The Securities and Exchange Commission has warned the public against investing in Pancake King Token which has been enticing the public to invest in its initial coin offering with the promise of “limitless returns.
Operated by John Benito and Kath Buendia, Pancake King Token claims to be the first decentralized Philippine-based hybrid meme token instituted on the Binance Smart Chain.
For a minimum investment of P500, Pancake King Token offers earnings for life just by holding on to the token.
According to the SEC, this scheme is an indication of a possible Ponzi scheme where returns to early investors are likely to be paid out from the investments of new investors and not out of the company’s profits.
The SEC said Pancake King is not registered with the corporate watchdog and neither is it authorized to solicit investments from the public.
“Our database also shows that Pancake King Token has no brokers, account managers, agents and/or representatives that have appropriate registration and/or license to offer such securities to the public.
Pancake King is neither registered as a virtual asset service provider with the Bangko Sentral ng Pilipinas and does not have a corresponding certificate of authority as a money service business.
The SEC also noticed that Pancake King has yet to provide the necessary white paper for its purported token despite being already offered for sale publicly. The so-called white paper is the foundation or the basis of every legitimate cryptocurrency project that contains its fundamental purpose, vision, mission and story or creation timeline.
“The public is reminded that unregistered and/or unauthorized platforms like the Pancake King Token’s are risky as well and should be avoided accordingly,” the SEC said.