Binance Founder CZ: ''IPOs will move on chain''

[sergiorus]

So this tweet [1] made quite a bit of noise on the internet. Even some mass media tabloids made a news out of it. Can somebody explain what's the big deal about it?

Like, obviously it would be VERY heavily geo-restricted and KYC/AML/Residence checks will be far more draconian than ever. You probably won't even be able to purchase the shares with Bitcoin, only with certain regulated U.S. dollar-pegged stablecoins (ok, maybe some regulated wrapped Bitcoin version like WBTC, but I still doubt that).

So is there, like, a single upside in that and if not, why would they even bother?





[1] https://x.com/cz_binance/status/2097152407147073613

[hugeblack]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

[sergiorus]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

They are already bringing equity onchain at an unprecedented pace. They make trading pairs with them againt memecoins, which increases the demand for the underlying stock and pumps the prices.

Pre-IPO futures of Anthropic make huge volumes onchain too.

Nasdaq invests in Kraken and NYSE's parent firm ICE invests in OKX. For the sole purpose to bring their platforms onchain.

Stablecoin issuers are joining the list of the largest U.S. Treasury bills holders in the world.

Clearly everything goes in that direction. It's more like teasing from his side at this point.

[EarnOnVictor]

So is there, like, a single upside in that and if not, why would they even bother?

You are thoughtful about this question, TBH. For me, CZ is making it sound like it's a bigger deal than it is, and of course, the internet will be agog about it since it is coming from him. But think about it, to what gain? This doesn’t mean people will suddenly be able to buy stocks and other financial assest anonymously with Bitcoin from anywhere, for it is certain that the AML, KYC, geo-restrictions, and all the usual/standard securities protocols of the centralised arrangements would all still apply. This could make things faster and cheaper, but it's not the revolution CZ makes it feels like.

So long as the government and their monitoring/controlling vices are still in place, what is this actually solving? That's the fair truth!

[SamReomo]

I think it's okay if IPOs move on chain as that will allow many people to invest in those without any delays but I think there will be regulations in doing so and it won't happen anytime soon. I think it's a good sign for the crypto market but somehow a bad one for those who give high importance to privacy. I think such IPOs will not be safe because on chain attacks can create problems for investors.

[ultrloa]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

Crazy to know that they are buying those statements he made. While in fact there are so many cases that CZ shills a project.

So best not to fall on his sweet words or seems to be innovative ones, since who knows maybe he just want those things what he mentioned became so popular. Knowing that lots of medias buy his statement post in social media.

Much better for people to be much careful about this, since who knows maybe we might see another ICO 2.0 from those things he mentioned.

[ObeyKnock]

So is there, like, a single upside in that and if not, why would they even bother?

I wish that tweet had more than 4 words because there’s no meat to this. It’s not specific and it doesn’t have an organization or timeline. You won’t be able to circumvent geo-restrictions/KYC and buy stocks with BTC.

What it is though is an upgrade to issuer-side infrastructure. Currently, cap table management/settlement is done via a (DTCC-style) batched settlement system, not in real-time and involves lots of reconciliation. Tokenization/modernized ledgers mean that issuers will be able to settle 24/7 & near-instantly (DTCC has been conducting trials with ~40 institutions as recently as July with a larger rollout in October; ST Group (FR) had an actual tokenized IPO with actual equity in April) on a shared ledger.

Compliance won’t go away, it’ll be built into the token. Rather than the custodian checking whether you’re eligible to receive shares, this will be embedded into the token, such as ERC-3643, and enforced via smart contract.

Crypto.com’s implementation has no actual equity attached to them, no voting rights etc., just synthetic tokens that track the price of a company’s stock.

[FinneysTrueVision]

Moving IPOs on chain will make them more accessible and remove some middlemen. The intention isn’t that any person who holds crypto will be able to invest; naturally, they will have some level of compliance that will be necessary if you are buying shares.

There are also drawbacks to doing an onchain IPO. Companies wouldn’t want their stock to tank because a sniper bought most of the shares in the first seconds only to dump them some minutes later. The blockchain also isn’t very private. There will have to be some measures to prevent manipulation, otherwise this could end up being something that sounds nice but doesn’t work in practice.

[5W-KILO]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

Maybe that's because people forget things too fast? CZ made alot of prediction between 2023 and 2025 to fool the audience, Binance pumped their own IEO projects and then dumped them all, this was ongoing while CZ was shilling some upcoming market actions and the way was down from that point on, CZ is one of those people that can't be trusted, they run their mouth for different reasons.

[sergiorus]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

Maybe that's because people forget things too fast? CZ made alot of prediction between 2023 and 2025 to fool the audience, Binance pumped their own IEO projects and then dumped them all, this was ongoing while CZ was shilling some upcoming market actions and the way was down from that point on, CZ is one of those people that can't be trusted, they run their mouth for different reasons.

Of course CZ has a history of leading people into a slaughterhouse by bullposting right before massive price contractions, bullposting straight up scam tokens and so on.

But when it comes to predicting technological trends in crypto he has been spot on.

About many things: DeFi, multichain future (very early on), RWAs and institutional adoption (very early on as well).

[TastyChillySauce00]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

Yep exactly, the "IPOs will move on chain" that CZ think of is probably going to be modeled after Binance's Pre-TGE Prime Sale which already live on their binance alpha program for quite a while or modeled after their SPCX pre-IPO which got canceled.
The on chain part is only when we deposit the money, after that everything will be tradfi style being managed by a company, it's just an IEO rebranded after IEO has been dying after the bullish sentiment ended.