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Popular Messaging App Kik to Fight SEC in Court Over Kin ICO

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Kik Prepares for SEC legal battle

As the SEC continues with their efforts to clamp down on the ICO community, it now appears that not all of the companies they pursued are ready to back down. This month the popular messaging app Kik declared that they are prepared to challenge the SEC in court regarding their 2017 Kin ICO. The move could signal a change in the way the SEC categorizes ICOs and the introduction of many new precedents.

Kin ICO – Kik

The Canadian-based messaging firm first caught the attention of the SEC following the completion of their ICO in September 2017. The firm secured nearly $100 million in funding. Over 10,000 investors participated in the event which saw Kin accumulate 168,732 ETH. This amount, coupled with another $50 million raised in the private sector, made Kik’s Kin ICO one of the most successful to date.

Now the SEC says that Kik violated their securities laws. This is an interesting stance as the ICO utilized an ERC-20 token during the launch. The SEC previously ruled that both Bitcoin and Ethereum are not securities. Following the ICO the tokens were migrated to the company’s private network. Once on the Kin network, these tokens function as currency. It is here where much of the confusion arises.

Kin

The Kin token is used within the Kin ecosystem to reward participants for their participation in certain activities. Additionally, outside developers have the ability to integrate the Kin rewards system into their native platforms as well. This allows developers to take advantage of the powerful incentivization program inherent within the ecosystem.

Kik via Twitter

Kik via Twitter

The developers behind Kin seek to create the most robust and widely used cryptocurrency in the world. The platform includes the Kin marketplace. Here users can spend their hard-earned Kin on a wide variety of digital services. Today, the Kin network includes over 30 apps and 6 million global users.

Kik vs SEC

Kin developers are certain that their token is not a security. In fact, the CEO of Kik, Ted Livingston publicly stated that the SEC is incorrect in their assessment. In rebuttal to the SEC, Livingston pointed out that on page 11 of the 1934 Securities Exchange Act it clearly states that the definition of a security “shall not include currency.”

SEC

While Kik’s legal team is sure they have a strong case, the SEC seems to think differently. The SEC got vocal on their desire to step into the ICO market in 2017. The SEC Chair, Jay Clayton, explained that he feels every ICO is a security. Obviously, this isn’t a very popular view within the cryptocommunity, and many firms are ready to challenge this idea.

Kik to set Precedents

Kik seems to feel that they have the upper hand in the upcoming legal battle for a number of reasons. For one, Kin is a currency used within the Kin ecosystem. To date, hundreds of thousands of people have used their Kin tokens to exchange for goods and services.

Livingston pointed out that this activity clearly makes Kin a utility token and therefore, not subject to SEC regulations. Further confounding the argument is the fact that Kin developers blocked Canadian investors.  Canadian investors were banned from the event because Canadian regulators deeming the ICO was a security.

Setting Precedents

Now, the situation goes to court. If Kik is successful, the ramifications would alter the course of the cryptocommunity forever. As it appears now, Kik has valid reasons to defend their hugely popular cryptocurrency from the ever-reaching hands of the SEC.

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David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including bitcoinlightning.com

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Smartlands to Tokenise Nottingham Real Estate through STO

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Smartlands to Tokenise Nottingham Real Estate through STO

Inaugural STO

After months of platform development, Smartlands is ready to build off of past successes. This young company has just announced the launch of their inaugural security token offering.

Taking place through their Stellar based platform, Smartlands will facilitate the tokenization of shares representing fractionalized ownership of a 124 unit real estate development, purpose built as student housing.

Smartlands to Tokenise Nottingham Real Estate through STO

While Smartlands is facilitating this security token offering, the event is a product of Shojin Property Partners – A real estate development and investment firm.  Shojin Property Partners completed construction of this complex in 2018, and soon after began filling it with residents.

Now, with the help of Smartlands, Shojin hopes to offer investors a new type of opportunity through the use of security tokens.

Details of the Deal

This deal is providing investors with exposure to revenue, garnered from 32 Russell Street, Nottingham, United Kingdom. With Nottingham playing home to multiple universities, it is expected that these units will be in high demand.

While figures may vary, it is forecasted that investoSmartlands to Tokenise Nottingham Real Estate through STOrs in this project will receive the following benefits.

– Average dividend yield of approximately 5.74% per annum

– Return of 15.72% per annum including capital growth

 

For those interested in this opportunity, participation is open to retail investors, with a minimum 500 GBP investment.

Commentary

In their announcement, Ilya Obraztsov, VP of Technology at Smartlands, took the time to comment. The following is what he had to say.

“At Smartlands we’re rethinking traditional finance models by building a global ecosystem that democratizes access to alternative investments and opens opportunities to higher-yield projects. By connecting blockchain and the real economy, we create new opportunities for retail investors to participate in institutional-grade deals with a much lower buy-in threshold. And we have our first STO to show for our efforts…The student complex in Nottingham is the first tokenized property in the UK, to be followed with new offerings of blockchain-based securities backed by assets in real estate and other markets.”

Smartlands

Smartlands is a U.K company, headquartered in London. The company was launched in 2017, and has since strived to develop solutions geared towards crowdfunding. This has led to the adoption of blockchain technology, and now security tokens.

Company operations are overseen by CEO, Arnoldas Nauseda.

Shojin Property Partners

Shojin Property Partners are a London based company, which was founded in 2009. Above all, they create investment opportunities through the development of various real estate projects, such as the one described here today.

