Binance cautions against Centra
Apr 03, 2018 Posted / 506 Views
The reason behind the recent US Securities and Exchange Commission suppression of The Centra ICO, is the immediate risk to traders. The coin already unfolds throughout exchanges, is in freefall.
This prompted Binance to issue a prompt word of caution, and think about a freeze on trading shortly. For Binance, this is the second event of responding to regulators, when the Sep crush against ICOs in China. Back then, Binance to urged give back investments in TRON.
We will continue to seek more information and monitor the situation closely and may take further action including delisting. Should we choose to delist the token, a notice period of no less than 72 hours will be provided” announced Binance..
The Centra (CTR) digital asset fell by more than 57% overnight to $0.12 and has lost most of its worth since the Dec peak above $3. CTR has dropped 90% of its value against BTC compared to its peak since the trading commenced in September.
Interestingly, over 80% of trading for Centra is done via Binance. The case of Centra is one amongst the few where arrests were made on criminal charges.On the face of it, the ICO raised over $32 equivalent funding for selling an ERC-20 token. Celebrity endorsement used by the ICO helped them reach to a larger community.
Whereas Binance might not be held liable, the community believes the listing and promotion of this token as a serious error and a result of lack of due diligence.
The ICO of CENTRA was backed by DJ Khaled and Floyd Mayweather. This ensured a great outreach, and Centra sold at an ICO price of $0.73. The SEC saw a risk to consumer finance in this type of promotion:
“ As we allege, the defendants relied heavily on celebrity endorsements and social media to market their scheme,” said Steve Peikin, Co-DIrector of the SEC’s Division of Enforcement.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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