Still waiting for demand on the application side to surge, the blockchain industry has relied on ICOs (Initial Coin Offerings) to raise funds these past few years. However, under the specter of fraud, the ICO model has begun to fail. The industry has turned to traditional IPOs (Initial Public Offerings) to survive, but prospects are so far unclear, leading to a test for the IPO model in the blockchain industry.
China’s largest cryptocurrency mining operation, BitChina, has applied to the Stock Exchange of Hong Kong (SEHK) for listing, but the outside world is skeptical about its chances for success. Tencent News, in “Why is there no chance for mining organizations on the Stock Exchange of Hong Kong? The key is in market adaptability 礦機制造商為何無緣港交所？上市適應性成關鍵 ” writes:
Charles Li, Chief Executive Officer of the SEHK, declined to comment on the cryptocurrency miners’ IPO case but explained the principles of listing audits. The core factor for the SEHK is the suitability of the listing. Although they are still two months away from the SEHK’s judgment, Li reiterated that the SEHK will adhere to procedural rules, including a right to appeal the decision, but must carefully consider market adaptability when judging whether or not a company can be listed.
In addition to IPO applications, some investors have been trying to become listed companies through back door means. ChainDD reports in “Star Xu Buys Hong Kong Listed Firm LEAP Holdings for 48 million HKD, can back door listing be blockchain’s way out? 徐明星4.84億港元收購前進控股，區塊鏈企業借殼上市能否成出路？”:
Blockchain enterprise has walked a thorny path, unable to change its own circumstances. Although cryptocurrencies have been on the road to back door listing for half a year, there has been no progress. Although OKEx has acquired a listed company, it hasn’t yet reorganized its board of directors, and the exchange’s circumstances has not changed.
Blockchain enterprises face great difficulty trying to pursue IPOs. The three major mining machine manufacturers, the top industrial enterprises in the blockchain hierarchy, are still unable to pass the Stock Exchange of Hong Kong’s audit. An exchange’s IPO is bound to be even more difficult.
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