Well what to say?
Lots of nothing happened and the big news is not good news.
DORA: unregistered Initial Coin Offerings Inquiry – “Operation Cryptosweep”
CX ERC-20 Token
An exchange listing
Many received and email from the State of Colorado a verifiable notice about an inquiry and a request to fill out an online form.
Credits LLC’s / Luke has been caught up in a regulatory drag net via “Operation Cryptosweep” DORA has launched an inquiry. The emails you might have received or heard about is not a spoof or phish but in deed real.
It is to determine this in essence – what is this coin? What did the public invest in.
Luke is confident in his tweet that Credits is not a security and thus Credits is “…in full compliance” Luke has made it clear that he has spoken with regulators / investigator/s and is cooperating with them.
As some of you are aware we have been contacted by the Colorado Security Commission. They clearly subpoenaed our paypal account to gain access to email addresses. As we have stated to them, we are not a security token. Therefore in full compliance.
— CRED (CX) (@creditsenergy) October 30, 2018
It comes down to a few things.
First off is what is Credits Cryptocurrency “Cred CX” Security or Utility token / coin?
What Types of Coins or Tokens are There?
In an ICO, promoters generally create a new virtual “coin” or
“token.” There are two main types of tokens: utility and equity.
Utility tokens enable the holder to exchange the coin for a good
or service in the future.
Equity tokens entitle the holder to an interest in the revenue or
ownership of the underlying venture.
The regulatory treatment of tokens is evolving. Equity tokens are
more likely to be regulated as securities than utility tokens. How-
ever, if a utility token is issued for a non-operational project or if
it is planned to be traded on an exchange, it may also fall under
the purview of securities regulation.
Luke says that it is not a security although in the original white paper/s there was included in the plan to resister credits with the SEC and share profits of the green energy project/s with token / coin holders. That was pre ico… The White paper had many revisions and none of them noted or sited.
So if not an security (and that is what my take on it has been, based on the ever changing direction of this ICO and White papers) then it is a Utility token / coin.
That being said that leaves Credits as a token that is issued for a non-operational project and it is planned to be traded on an exchange…
It seems like from this position which is the one that matters when it comes down to it that Credits LLC is facing an uphill challenge coming out of this inquiry unscathed.
Even at this moment the majority of investors have not received and actual token / coin, security or utility, which is certain to pose a problem if not than at least be at issue.
For more information about ICOs and cryptocurrencies, contact the Division at 303-894-2320. The Division also has issued two investor advisories: and “Be Cautious of the Crypto Investment Craze.” These and more information can be found at www.dora.colorado.gov/dos.
Then there is this:
“While some may tout ICOs as a new
form of crowdfunding, it is important to
remember that crowdfunded offerings
must comply with the requirements of
the federal Regulation Crowdfunding
and securities laws in general.
Not only is the pre ICO and ICO under inquiry so is the crowdfunding as well. If Luke and Rick conducted the crowdsale/s and it is not or did not comply with the requirements of the federal Regulation Crowdfunding and securities laws that too is an issue.
VIA Facebook group:
The Colorado Division of Securities has joined with more than 40 other state and provincial securities regulators in the United States and Canada in “Operation Cryptosweep,” resulting in nearly 70 inquiries and investigations and 34 pending or completed enforcement actions since the beginning of the month.”
That means just shy of 1 case half of all inquiries had led to “enforcement action”
How is it that Credits LLC who according to the secretary of state is a delinquent filer and whose parent company and director is in non compliance going to be among the 50% that Operation Cryptosweep is going to find is all on the up and up?
If I was Luke I would be working double overtime to at least get everyone their tokens asap.”
it is simple math, either way security or not Credits is on shaky ground as is every unregistered ICO or hastily entered into corporate crowdfunding venture.
This is the text of the email:
The Colorado Division of Securities is conducting an inquiry into an Initial Coin Offering and subsequent Crowd Sale conducted by Credits, LLC. In order to assist our inquiry, we would appreciate it if you could take a few minutes and fill out a questionnaire on Google Forms by following the link below at your earliest convenience.
And now onto the CRED CX ERC-20 Token…
Nothing. For going on two weeks now. Still only 29 holders and Luke says 45 are in the Queue for possessing. The story goes he paid way to little in gas so the ETH network was taking it’s time generating hashes for the transfers. He says that he has cancelled them and was to resend them a few days ago…
You can track Cred CX here: https://bloxy.info/address/0xc2addba7c18381eea227f76415fd2b4b4686a70b
The 29 holders have made not transactions with them including the treasury wallet owned and controlled by Credits LLC.
An exchange listing
Good news! We’ve been accepted to be listed by Mercatox. After securing the funding we’ve been working on we will be listed no more than 6 days after. We will obviously let you all know. Thank you all for your patience and support.
^^ More future talk contingent on raising enough money to pay for the listing.
HOW MUCH DOES HE NEED? – We are not sure.
This what it takes according to Mercatox
“The cost of adding a coin to the exchange from 0.5 btc to 5 btc. (All coins will be reviewed individually).” Source: https://mercatox.com/adding-coins
Again, big news just not the kind we where wanting.
The timeline infograph is still empty. No road map at the moment.
If the plan is to get the listing and start selling off billions in credits for the green energy projects it would greatly effect the market price for owners of the tokens. We have no voting rights over what is done and 100% of the proceeds go to Credits LLC to do what they will with it presumably to make an digital ecosystem and green energy investing.
Seems all talk off the Apps are dead, no more tweets about “perfecting the tech”. that sort of thing. The mobile apps and webwallet remain non compatible with ERC-20. So once you have transferred your in app credits to email@example.com your ETH wallet address and have a 0.00 balance the app is only good if some one sends you credits via thier app. If you have sent all your credits over for the smart contract I suggest you do not uninstall the app.
Lets hope that we can get our investment back if this is not going any where and if it proceeds… Great! Then we are off to see how we can salvage our investment on the free range market.