Release: Benja Responds to SEC Initial Coin Offering Investigation
SAN FRANCISCO, CA - Benja, the merchandise ad network, is aware of the notice published by the U.S. Securities and Exchange Commission (SEC) today relating to its investigation into The DAO Initial Coin Offering (ICO). Based on the guidance provided in reports published on SEC.gov, Benja intends to continue with its planned sale of benjaCoin next week.
"I am encouraged by the news out of the SEC today," said Benja Chief Executive Officer Andrew J. Chapin. "It is my belief that many ICO issuances were violating both the spirit of the ICO concept and United States law. We wrote the benjaCoin white paper with that in mind, and we were sure to explicitly state that the benjaCoin is not a security by SEC definition or otherwise."
The SEC published a notice on their website entitled "Investor Bulletin: Initial Coin Offerings." In the notice, the SEC announced the issue of a "Report of Investigation under Section 21(a) of the Securities Exchange Act of 1934 describing an SEC investigation of The DAO, a virtual organization, and its use of distributed ledger or blockchain technology to facilitate the offer and sale of DAO Tokens to raise capital." In the notice, the SEC notes: "Depending on the facts and circumstances of each individual ICO, the virtual coins or tokens that are offered or sold may be securities. If they are securities, the offer and sale of these virtual coins or tokens in an ICO are subject to the federal securities laws."
In the Disclaimer section of the benjaCoin white paper, the intended use is clear: "The benjaCoin is not an investment-grade security of any kind. The benjaCoin is a digital token for participation and use of the Benja merchandise advertisement network and does not confer ownership of a stake in the business. ... It is generally to be used by the partners, brands, vendors, and publishers who are a part of the Benja merchandise ad network."
The document, published earlier this month, also warns that it is "best that no United States-based individuals participate in the purchase of benjaCoin" due to the lack of strong guidance by the SEC.
"In addition to our clear warnings, we have taken steps to make sure that our ICO meets the highest quality standards: we are not participating in any paid promotion for our pre-sale event, our token will be available for trading on an exchange 24 hours after the conclusion of the pre-sale, and our founders do not and will never personally own any benjaCoins," said Chapin. "We believe that our position as a functional business with more than a million dollars in lifetime revenue, investors like the VegasTechFund and XRC Labs, and partners like Backcountry clarifies our vision for the benjaCoin. This is not a napkin-stage idea like many other Initial Coin Offerings of late."
The benjaCoin (BNC) Initial Coin Offering pre-sale event is scheduled to take place on August 1st 2017 at 13:00 UTC on Orderbook, an Ethereum-based token exchange offered by Ambisafe. Benja will offer 500 million BNC for thirty days or until sold, whichever occurs first. Tokens will be tradable on the Orderbook exchange twenty-four hours after the conclusion of the pre-sale event.
For more information about the benjaCoin and our planned Initial Coin Offering event, visit the benjaCoin webpage: benjacoin.com
PRESS CONTACT: firstname.lastname@example.org, @benjacoin