This site uses cookies. Browsing the site, you agree to the use of cookies. If you need more information, please visit the Cookies Policy page
Cryptocurrencies: 5370 / Markets: 43262
Market Cap: $ 1 346 383 766 188 / 24h Vol: $ 109 187 249 577 / BTC Dominance: 45.328921694332%

Н News

How crypto companies can go public in 2021, explained

840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy8wOTFlZTUyOWQ0MWQxOTg5Yjc4NjE4ZmViZTE0YzZjZi5qcGc=.jpg

There is huge demand for crypto companies to go public right now — but in this day and age, are initial public offerings their only option?

Beyond Coinbase, are there any other examples?

One company that has been in the process of completing a Reg A token sale is Exodus.

Exodus — which offers desktop, mobile and hardware crypto wallets — said that it wanted to pursue this approach to ensure that its users had equal access to equity as venture capital firms and crypto whales.

The company’s stock was listed at a price of $27.42 a share, and was available directly through the Exodus wallet in exchange for Bitcoin, Ether or the USDC stablecoin. It was also available exclusively in the U.S., barring three states.

In a recent ask-me-anything session on Cointelegraph’s YouTube page, Exodus CEO JP Richardson described the Reg A token sale as a “proof of concept to show the world that this is possible” — and suggested that other companies could be invited to perform their own token sales within its platform in the future.

“We see that as an inevitable future in that all traditional assets, whether it's stocks, bonds, mortgages, currencies… now will make their way to the blockchain,” Richardson added.

Approved by the U.S. Securities and Exchange Commission, Exodus raised $59 million in just five days.

On May 5, it was confirmed that the token sale had sold out — with Exodus claiming it was the first company to have a public offering that was for crypto only, digitally represented on the blockchain, and 100% in a self-custodial platform.

Learn more about Exodus

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

What are the risks that crypto companies face?

As the pros and cons column above suggests, the road to going public isn’t an easy one.

SPACs can end up going wrong if a company that wishes to go public ends up picking the wrong sponsor. Meanwhile, businesses that go through the rigmarole of completing an IPO can end up finding that they’re not ready to hit the primetime — and are unaccustomed to the burdens associated with being a public company, including the quarterly disclosure of earnings.

Direct listings can leave early investors in companies disgruntled, because they may be expected to offload some of their shares so they can enter into public circulation. And although the absence of a lock-up period is certainly enticing, executives can end up being criticized if they sell shares immediately after a listing takes place. (Coinbase insiders were accused of dumping tokens after its listing, but one of the exchange’s representatives told Coinbase at the time that all sellers maintained strong ownership positions.)

A challenge with Reg A token sales lies in how only a few have been approved to date, and success in this area can depend on picking the right lawyers.

Is there any appetite among investors for publicly listed crypto companies?

Yes — especially now Coinbase has broken new ground by joining the Nasdaq.

It’s fair to say that a number of rival exchanges were watching Coinbase’s journey with great interest. As we mentioned, eToro is now following suit — and Kraken may be preparing to go public next year. Binance, the world’s biggest exchange, appears to be holding firm in its determination to remain a private company.

Tech companies going public have been a major area of focus in the equity markets, especially over the past two years or so, and this is evidenced by the strong performance of the tech-heavy Nasdaq. When it comes to crypto companies specifically, investors may be drawn to purchasing shares because of how it gives them indirect exposure to fluctuations in the crypto markets.

Growing interest in the potential that cryptocurrencies have — as a payment method, as a store of value and as a compelling alternative to fiat — have also led some analysts to expect substantial growth in the years to come. Already, Mastercard has announced that it will enable its customers to pay with digital assets if they wish, and PayPal’s crypto service is being gradually rolled out around the world. This forms part of an argument that investing in publicly listed exchanges now could be like getting on the ground floor of major tech giants such as Facebook, Amazon and Google.

What are the pros and cons of each?

Each method can attract downsides, meaning companies need to think about their top priorities.

While IPOs typically generate box-office proceeds, in part due to how they have the credibility of an underwriting bank, the regulatory requirements that companies need to meet is often high. Investment banks are required to underwrite and participate in the IPO, and this can result in a hefty tab at the end of the drawn-out procedure.

As you’d imagine, all of this has led to direct listings becoming a popular alternative. No new shares are created as part of this process. Instead, existing stock is sold to the public — and no lock-up restrictions are in place. This prevents existing shareholders from being diluted, but funds only end up being raised when current stock is sold.

SPACs can be faster and cheaper — enabling companies to hit the stock market faster. Although this creates greater levels of certainty for shareholders and potentially less volatility than an IPO, retail investors can be put at risk because of how a SPAC’s sponsors take on significant equity at low cost.

And then there are Reg A token sales. Because traditional financial entities do not need to be involved, this enables everyday investors to gain exposure at earlier stages within a company. But this isn’t without legal costs — and an upper cap of $75 million exists when it comes to new funds being raised.

