Singapore-based holding firm Blockchain Exchange Alliance is looking to list in the United States by acquiring a publicly traded company in the country, as per the report of CNBC on Jan. 22. It is to be noted that the Blockchain Exchange Alliance has a controlling stake in the major cryptocurrency exchange Bithumb.
A publicly-traded holding company called Blockchain Industries declared that it had a binding letter of intent with Blockchain Exchange Alliance, as per CNBC. Acquiring a publicly-traded company, also known as a reverse merger, can be a quicker means to take a company public than a traditional IPO.
Should the reverse merger come out to be successful, this would purportedly be the first occurrence of a crypto exchange going public.
As per CNBC, An unnamed source tipped them that Blockchain Exchange Alliance had considered filing for a public offering in Singapore. However, they did not want to wait up to two years to complete an IPO. The sources added that the combined company will ultimately “up-list” from OTC markets to the NYSE or Nasdaq.
An ex-hedge fund manager at Fortress Investment Group and well-known cryptocurrency bull, Mike Novogratz also used a reverse merger to list his cryptocurrency investment bank on the Canadian stock market in 2018.
Novogratz bought a cryptocurrency-based start-up called Coin Capital. He then merged Coin Capital through a reverse takeover with Canadian shell company Bradmer Pharmaceuticals. Subsequently, the company was renamed and now trades on the TSX Venture Exchange as Galaxy Digital Holdings.
Bithumb was lately the target of some hullabaloo when it shorn of allegations that it faked trade volume. Cryptocurrency and digital assets exchange ratings and analytics service CER has accused Bithumb of faking up to 94 percent of its trade volume since the late summer of 2018.
In response to the accusations, Bithumb purportedly mentioned that Bithumb is doing nothing to inflate trade volume. They further added that Bithumb is not selling the mining-based coin. As per Bithumb, they are trying to get additional clientele by providing a variety of promotions similar to any other company in the world as a standard business.