The Securities and Exchange Commission (SEC) of the United States has waited out new prohibitions against the founder of an ICO (Initial Coin Offering). The SEC has established that the company was undertaking fraudulent activities.
Tomahawk Exploration LLC is alleged to raise funds through misleading marketing materials and false claims about oil drilling licenses.
The company was planning to raise funds through “Tomahawk” coin. They claimed that the users would be able to convert the crypto coins into equity and that they will be able to make profits through oil production. The company also said that the users will be able to earn extra profit through secondary trading of the tokens.
After being fined $30,000, David Laurance, Director, Tomahawk Exploration LLC, has neither admitted nor denied these allegations. Though the company has agreed to pay the fine.
The SEC is also looking into other methods that companies are using to marketing their ICOs. Airdrop is one such method that is used by companies to distribute free-tokens to users in exchange for joining their social media groups. Bounty programs is another way that ICOs use to generate buzz around their company.
As of 2018, one out of every two ICO has failed. Thousands of people invested in cryptocurrencies as a way to get-rich-quick. However, people need to understand that ICOs are like any other investment, that means that they carry a risk with them. People should be mindful to not fall prey to these bold claims and should perform thorough research before investing their money.
ListofICO.com is your premier source for news, scams and upcoming ICOs from across the globe. It allows you to research and plan your investment to ensure that you get the bang for your buck.