The token sale of Kim Dotcom’s K.im platform has been postponed by Bitfinex due to regulatory uncertainties.
Controversial internet entrepreneur and founder of former content distribution site Megaupload Kim Schmitz, who is also known as Kim Dotcom has decided to postpone his token sale which was to occur on the cryptocurrency exchange Bitfinex. The token sale was for a new incentivized content sharing network which has been referred to as K.im.
The K.im project was supposed to raise funding for the project on Bitfenex’s cryptocurrency exchange platform using an Initial Exchange Offering (IEO) and the proposed token has been referred to as Kimcoin.
Both parties have decided to part ways as sources indicate. Bitfinex in a blog post gave the reason for regulatory uncertainties as regards the project and the cryptocurrency exchange spoke about the interest of the community coming first before other things:
“Since we announced the debut of Kimcoin on the Bitfinex Token Sale platform, the regulatory environment has rapidly evolved. The risks associated with raising funds for the K.im token sale have become clear, and we must put our community’s best interest first and foremost.”
This, of course, reflects the desire of the cryptocurrency exchange to find a way to part ways with the controversial internet figure who has been in the news for the greater part of more than half a decade for all sorts of controversies.
Furthermore, both parties decided that the K.im project will raise equity when the platform is completed and then “qualifying investors” will be able to put their funds in.
The K.im project is a blockchain-based project that aims to enable content creators and publishers to publish and monetize their content using K.im payment which is the payment service of the platform.
Sources indicate however that the development of the platform is incomplete and that the project founder Kim Dotcom is still in a protracted legal battle to prevent his extradition from his resident country of New Zealand to the United States where he has been charged with piracy of content.
The response of Bitfinex indicates that cryptocurrency exchanges are achieving the kind of maturity that has been required of them from other financial service institutions. Apart from the basic anti-money laundering and know-your-customer procedures, controversial cases which have dogged the crypto space seem to be going into decline as further adoption is already afoot and everyone is looking at blockchain technology from a different perspective.
Kim Dotcom is notorious for starting the file sharing and content distribution service Megaupload which was shut down by the U.S. authorities in 2012. The United States department of justice that year shutdown the financially success enterprises’ website and charged several employees and Kim himself and co-owner Mathias Ortmann with multiple charges of copyright infringement, money laundering, racketeering, and wire fraud.
Kim was arrested in his resident country of New Zealand and successfully posted bail. He has been fighting the charges using extraordinarily lengthy legal procedures and methods and even this year in June the New Zealand Court ruled n favor of his extradition.