- Bitfinex announce Kimcoin token delay
- Initial exchange offerings are seeing a big impact due to regulatory framework
- Many surprised in the crypto community
Announced earlier this week by the Hong Kong-based cryptocurrency platform, Bitfinex, the decision to delay the initial exchange offering (IEO) of the native digital assets of the content monetisation platform K.im, Kimcoin.
In a blog post posted on 5th November, Bitfinex announced that the first IEO on the new platform Bitfienx Token Sales would no longer be happening. This was a decision made based on the “evolving” regulatory guidelines that surround this type of token sale.
The announcement reads:
“Since we announced the debut of Kimcoin on the Bitfinex Token Sale platform, the regulatory environment has rapidly evolved. The risks associated with raising funds for the K.im token sale have become clear, and we must put our community’s best interest first and foremost.”
At first, the IEO was set to launch at the end of last month on October 28th with the idea of raising $8 million to continue the development of the K.im project.
However, things didn’t go to plan and after a quite tense talk with the regulatory environment in the industry, both teams made the mutual agreement to hit pause on the token sale.
“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.”
Many in the crypto space were surprised by this move. At the time of writing, the project had already built up more than $2 million form various strategic investors including, Max Keiser and Bitcoin Capital to name a few.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!