What are the main ways crypto companies can go public in 2021?

Initial public offerings used to be the most common method for businesses that wanted to make a stock market debut — but things are changing.

Of course, IPOs remain hugely popular. According to PwC, there were 727 IPOs around the world in the first quarter of 2021 — bringing in proceedings of $202.9 billion. That’s 60% of the funds that were raised across the whole of 2020… in just a three-month period.

There are downsides to pursuing an IPO. Not only are these offerings incredibly expensive for the companies that pursue them, but lock-up periods mean executives and early investors who already have shares cannot sell them for up to 180 days.

This has prompted the likes of Coinbase to seek alternatives such as a direct listing — a method that has become favored by a number of tech brands including Spotify and Slack.

Other potential routes include big brands merging with a special-purpose acquisition company, known as a SPAC for short. This has been the approach taken by the crypto-friendly trading platform eToro as it gears up for a $10 billion listing.

Reg A token sales, which results in securities being publicly traded, can also be considered.

Source

  • 14.09.20 17:58 Захар Трофимов

    Надо изучать Defi , интересно

  • 14.09.20 18:01 Попко Колян

    Давайте биткоин по 20к

  • 14.09.20 18:08 Попков С.А.

    Круто

  • 14.09.20 18:13 Алексей С.

    ​гуд

  • 14.09.20 18:18 Попков С.А.

    Как успехи?

  • 14.09.20 18:24 Попко Колян

    👍👍👍👍👍

  • 14.09.20 18:26 Егор Шетюк

    Понеслась

  • 14.09.20 18:26 Захар Трофимов

    15$. Тюмень рулит😁

  • 14.09.20 18:35 Константин В.В

    Биток и эфир держу до лучших времён)

  • 14.09.20 18:38 Попко Колян

    ​ДОБРОГО

  • 14.09.20 18:43 Даниил

    Рига смотрит

  • 14.09.20 18:46 Вадим Никулин

    Всегда смотрю Вас!

  • 14.09.20 18:55 Захар Трофимов

    Минск на проводе

  • 14.09.20 18:56 Щука А

    Спасибо за ваш труд

  • 14.09.20 19:01 Никита

    Хай

  • 14.09.20 19:06 Вячеслав Левков

    Отложил биток на пенсию

  • 14.09.20 19:13 Попков С.А.

    Отличные эфиры у вас

  • 14.09.20 19:20 Щука А

    Привет из Москвы

  • 14.09.20 19:25 Алексей С.

    Всем РЕСПЕКТ

  • 14.09.20 19:27 Николай

    Вперед криптаны

  • 14.09.20 19:34 КРИПТАН

    Слышно гуд

  • 14.09.20 19:36 Егор Шетюк

    Подарите книгу)))

  • 14.09.20 19:44 Светлана П

    миллионерам привет

  • 14.09.20 19:48 Вячеслав Левков

    Крипта скам=)

  • 14.09.20 19:53 Тоха

    Понеслась

  • 14.09.20 19:57 Носов А.А

    Рига смотрит

  • 14.09.20 20:04 Прокоп

    Донаты принемаете?

  • 14.09.20 20:06 Носов А.А

    спасибо

  • 14.09.20 20:12 Юрий Ник

    Тюмень рулит😁

  • 14.09.20 20:18 Даниил

    миллионерам привет

  • 14.09.20 20:18 Нина

    17$. Биток и эфир держу до лучших времён)

  • 14.09.20 20:24 Никита

    18$. Задонатю вам баблишка)

  • 14.09.20 20:25 Вячеслав Левков

    Поможем парням лайками, я уже свой поставил

  • 14.09.20 20:26 Павел Скоровойтов

    Слава эфиру

  • 14.09.20 20:35 Носов А.А

    Привет, пацаны. Слышно, видно хорошо

  • 14.09.20 20:36 Тоха

    Шалом

  • 14.09.20 20:44 Лена

    Биток и эфир держу до лучших времён)

  • 14.09.20 20:47 Нина

    ​ку-ку)

  • 14.09.20 20:53 Попков С.А.

    Все good. Ростем потихоньку и падаем, как всегда

  • 14.09.20 20:58 Санек

    Всем РЕСПЕКТ

  • 14.09.20 21:01 Славка Орехов

    Спасибо за ваш труд

  • 14.09.20 21:10 Ваня А,

    Привет, пацаны. Слышно, видно хорошо

  • 14.09.20 21:13 Нина

    ​ДОБРОГО

  • 14.09.20 21:20 Никита

    Привет парни!

  • 14.09.20 21:25 Егор Шетюк

    Hello

  • 14.09.20 21:27 Вячеслав Левков

    ​ку-ку)

  • 14.09.20 21:33 Попков С.А.

