Until very recently, NASDAQ and the New York Stock Exchange were primary points of interest for blockchain technology developers. But if it is up to Barry Silbert, blockchain and Bitcoin startups should not aim for these two platforms, as they have lost some of their appeal.
NYSE and NASDAQ Are Losing Glory
Contrary to what most entrepreneurs and startups may believe, going public on a major stock exchange is no longer “sexy”. IPOs are something investors will shy away from, rather than jump on the hype train these days. Even tech giants such as Microsoft and Facebook only went public once their number of shareholders surpassed a particular mark.
Selling shares over-the-counter, on the other hand, is a different market altogether. In fact, the very first publicly traded Bitcoin investment vehicle – called Bitcoin Investment Trust – can be bought over-the-counter. This strategic move gives investors all over the world easier access to the world of Bitcoin and digital currency.
At the time of publication, Bitcoin Investment Trust is still the only publicly-traded investment vehicle giving investors access to investing in Bitcoin without buying, storing, or safekeeping the digital currency themselves. Even though the digital currency is all about putting the user in full control of their finances at any given time, investors prefer to have portfolios managed by third-party entities.
Barry Silbert is not the only who feels going public is not the best business decision Bitcoin, and blockchain startups can make right now. OTC Markets CEO Cromwell Coulson has seen several small companies conduct “mini-IPOs” on the OTCQX, and not all of those saw a considerable interest from investors. Selling shares over-the-counter seems to be the right approach for businesses right now,
Stock market listing appeal has changed dramatically in recent years, as a lot of companies steer away from major stock exchanges due to the strict listing requirements. Moreover, for those companies who are listed, there is a real threat of being delisted sooner rather than later. OTC markets offer minimal disruption for businesses and shareholders, making them the better choice for Bitcoin and blockchain startups.
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