By Keren Concepcion G. Valmonte, Reporter
THE Securities and Change Fee (SEC) has issued advisories in opposition to three entities providing unlicensed funding packages to the general public.
In two advisories dated Jan. 4, the regulator flagged TuneGaga and OUTRACE “Play to Earn” for soliciting investments with out authority from the SEC.
The regulator warned that the schemes provided by the 2 entities resemble a Ponzi scheme, “which is fraudulent and unsustainable, will not be a registrable safety.” Investments of newer buyers are used to repay “faux income” of these a part of the scheme earlier.
TuneGaga will not be registered with the fee and it additionally doesn’t have the license to supply investments to the general public. The fee stated it’s luring buyers by way of social media and thru their impartial web site, which now not works as of writing.
“TUNEGAGA/TuneGaga is a cell software that may be downloaded in Google Play Retailer,” the SEC stated in its advisory dated Jan. 4.
Customers of the cell software can allegedly earn additional revenue by simply listening to music of their very own alternative. TuneGaga’s buyers can supposedly earn weekly by way of its numerous subscription plans “with corresponding duties.”
BusinessWorld reached out to TuneGaga for remark, but it surely has but to obtain a response as of press time. In accordance with person feedback of its app on Google Play, customers have been experiencing issues on the app since late November.
In the meantime, the SEC stated OUTRACE is being run by one other SEC-flagged entity, BCPay Monetary Expertise, Inc.
The regulator stated OUTRACE is promising excessive returns for its gamers and “OUTRACE $ORE” token holders through buying its in-game non-fungible tokens (NFT) whereas on pre-sale and thru preliminary coin providing for a less expensive value.
OUTRACE is luring buyers “on the pretext that each will significantly enhance in worth as soon as the $ORE is listed on public exchanges.” Nonetheless, the entity will not be registered with the SEC. It is usually not licensed to solicit investments and it doesn’t have the suitable registration to supply or promote securities to the general public.
OUTRACE will not be registered with the Bangko Sentral ng Pilipinas (BSP) and it additionally doesn’t have a certificates of authority as a cash service enterprise (MSBs) as required below the Tips for Digital Asset Service Suppliers of the BSP.
“Likewise, its identify doesn’t seem amongst these listed as registered MSBs as of January 2021 with the Anti-Cash Laundering Council below the Anti-Cash Laundering Act, as amended,” the SEC stated its advisory in opposition to OUTRACE dated Jan. 4.
Alternatively, UP-Mass Revolutionary Advertising and marketing Corp. or UMIM Corp. was additionally flagged by the fee for its unauthorized funding solicitation actions. Its program has members “make investments, wait, and earn with out having to do something.”
“It has come to the eye of the fee that purportedly, [UP-MASS Innovative Marketing or UMIM] has acquired MassDrop and MDM Ventures Corp. and those that invested with the 2 companies are being provided three choices below the ‘transition’ program,” the fee stated.
The SEC just lately revoked the registrations and the certificates of incorporation of MassDrop and MDM Ventures after being discovered that their unlicensed funding packages additionally resembled a Ponzi scheme.
Whereas UMIM is registered with the SEC, it doesn’t have the required secondary license. Its articles of incorporation additionally explicitly state that the entity mustn’t gather or take investments from the general public nor shall it concern funding contracts.
The SEC is looking on the general public to report any info on the operations of the three entities.