This Prometheum storyline has got to be the strangest thing I have seen in awhile in this industry. Has anyone actually looked into this? Beyond bizarre…
Last month, in the midst of the SEC bringing cases on Coinbase + Gemini, and giving the stiff arm to Robinhood and others, Prometheum gets approval for a first of its kind Special Purpose Broker-Dealer (SPBD) for digital asset securities…
Then Prometheum’s CEO somehow gets a seat in front of Congress yesterday and starts reading off pre-written notes clearly coordinating narratives with Democratic members of Congress (or the SEC)
As @RSSH273 points out, this ATS absolutely will not work unless the projects first register the tokens with the SEC. There are currently no tokens registered with the SEC because the current regime is not viable for public blockchain networks..
US Representative Mike Flood hit the nail on his head on why Prometheum’s claims are utter nonsense:
The Prometheum guys want us to believe that all L1s are securities and will need to come and trade on Prometheum. Not happening. But enter Prometheum Chain! What is that you say? These guys have their own chain? Yes, and a token!
sec.gov/Archives/edgar…
“Well that’s just a PPT slide, they surely won’t do a token”…Wrong. They already pre-sold some to Wanxiang and others:
sec.gov/Archives/edgar…
Who is Wanxiang? Uhhh someone might want to look into this one. CCP affiliate? Wtf?
According to Pitchbook, Prometheum has raised $48.19 million. Like all private companies they are required to file a form D when they raise. Oddly even in their early rounds they used an investment bank to raise capital (very rare for venture backed startups at the early stage)..
They have paid in excess of $1.5 million in sales commissions to a NJ based outfit called Network 1 Financial Securities
Network 1 Financial Securities has quite the regulatory track record
files.brokercheck.finra.org/firm/firm_1357…
Just like Prometheum, Network 1 Financial is a China affiliated firm
files.adviserinfo.sec.gov/IAPD/Content/C…
And who is running Prometheum? These guys:
Who look alot like these guys:
gusraekaplan.com/attorneys/
The Kaplan's are being held up as security law experts. Two of them went to a now unaccredited law school.
abajournal.com/news/article/a…
Other companies like Coinbase and Gemini have pursued the B/D and ATS paths. Those licenses under current SEC regs don't let you do much. The SEC is implying the Prometheum path solves the regulatory clarity issues. It doesn't.
What is going on here? Bizarre that this fringe player with no biz model is being held up as an example of compliance by the SEC when the actual businesses in the United States can’t get a fair shot. An SEC PSYOP to have the Dems oppose McHenry-Thompson market structure bill?
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