Re:No End in Sight for Crypto Sell-Off as Bitcoin Breaches $...
by tfha on Tuesday November 20, 2018 @10:25AM
(#18494439)
I wonder if ico issuers are selling off btc and eth in order to have enough cash on hand to do the asset buybacks and still be ahead.
Anyone who ICO'd in early 2017 (including big names like tezos and filecoin) have enough USD value of btc and eth to comply with the SEC and still have 9 figures left. It's a good time to take profit if you did that, get off the hook and still be incredibly cash wealthy.
That would also explain why ripple is still stable, not as many icos hold xrp as btc and eth
Long story short, the American regulator has determined that the 2017 hype-fuelled ICOs were unregistered security sales (just like everyone said they are, but ICO promoters pretended to hand-wave away by mumbling something about utility tokens). They've fined an initial wave of ICOs to the tune of $250k and mandatory refunds to all who bought tokens in the ICO.
The catch here is that the refunds must be paid in USD, but the ICOs mostly raised in cryptos. If you did an ICO in December 2017 and raised $10M worth of cryptos but never cashed out any of it, your treasury is now perhaps worth only $2M, yet you're liable for $10M USD refunds. Any ICO administrator within reach of American regulators ought to be cashing out while they can...