Blockchain startup may look to apply an initial public offering (IPO) framework in order to help issue new STX tokens for miners of the Blockstack protocol.
The first IPO by a blockchain venture will signal the cryptocurrency market into good shape. The most exciting opportunity in Blockchain is the ability of the companies to offer equity without having to go through significant stock exchanges.
Blockchain wants to tokenize the equity rights of promising private companies by using Blockstack technology to create trust. It provides an avenue to discover and access stock in the IPO growth stage companies in the secondary market environment. Blockstack builds a decentralized network in which developers can create and host their applications.
Why Blockstack is seeking an Initial Public Offering
The company plans to use the proceeds of the offering to develop its decentralized computing system and app ecosystem.
It has been building an alternative Blockchain-based internet system to remove the need for people to trust large companies for their data protection. Blockchain will eliminate the need for a third party to control customer data, let users claim control of their digital identity data to solve security breach problems.
Blockstack CEO and cofounder Muneeb Ali told Cheddar by email,
“This process will become easier over time, and I do expect projects to follow much of the frameworks that we’ve created.”
The Blockstack new filling is in line with Sec requirements since it will benefit everyone, especially the shareholders since it demands more transparency in the projects and brings digital asset class in the mainstream market over time.
The company has already raised enough funding for venture investment, a move that demonstrates a more measured approach than most start-up projects. They have sent some files of the draft earlier and are confident to file their plan publicly.
The Blockchain powered equity tokens are likely to be the game-changer in the rivalry successful IPO companies who fight to maintain their status and the early-stage investors.
With these tokens, the IPO companies won’t have the pressure to go public since the investors can wait to exit. The investors also won’t feel trapped in a deal where they are missing out on other potential opportunities since the tokens create a fast and efficient way to exit.