    Тамбов с вами братва

  • 14.09.20 21:37 Серега Бумер

    Слава эфиру

  • 14.09.20 21:42 Ваня А,

    Подарите книгу)))

  • 14.09.20 21:50 Павел Скоровойтов

    Поможем парням лайками, я уже свой поставил

  • 14.09.20 21:54 Захар Трофимов

    Привет парни!

  • 14.09.20 21:56 Санек

    Отложил биток на пенсию

  • 14.09.20 22:03 Носов А.А

    Привет, пацаны. Слышно, видно хорошо

  • 14.09.20 22:03 Попков С.А.

    14$. Надо изучать Defi , интересно

  • 14.09.20 22:09 Николай

    Поможем парням лайками, я уже свой поставил

  • 14.09.20 22:14 Вадим Никулин

    Я из РБ слежу за вами давно💰

  • 14.09.20 22:17 Николай

    Поможем парням лайками, я уже свой поставил

  • 14.09.20 22:24 Лена

    ​Я снова с вами)))

  • 14.09.20 22:28 Носов А.А

    Отложил биток на пенсию

  • 14.09.20 22:31 Серега Бумер

    Тюмень рулит😁

  • 14.09.20 22:40 Светлана П

    Сморгонь 👍

  • 14.09.20 22:43 Вадим Никулин

    Отложил биток на пенсию

  • 14.09.20 22:46 Николаев

    Круто

  • 14.09.20 22:53 Ваня А,

    Люблю ваши трансляции, вы крутые!

  • 14.09.20 22:58 Вячеслав Левков

    Биток вперед!!!

  • 14.09.20 23:05 Носов А.А

    ​Привет всем с Украины!

  • 14.09.20 23:06 Носов А.А

    12$. ​здарова бандиты

  • 14.09.20 23:09 Константин В.В

    Отложил биток на пенсию

  • 14.09.20 23:14 Прокоп

    Екатеринбург на связи

  • 14.09.20 23:18 Николаев

    Круто

  • 14.09.20 23:25 Тоха

    ​здарова бандиты

  • 14.09.20 23:27 Попков С.А.

    Отличные эфиры у вас

  • 14.09.20 23:33 Лена

    Поможем парням лайками, я уже свой поставил

  • 14.09.20 23:39 Николаев

    Доброе утречко

  • 14.09.20 23:45 Лена

    Как успехи?

  • 14.09.20 23:49 Павел Скоровойтов

    ​ку-ку)

  • 14.09.20 23:51 Ваня А,

    Привет, пацаны. Слышно, видно хорошо

  • 14.09.20 23:57 Попков С.А.

    Хомяки тут

  • 15.09.20 00:01 Лысый Боб

    Привет, пацаны. Слышно, видно хорошо

  • 15.09.20 00:07 Санек

    Слава эфиру

  • 15.09.20 00:12 Щука А

    Екатеринбург на связи

  • 15.09.20 00:14 Нина

    23$. Лайк

  • 15.09.20 00:16 Юрий Ник

    Вперед криптаны

  • 15.09.20 00:25 Лена

    Биток и эфир держу до лучших времён)

  • 15.09.20 00:26 Попков С.А.

    Как успехи?

  • 15.09.20 00:33 Попко Колян

    Я из РБ слежу за вами давно💰

  • 15.09.20 00:40 Даниил

    миллионерам привет

  • 15.09.20 00:50 Константин В.В

    11$. Круто

  • 17.09.20 15:31 Trident

    купил билет на семинар который изначально планировался в субботу.... в пятницу не смогу послушать, гле посмотреть запись?

  • 24.09.20 12:08 Серго1985

    Как бабло зарабатывается??

  • 15.10.20 09:16 Vyacheslav

    отлично зарабатывается !)

  • 15.10.20 09:16 Vyacheslav

    у вас как?

  • 09.02.21 10:40 ave2510

    всем привет! кто то заходил в ю8д...?

  • 10.02.21 12:52 [email protected]

    почему я на юнисвоп не вижу токен NTFI

  • 16.02.21 18:27 Jessikagylu

    Всем привет. А какой интернет вы используете для майнинга? Прочла интересную статью https://hashalot.io/blog/vyjdet-li-majning-za-limit-trafika-kakaya-skorost-interneta-nuzhna-dlya-majninga/ и задумалась над этим. Какие характеристики сети у вашего провайдера?

  • 24.04.21 07:21 [email protected]

    991532991

  • 24.04.21 07:24 [email protected]

    998991532991

  • 24.04.21 07:25 [email protected]

    [email protected]

  • 12.05.21 09:24 Calibr

    Как купить доступ в закрытый чат?

  • 18.06.21 11:05 007ja

    Как войти на выбинар бесплатный в 11:00

To join the Chat, you need a free pro-blockchain.com account. Enter Registration