FamilyPoints to Stop Token Generation Event
Today, FamilyPoints is sad to announce that we are are stopping our Token Generation Event. Due to changes in legal regulations in the United States, home to our second largest target market, we are unable to issue tokens or accept any money from investors.
Earlier this month, the Securities and Exchange Commission of the US began issuing subpoenas to many projects and companies that were undergoing crowdfunding events with the intent of providing utility tokens. The SEC is targeting not just the owners of the projects, but also promoters and advisors. In the wake of these events, projects that have issued tokens are being forced to offer buybacks, or a rescission, of their outstanding tokens.
Because we at FamilyPoints have not collected any money from investors, nor have we issued the token, there is no need for us to offer a rescission. However, this does mean that until regulations have changed, we are not able to issue and distribute tokens to any person. By issuing a token, we will potentially be held liable by the SEC. Furthermore, due to the SEC’s reach, there may even be potential repercussions for contributors. We are not issuing the token in order to protect our company and to safeguard contributors from potential future actions by regulators.
The China Securities Regulatory Commission feels the same way about token generation events. While they have publicly stated that these regulations may change in the future, for the moment, we have no choice but to consider our TGE stopped.
We will continue working with our lawyers and national regulatory agencies to see if we can restart our TGE in the near future.
We would like to thank our community, partners, and colleagues for their patience and understanding in these trying times.
