Bitfinex to “Part Ways” with Kim Dotcom
Bitfinex has cancelled the planned IEO for Kim Dotcom’s project, citing regulatory pressures.
Bitfinex has called off the token sale for Kim Dotcom’s project, the exchange announced in a recent blog posting. The debut of Kimcoin has been canceled, due to new regulatory pressures, the exchange stated.
“After careful evaluation, we regret to announce that Bitfinex Token Sales and the K.im team have mutually agreed not to hold the token sale at this time. K.im will defer any decision on whether to create tokens on, or undertake a token issue in relation to the K.im platform until it is fully functional,” Bitfinex announced.
Token sales have been viewed with skepticism, as regulators see those assets as most likely representing unregistered securities. Bitfinex has added that Kim Dotcom’s project will continue, but expand through an equity-based offering.
Bitfinex has held its own small selection of IEOs, hosting projects that were at the least controversial. One of its offerings, Unus Sed Leo (LEO) reportedly raised $1 billion, with the LEO asset moving in a tight trading range, suggestive of price manipulation.
The intended token sale was supposed to raise $8 billion, with the asset’s launch set for 2020.
IEOs have slowed down in the last months of 2019, as the tokens turned out to be volatile. Only limited sales have been on offer lately.
The K.IM project aims to build a decentralized marketplace and record-keeping for copyright share ownership. Kimcoin, the native asset, as well as Bitcoin (BTC) would be used within the ecosystem. The K.IM platform will also offer encrypted file storage and security.
Kim Dotcom’s decision to choose Bitfinex for his token sale is as controversial as his Megaupload debacle. The file sharing service fell under the blows of US regulators, for reportedly allowing illegal file sharing.
This time, choosing to sell the tokens on a platform investigated by the New York Attorney General, seemed like a bad choice.
Still, the K.IM project has raised as much as $2 million in private placements, and intends on following its roadmap to a completed product.