COTI, an enterprise-grade fintech platform that allows organizations to create their own payment solutions, has announced that it will temporarily suspend the airdrop attempt for gCOTI from exchanges due to recent regulatory actions by the US Securities and Exchange Commission (SEC).
The SEC has filed lawsuits against two of the world's largest cryptocurrency exchanges, Binance and Coinbase, accusing them of offering unregistered securities to US investors.
The SEC has also classified several altcoins, including Cardano (ADA), as securities that could have significant implications for the crypto industry.
COTI and Cardano are interrelated as collaborating partners on various projects and initiatives.
In today's tweet, the COTI developers made the following statement:
“gCOTI update:
In light of recent events, we have decided to temporarily suspend the gCOTI exchange airdrop campaign until further clarity. We are proceeding as planned with the gCOTI community campaign to be announced shortly.
In addition, we continue to work on the increase in APY in the Treasury application, which is the first use of gCOTI. As always, these decisions were not taken lightly and are in line with our prudent approach.”
gCOTI update:
1/2 In light of recent events, we have decided to temporarily suspend the gCOTI exchange campaign until we have more clarity. We are moving forward, as planned, with the gCOTI community campaign, which will be announced shortly.— COTI (@COTInetwork) June 11, 2023
According to the previously announced airdrop campaign, the COTI team would hold an event on a cryptocurrency exchange and distribute the gCOTI airdrop to COTI stakers. However, due to legal uncertainty, COTI has decided to suspend this campaign until further notice.
On the other hand, the gCOTI community campaign will continue as planned. This campaign will distribute up to 100 million gCOTI tokens (10% of the total supply) to loyal COTI community members and Treasury contributors through various programs and events.
*Not investment advice.
