Praxis has raised $525 million to establish a tech-friendly city with relaxed regulations for cryptocurrency and artificial intelligence industries.
Ambitious Funding for Tech-Friendly City
On October 15, Praxis, an “internet-native alliance,” announced that it has secured $525 million in funding to create a new city with fewer regulatory barriers for tech companies. The funding comes from several sources, including the crypto lending platform Arch Lending and investment firm GEM Digital.
Unveiling the Project’s Vision
While the specific location of this tech utopia remains undisclosed, Praxis aims to reduce regulatory constraints for companies involved in areas such as AI, cryptocurrency, biotech, energy, and advanced manufacturing. The project promises to promote “heroic and beautiful ways of life” through culture and institution building, demonstrating the potential for developing a thriving city in the 21st century.
Architectural Ambitions
Praxis asserts that architects have developed a concept for the city that merges “futuristic and classical aesthetics” with scalable urban planning. The project’s co-founder, Dryden Brown, emphasizes a commitment to creating a visually appealing and functional urban environment.
Major Contributions from GEM Digital
According to a recent Wall Street Journal report, GEM Digital has committed $500 million, making it the primary investor in this initiative. In exchange for their investment, Praxis must offer GEM crypto tokens representing ownership in future real estate developments. To access the capital, Praxis will need to list these tokens on a public cryptocurrency exchange.
Funding Release Structure
The remaining funds will be disbursed in stages, contingent on meeting specific milestones. These milestones include obtaining local government permits, acquiring land, tokenizing land ownership, commencing construction, and attracting residents. Arch Lending contributes an additional $25 million to this endeavor.
Exploring Potential Locations
Brown revealed that he is evaluating potential locations for the city in Latin America and the Mediterranean. The initial plan involves developing approximately 1,000 acres capable of accommodating 10,000 residents. A final site selection is expected by the first quarter of 2025.
A History of Proposed Crypto Cities
Praxis joins a list of ambitious tech cities that have struggled to materialize. One notable example is Akon City, a proposed smart city in Senegal, announced by musician Akon in 2018, which has seen minimal progress. Currently, only a few structures exist, with no significant updates since 2023 when construction was projected to commence.
Ongoing Challenges in Tech City Development
Similarly, Satoshi Island, a project launched in 2021 to develop a crypto-friendly island near Vanuatu, has made little headway. Although some foundations have been laid, a recent update failed to provide a timeline for the arrival of pre-fabricated structures.
Delays in Blockchain City Plans
Plans for a blockchain-powered city named Puertopia, intended for the former Roosevelt Roads Naval Base in Ceiba, were also unveiled in 2018. However, years have passed without any substantial developments on that front.
Looking Forward: Future Prospects
Praxis’s $525 million funding marks a significant step towards creating a tech-friendly city. However, the success of this initiative remains uncertain, given the challenges faced by previous tech city projects.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
