LuxTag has closed on a $360,000 token offering according to a note from the company. The crowdfunding round saw 51% of the funds denominated in Bitcoin and XEM (NEM). LuxTag claims to be Malaysia’s very first successful token offering.
The securities offering was hosted on PitchIn where 30 investors purchased a 11.11% equity stake in the company. The token offering received the approval of the Securities Commission of Malaysia (SC) to accept investments-in-kind made via the NEM (XEM) and Bitcoin (BTC) crypto tokens.
LuxTag is an anti-counterfeit, track and trace, and anti-theft solution provider. LuxTag utilizes the NEM blockchain platform and its sequel SYMBOL (previous codename NEM Catapult). Luxtag uses NEM’s native tokens (XEM) to run its blockchain operations and the service revolves around digitized certificates of authenticity for tangible products, linking these to brands and owners through multi-signature smart contracts and the IoT (Internet of Things) elements.
The company explains that LuxTag works with numerous organizations such as Chronoswiss, a Swiss watchmaker, the International Islamic University of Malaysia for securing authenticity of graduation certificates, and Defeet International – a sports apparel brand based in the US.
In 2019, one of LuxTag’s accomplishments was establishing a strategic partnership with DagangNet, an established Malaysian IT company, for larger-scale project ventures.
Rene Bernard, CEO of LuxTag commented on the token offering:
“The success of LuxTag’s ECF campaign proved that LuxTag is not like other blockchain companies that depend on the blockchain hype, but an anti-counterfeit business solution provider that provides a solid solution and value to businesses. With that proposition, we have gained investors’ confidence to participate in Luxtag and be part of LuxTag’s success story.”
LuxTag shares that in December 2019, pitchIN had sought and obtained approval from the Securities Commission for the crowdfunding campaign to accept cryptocurrency. The securities offering campaign sougth to raise MYR 800,000 (about USD $192,000), and the cap was set to be MYR 2 million.
The company explains that the cryptocurrencies have been pledged as a “non-monetary value trade-in.”
PitchIN considers the market value of the crypto tokens and assigns the equivalent number of LuxTag shares to the investors.
BTC and XEM contributions were restricted to Angel and sophisticated investors, and the minimum contribution by any such investor was MYR 6,400 (about US$1,530 or 0.16 BTC). Crypto investors were required to declare that they are not retail investors.
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