Proxima Media, a company founded by Hollywood movie producer Ryan Kavanaugh, on Thursday announced that it has raised $100 million to launch a security token.
The funding came from two venture capitals – Hong Kong-based Central Wealth Investment Fund and Step Ventures.
Dubbed Proxicoin, the digital coin will act as a fundraising tool for media projects including film, TV, music, and other intellectual property-driven content.
Commenting on the prospect of bringing blockchain-based fundraising to media platforms, Vincent Tse, CEO of Step Ventures, said: “Proxicoin makes a highly sought-after financial product available to many individual and smaller investors.”
“Film, as an asset class, is traditionally uncorrelated to capital markets and has been a competitive and sought-after asset class among the large hedge funds and banks including Citibank, Deutsche Bank, JP Morgan, Goldman Sachs, and many others. During the Great Depression, one of the only stocks that went up was MGM.”
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The company has already developed the ERC20 token and has inked a deal with Malaysia-based Fusang Exchange for a late 2019 listing. In addition, Proxima says that the token has been “fully audited.”
Bringing entertainment to blockchain
As Proxicoin falls under the category of securities, the company clarified that token holders would also partially own a trading platform called Entertainment Stock X (ESX), which the media company is planning to build to allow individual film and television projects to raise funds via initial public offerings (ICOs).
“ESX currently has deals for listings on over 30 major feature film projects and is expected to have a significant share of the 600 major films and television shows shot annually,” the announcement stated.
“Proxicoin and this transaction eliminate many of the hurdles that have held back growth between the two countries [China and the USA] due to heavy restrictions in currency conversion,” Kavanaugh added.
Kavanaugh also works as an executive producer at Warner Brothers and produced renowned movies including The Social Network, 3:10 to Yuma, and Mamma Mia!.