Binance Exchange Issues Centra Risk Warning
Cryptovest
Published Apr 03, 2018 03:45AM ET
Updated Apr 03, 2018 04:02AM ET
Binance Exchange Issues Centra Risk Warning
The Centra ICO, the object of the most recent US Securities and Exchange Commission crackdown, is posing immediate risk to traders. The coin, already spread throughout exchanges, is in freefall.
This prompted Binance to issue an immediate warning, and consider a freeze on trading soon. For Binance, this is the second event of responding to regulators, after the September crackdown against ICOs in China. Back then, Binance proposed to return investments in TRON.
“We will continue to seek more information and monitor the situation closely, and may take further action including delisting. Should we choose to delist the token, a notice period of no less than 72 hours will be provided,” announced Binance.
The Centra (CTR) digital asset fell by more than 57% overnight to $0.12, and has lost most of its value since the December peak above $3. CTR has lost 90% of its value against BTC compared to its peak right after trading started in September.
Curiously, more than 80% of trading volumes for Centra happen through Binance, an exchange that is currently seeking a more liberal jurisdiction.
The case of Centra is one of the few where arrests were made on criminal charges. Allegedly, the ICO raised more than $32 equivalent funding for selling an ERC-20 token. It also used celebrity endorsement , and thus targeted the wider community.
And while Binance may not be held liable, the community is seeing the listing and promotion of this token as a grave mistake and failed due diligence:
The ICO was backed by DJ Khaled and Floyd Mayweather. This ensured a great outreach, and Centra sold at an ICO price of $0.73. The SEC saw a risk to consumer finance in this type of promotion:
“As we allege, the defendants relied heavily on celebrity endorsements and social media to market their scheme,” said Steve Peikin, Co-Director of the SEC's Division of Enforcement.
“Endorsements and glossy marketing materials are no substitute for the SEC’s registration and disclosure requirements as well as diligence by investors.”
This article appeared first on Cryptovest
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Written By: Cryptovest
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