With the stance of SEC on initial coin offerings, most teams planning ICO either avoid selling their tokens to Americans or simply risk being put on hold after having made some sales. A company, the Praetorian Group seems unwilling to leave things to chance and have filed a request to have their token registered by SEC.
If approved, the Praetorian ICO would be the first to sell registered securities in the United States.
The application filed by the company on March 6 wants to register the company’s $75 million initial coin offering as security.
The filing by the company stated their intention to register 15 million of the 200 million tokens that the company has on the Ethereum smart contract. The 15 million will be available for sale during the ICO window period.
The company said their token is backed by real estate. The ICO being meant for development of low priced housing estates in neighborhood where their prices are likely to appreciate over time.
The filing acknowledged that it could be a tough call classifying a token, stating that the company wants to be on the safe side while selling their $5 apiece tokens during the planned ICO. According to them, their tokens would be sold to “accredited investors”, a term experts say was inappropriate under the circumstance. This is because under US law, an accredited investor is one with certain financial status.
The Praetorian Group are navigating uncharted territory, so they may be forgiven even for using obscure terms. Hopefully, the SEC will do same.