South Korean cryptocurrency exchange Bithumb is looking to go public in the United States — a first for a major cryptocurrency exchange.
Bithumb Seeks Backdoor IPO
Bithumb, the world’s second largest cryptocurrency exchange my volume, is reportedly planning on forgoing an Initial Public Offering (IPO) and garnering admission as a publically-listed company in the United States by way of a reverse merger.
The Singapore-based company has, as reported by CNBC, signed a legally-binding document — which states its intent to purchase the already-publically-traded Blockchain Industries (BCII) and rename it “Blockchain Exchange Alliance.”
Blockchain Industries isn’t exactly a major player, however. The over-the-counter traded company needs to meet stricter requirements in order to find itself trading on the New York Stock Exchange (NYSE) or Nasdaq — requirements Bithumb presumably intends to meet, given that the newly-named Blockchain Exchange Alliance would make up the lion’s share of the merged company.
CNBC also claims to have confirmed information that Blockchain Exchange Alliance plans on aggressively expanding beyond the first and foremost market leader, Bitcoin (BTC) 00, by purchasing various global exchanges for the still-relatively-new asset class — and by “aggressive,” we’re talking about nearly half a century’s worth by the end of next year.
At the time of this publication, no cryptocurrency exchange is publically listed in the United States.
A Rough Reputation
Bithumb, meanwhile, has recently been accused of faking its trading volume and engaging in wash trading. The platform was also hacked to the tune of $31 million in assets less than a year ago — which hasn’t done a lot for the platforms reputation against major industry players like Binance and Coinbase.
All attention in the regulatory space, meanwhile, is currently focused on the recently-withdrawn Bitcoin ETF application from VanEck/SolidX and the impending launch of Intercontinental Exchange’s (ICE) Bakkt.
While the former may sting for those longing for an increase in Bitcoin’s institutional exposure, the latter still remains on the slate as good news — assuming the Commodity Futures Trading Commission (CTFC) revs its engine following a lengthy and still-ongoing US government shutdown.
What do you think of Bithumb’s plans to go public via the slightly-unorthodox method of conducting a reverse merger? Let us know your thoughts in the comments below!
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The post Bithumb Shunning IPO, Reverse-Merging With Penny Stock Company appeared first on Bitcoinist.com.
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