Jared Polis is making a huge impact already on the blockchain and crypto scene in Colorado, as the Colorado State Department of Regulatory Agencies (DORA) has handed out four more cease and desist orders to ICOs. This raises the tally of ICOs issued with cease and desist orders to a whopping 18 this month alone. Polis, with the help of DORA, is cleaning up the states crypto scene in order to prepare it for sweeping regulations.
Scam ICOs Lurking Under Every Rock
DORA has sent out cease and desist orders to Global Pay Net, Cred (doing business as Credits LLC), CrowdShare Mining and CyberSmart Coin Invest in the latest round of evictions from the state. CyberSmart Coin Invest claims to have robots that invest on Bitmex with secret algorithms for profit gaining. These robots and secret algorithms mean that the site promises between 20% and 35% profits each month – which is a ridiculous claim when it comes to marketing an investment vehicle. In addition to this, Global Pay Net said that it was affiliated with a number of cryptocurrency professionals on the website. However, two of these individuals have denied the claims, saying they were never involved with the project at all.
Colorado is Clamping Down
Colorado has taken the scam ICO scene very seriously. Earlier this month, DORA issued four cease and desist orders to a handful of firms, one who claims to never have received anything. PinkDate has hit back saying that it never received such an order, but the notice on the government’s website mentions that there is no address for PinkDate – does this mean by not putting an address on your business you can’t have a cease and desist order issued against you? Your guess is as good as ours.
ICO Scams Raking in Big Bucks
While not all of these firms issued with cease and desist orders are confirmed scams – some may just be unregistered securities and have fines pending – scam ICOs are a sure-fire way to rake in the big bucks. Most ICOs are usually sold out and attract millions of dollars in exchange for a handful of tokens. In a bid to clean up the ICO scene, the Autorité des Marchés Financiers (AMF) is creating a legal framework that will ensure a UCITS-like environment for ICOs. This should help stamp out scam ICOs in France, and many are hoping that it’s adopted by other European countries.
Colorado is certainly trying its best to clean up the ICO scene, it needs to be more thorough in what it calls a scam. Some of these firms it’s labelling as scams have in fact just not registered as a security in the state. This could harm the business’s reputation and future all because a clerk tarnished the business with the same brush as a genuine scam. This could lead to a lot of backlash and potential lawsuits from legitimate companies. Make sure you always do your research before investing in an ICO.