Feb 20, 2020 18:30 UTC
Feb 20, 2020 at 18:30 UTC
Blockchain Startup Enigma Settles with SEC and Goes Live with Mainnet
Enigma is the most recent crypto venture to get a genuine implementation action from the Securities and Exchange Commission (SED), in spite of the fact the silver lining is that the blockchain startup has gone live with its mainnet simultaneously.
Enigma has consented to pay the SEC a fine of $500,000, return funds to any financial specialists who took part in its $45 million ICO (Initial Coin Offering), register as a security with the SEC, and to record intermittent reports with the SEC.
Obviously Enigma has been in converses with the SEC since 2017, and it shows up this understanding will make ready for Enigma to proceed with improvement.
It appears to be conceivable that the venture could fail if enough investors request refunds, particularly since Enigma has been dealing with development for years, and hence has just spent a lot of money.
Nonetheless, the launch of the Enigma Mainnet ensures that the venture will survive, since once a decentralized blockchain network is propelled it can’t be brought down as long as nodes/validators keep making sure about the security of the network. Additionally, Enigma is an open source protocol, and regardless of whether the enterprise which made Enigma comes up short on funds, different developers could dominate.
In general, this appears as though one of the ore positive instances of a SEC enforcement action against an ICO, since in this case the venture had the option to get to the purpose of going live as opposed to being killed before the launch.