The initial coin offering (ICO) sector has tidied itself up for the most part in recent months. While it was bit of a Wild West for most of 2017, with the emergence of more established companies such as Telegram entering into the space in 2018 and regulators finally getting to grasp with the sector, a lot of the previous issues have been resolved.
Fraudsters were running riot at one stage in 2017 as a lot of investors did not know how to spot these fraudulent offerings and it was often too late by the time it was discovered that they were fraudulent before the authorities could shut them down.
The likes of China and South Korea both decided to ban ICOs from taking place on their shores in September 2017. South Korea does appear to be getting ready to end this ban in the near future, but there are still widespread concerns in China.
Now the Malaysian regulators have detailed how they are investing a coin that was issued by a well-known beauty guru.
What are the details about this investigation?
It is the giant of cosmetics in Malaysia Datuk Seri Dr Hasmida Othman that had been aiming to raise as much as $1.5bn for a new entertainment channel, along with a mosque and a gateway for payments. However, there have been concerns raised about its legitimacy and there are now ongoing investigations into the issue.
It is the Securities Commissions Malaysia (SC) that is looking into this case involving the LaVida Coin (LVC) after they held their ICO recently.
All information regarding this token sale is under review by the SC and they are trying to see if any securities laws have been broken in the process of operating this ICO. There are in particular, questions about the whitepaper for this project.
In the whitepaper, it is said that the token was issued in the form of a private funding initiative that would provide capital for three different projects which the beauty guru was involved with.
The website for the token sale says that it is currently under maintenance. They had been looking for massive sums as part of this ICO. $1 billion of the funds was set to go towards the creation of the entertainment channel, $100 million going toward the payment gateway and $400 million going towards the development of a mosque.
The ICO was only launched in the last week or so and it had been set to conclude on the 20th of October. As part of the ICO a single token was being offered for $0.66.