According to a NASDAQ post published today, the US-Praetorian Group filed what appears to be the first SEC-registered initial coin offering (ICO).
The newly formed company registered 15 million PAX tokens to raise $75 million at USD 5 per coin. In total the company plans to issue 200 million PAX tokens, giving the company a “market value” of $1 billion at its proposed ICO price. Praetorian Group calls itself a Cryptocurrency Real Estate Investment Vehicle (C.R.E.I.V.). It claims that, unlike other cryptocurrencies, its tokens will be backed by real properties.
In a statement, the company admits that PAX tokens may be a security that needs to be registered with the SEC, but states that regulatory uncertainties led it to preemptively seek the SEC’s approval. According to the NASDAQ post, Praetorian’s S-1 filing is not structured like a typical IPO document and does not offer the same level of disclosure.
Regardless of the quality of the PAX token, we do see this as a sound development. Tokens registered with financial market authorities may constitute a new way to improve th pool level of investors protection and issuer liability.
Disclaimer: tThis is not an investment advice. We have not done a research on the PAX token and/or Preatorian Group and have no plans to participate in the ICO.