Shojin Property Partners was acquired by Smartlands in early 2019

In Other News

We have detailed Smartlands multiple times over the past few months. Whether discussing acquisitions, or developmental choices, Smartlands has come a long way in this time. The following are a couple of articles discussing these events.

Smartlands Releases Stellar Powered Wallet Supporting Security Tokens

Smartlands Acquisition Opens New Doors for Crowdfunding

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PCF Capital to Host $250 milllion DSO through KoreConX

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PCF Capital to Host $250 milllion DSO through KoreConX

$250 million DSO

One of the largest digital security offerings, to date, has recently been announced. In an upcoming DSO, Australian based, PCF Capital, will be hosting a whopping $250 milllion event, aimed towards the mining and resource sector.

This DSO will be made possible through the use of KoreConX and their digital securities issuance platform. By choosing to use KoreConX, PCF Capital will be gaining access to the KorePartners. This is a network of strategic partnerships which KoreConX has been developing for some time.

This offering will be open to accredited investors in select countires, including the United States, Canada, Australia, and more.

Commentary

In making their announcement, representatives from each, PCF Capital and KoreConX, took the time to comment on the development discussed here today. The following is what each had to say on the matter.

Liam Twigger, Managing Director at PCF Capital, stated,

“We are a global company that requires a global solution. We selected KoreConX because it will allow us to remain compliant with regulations not only in the USA and Australia but in multiple other jurisdictions around the world…This is a very important step in the history of PCF and we want to make sure our investors are protected and have a platform to be able to manage the entire lifecycle of the digital securities. That’s why we are using the best possible tools for the job.”

Oscar Jofre, CEO at KoreConX, stated,

“We are disruptors and what better way to do that than work with one of the world’s oldest sectors adopting Digital Securities for their offering. PCF Capital’s global reputation in the mining sector made the decision easy for us to bring them on as clients to our platform…Now is the time for the traditional investor to understand the value and trust of digital securities. Having a global offering of this magnitude heavily investing in a Digital Securities Offering is great for the industry as a whole. Many more will follow once the infrastructure is in place for it, and this is what we are doing with the KoreProtocol.”

PCF Capital

PCF Capital is an investment banking group, which is headquartered in Australia. Since being founded in 1999, PCF Capital has gone on to manage over $3.5 billion in deals.

Operations are overseen by Managing Director, Liam Twigger.

KoreConX

KoreConX was founded in 2016, and is headquartered out of New York. Above all, KoreConX has been striving to become the most comprehensive platform for private capital markets. This means developing in-house solutions, and partnerships which facilitate needs within the digital securities sector. To date, KoreConX has begun seeing adoption of their platform, as multiple DSOs are scheduled.

Company operations are overseen by CEO, Oscar Jofre.

In Other News

I recent months, KoreConX has found themselves in our headlines on various occasions. Check out the following articles to learn a bit more about what this promising company has been up to.

KoreConX the Protocol of Choice for Upcoming Digital Security Offering by 3iQ

BankRoll Ventures and KoreConX Aim to Tackle Security Token Offerings

KoreConX Partners with SME Brokers

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Blockport STO Fails to Gain Traction – Platform to Shutdown

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Blockport STO Fails to Gain Traction - Platform to Shutdown

Failure to Launch

On a disappointing note, Blockport has announced the cancellation of their ongoing security token offering. After launching the event, roughly 1 month ago, the team has indicated that they have failed to attract their minimum threshold of investments.

This comes as a letdown to the industry, as Blockport represented one of the first security token offerings to be offered through the Tokeny platform. To date, only a handful of STOs have taken place through ANY issuance platform.

Future Aspirations

While Blockport will be returning investments to the few participants in their STO, they have indicated that this is not the end for them. Their intent is to scale back operations in the short term, reflect, and establish a path for future growth.

This means that the platform will be shutting down in the coming weeks, revering to a ‘development mode’.

Commentary

Blockport CEO, Sebastiaan Lichter, elaborated on the cancellation in a statement to the public. The following is what he had to say on the matter.

“In the past few months our team has worked extremely hard to launch the first round of our STO, and yesterday this ended after being open for almost one month…In short, the results of the fundraise are not sufficient to proceed with the issuance of BPS tokens.”

Despite this, Sebastiaan Lichter remained confident in the future of blockchain. He continued,

“We still see a lot of opportunities in this industry and have built a top performing trading platform that many people love to use and which has had almost zero downtime or issues since we launched it in the summer of 2018…Whilst developing our platform, our goal is to explore opportunities that support a restart of the Blockport platform in the future.”

BlockPort

Operating out of Amsterdam, Blockport is a Dutch company, which was launched in 2017. Under the watch of CEO, Sebastiaan Lichter, Blockport has developed and launched a trading platform, tailored toward, both, utility and security tokens.

The security token offering, discussed here today, was launched through the Tokeny issuance platform, on March 31st, 2019.

Tokeny

Tokeny is a Luxembourg based company, which was launched in 2017. Above all, Tokeny acts as an issuance platform, providing companies with solutions for the tokenization of assets. Tokeny was responsible for facilitating the Blockport STO – For their part, the event went off without a hitch.

In Other News

While the failed STO is an unfortunate situation, BlockPort is by no means alone. For a variety of reasons, there have been various deals to have fallen through in the past few months. The following articles detail a couple of these situations.

Harbor Cancels Convexity Properties STO

Due Diligence Process Delays tZERO Investment

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