Cryptocurrency exchange Bitfinex has canceled a token sale of decentralized content monetization platform K.im, due to regulatory uncertainty.
Announcing the news on Tuesday, Bitfinex said the risks associated with raising funds for the K.im token sale became clear and both the firms mutually decided to drop the sale for now.
“K.im will defer any decision on whether to create tokens on, or undertake a token issue in relation to the K.im platform until it is fully functional,” Bitfinex added.
K.im will continue building its platform and may also make an equity-based offer to “some time in the near future,” per the announcement. K.im, which has already raised $2.5 million in funding from Bitcoin Capital, BnkToTheFuture and others, is planning to be fully operational by the third quarter of 2020, according to its road map.
If K.im's token sale would have gone ahead, it would have been Bitfinex’s first sale on its relaunched token sales platform. The exchange's first token sale platform, Tokinex, was stalled when its primary funder Ethfinex split from sister company Bitfinex in a management buyout.