Five days from now, BitConnect, which is a financial system startup, had plans to commence a token sale, and if you were looking forward to this, I have some bad news. The Texas State Securities Board, which has served to protect investors in Texas since 1957, has terminated these plans.

Why? The Texas State Securities Board posted a news release yesterday, Thursday, January 4, which stated that it has entered into an Emergency Cease and Desist Order, stating that BitConnect was going to offer customers tokens with 100% annual returns, and according to the board, this is “unregistered securities.”

For those who don’t know, BitConnect, a play on Bitcoin (available on Coinbase), is an England-based company that has its own digital currency called BitConnect Coins. Currently, the company states that it has issued 9.4M of the BitConnect Coins into the online crypto market.

Yet another problem TSSB has with BitConnect and its token sale is that the company was reportedly looking for individuals, more specifically recruiters, to promote and bring attention to its tokens.

There are a great number of people disappointed that the token sale will not go ahead on January 10, but there are a number of other ICOs set to launch in the coming months; it just looks like BitConnect will not be launching theirs, despite unveiling the plans to launch ICO BitConnectx on Monday.

Then again, BitConnect can’t take what the Texas agency had to say too much to heart seeing as it wasn’t just the company that the TSSB looked down on. In fact, it told investors to be cautious and wary of the entire cryptocurrency sector, stating that investing in digital currencies has “significant risk,” as the industry is always competing against one another and it is extremely volatile.

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