Cryptocurrency exchange Bitfinex has announced that K.im tokens on its Bitfinex Token Sale platform have been postponed indefinitely over regulatory concerns. Further, it has said that the team behind K.im will decide on token sale only after the platform is fully functional and that it may opt for an equity-based offer for investors interested during this stage of the project.
The brainchild of Megaupload founder Kim Dotcom, K.im, seeks to create a blockchain-based platform to remove intermediaries between digital content creators, and publishers. K.im will be the internal currency of the platform, which will also allow users to purchase content using Bitcoin.
According to K.im projects white paper, due to the presence of multiple intermediaries, digital content providers are not able to cut prices. K.im will distribute 95% of revenue generated among the content creators, which will attract more of them to join the platform, which will, in turn, attract more publishers.
Kim Dotcom has said about K.im that,
The token aims to allow for fast, cheap and virtually free micropayments for artists and content creators through the K.im platform.
Concerns have been raised over projects that raise money through cryptocurrency even when little work has been done on them, thus, bypassing regulatory framework if they had taken the equity offer route. Several regulatory agencies have been calling for a halt to such projects generating funding through cryptocurrency. It, combined with Dotcom’s reputation over illegal file-sharing allegations against Megaupload, seems to have put the brakes on K.im.