The Securities Commission Malaysia (SC) has launched an investigation into the purported launch of a cryptocurrency by multimillionaire cosmetic queen Datuk Seri Vida.
The investigation by the country’s capital and equity market regulator came after Vida, whose real name is Datuk Seri Dr Hasmida Othman, recently announced that she would introduce LavidaCoin, a digital coin offering meant to finance a few projects.
She was reported as saying that her idea of LavidaCoin came after she made a handsome profit from her investments in digital coins.
The SC said it is reviewing all information related to the cosmetic queen’s cryptocurrency LavidaCoin, including the possible breaches of the country’s securities laws.
The probe came after the SC received queries on the issuance of a white paper for the LavidaCoin offering. The white paper claimed that the cryptocurrency is offered as a private funding initiative to raise development capital for three projects.
The LavidaCoin white paper seen by The Malaysian Reserve specified the projects as a new online entertainment channel with an entrepreneurial focus; a new payment gateway (LavidaPay) built on proven blockchain technology; and the construction of a Muslim community hub, centred on a new mosque.
The white paper said the main differentiator for the three projects is that cryptocurrency and blockchain technology will be used uniquely for each project and will form the bridge between each of the three projects.
The promoter of LavidaCoin aims to raise a total of US$1.5 billion (RM6.15 billion) in funding including US$1 billion to be used to develop the new entertainment platform.
The new payment gateway would cost US$100 million and the construction of the mosque complex would need US$400 million.
The paper specified that the payment gateway would be the first project as it is the cheapest, while the mosque complex that is solely a non-profit enterprise would be the last.
Of course, if the entire US$1.5 billion is raised in a single round of funding, then all three projects will be run concurrently, according to the white paper.
The paper also specified that the total supply for Lavida Coin will be 766 million. The value for the first stage offering has been proposed at US$0.66 per coin with 53 million coins allocated, and US$0.86 per coin for the second stage involving 100 million coins.
Meanwhile, the SC advises investors to exercise due diligence and to be cautious of the risks of participating in any investment schemes, in particular schemes involving cryptocurrencies and digital tokens. — TMR