Crypto in Africa: Kenya warns against Wiseman Talent Ventures’ ICO

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The Capital Markets Authority (CMA) recently warned Kenyans against investing in an initial coin offering (ICO) offered by Wiseman Talent Ventures.

While commentating on the matter, Paul Muthaura, the CEO of CMA stated investors of Wiseman Talents Venture risk losing their funds as the company is unregulated by CMA.

He stated:

“It is essential for the general public to note the nature and features of the capital raising and coins trading promoted by Wiseman Talent Ventures. The company is taking the form of regulated activities but in reality they have not yet been approved by the Authority.”

Wiseman Talent Ventures already issued its coin, Kencoin. Reportedly Kencoin’s value has been rising since its initial offering. Kencoin was issued at Ksh 100 at the Initial Coin Offering and is being marketed trading at Ksh. 2,000 at its exchange. CMA is investigating discrepancies in the information provided on the firm’s website. They are also concerned with the information provided by the company during interviews of Wiseman Talent Ventures leadership about the number of Kencoin sold and the amount raised.

CMA believes there are some irregularities in the information being offered to the public, which causes fraud risks. Wiseman has provided a platform for trading Kencoin, styled as www.kenicoinexchnage.com. Wiseman has also promised to give inventors 10 percent each month on their initial investment.

He added that global trends in unregulated digital currencies have shown that crypto markets are full of uncertainties. The market has also experienced boom and bust cycles that have exposed investors to substantial losses.

CMA has been actively involved in matters around the crypto space. Last year, the authority was in the front lines supporting regulations of the market. It was pushing for a special unit that would comprise watchdogs from financial sectors in Kenya. The special unit was to be tasked with the duties of regulating the use of cryptocurrencies in the countries in an effort to protect investors. With the growing numbers of crypto startups in the country, CMA is working relentlessly to ensure both the county and its investors stay guarded against damages that might be caused by fraudulent individuals.