Through 2018, the United States Securities and Exchange Commission (SEC) became increasingly active in their regulation of the cryptocurrency space, particularly in regards to recent ICOs. This activity partially came in the form of Cease-and-Desists (C&D) delivered to a number of projects. Of these included Paragon.
On November 16th, 2018, Paragon (PRG) received a C&D for their 2017 ICO which raised US$12 million in the sale of, in the eyes of the SEC, unregistered securities. Per the C&D, Paragon was required to pay a US$250,000 fine to the SEC and refund investors of the ICO. In response to the news, PRG dropped to local lows of US$0.02 in the following week, for a market cap of roughly US$1.2 million. As this took place on the same time-frame as Bitcoin’s nosedive from US$6,300, the news hit the Paragon team and holders especially hard.
It doesn’t take a rocket scientist to recognize that a US$12 million plus $250,000 repayment is a gargantuan of an obstacle for a project barely worth seven figures. As such, many had…