link1176 link1177 link1178 link1179 link1180 link1181 link1182 link1183 link1184 link1185 link1186 link1187 link1188 link1189 link1190 link1191 link1192 link1193 link1194 link1195 link1196 link1197 link1198 link1199 link1200 link1201 link1202 link1203 link1204 link1205 link1206 link1207 link1208 link1209 link1210 link1211 link1212 link1213 link1214 link1215 link1216 link1217 link1218 link1219 link1220 link1221 link1222 link1223 link1224 link1225 link1226 link1227 link1228 link1229 link1230 link1231 link1232 link1233 link1234 link1235 link1236 link1237 link1238 link1239 link1240 link1241 link1242 link1243 link1244 link1245 link1246 link1247 link1248 link1249 link1250 link1251 link1252 link1253 link1254 link1255 link1256 link1257 link1258 link1259 link1260 link1261 link1262 link1263 link1264 link1265 link1266 link1267 link1268 link1269 link1270 link1271 link1272 link1273 link1274 link1275 link1276 link1277 link1278 link1279 link1280 link1281 link1282 link1283 link1284 link1285 link1286 link1287 link1288 link1289 link1290 link1291 link1292 link1293 link1294 link1295 link1296 link1297 link1298 link1299 link1300 link1301 link1302 link1303 link1304 link1305 link1306 link1307 link1308 link1309 link1310 link1311 link1312 link1313 link1314 link1315 link1316 link1317 link1318 link1319 link1320 link1321 link1322

Bitcoin soared above $6,900 despite strong regulatory warning from Securities and Exchange Commission

Bitcoin soared above $6,900 despite strong regulatory warning from Securities and Exchange Commission

Bitcoin soared above $6,900 despite strong regulatory warning from Securities and Exchange Commission

Bitcoin soared above $6,900 despite strong regulatory warning from Securities and Exchange Commission

  • The price of bitcoin, the red-hot digital coin up more than 550% this year, soared past $6,900 to $6,916 Wednesday evening, according to data by Markets Insider.

  • The rally comes ahead of a warning by the Securities and Exchange Commission on initial coin offerings, a cryptocurrency-based fundraising method.

Bitcoin blew past $6,900 Wednesday even after the Securities and Exchange Commission warned investors about celebrity endorsements for certain cryptocurrency-based fundraising efforts.

The red-hot digital currency traded at an all-time high of $6,916 per coin, according to Markets Insider data, on Wednesday. The rally followed a price spike triggered by the announcement of the potential launch of a bitcoin-linked financial product by exchange giant CME on Tuesday. The coin is up more than 550% this year.

The upward march continued Wednesday evening despite a warning by the SEC about initial coin offerings, a red-hot fundraising method.

ICOs, according to fintech analytics firm Autonomous NEXT, have raised more $2 billion this year. A number of celebrities from champion boxer Floyd Mayweather to Paris Hilton have supported ICO projects in recent months. But the SEC said Wednesday that such endorsements do not mean that such investments are sound. Here's the agency (emphasis theirs):

"Celebrities, from movie stars to professional athletes, can be found on TV, radio, and social media endorsing a wide variety of products and services — sometimes even including investment opportunities. But a celebrity endorsement does not mean that an investment is legitimate or that it is appropriate for all investors. It is never a good idea to make an investment decision just because someone famous says a product or service is a good investment."

The SEC added that some celebrity endorsers may not be educated on the investment opportunities they promote. Here's the SEC:

"Investors should note that celebrity endorsements may appear unbiased, but instead may be part of a paid promotion. Investment decisions should not be based solely on an endorsement by a promoter or other individual. Celebrities who endorse an investment often do not have sufficient expertise to ensure that the investment is appropriate and in compliance with federal securities laws."

A number of countries, including China, have deemed ICOs illegal because startups have used the method to raise quick money without disclosing substantive information to investors.

The SEC provided its first guidance on ICOs in July. The financial watchdog said ICOs can sometimes be considered securities — and as such are subject to strict laws and regulations.

 

Author: Frank Chaparro

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

 

Alan Zibluk Markethive Founding Member