As regulation of cryptocurrencies and Initial Coin Offerings heats up, greater attention is being put on every detail disclosed by those involved. Corporate Partner Daniel Livingston and I discuss recent court action against a corporate advisor for misleading and deceptive conduct, and why the involvement of lawyers at every stage of an ICO is essential. Read it here.
So often we see stories in this space of companies issuing cryptocurrencies on false pretences, or in support of ventures that have little hope of succeeding, often ignoring the potential legal consequences of the representations they make.
In this case, however, Omix seems to have a compelling commercial story behind it. The company itself appears to have an innovative product in an increasingly-crowded market segment, and has notably faced little backlash for its involvement in issuing its own crypto token.
Instead, this is a cautionary tale for the advisers behind the cryptocurrency itself — the pressure is on you to guide your client through to coin issuance (and beyond) in a way that is going to safely protect their interests (and yours) while achieving their desired commercial outcomes.