CMA Cautions the Public against Kenicoin Initial Coin Offering and Trading
Capital Markets Authority has cautioned the public against Kenicoin initial coin offering and trading, an exchange aggressively floated by Wiseman Talent Ventures.
In a bid to protect investors, CMA noted that Wiseman Talent Ventures is raising money from the public through issuance of digital tokens in the form of Coins and further providing a platform for the trading of the said Coins on its coin exchange styled as www.kenicoinexchange.com.
The firm is also promising guaranteed returns of 10 per cent monthly on the initial investment in Coins which were issued at Ksh100 at the Initial Coin Offering (ICO) and are now purportedly being marketed as trading at Ksh2,000 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.
‘It is important for the general public to note that the nature and features of the Capital Raising and Coins Trading promoted by Wiseman Talent Ventures is taking the form of Regulated activities which have not yet been approved by the Authority’, CMA’s chief executive Paul Muthaura noted.
Mr Muthaura added that CMA is currently investigating the operations of Wiseman Talent Ventures. He has urged the public to also not participate in any initial coin offering or trading in any coin exchange offered by the firm.
“We have noted discrepancies in the information provided on the firm’s website www.kenicoin.com and the information given to the Authority during interviews of Wiseman Talent Ventures leadership in relation to the total number of Kenicoin sold and the total funds raised,” he said.
Started in January 2018, Kencoin is one of the crypto tokens listed as a dead coin. This means it does not offer any suitable utility or feature, and has been created and launched with nefarious intentions such as hacking or spreading of malware, as a scam or a ponzi scheme, or as a fun project or hoax.
It’s notable description as a dead coin is “scammers collected ETH in an ICO and simply vanished. Never listed the coin on any exchange and hence no calue at all”.
Global trends in unregulated digital currencies demonstrates that the cryptoasset 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 a coin and has since come down to US$30. Ethereum was US$ 1,400 in January 2018 and has fallen to US$130.
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