ICO death knell: AirToken will process refunds in USD plus interest. It will also refund people that sold for a loss.
Two days ago, SEC issued a statement that Airfox, a Boston-based company that held an ICO where it collected $15 million of funds, didn’t registered their ICO and because of that failed to comply with the federal securities laws in the United States. According to the federal agency, the company is not qualified for an exemption to the registration requirements.
Airfox collected approximately $15 million of funds for their AIR token in order to finance the startup’s development of a token-denominated ecosystem, which starts with a smartphone app that allows users in emerging markets to earn tokens, exchange the cryptocurrencies to data while interacting with ads.
“We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities. These cases tell those who are considering taking similar actions that we continue to be on the lookout for violations of the federal securities laws with respect to digital assets,” Stephanie Avakian, Co-Director of the SEC’s Enforcement Division, said.
AirToken released a draft of their notice and claim form, explaining the refund process for their ICO buyers.
AirToken will process refunds in USD plus interest. It will also refund people that sold for a loss. pic.twitter.com/AaD8zANkT4
— Larry Cermak (@lawmaster) November 17, 2018
It is important to clarify that refunds are only for persons who bought at ICO and who go through the claim process to prove it. If you bought the token after the ICO, once it hit exchanges – you are not eligible for a refund.
AirFox’s vision was to make the mobile internet more affordable and accessible and the biggest limitation for our customers is access to capital. AirFox planed to use advertising and micro-loans on the blockchain to unlock unrealized mobile capital through a new cryptocurrency – The AirToken (“AIR”). AIR technology harnesses the decentralized power of the Ethereum blockchain using a digital ledger of the user’s mobile phone data as well as advertising and proprietary “credit-score” algorithms to reward and finance users with AIR. AIR are redeemable for mobile data, and, eventually, physical and digital goods. AIR monetizes the user’s smartphone by rewarding and financing the user for attention and good behavior while expanding the pie for the entire ecosystem that wants to further maximize on this audience (carriers, publishers, and advertisers).
