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

[buwaytress]

On chain so what? Anyone can build a BSC (or BNB Chain or whatever rebrand they're going to call it), and rollback or modify or censor since they'll hold all the nodes/validators/stakers. On-chain Bitcoin is a different beast, and the beast traditional finance doesn't want. Noone in that industry wants true immutability, true permanence, true settlement, transparency etc.

Big yawn. As usual.

[sergiorus]

Binance Wallet has launched access to PancakeSwap’s Pre-Access campaigns, allowing eligible users to subscribe to third-party tokens designed to provide indirect economic exposure to private companies before a possible public listing.

Binance’s FAQ, published Sept. 20, makes clear that Binance Wallet does not issue, sell or operate the products. PancakeSwap hosts the campaigns and token sales, while third-party providers may use funds, special purpose vehicles, protocols, smart contracts or other arrangements to structure the underlying exposure.

[1]


I'm not sure if this is what he meant by ''IPOs going onchain'' but these not only aren't IPOs, they aren't even ''pre-IPOs'' as they were called by some. Basically just IOUs on some private equity tokenised by a 3rd party issuer with, I assume, no rights or claims or anything, fully trust-based.

Too many point of failure, hard to say what even the point of all that. Possibly to let early American investors to exit the equities via Asian crypto liquidity.

Seems like Polymarket equity [2] will be the first one to be listed on there. The investors want out?




[1] https://crypto.news/binance-wallet-opens-tokenized-pre-ipo-access/
[2] https://x.com/AlphaByMalik/status/2101585824639041801

[arwin100]

On chain so what? Anyone can build a BSC (or BNB Chain or whatever rebrand they're going to call it), and rollback or modify or censor since they'll hold all the nodes/validators/stakers. On-chain Bitcoin is a different beast, and the beast traditional finance doesn't want. Noone in that industry wants true immutability, true permanence, true settlement, transparency etc.

Big yawn. As usual.

I think they didn't discuss about the chain, since CZ just post a possibilities that those IPO's will adapt on new tech.

The main issue is the regulators can control those IPO's. This is the reason why it became so less attractive to me.

Bitcoin is truly the real deal, compare with IPO's because no one can controls it, that's the reason why they don't like that coin. It seems that CZ is riding the hype, to possibly lure people and then make those things to happen in his platform.

[tiCeR]

...

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).

He has been spot on because he was leading the biggest exchange in the business and it ended up in self-fulfilling prophecies. Those who have been around know what it was like when CZ launched a token on his exchange or when he allowed a token to get listed there. How many of the tokens he praised and listed are still alive in significant terms? I am not talking about dead tokens that still have a little bit of market cap. They are "alive", but not relevant.

It has been said before, going on-chain doesn't mean unlimited global access to IPOs. See how restricted the IPOs in the U.S. are and what would have to changed legally in order to get IPOs on a decentralized chain? He wants to insinuate this, but not because he thinks laws will be changed such that any person around the world could participate in IPOs in the U.S. He doesn't even say which country will make that move. Many countries have restrictions they don't really enforce because they can't effectively, but they would never announce that their IPO sector will be shifted to decentralized chains.

I think it would end up in chaos when all real companies could be traded like every shitty token on the Ethereum network when exchanges like Etherdelta were still around. Think about the voting, the legal recourse, there are reasons why this is highly regulated.

If this were to become true, it would be regulated by most countries to a degree that free participation and unlimited trading would become infeasible.

[d5000]

Well in France it seems to have happened already:

https://www.globallegalinsights.com/news/lise-claims-world-first-with-tokenised-ipo-as-st-group-raises-e2-07-million/

https://www.caceis.com/es/notas-de-prensa/a-world-first-funds-and-their-depositaries-enter-the-tokenised-era

This article is however from April. ST Group, an aerospace manufacturer, is the company that is trying this new IPO mechanism. It was a small IPO with 2 million euros.

Binance has published an article to clarify CZ's tweet in their blog and they also have mentioned ST Group:

IPOs Are Starting to Move On Chain: Here’s What That Actually Means

I guess such small onchain IPOs could become more common in those countries where the regulatory framework allows it. For sure this could ensure some interest by a tech-oriented public.

[Iranus]

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.

