Zachary Ochuodho @zachuodho
Capital Markets Authority (CMA) has cautioned the public against participating in any coin offering or trading in any coin exchange offered by Wiseman Talent Ventures.
Chief Executive Officer, Paul Muthaura, said the firm is raising money from the public through issuance of digital token coins and further provides a platform for the trading of the said coins on its coin exchange.
“It is important for the public to know that the nature and features of the capital raising and coins trading promoted by Wiseman Talent Ventures have not been approved by the authority,” he said.
Muthaura (pictured) said Wiseman Talent Ventures, raising money through www.kenicoinexchange.com, is luring investors by promising to give returns of 10 per cent monthly on the initial investment in coins which were issued at Sh100 at the Initial Coin Offering (ICO) and are now purportedly being marketed as trading at Sh2,000 at its Coin Exchange.
Muthaura said the Kencoin value being marketed as exponentially rising since its initial offering poses substantive information asymmetry, liquidity and fraud risks.
“The Authority is investigating the operations of Wiseman Talent Ventures. We have noted discrepancies in the information provided on the firm’s website and the information provided to the authority during interviews of Wiseman Talent Ventures leadership in relation to the total number of Kencoin sold and the total funds raised,” he added.
Global trends in unregulated digital currencies demonstrate that the cryptoasset market is uncertain and has experienced accelerated boom and bust cycles which may expose investors to substantial losses.
By comparison in December 2017, the price of Bitcoin was $19,783 (Sh2,020,833.45) and it has since fallen to $3,810 (Sh389,191.50), Litecoin was $366 (Sh37,386.90) a coin and has since come down to $30 (Sh3,064.50).