Despite China’s ban on all Initial Coin Offerings (ICOs), Dragon Corp. a Macau-based gaming company is planning to raise a massive $500 million in an upcoming ICO.
The gaming company seeks to integrate blockchain technology into the world’s largest gambling market by issuing tokens for VIP junket operators who handle credit processing for casinos.
Speaking at a press event, Chakrit Ahmad, CEO of Wi Holding, the company managing the technology side of the campaign, said:
"This is the first time anybody has allowed the public to invest in a public junket or become a shareholder of a casino. You're basically becoming a shareholder in a junket, utilizing blockchain technology, getting revenues from that, and plugging that back into the token."
According to Ahmad, the half a billion dollars raised through an ICO will be used to fund the building of the grand Dragon Pearl Casino Hotel, which will span 16,000 square meters and will be completed in Norway before getting sent to Macau in 2019.
Macau, a former Portuguese colony, is officially known as the Macao Special Administrative Region of the People's Republic of China. Home to giant casinos and clubs, Macau is also the world’s largest gambling market, even surpassing Las Vegas.
According to Chakrit Ahmad, future plans also include the issuance of a debit card that will be loaded with digital currency tokens and will allow holders to withdraw traditional fiat currencies from ATMs.
He also shared plans for the tokens to be listed in exchanges around the world, saying:
"We basically provide liquidity via our own exchange, and also major exchanges in the world for the digital currency, so that token will be listed in multiple exchanges. You can have a digital exchange in Hong Kong or in Thailand or elsewhere, and you can cash out."
Even though Macau comes under the People’s Republic of China, which banned ICOs earlier this month, Ahmad said Dragon Corp’s ICO will not fall under China’s jurisdiction because the token sale will take place in Hong Kong.
According to Hong Kong’s Securities and Futures Commission, digital tokens from ICOs are virtual commodities, except when they offer equity, as is the case with shares. In those instances, a token sale would be considered a security.
It remains to be seen whether the Dragon Corp. ICO will proceed without any issues when the tokens are issued in late October.