US SEC: Initial Exchange Offerings (IEOs) – Investor Alert

[Kemarit]

It's already 2020 and still SEC is issuing alert warning.

Investor Alerts and Bulletins
Initial Exchange Offerings (IEOs) – Investor Alert

Jan. 14, 2020

The SEC’s Office of Investor Education and Advocacy is issuing this alert to urge investors to use caution before investing in so-called “initial exchange offerings” through online trading platforms.

Initial exchange offerings (IEOs) are a recent development in the rapidly evolving digital asset space.  IEOs are similar to initial coin offerings (ICOs) in that they are initial offerings of digital assets (e.g., coins or tokens) to raise capital.  However, IEOs are being touted as an innovation on ICOs because they are offered directly by online trading platforms on behalf of companies—usually for a fee—to provide immediate trading opportunities for the digital assets.  These online trading platforms, which are typically not registered with the SEC and which may improperly refer to themselves as “exchanges,” may also claim to perform due diligence or other quality assessments of the IEOs.

Be cautious if considering an investment in an IEO.  Claims of new technologies and financial products, such as those associated with digital asset offerings, and claims that IEOs are vetted by trading platforms, can be used improperly to entice investors with the false promise of high returns in a new investment space.  As described below, IEOs may be conducted in violation of the federal securities laws and lack many of the investor protections of registered and exempt securities offerings.

Source

Well they have been fighting ICO posing as securities and even sue many of them. Now the attention shifts to IEO, I'm not surprised at all though. US SEC is really getting tougher by the day and fighting this kind of fund raisers. I don't know, but it's going to be very difficult of US citizens to invest in any of them. And I don't know how US citizens in this community is investing or if they completely stop at all.

[leowonderful]

Several of my friends that actively trade cryptocurrencies in the United States still invest in IEOs despite some of the risks associated with this that are addressed pretty well in this SEC alert. There's still plenty of interest in cryptocurrencies as a whole in the U.S despite the tightening regulations that exchanges, traders and investers have to deal with, and even though I support cryptocurrencies and crypto fundraisers like IEOs and ICOs despite the fact that many of them do not succeed, this alert seems pretty fair. A lot of people don't do much investigating and/or research into IEOs and ICOs and crypto investments as a whole, and these alerts can open the eyes of such people, though I imagine they also do turn some people away from investing in crypto.

[Kemarit]

Several of my friends that actively trade cryptocurrencies in the United States still invest in IEOs despite some of the risks associated with this that are addressed pretty well in this SEC alert. There's still plenty of interest in cryptocurrencies as a whole in the U.S despite the tightening regulations that exchanges, traders and investers have to deal with, and even though I support cryptocurrencies and crypto fundraisers like IEOs and ICOs despite the fact that many of them do not succeed, this alert seems pretty fair. A lot of people don't do much investigating and/or research into IEOs and ICOs and crypto investments as a whole, and these alerts can open the eyes of such people, though I imagine they also do turn some people away from investing in crypto.

Thanks for confirming my belief that US citizens are wiling to take the risks associated with IEO/ICO. I always thought that they do, despite the fact that SEC is pretty much tight on them. Perhaps it is one reason that Binance put their US version because they know that US is a big market for everything related dto crypto. I guess non US citizens really needs to be aware that investing on them is really a risk.

[leowonderful]

Several of my friends that actively trade cryptocurrencies in the United States still invest in IEOs despite some of the risks associated with this that are addressed pretty well in this SEC alert. There's still plenty of interest in cryptocurrencies as a whole in the U.S despite the tightening regulations that exchanges, traders and investers have to deal with, and even though I support cryptocurrencies and crypto fundraisers like IEOs and ICOs despite the fact that many of them do not succeed, this alert seems pretty fair. A lot of people don't do much investigating and/or research into IEOs and ICOs and crypto investments as a whole, and these alerts can open the eyes of such people, though I imagine they also do turn some people away from investing in crypto.

Thanks for confirming my belief that US citizens are wiling to take the risks associated with IEO/ICO. I always thought that they do, despite the fact that SEC is pretty much tight on them. Perhaps it is one reason that Binance put their US version because they know that US is a big market for everything related dto crypto. I guess non US citizens really needs to be aware that investing on them is really a risk.

No problem! I absolutely agree that Binance likely knows the US market's a good region for potential growth, because even though there are already established exchanges like Coinbase that exist primarily to serve the American markets, the variety of exchanges that Americans have is still pretty limited compared to other regions exactly because of strict regulations. Binance US also doesn't have nearly as many pairs as the main Binance site has, but it's still better than on some existing exchanges.

I also strongly agree that this alert applies to even Non-U.S citizens; the information's relevant to almost anyone looking to invest in IEOs and ICOs in general, and I'll definitely be linking the alert you posted here to people who ask me more about crypto investing and some of the risks associated with it, since I find a lot of people tend to underestimate it greatly.

[bgaf]

I don't know, but it's going to be very difficult of US citizens to invest in any of them. And I don't know how US citizens in this community is investing or if they completely stop at all.

I dont think they will be stopped on investing with these IEOs. My friends staying there saying they are still active investing there and I asked them how come? You are restricted there, they say its just simple to bypass that SEC shits plus they arent being pursuit or what. So for them its just normal.

So meaning all those restriction we always read was just on news but not in actual action by SEC on their own turf?

Can I ask US citizens here can I know the stand or the situation? Is it really just like that?


IMO, US sec should stop this non sense restriction as if their residence do want what they are doing. Most of traders and investors are coming from their land. Hypocrite if you would say.