Paragon (PRG) Records 9,650% Growth as SEC-Ordered Refunds Draw Near
The cannabis-focused blockchain project, Paragon (PGR), just pumped by over 9,650% overnight thanks to some concentrated trading action on the Yobit exchange.
This pump comes at a somewhat fortuitous time for Paragon – back in November the team were ordered by the SEC to fulfill refunds for ICO investors who bought in before October 15th, 2017. This followed the decision by the Securities and Exchange Commission that PRG tokens qualified as a security – and that Paragon had neglected U.S securities laws when the ICO was launched sixteen months ago.
With only weeks to go before Paragon must lawfully begin the refund process, the 40,000,000 PRG tokens held in reserve by the team have suddenly become a lot more valuable.
Paragon Price Pumps 9,650%
As the New Year commenced Paragon saw its token price jump from $0.105432 up to a value of $10.28 just over twelve hours later. That’s a 9,650% pump – and it all came from one exchange.
As you can see, we have the reverse of what we normally see when a coin pumps this big. Usually the higher values are seen as outliers, and are duly excluded from aggregate rankings. However, today, the smaller (more rational) values are being seen as outliers.
If we go back to PRG’s price in the $0.0014 range from early November, then we see that the token has surged by 722,825% in that time. All of this upward momentum follows a more than 99% decline since the highs of January 2018.
SEC Orders Refunds
On November 16th the SEC ordered that Paragon must register as a security, and initiate a refund process for any investors who bought in before October 2017, and wish to have their investment returned.
The Paragon team spun the decision in a very positive light. Despite essentially having their asses handed to them by the SEC, Jessica VerSteeg, CEO of Paragon, stated:
“Working shoulder to shoulder with an amazing team of lawyers… as well as an extremely knowledgeable team at the SEC, we have been able to reach this trailblazing deal that we expect will serve as the model for compliance for ICOs going forward.”
Such damage control is to be expected, but the reality looked a lot more grim back in November when the team was ordered to refund customers, and pay a $0.25 million fine to the SEC.
That was when PRG tokens were worth less than a penny. Now, with today’s high of $10.28, the 40,000,000 tokens held in reserve by the team are suddenly worth a lot more.
There have already been rumours that crypto teams are using their own tokens to day-trade in an attempt to keep their own projects afloat. Paragon’s sudden turnaround in fortunes stands to help the Paragon team the most right now.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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