Kencoin: CMA Warns Kenyans To Refrain From Buying Cryptocurrency From Wiseman Talent Ventures

The Capital Markets Authority (CMA) has warned the public to refrain from engaging in any initial coin offering or coin exchange trading offered by Wiseman Talent Ventures.

The Kenya based company, Wiseman Talent Ventures, raises money from the public by issuing digital tokens in the form of Kencoins and also provides a platform for the trading of the coins on its coin exchange. The company’s initial Coin Offering has so far raised roughly 25 million shillings from half a million Kencoins to 2057 registered users.

“It is important for the general public to note that the nature and features of the Capital Raising and Coins Trading promoted by Wiseman Talent Ventures is taking the form of Regulated activities which have not yet been approved by the Authority,” CMA Chief Executive Paul Muthaura noted in a cautionary statement, reported Business Daily Africa.

He added that the authority was currently investigating the operations of Wiseman Talent Ventures as it floated the Initial Coin Offering without CMA’s approval.

“We have noted discrepancies in the information provided on the firm’s website and information given to the Authority during interviews of Wiseman Talent Ventures leadership in relation to the total number of Kenicoin sold and the total funds raised,” Muthaura said.

Muthaura noted that global trends in unregulated digital currencies demonstrate that the crypto-asset market is uncertain and has experienced accelerated boom and bust cycles, so, trading in such platforms may expose investors to substantial losses.

Notably, Wiseman also promised guaranteed returns of 10 percent monthly on the initial investment in coins issued as part of the Initial Coin Offering (ICO)  at Sh100 and are now purportedly being marketed as trading at Sh2,000 at its Coin Exchange.

CMA asserted that Kencoin’s marketed trading value poses substantive information irregularities, liquidity and fraud risks.