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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Praxis, an ambitious project that plans to develop a tech-centric city with minimal regulatory barriers for cryptocurrency and artificial intelligence (AI) innovators, has secured $525 million in funding.
The project, which brands itself as an “internet-native alliance,” revealed that it secured the funding from multiple investors, including Arch Lending, a crypto lending platform, and GEM Digital, a prominent investment firm in the crypto space.
The exact location of the planned city remains undisclosed.
Praxis City to be a Hun for Tech Companies
Praxis promises that this futuristic urban hub will be a haven for companies working in emerging technology sectors such as AI, cryptocurrency, biotechnology, energy, and advanced manufacturing.
The goal is to foster innovation by easing regulatory restrictions, enabling businesses to thrive in a supportive environment designed for technological advancement.
Praxis’s vision extends beyond merely creating a tech-friendly city; it aims to establish a “heroic and beautiful” way of life through what it calls “culture and institution building.”
The project leaders hope to demonstrate that constructing a flourishing city in the 21st century is possible by integrating modern technology with community-oriented development.
According to their vision, the city’s design will combine “futuristic and classical aesthetics with scalable urban planning,” offering a unique blend of architectural styles.
Founded in 2019 by co-founder Dryden Brown, Praxis has already attracted investment from several venture capital firms, including Paradigm, Bedrock, Apollo Projects, Winklevoss Capital, and Day One Ventures.
The latest funding round, however, marks a substantial increase in financial backing, with GEM Digital leading the contribution with a $500 million investment.
Jonathan Collins, the director of GEM Digital, confirmed this allocation in an interview with the Wall Street Journal.
The investment comes with conditions, as Praxis must provide GEM with cryptocurrency tokens representing future ownership stakes in the city’s real estate development.
The project will also need to list these tokens on a public cryptocurrency exchange to access the full capital.
Additionally, the funds will be released in stages, contingent on Praxis achieving key milestones, such as obtaining local government permits, purchasing land, tokenizing land ownership, initiating construction, and attracting residents to the city.
Another $25 million of the total funding comes from Arch Lending, further reinforcing financial support for Praxis’s vision.
Praxis Exploring Locations in Latin America and Mediterranean Region
Brown said that the team is exploring potential locations for the city in both Latin America and the Mediterranean region.
The initial phase of the project is set to cover approximately 1,000 acres, with plans to accommodate around 10,000 residents.
Brown anticipates that a final decision on the city’s location will be made by the first quarter of 2025.
While Praxis’s vision appears promising, it joins a list of previous tech utopia initiatives that struggled to materialize.
One notable example is Akon City, a crypto-powered smart city project announced by rapper Akon in Senegal in 2018.
Despite grand announcements, the project has seen little progress, with only a few buildings constructed and no significant updates since 2023, the year construction was initially slated to begin.
Similarly, Satoshi Island, launched in 2021, aimed to create a blockchain-based economy on an island near Vanuatu, specifically for crypto professionals.
Nearly three years later, the project’s recent update on October 7 outlined preliminary plans for pre-fabricated structures but provided no timeline for their arrival.
Another high-profile project was Puertopia, a proposed blockchain-driven city at the Roosevelt Roads Naval Base in Ceiba, announced in 2018.
Like its predecessors, it has since faced delays and a lack of significant progress.
