A company known as Dragon Corp. is attempting to put out an initial coin offering with the goal of raising nearly $500 million. Dragon Corp. has stated that the money will go toward the building of a large scale casino in Macau. The coins that investors buy will also be able to be exchanged for gambling tokens in the actual casino, which seems to be a first for the cryptocurrency industry.
Buyers will not be able to use the coins for any sort of equity stake in the company, but rather only for gambling in person. One of the issues getting in the way of this happening is the fact that Macau has yet to fully legalize bitcoin services within the country. With other countries such as China banning the use of initial coin offerings or ICOs, this may prove to be a difficult task.
The company is currently registered in the British Virgin Islands, where jurisdictions are notably much looser. With some complications in the regulatory framework of the deal, it will take some time for this idea to come to physical fruition. Another issue with the currency is the a convicted gangster known as Broken Tooth, or more officially Wan Kuok-Koi, who served 14 years for loan sharking and money laundering. Wan reportedly showed up at one of the singing ceremonies for the launch of the ICO.
This may prove to be a bad image for the company and could end up hurting the reputation of legitimacy that they are obviously going for. CEO Chakrit Ahmad stated that “Broken Tooth is not involved in Dragon. Do we know him? We know of him. We know him. Not to a great extent. He came to the event introduced by someone else as a prominent figure in Macau…He is not involved in Dragon and he is not financing Dragon in any way.”