Bithumb - one of the more popular cryptocurrency exchanges, is reportedly considering to go public in the United States by acquiring a local publicly traded company.
Bithumb Eyeing an IPO
According to a new report by CNBC, Bithumb may soon become the first cryptocurrency exchange to acquire a US public listing.
The media reports that Blockchain Industries - a publicly-traded company in the US has already signed a binding letter of intent (LOI) with Blockchain Exchange Alliance - Bithumb renamed. The process is also known as a reverse merger and it’s a much quicker alternative for going public than through an initial public offering (IPO).
Unnamed sources familiar with the matter have told CNBC that Blockchain Exchange Alliance has considered getting its public listing in Singapore but looked past it because of the lengthy waiting period for an IPO.
Not the First One
While Bithumb might aim to become the first publicly listed cryptocurrency exchange in the US, the same tactics were used by popular cryptocurrency proponent Mike Novogratz.
In 2018, the investor first bought a cryptocurrency start-up called Coin Capital in Canada. After that, with a reverse merger, he combined it with a Canadian shell company called Bradmer Pharmaceuticals, renaming the new venture to Galaxy Digital Holdings and listing it on Canada’s TSX Venture Exchange.
In any case, Bithumb’s reputation has taken a few blows lately. In 2018 the exchange was hacked, resulting in $31 million being stolen from the platform. The exchange has also been accusesd of artificially increasing its traded volues.
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