EOS continues to maintain price growth despite the Securities and Exchange Commission’s $24 Million penalty levied against its parent company, Block.one, for selling unregulated Initial Coin Offering (ICO) to the world.
Since the announcement, EOS, like other notable digital currencies, is maintaining a price uptrend slightly above 5% in the last 24 hours. The digital currency, despite the enormous sanction placed on its parent company is changing hands at $3.03. With a market cap of $2,817,887,119 and a 24-hour volume of $1,003,193,537, EOS maintains the 7th position on the market table.
These signal that the price of EOS has not been affected by the sanction as at the time this news was gathered. EOS trend and position on the market table since the last 2 years attest that it is among the most stable assets.
While top cryptocurrency are in green, Bitcoin saw a good price increase. The digital asset was a bit above $8,400 before coming below the price shortly afterward.
SEC Sanctions EOS’ Backed Firm Block.one
The sanction according to SEC was a result of the unregulated ICO sold by EOS, which garnered several billion dollars for the firm without the approval of SEC.
The EOS ICO has ended over a year ago but Block.one is now being hunted for its actions. Between June 2017 and June 2018 during which Block.one conducted EOS ICOs, the firm generated $4,197,956,135 (900 million tokens) making the project among the highest ICOs.
The $24 million civil penalty levied on block.one is just a peanut compare to the whopping sum gathered by Block.one firm.
Although Block.one promised to use the billion of dollars generated during the ICO to develope software and promote blockchains-based softwares on the network. However, it started selling its ICO before SEC released the DAO Report of Investigation.
SEC stated that Block.one continued selling its ICO to investors across the globe including US for close to a year without registering with the commission or qualifying to do so.
It is a phenomenon that companies that sell securities to investors in the U.S most comply with SEC’s rules and guidance, and seek approval before venturing into the sales. However, Block.one did not do so.
According to SEC, Block.one did not deny the allegation, but admitted every findings by the financial commission, meaning the firm will pay the $24 million penalty