In the first-of-its-kind event in the ICO market, The Praetorian Group has filed for registering the Initial Coin Offering (ICO) tokens directly with the SEC. The Praetorian Group identifies itself as Cryptocurrency Real Estate Investment Vehicle (C.R.E.I.V.) and has said that its cryptocurrencies will be backed by real properties, unlike other coin offerings.
The Praetorian Group has registered 15 million PAX tokens with the SEC valued at $75 million, meaning each token pegged at a price of $5. The company has said that although its PAX tokens don’t represent the nature of a security it still considers playing its cards safely due to the recently increased scrutiny from the regulatory agency.
Last week, the SEC made a public statement where is warned several online trading platforms for its unlawful behavior and has asked them to get registered with the agency in the due time or face action. The SEC said that it has found several trading platforms claiming its customers to have done the SEC verification but in reality, they have not.
The agency said: “If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration. The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not.”
In the matter of the ICO, The Praetorian Group aims to buy nearly 5-7 properties a month with a project cap rate of 10% to 18%. The real estate group is also planning to grant commercial loans in addition to making a donation to local charities while initiating community outreach programs in “blighted areas” where the group buys its properties.
For 12 months of the launch of ICO, the company also plans to leverage the blockchain technology and offer its customers with PAX debit/credit cards along with a mobile payment app which allows customers to exchange the PAX tokens with other digital currencies like BTC, ETH, LTC, Dash, NEO, OMG, etc. The company has some really big scalability plans with its cards to have “1 million potential users” by December 25, 2019, which will scale to 5 million users by January 2020, and “a minimum of 10 million users” by January 2021.
The company will have nearly 200 million PAX tokens with a market value of $1 billion at its proposed ICO price. All the tokens will be sold only on the Praetorian website and can be purchased using Bitcoin, Litecoin, and Ethereum. Currently, the company is anticipating that the PAX tokens will be available on several trading platforms like Binance, DEX, Bittrex, Poloneix, Kraken, Liqui and others.
The management team comprises of two founding members – Gerard Marrone and Louis Adimando. Marrone is a blockchain enthusiast, a real-estate broker and has also been practicing attorney in New York real estate, corporate and criminal law. Adimando is also a banker, attorney and a blockchain expert.