Initial exchange offering

Last updated

Initial exchange offering (IEO) is a variant of initial coin offerings, operated directly by cryptocurrency exchanges.

A notable example was when the Bitfinex exchange issued an IEO apparently to shore up its reserve for Tether tokens. [1]

The U.S. Securities and Exchange Commission is looking into IEOs, with a view to acting against violations of securities laws. [2]

Related Research Articles

Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors. An IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded.

Aladdin Knowledge Systems was a company that produced software for digital rights management and Internet security. The company was acquired by Safenet Inc, in 2009. Its corporate headquarters are located in Belcamp, MD.

Jamaica Stock Exchange

The Jamaica Stock Exchange is the principal stock exchange of Jamaica, also known as JSE. Incorporated in 1968, JSE opened in 1969 in Kingston, Jamaica. Today, the JSE is one of the largest stock exchanges in the Caribbean by size and market capitalization. As of September 30, 2019, there is a total number of 85 companies and 120 securities listed to the JSE, and a market capitalization of just over JM$2 trillion. The Jamaica Stock Exchange is composed of multiple markets: Main Market, Junior Market, USD Market, and Bond Market. The JSE is also recognized as one of the most sector-diverse exchanges in the Caribbean. The key sectors include banking and finance, retail, manufacturing, insurance, leisure, communications, conglomerate, and services and real estate.The current chairman is Ian McNaughton and the Deputy Chairman is Gary Peart. The Managing Director is Marlene Street Forrest.

A cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It typically does not exist in physical form and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems. When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.

Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes. Ripple purports to enable "secure, instantly and nearly free global financial transactions of any size with no chargebacks." The ledger employs the native cryptocurrency known as XRP.

BitGo is a digital asset trust company and security company, headquartered in Palo Alto, California. It was founded in 2013 by Mike Belshe and Ben Davenport.

The DAO was a digital decentralized autonomous organization, and a form of investor-directed venture capital fund. It launched in April 2016 after a crowdfunding campaign. By September 2016, it was delisted and had, in effect, become defunct.

Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc., which is headquartered in Hong Kong and registered in the British Virgin Islands. Their customers' money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships.

Unikrn

Unikrn Inc. is an esports betting and entertainment media company based in Seattle, Washington.

An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. It is often a form of crowdfunding, however a private ICO which does not seek public investment is also possible. In an ICO, a quantity of cryptocurrency is sold in the form of "tokens" ("coins") to speculators or investors, in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum. The tokens are promoted as future functional units of currency if or when the ICO's funding goal is met and the project successfully launches.

EOS.IO is a blockchain protocol based on the cryptocurrency EOS. The smart contract platform claims to eliminate transaction fees and also conduct millions of transactions per second.

Tether is a controversial cryptocurrency with tokens issued by Tether Limited. It formerly claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. The Bitfinex exchange was accused by the New York Attorney General of using Tether's funds to cover up $850 million in funds missing since mid-2018.

Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies. As of January 2018, Binance was the largest cryptocurrency exchange in the world in terms of trading volume.

IOTA (technology)

IOTA is an open-source distributed ledger and cryptocurrency designed for the Internet of things (IoT). It uses a directed acyclic graph to store transactions on its ledger, motivated by a potentially higher scalability over blockchain based distributed ledgers. IOTA does not use miners to validate transactions, instead, users that issue a new transaction must approve two previous transactions and perform a small amount of proof of work. Transactions can therefore be issued without fees, facilitating microtransactions.

Citibank United Arab Emirates franchise subsidiary of Citigroup

Citibank National Association, United Arab Emirates commonly known as Citibank U.A.E., is a franchise subsidiary of Citigroup, a multinational financial services corporation headquartered in New York City, United States. Citi U.A.E. is connected by a network spanning 98 markets across the world. The phone support call center for Citibank U.A.E. retail banking clients is based at Citibank Bahrain.

Tezos

Tezos is a decentralized, open-source blockchain network that can execute peer-to-peer transactions and serve as a platform for deploying smart contracts. The native cryptocurrency for the Tezos blockchain is the tez or tezzie, which has the symbol XTZ. As of January 2021, there are over 400 block validating nodes (bakers) on the Tezos network. The vast majority of transactions currently happening on Tezos today though are mostly to maintain consensus and are not for more substantive operations, such as executing smart contracts, even though the network has the capacity to handle many more transactions.

Beesfund is a Polish equity crowdfunding platform based in Warsaw, Poland. Managed by its eponymous company founded in 2012 by entrepreneur Arkadiusz Regiec, it is one of the first crowdfunding platforms in Poland, and Central and Eastern Europe. As of May 2020, 74 public offerings (issuances) were carried out on the platform, for a total amount of PLN 47M, collected by over 48,000 registered investors.

A security token offering (STO) / tokenized IPO is a type of public offering in which tokenized digital securities, known as security tokens, are sold in cryptocurrency exchanges, or security token exchanges. Tokens can be used to trade real financial assets such as equities and fixed income, and use a blockchain virtual ledger system to store and validate token transactions.

Bancor Protocol is a standard for decentralized exchange networks used to allow for the automated conversion of cryptocurrency tokens into other tokens, including across blockchains, without the need for an order book or counterparty to facilitate the exchange. Bancor invented the world’s first blockchain-based automated liquidity pool, or automated market maker (AMM) called a Smart Token, a digital currency with an embedded converter that allows it to be issued or exchanged automatically for any token in its network. Bancor Network consists of all the different tokens utilizing the Bancor Protocol and connected through BNT, the Bancor Network Token, which serves as the hub token for the network through which any token can be converted into any other token.

INX is an electronic platform for trading blockchain assets. In August 2020 the company became the first company to be cleared by the U.S. Securities and Exchange Commission (SEC) to issue a registered security token in its Initial public offering (IPO).

References

  1. Kharif, Olga (6 May 2019). "Speculation Mounts That Crypto Exchange Bitfinex Is Planning a Token Sale". Bloomberg. Retrieved 2019-11-01.
  2. https://www.law360.com/articles/1162809/the-sec-s-looming-initial-exchange-offering-sweep-part-1

Further reading