Major cryptocurrency exchange Bitfinex, has decided to cancel the initial coin offering it was supposed to hold for K.im, Kim Dotcom’s content sharing service, Cointelegraph reports on November 7th.
The IEO was set to raise USD8M but the exchange stated that regulatory concerns have surfaced, possibly affecting both the issuers and investors. The exchange commented “Since we announced the debut of Kimcoin on the Bitfinex Token Sale platform, the regulatory environment has rapidly evolved. The risks associated with raising funds for the K.im token sale have become clear, and we must put our community's best interest first and foremost,” continuing to say “After careful evaluation, we regret to announce that Bitfinex Token Sales and the K.im team have mutually agreed not to hold the token sale at this time. K.im will defer any decision on whether to create tokens on, or undertake a token issue in relation to the K.im platform until it is fully functional.”
As Bitfinex correctly notes, the regulative framework regarding initial coin offerings and crypto in general is rapidly changing as governments catch up with the still, for the most part, unregulated space and actors in it. However, Bitfinex could be having other motives as well, with the recent legal proceedings filed against the exchange, it is understandable they do not want to add to their list of problems. Given Kim Dotcom's rather controversial past, the coin offering was unlikely to pass without attracting some itself, so a distancing move could indeed turn out to be the right one for Bitfinex in the long run.