Colorado to Investigate Three Crypto Firms: Bionic Coin, Sybrelabs and Global Pay Net
Colorado’s Department of Regulatory Agencies (DORA) and the state’s special unit devoted to addressing Initial Coin Offerings (ICOs) has recently revealed that they will be assessing three cryptocurrency-based firms that are offering “unregistered ICOs”. As reported by news.Bitcoin.com, the three firms are Bionic Coin, Sybrelabs and Global Pay Net.
Due to the increasing number scams involved in ICOs, especially the immediate exiting among receiving funds, the parties involved shared that Colorado Securities’ Commissioner Gerald Rome has since showed the green light to analyze the three aforementioned projects.
Commissioner Rome has “signed orders to show cause,” which requires firms getting the notice to explain their business operations and related activities in front of the court. While the court orders were issued on Friday, August 24, none of the three firms have answered.
According to DORA’s representative, another hearing will not be scheduled, however a different approach will be taken to arrive to some verdict. As per the quotes shared by news.Bitcoin.com,
“Given that no respondents showed, the Division presented the case to an administrative law judge, who must determine within 2 weeks whether the case made by the Division represented factual evidence.”
If factual evidence has been taken into consideration and verified, then the listed firms will be forced to shut down their operations (i.e. complying by cease and desist orders).
As for the three chosen firms, the first, Bionic is dubbed as an incubator that companies can retort to via blockchain to initiate useful services and applications. Its native token, BNC is supposedly based off of the Ethereum blockchain and will help to speed up financial transaction processes.
The second is Sybrelabs Ltd., which promotes itself as “an investment pool that allows for trading on cryptocurrency exchanges.” It is believed to supported by a “cryptoarbitrage robot” that focuses on generating income through arbitration. According to DORA, this respective platform encourages a marketing approach, which requires an individual to bring others into the investment pool. Furthermore, the firm claims to offer large incentives as well.
Lastly, we have a blockchain-based financial platform called, Global Pay Net that aims to provide users with financial services (i.e. loans, exchange funds, etc.) but in an efficient manner. Its native token, GLPN, is considered “full-value assets”, which has been noted as equivalent to company shares. In addition, investors apparently get 80 percent stake, which is significantly high. During its ICO, 500,000 GLPN tokens will be distributed, each going at approximately USD$0.09.
What are your thoughts on the three chosen firms? Do any of them sound like a scam about to happen? Comment below.