SET-listed mobile distributor Jay Mart insists that it will move ahead with selling its JFin digital currency through an initial coin offering (ICO) as scheduled, with company officials voicing confidence that the plan will comply with soon-to-be-launched regulations.
The company has expressed a willingness to collaborate with authorities to make fintech a success in Thailand and is ready to adjust any details if found to be not in compliance with the regulations.
"We [Jay Mart] are confident that the forthcoming regulations will not affect our ICO fund-raising plan, because through an advisory team we have been working with the regulators for months before launching the ICO plan," said Adisak Sukhumvitaya, chief executive of Jay Mart.
He said the ICO of JFin coin is now in compliance with the major principles of the imminent regulations after the company eliminated details that might break the rules.
In the worse case, however, if JFin coin is barred by regulation during the ICO period, the company may have to buy them back from investors.
Jay Mart through its subsidiary J Ventures aims to acquire 660 million baht for its first-phase ICO of 100 million coins at a price of US$0.20 (6.60 baht) per coin, intending to use the funds for developing a decentralised digital lending platform with blockchain technology.
J Ventures will do a presale offering during Feb 14-28 with a 5% discount offer. The official ICO timeline for interested parties is March 1-31.
"Based on the present demand, we believe that only 100 million coins will be not enough to serve the market, and it may quickly run out within the presale period," Mr Adisak said.
Jay Mart yesterday held a public presentation of JFin coin, drawing more than 200 participants to hear details of the country's first ICO fund-raising by a SET-listed company.
Mr Adisak assured that JFin could not be as easily hacked as the Japanese crypto exchange platform Coincheck, from which US$530 million was stolen.
The Coincheck case occurred because of an error related to a wallet storage management system, he said, noting that there are two types of systems: hot wallet and cold wallet.
Hot wallet refers to any cryptocurrency wallet that is connected to the internet, while cold wallets are not. Most people who hold digital assets have both hot and cold wallets because they are designed for different purposes.
Generally, hot wallets are easier to set up and access, and they accept more tokens. But hot wallets are also more susceptible to hackers, potential regulation and other technical vulnerabilities.
On the other hand, cold wallets are more secure but they don't accept as many cryptocurrencies as hot wallets do.
Mr Adisak said the Coincheck theft involved the hacking of a hot wallet that was designed to keep many coins in storage, enabling coin holders to update accounts more quickly. He stressed that Jay Mart would maintain security as the first priority.
According to Mr Adisak, JFin's ICO will be complementary to the group's roadmap of foreign expansion by mid-2020.
Under the roadmap, the group plans to provide a decentralised digital lending platform with blockchain technology, as well as digital lending service abroad, especially in neighbouring countries, through subsidiaries J Ventures and J Fintech (formerly known as JMT Plus), a provider of personal loans.
In January 2017, Jay Mart transformed itself into a holding company. Its major flagship mobile phone business unit operates under the newly established Jaymart Mobile Co, which is 99% owned by Jay Mart.
Jay Mart also holds a 24.9% shareholding stake in Singer Thailand, a provider of direct sales, service loans and leasing.