SEC Charges Media Company for Unregistered NFT Sale, Laos Suspends Power for Crypto Miners, and Critics Predict Demise of Friend.tech
Summary:
The US Securities and Exchange Commission charges a media company for selling unregistered NFTs, Laos suspends electricity supply for crypto mining due to a drought, and critics predict the downfall of the decentralized social media app Friend.tech.
The US Securities and Exchange Commission (SEC) has accused a media and entertainment company of engaging in an unregistered sale of securities by selling nonfungible tokens (NFTs) in 2021. This marks the SEC's first enforcement action against an NFT offering.
Impact Theory, a Los Angeles-based company, raised nearly $30 million through the sale of NFTs between October and December 2021. The SEC alleges that Impact Theory promoted the NFT purchase as an investment in the business.
As a result, Impact Theory has been ordered to pay over $6.1 million in disgorgement, prejudgment interest, and civil penalty. The company has also been instructed to terminate trading of the NFT collection and inform investors about the immediate cessation.
The SEC has been taking more aggressive enforcement actions in the crypto and blockchain space. Earlier this year, the regulatory body filed lawsuits against major crypto exchanges Binance and Coinbase, accusing them of offering unregistered securities.
Laos has made the decision to halt the supply of electricity to crypto mining operations in response to a drought that has affected power generation in the country. Électricité du Laos (EDL), the state-owned electricity distribution company, announced the suspension due to the impact of drought conditions on hydropower plants.
Hydropower plants account for 95% of Laos' electricity generation. The EDL intends to prioritize supplying electricity locally and exporting larger volumes to Thailand in 2024.
Critics are already predicting the demise of the decentralized social media app Friend.tech, citing a significant drop in key performance indicators such as user activity, inflows, and transaction volume since its recent launch. The app, hosted on Coinbase's Base network, initially experienced high metrics, but has since seen a steep decline.
According to data from DefiLlama, daily fees on Friend.tech have plummeted by 87% from their peak, while Dune Analytics reports a 90% decrease in transactions. Some critics attribute the failure to "greed and poor execution," declaring the app "dead."
Crypto commentator Yazan previously anticipated a decline in share prices and activity for Friend.tech within six to eight weeks.
Please note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research and exercise caution when making investment decisions.
Published At
8/28/2023 7:18:41 PM
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