Bitfinex cancels token sale of K.im due to regulatory uncertainty

Cryptocurrency exchange Bitfinex has canceled a token sale of decentralized content monetization platform K.im, due to regulatory uncertainty.

Announcing the news on Tuesday, Bitfinex said the risks associated with raising funds for the K.im token sale became clear and both the firms mutually decided to drop the sale for now.

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“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,” Bitfinex added.

K.im will continue building its platform and may also make an equity-based offer to “some time in the near future,” per the announcement. K.im, which has already raised $2.5 million in funding from Bitcoin Capital, BnkToTheFuture and others, is planning to be fully operational by the third quarter of 2020, according to its road map.

If K.im's token sale would have gone ahead, it would have been Bitfinex’s first sale on its relaunched token sales platform. The exchange's first token sale platform, Tokinex, was stalled when its primary funder Ethfinex split from sister company Bitfinex in a management buyout.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.