First S-1 for an Initial Coin Offering Filed with the Securities and Exchange Commission

Earlier this week, the first S-1 form was filed with the Securities and Exchange Commission that was for an initial coin offering (ICO). An S -1 is a securities exemption that initiates the filing process of doing an initial public offering. The company that filed with the SEC is the Praetorian Group and PAX Coin Corporation and it lists its intent to trade under the symbol PAX.

Praetorian indicates its intent to raise $75 million in equity and / or cryptocurrency equivalent to fund its operations. All  PAX tokens are expected to be sold “exclusively” on the Praetorian website to investors who can purchase tokens with Bitcoin, Ethereum, and Litecoin. The company says that if demand is high they may expand the offering and issue a second or third ICO round. They anticipate the majority of tokens will be traded on different cryptocurrency exchanges including Bittrex, Binance, and Liqui.

So what exactly is the mission of this startup? Praetorian explains as follows:

“The creation of a Cryptocurrency Real Estate Investment Vehicle (C.R.E.I.V.) for the sole purpose of acquiring and upgrading residential and commercial real estate properties that are either undervalued and/or located in blighted areas that with proper execution we believe can become profitable real estate holdings. It is the Company’s vision to invest in lower income areas that we believe are poised to increase in value, infuse cryptocurrency into these areas and to fund “Out Reach Programs” to enrich the quality of life for the residents in which we owned properties.”

In Phase 2, the “PAX Cryptocurrency merchant services Blockchain Asset Wallet” that Praetorian says it will  launch is envisioned as a cryptocurrency that may be utilized anywhere in the world via a smartphone or PAX debit card.

So will the SEC green-light this filing? That’s a good question. One legal advisor said they were skeptical that this was little more than a PR ploy. By claiming “First” there is some editorial interest (obviously).  Additionally, many smaller firms qualify as an emerging growth company and have the option of submitting the form on a confidential basis. Why share your game plan with your competitors? Let’s wait and see on this one.

If you are interested in reading the S-1 it is embedded below. The Praetorian White Paper is available here.


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