[Kenya] CMA warns against Kenicoin initial coin offering and trading
In a bid to protect investors, Capital Markets Authority (CMA) has cautioned the public against participating in any initial coin offering or trading in any currency exchange offered by Wiseman Talent Ventures.
'It is important to know that the Capital Raising and Coins Trading promoted by Wiseman Talent Ventures is the form of Regulated activities that have not been approved by the Authority', CMA Chief Executive Paul Muthaura noted.
CMA noted that Wiseman Talent Ventures is raising money from the public through issuance of digital tokens in the form of Coins and further being able to exchange shares styled as www.kenicoinexchange.com.
The firm also promised guaranteed returns or 10 per cent on the initial investment in Coins which were issued at Kshs100 at the Initial Coin Offering (ICO) and are purportedly marketed as trading at Kshs2,000 at its Coin Exchange. Further, the Kencoin value being marketed as exponentially rising since its initial offering poses substantive information asymmetry, liquidity and fraud risks.
'The Authority is currently investigating the operations of Wiseman Talent Ventures. We have noted discrepancies in the information on the firm's website www.kenicoin.com and the information given during the interviews of Wiseman Talent Ventures leadership in relation to the total number of Kenicoin sold and the total funds raised'. Muthaura added.
Global trends in unregulated digital currencies demonstrate that the crypto asset market is uncertain and has experienced accelerated boom and bust cycles which may expose investors to substantial losses.
By comparison in December 2017, the price of Bitcoin was US $ 19,783 and it has since fallen to US $ 3,810, Litecoin was US $ 366 and has come down to US $ 30. Ethereum was US $ 1,400 in January 2018 and has fallen to US $ 130.