The crypto culture is here to stay as many people are now creating opportunities for buyers to purchase products with cryptocurrency. Exodus wallet is one of the latest firms willing to give investors shares for cryptocurrencies. The company filed with SEC to get investors to buy its shares by paying cryptocurrencies such as Bitcoin and Ethereum.
The digital space is growing rapidly, and institutional firms are starting to see that as Exodus wants to secure the payment in digital assets. Cryptocurrencies are presently in high demand, causing some investment firms to include them in their services, earning them service charges and the global adoption of crypto. Even mainstream apps like Robinhood also added crypto purchasing to the list of services it offers.
Exodus to sell shares for cryptocurrencies
The parent firm, Exodus Movement, wants customers to purchase shares through its stock, which is called Exodus Wallet. The purchase would not include the US dollar and would be strictly based on cryptocurrencies.
Through the recent filing to US Securities and Exchange Commission, the Nebraska-based firm would sell each share at $27.42, allowing retail buyers to take part. The shares will add up to $75 million to make up its initial coin offering. With a valuation of over $700 million, the company used Regulation A+ to commence the offering.
The opportunity is opened for everyone, including accredited and retail investors, and they can only pay through Bitcoin, Ethereum, and the USDC. The firm explained that nine months after it finishes the offering, the shares would be represented by tokens. Many people believe that the new move is a special type of coin offering.
Initial coin offerings became very popular in 2017, a year where Bitcoin hit its previous ATH of $20,000. Many investors got interested in cryptocurrency that year, leading to the creation of numerous ICO. However, ICOs are not as common as they used to be due to SEC’s strict regulations. The watchdog created strict regulations for ICOs because many used the fundraising for fraudulent reasons.
SEC regulates Initial Coin Offerings
While some coins eventually became governance and utility tokens, others were never used for anything. They were not useful for cross-border payments nor as securities. SEC helped regain some confidence in the crypto space by allowing only ICO that meets its requirements. The firm’s COO, Sebastián Milla, spoke on the new development while calling it the 2021 version of an initial coin offering.
Many investors are anticipating the offerings globally. Experts believe that the ICO is s quick means for cryptocurrency founders to raise money fast while removing liability regarding the investment.
The firm explained that the usual investment classes favor the privileged due to how expensive the assets could be. Exodus wants to allow retailers to have investments, which are primarily available to only high-net-worth buyers.
The company is waiting for feedback from the watchdog, where it could eventually get a go-ahead to sell $75 million worth of shares. Investors can also use their digital assets to explore this new investment opportunity.
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