The market has matured way more compared to a decade ago. Regulations and legal frameworks have also been gradually taking shape. Crypto industry is slowly becoming an actual part of the global financial system. So models like ICOs are less likely to repeat and get completely out of control like they did back then, and incidents like FTX, Luna and BlockFi should also become much less common.

As you can see, quite a few exchanges have shut down recently, but have you seen any of them go down like FTX?

Current market is not in the same naive state it was 10 years ago, we seriously need to update our views.

[sergiorus]

Well in France it seems to have happened already:

https://www.globallegalinsights.com/news/lise-claims-world-first-with-tokenised-ipo-as-st-group-raises-e2-07-million/

https://www.caceis.com/es/notas-de-prensa/a-world-first-funds-and-their-depositaries-enter-the-tokenised-era

This article is however from April. ST Group, an aerospace manufacturer, is the company that is trying this new IPO mechanism. It was a small IPO with 2 million euros.

Binance has published an article to clarify CZ's tweet in their blog and they also have mentioned ST Group:

IPOs Are Starting to Move On Chain: Here’s What That Actually Means

I guess such small onchain IPOs could become more common in those countries where the regulatory framework allows it. For sure this could ensure some interest by a tech-oriented public.

This is interesting, although with this size it's not surprising it hasn't made any noise.

In case of Binance, OKX, Kraken and so on (and they will definetely have IPOs within the next few years) the implied valuations will be in dozens of billions USD in case of OKX and Kraken and hundrends of billions USD in case of Binance. That's a lot of money and I suppose they know the typical market of IPO participants simply won't to satisfy their greed. They will be coming for the native crypto money as well. They will find a way.

[KingsDen]

Lately, I have not been giving much credence to CZ's statements. I can say that I somehow lost interest in his speeches after he misled me that the 4 years bitcoin cycle is gone, that bitcoin will enter a supper cycle. That was why I was caught up by the bear market.

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?

I don't think much things;
Companies must still follow the strict SEC regulations,

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).

I was thinking Blockchain is now involved, everyone can buy without strict geographical barriers.

But a good advantage will be lowered fees since a lot of middle men will be cut off

[drangos]

I think what's interesting is not whether people will suddenly be able to buy IPO-shares with BTC, but rather that they are not able to do so now. They probably won't. The more significant shift would be what's happening on the behind the scenes side. Regulated tokens can result in ownership, settlement and corporate actions taking place on a shared ledger, rather than on multiple systems, which would have to reconcile to one another. But that won't eliminate KYC or securities regulation, it will just smoothen the settlement process and bring markets closer to a 24/7 reality. So on chain isn't always necessarily decentralised or permissionless  it can just as well mean that the infrastructure gets blockchain-based.

[stompix]

This is a bit more realistic



But well, since I don't have a crystal ball to time it perfectly, I will just wait around, hoping for the best, or worst, depending on the side you take

Big yawn. As usual.

The guy is just desperate to stay relevant in social media, his business is getting hammered from all directions and he wants not just to catch a train to the next hype but drive one.
Fortunately enough, I don't think it will be the case!

[Franctoshi]

CZ is probably thinking of RWA when he said IPO will be move onchain. Well it doesnt happened yet but the possibility of tjat happening will change the landscape of stocks and real world assets. Imagine that you can join now using blockchain to those IPO that arent accesible so easily.

If this will be used in our country for the IPOs that will change the game. However will CZ make a feature on their exchange for this to happen? Im thinking its not just a noise but their cooking something.

I agree with you, I don't see it as a mere talk either, because before he came up with such statement, definitely they're cooking something we're yet to see. Hopefully, such feature will be made available on Binance exchange and other reputable exchanges as well for easy access. I'm looking forward to seeing when these things will get unfold for investors to access.

[buwaytress]

The guy is just desperate to stay relevant in social media, his business is getting hammered from all directions and he wants not just to catch a train to the next hype but drive one.
Fortunately enough, I don't think it will be the case!

Even in my backwater country, criminals with such a track record would have been banned from social media. What is it about billionaires, isn't enough enough? Got your money, got off scott-free (relatively) from prison, reputation more or less intact (again, relatively).

[goldkingcoiner]

On-Chain IPO? I believe they were called ICO's and have died out due to all the scammers and crappy business ideas. What is the advantage of getting IPOs on chain? You can just invest as is already. There is absolutely no need for cryptocurrency as a medium of trade as the investment vehicle you end up with has nothing to do with cryptocurrency.