- Bitfinex postponed the sale of Kimcoin indefinitely.
- The regulatory framework in the industry is affecting initial exchange offerings.
- Kim Dotcom tried to avoid countries within the U.S. jurisdiction.
Bitfinex, a Hong Kong-based cryptocurrency exchange, announced its decision to postpone the initial exchange offering (IEO) of Kimcoin, the native cryptocurrency of the content monetization platform K.im.
Halting Kimcoin Token Sale
On Nov 5, Bitfinex revealed in a blog post that the first IEO on the rebranded platform Bitfienx Token Sales, formerly known as Tokinex, would not take place. The decision was based on the “evolving” regulatory guidelines that surround this type of token sale.
The announcement reads:
“Since we announced the debut of Kimcoin on the Bitfinex Token Sale platform, the regulatory environment has rapidly evolved. The risks associated with raising funds for the K.im token sale have become clear, and we must put our community’s best interest first and foremost.”
The IEO was scheduled to happen on Oct. 28 and planned to raise $8 million to foster the development of the K.im project. But, following an in-depth discussion of the regulatory environment in the industry, both teams “mutually agreed” to halt the token sale.
“After careful evaluation, we regret to announce that Bitfinex Token Sales and the K.im team have mutually agreed not to hold the token sale at this time. K.im will defer any decision on whether to create tokens on, or undertake a token issue in relation to the K.im platform until it is fully functional,” Bitfinex added.
The move came as a surprise to many investors in the crypto community. This project has already raised $2.5 million in funding from different strategic investors, including BnkToTheFuture,