Second phase of JFin ICO chewed over
J Ventures Co Ltd, a subsidiary of SETlisted Jay Mart Plc and the issuer of JFin coin, plans to launch the second phase of its initial coin offering (ICO) next year and sign a memorandum of understanding to acquire a 25% stake in PraIn Fintech Co Ltd, aiming to develop a decentralised digital lending platform (DDLP).
J Ventures’ second-phase ICO is targeted to issue 200 million tokens. J Ventures has created 300 million digital tokens, with 100 million offered in the first phase.
Some 81% of the 100 million digital tokens were sold on Valentine’s Day at a price of 6.60 baht per token.
But JFin coin’s maiden trading day in the secondary market ended on a sour note in early May, with the price dropping over 50% from February’s ICO launch due to previous concerns over the government’s regulations of digital asset trade and transactions.
ICO transactions are similar to crowdfunding, whereby an issuer presents a business model to investors. The difference is the raised funds are in the form of digital currencies using blockchain technology and the deals are enforced using smart contracts.
After several rounds of public hearings, a royal decree regulating digital assets took effect on May 14. The 100-section law defines cryptocurrencies as digital assets and digital tokens.
All market participants, including ICO issuers, digital exchanges, brokers and dealers involved with digital asset transactions are required to register with the Securities and Exchange Commission (SEC) within 90 days of the effective date. They must also receive the Finance Ministry’s approval to conduct digital asset business.
Digital asset transactions will be subject to a 15% withholding tax on capital gains if there is a profit.
J Ventures’ 25% share acquisition in PraIn Fintech, meanwhile, is aimed at expanding its business into a high-end payment gateway. PraIn Fintech is a subsidiary of SET-listed MFEC, a large IT service company.
Funds raised through JFin ICO will be used to develop the DDLP and JFin coin’s utility token functions, said J Ventures chief executive Thanawat Lertwattanarak. The company needs more funding to continue investment next year, he said.
“We need to consult with the SEC on future fundraising projects because ICOs and digital assets are being regulated by the SEC. We are maintaining our efforts to build up the project’s success. We hope the company can be listed on the Live platform this year and move on to list on the Market for Alternative Investment over the next 2-3 years,” said Mr Thanawat.
“With the strength of the MFEC Group, which specialises in software-based technologies, and the strong ecosystem of Jay Mart, which invests in retail and financial businesses, it is believed that JFIN DDLP is one of the most important [inventions] in the world and is key to cashless transactions.”