Exodus IPO - What are your thoughs?

[Tushar Ramani]

My very first transaction was on Exodus and I love using the wallet. After a long time, I updated it and saw that it is holding a public offering. Here is the official statement:

Exodus Movement, Inc., a Delaware corporation, is pleased to announce that it is considering a potential offering of up to $50 million of shares of its Class A common stock pursuant to Regulation A. Both accredited investors and non-accredited investors ("qualified investors") would be able to participate in the potential Regulation A offering.

Investors will have to pass KYC through Securitize to be able to invest in its share quoted $25 per unit (estimate). I posted this thread to know about some uncleared questions.

• The company's revenue is from exchange spreads so will they be able to pay a certain percentage of their income to shareholders?
• If yes to the above question, how will it be paid?
• What is the company's revenue at the moment?
• What is the total volume of issued shares and how much of them will be reserved for the company.

Has anyone gone through their KYC? Will you actually try this, on what basis?

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[Xavofat]

Exodus has a great UI but I don't think I'll be investing in its IPO.  It markets itself primarily as a wallet rather than an exchange so considering that most people are using other wallet services including Electrum, hardware wallets (which I know can be used with Exodus but generally aren't), and exchanges as wallets (such as Coinbase), I think the scope for them to earn money is limited.  I also think that like ICOs, it may get an inflated price at the start which peters out soon after.

My very first transaction was on Exodus and I love using the wallet. After a long time, I updated it and saw that it is holding a public offering. Here is the official statement:

Exodus Movement, Inc., a Delaware corporation, is pleased to announce that it is considering a potential offering of up to $50 million of shares of its Class A common stock pursuant to Regulation A. Both accredited investors and non-accredited investors ("qualified investors") would be able to participate in the potential Regulation A offering.

• The company's revenue is from exchange spreads so will they be able to pay a certain percentage of their income to shareholders?
• If yes to the above question, how will it be paid?
• What is the company's revenue at the moment?
• What is the total volume of issued shares and how much of them will be reserved for the company.

The Exodus website's FAQ and the CEO's statement in a Reddit thread don't address dividends at all, nor does it state on its website how much revenue it earns, so finding out how much revenue Exodus earns is seemingly just speculation.  That lack of transparency is another reason why I will not be investing.

[fiulpro]

My very first transaction was on Exodus and I love using the wallet. After a long time, I updated it and saw that it is holding a public offering. Here is the official statement:

Exodus Movement, Inc., a Delaware corporation, is pleased to announce that it is considering a potential offering of up to $50 million of shares of its Class A common stock pursuant to Regulation A. Both accredited investors and non-accredited investors ("qualified investors") would be able to participate in the potential Regulation A offering.

Investors will have to pass KYC through Securitize to be able to invest in its share quoted $25 per unit (estimate). I posted this thread to know about some uncleared questions.

• The company's revenue is from exchange spreads so will they be able to pay a certain percentage of their income to shareholders?
• If yes to the above question, how will it be paid?
• What is the company's revenue at the moment?
• What is the total volume of issued shares and how much of them will be reserved for the company.

Has anyone gone through their KYC? Will you actually try this, on what basis?

Hi

This is actually something interesting for sure. I do think that if you are thinking about investing something big, then if you try and message them I do think they will try and tell the people about the revenues and such but you know these things are something that keeps on changing every now and then so I do think that you cannot expect much from them as a straight away answer.

But their wallet have been good in the market since a very long time and they have been strong too therefore I do think that it won't be much scary as an investment and you can maybe earn a good amount of money depending on how much you are investing.

(Honestly speaking I would just go and Invest in bitcoins and ethereum these stocks and shares are not something that I would go for since they will be more centralized and you would have less control , better to see all the options you have)

[notblox1]

Has anyone gone through their KYC? Will you actually try this, on what basis?

This shares offering is interesting idea and I saw their advertisement about it but I am not really interested in passing one more kyc just or this, but I know they had some serious problems with their wallet few days ago and nobody was able to use it, maybe some problems with backend or nodes.

I was interested to know why they need to raise more money, and they say they want to accelerate growth and further invest in their platform.
They also say that this all thing is some kind of testing, it all looks unclear to me but you can read more about it here:

Why do I need to KYC to participate in the testing the waters?

We wanted to receive indications of interest from potential investors in the same manner as we currently plan to receive subscriptions, should we move forward with the potential offerings. The potential offerings of Class A common stock under Regulation A and Regulation S that we are currently considering would be offered in the following manner:

https://support.exodus.com/article/1526-getting-started-with-exodus-shares

[Tushar Ramani]

It markets itself primarily as a wallet rather than an exchange

I was interested to know why they need to raise more money

With the fund they rise, they may launch their own exchange. Besides, they have a large user base who will be there to, at least, test their exchange upon launch.

[hugeblack]

I did not read about those distributions, but that wallet does not make any money from providing them with its services may be they may sell users' data even though I do not think they are doing that (nothing prevents them from doing that.)

It is most likely that what will happen will be similar to what Trust wallet did. They will try to create ERC token and use its fame in an attempt to market it, and perhaps after collecting enough money they can put up an investment and start offering shares.

[stompix]

The Exodus website's FAQ and the CEO's statement in a Reddit thread don't address dividends at all, nor does it state on its website how much revenue it earns, so finding out how much revenue Exodus earns is seemingly just speculation.  That lack of transparency is another reason why I will not be investing.

Actually, the revenue they claim is on the IPO announcement page, one tiny line at the end.

For the entire year of 2020, we expect revenue to exceed $20 million.

20 million in revenue is peanuts compared to what they aim for and they don't say a word about what percentage of it is profit (if any), and if not some of this is generated by their crypto holdings and not their actual activity, so I wouldn't expect that investing in their shares would outperform a simple investment in BTC.

I did not read about those distributions, but that wallet does not make any money from providing them with its services may be they may sell users' data even though I do not think they are doing that (nothing prevents them from doing that.)

Fees from the exchange built in their wallet will probably be their main source of income, the second one might be the lending business I've seen them sending some signals they would involve themselves in.

[jossiel]

They're the same as other wallets that have integrated exchange but for them, it's better because it's a built in exchange and it's convenient for most of their users to use their exchange instead of transferring it specially if it's Ethereum to avoid higher fees.

Has anyone gone through their KYC? Will you actually try this, on what basis?

I haven't and I don't think that I'll get on them passing KYC. But if it's about diversification, it's a good company though knowing that they're very popular as a wallet but instead of investing on them, I'd rather hold bitcoin.