegation that the firm “enticed people to purchase a token” by asserting that it was a good investment and that it would grow in value.”
“I think this is a gross mischaracterisation and misleading of the facts. What we did is that we explained basic crypto-economics. The fundamentals of crypto is that you can issue a digital asset that has guaranteed scarcity.”
He went on to state that it was economics 101 that an asset that is scarce, and that which creates demand would become more valuable. He added that the team did not “promise anything”, adding that they could neither guarantee the value of Kin nor guarantee the demand of Kin.
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Whale Alert: Massive $300 million transfer takes place on Binance Chain; funds SAFU, says CZ
Binance, one of the world’s largest cryptocurrency exchanges, has been having a wonderful year in terms of new developments, such as their new Binance DEX and the massive growth of Binance Coin [BNB]. Binance’s native token has grown by approximately 500 percent in 2019 alone.
The exchange also recently announced the launch of BTCB, with an objective to provide a crypto-asset pegged to BTC’s value for trading purposes on Binance DEX, with the assets being backed by Binance itself.
Binance’s ecosystem is progressively active and it was recently observed and reported by Whale Alert, an online cryptocurrency-transaction tracker, that a sum of approximately $302 million, equivalent to around 8 million BNB coins, was transferred on the Binance Chain.
The transaction took place of 26th January 2019, with a time stamp of 07:52:56 UTC. It was sent from an unknown address, bnb1jkvrjawcd8wlugk8455wqjggxecyxj9uf0g7uy, to another unknown wallet, bnb13wmeg7ypkcr39wnzy2q02mku2qemnrm4kclezs, for a transaction fee of 0.000375 BNB. The block height of the transaction was #15820220, and it was deemed a successful one.
Following the massive transfer, Changpeng Zhao, CEO of Binance, responded on Twitter regarding the transfer and claimed that the current movement was a rotation of funds between some cold wallets.
CZ suggested with a linked tweet that the movement of funds should not necessarily raise any alarms as the funds were SAFU.
In another tweet, CZ stated that there were currently 4 addresses that were holding 8 million BNB coins each. A total of $32 million BNB was unlocked for the Binance team. However, it was understood that the tokens were not spent and saved in the addresses themselves.
It is speculated that CZ took the initiative to list the reason for the massive transfer as previously, huge BTC transfers, which included a Coinbase wallet transfer, was accused of market manipulation.
At press time, BNB coin was priced at $37.30, experiencing a hike of 1.87 percent over the past 24 hours.
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