MI
-
The price of bitcoin, the red-hot digital coin up more
than 550% this year, soared past $6,900 to $6,916 Wednesday
evening, according to data by
Markets Insider. -
The rally comes ahead of a warning by the
Securities and Exchange Commission on initial coin
offerings, a cryptocurrency-based fundraising method.
Bitcoin blew past $6,900 Wednesday even after the Securities and
Exchange Commission warned investors about celebrity endorsements
for certain cryptocurrency-based fundraising efforts.
The red-hot digital currency traded at an all-time high of $6,916
per coin, according to Markets Insider data, on Wednesday. The
rally followed a price spike triggered by the announcement of the
potential launch of a
bitcoin-linked financial product by exchange giant CME on
Tuesday. The coin is up more than 550% this year.
The upward march continued Wednesday evening despite a warning by
the SEC about initial coin offerings, a red-hot fundraising
method.
ICOs, according to fintech analytics firm Autonomous NEXT, have
raised more $2 billion this year. A number of celebrities from
champion boxer
Floyd Mayweather to
Paris Hilton have supported ICO projects in recent months.
But the SEC said Wednesday that such endorsements do not mean
that such investments are sound. Here’s the agency (emphasis
theirs):
“Celebrities, from movie stars to professional athletes, can
be found on TV, radio, and social media endorsing a wide variety
of products and services – sometimes even including investment
opportunities. But a celebrity endorsement does not mean
that an investment is legitimate or that it is appropriate for
all investors. It is never a good idea to make an
investment decision just because someone famous says a
product or service is a good investment.”
The SEC added that some celebrity endorsers may not be educated
on the investment opportunities they promote. Here’s the SEC:
“Investors should note that celebrity endorsements may appear
unbiased, but instead may be part of a paid promotion.
Investment decisions should not be based solely on an endorsement
by a promoter or other individual. Celebrities who endorse
an investment often do not have sufficient expertise to ensure
that the investment is appropriate and in compliance with federal
securities laws.”
A number of countries, including China, have deemed ICOs illegal
because startups have used the method to raise quick money
without disclosing substantive information to investors.
The SEC provided its first guidance on ICOs in July. The
financial watchdog said
ICOs can sometimes be considered securities — and as such are
subject to strict laws and regulations.
Get the latest Bitcoin price here.>>