J Ventures, which launched Thailand’s first initial coin offering (ICO), has decided to halt its fundraising process and focus on the adaptation of its digital currency.
According to Bangkok Post’s May 7 report, the company is not squashing the idea of a further token sale but is now focusing to make JFin coins a mode for goods and services payment.
“I will raise new funds whenever the system [related to the decentralized digital lending platform (DDLP) and the existing tokens are well functioning and operating implicitly, which could be after 2020,” Thanawat Lertwattanarak, CEO of the company, told the local news publication.
He also explained that “well functioning” means a coin with sufficient liquidity and for JFin coin, the price must be above THB 6 (near about $0.19), the same value at which the token was first offered.
A victim of ‘crypto winter’
The Thai company launched its first token sale round in February 2018 and sold 100 million JFin coins out of a total issued 300 million in a mere 55 hours. More than 2,200 investors participated in the token sale as the company raised THB 600 million (around $18.8 million).
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Out of the remaining 200 million tokens, 90 million are reserved for the next ICO round while the company has committed to distributing 70 million tokens to Jay Mart Group and subsidiaries, and the development team controls 40 million coins.
However, just like any other digital currency, the token could not hold its value and has depreciated by more than 50 percent from its issue price of THB 6.60 (nearly $0.21).
“The distribution of all remaining parts has been postponed until the existing tokens have sufficient liquidity,” Lertwattanarak added.
Liquidity is important
The company is set to launch seven projects to boost the demand for the digital currency in the market. However, the details of these projects are not yet revealed.
J Ventures is also planning the launch of a DDLP system and a peer-to-peer lending platform in July.
For better control over the wild crypto market, Thailand’s Securities and Exchange Commission (SEC) approved an ICO portal and is working to do the same for securities token offerings (STOs). The country’s authorities are officially granting licenses to crypto exchanges operating in the country, and the primary stock exchange of the country is also planning to start a digital asset trading platform.