Everyone active in the world of cryptocurrencies and initial coin offerings knows the SEC doesn’t take kindly to either concept. Now that this agency has cracked down on its first ICO, things will only get more interesting. This makes the launch of Indeco all the more significant, as it is compliant with the SEC’s crowdfunding rules.
Indeco is a Major Development in ICOs
Launching an initial coin offering in the United States is a very dangerous proposition right now. The SEC has started to crack down on any offering which potentially violates securities laws, and PlexCoin is only the first victim in this regard. Indeco thinks it has all the right boxes checked with its SEC-compliant crowdfunding campaign.
It is commendable to see companies and projects focus on being compliant rather than simply raising millions of dollars. Indeco claims to be the first crypto asset pre-sale under the SEC’s rules for Regulation Crowdfunding. This new regulation allows anyone to invest in securities issued by startup companies. It doesn’t matter whether or not one is an accredited investor or has any significant net worth. This regulation is quite interesting, and being compliant should be the first order of business.
Indeco CEO David Levine described his offering as follows:
“We are committed to complying with SEC rules and regulations in this pre-sale period, in our proposed ICO, and throughout secondary market trading. We believe all crypto assets will be subject to regulatory scrutiny, and we plan to create substantial value for our investors by proactively developing a compliant offering.”
It is certainly true there are opportunities ahead for companies looking to follow the initial coin offering route. Complying with the SEC’s regulation is not all that difficult, but projects will need someone with sufficient legal expertise on board to make this happen. Sadly, most ICO projects don’t focus on this aspect all that often and are forced to ask for forgiveness later on. Given the SEC’s stance, forgiveness will be very difficult to come by and an official inquiry is a more likely outcome.
The Indeco token pre-sale is being hosted by StartEngine, a crowdfunding platform regulated by the SEC. It is good to see a more professional approach being taken in this regard, as this industry has gotten a lot of negative attention in recent months. Moreover, with the SEC providing regulated platforms to ensure project compliance, there is no reason not to embrace this solution in full.
It will be interesting to see how the entire ICO industry evolves in the coming weeks and months. The SEC will most likely continue to scrutinize new and existing projects alike, although no one knows for sure if more legal repercussions will be handed down. It is good to see projects such as Indeco take the appropriate course of action in this regard, although not all projects will follow its example.