CRC Blockchain Industry Commentary #9
1) Avalon bitcoin miner maker Canaan officially files for $400 million US IPO
Mining manufacturer Canaan Creative has officially filed for an initial public offering (IPO) in the U.S. According to the paperwork Canaan lost $45.8 million on net revenues of $42.1 million for the six-month period ended June 30, 2019. The company plans to list on NASDAQ under the ticker CAN.
CRC Commentary: Canaan and its larger competitor Bitmain had both attempted to go public in the past, but falling bitcoin prices created market uncertainty and the filings eventually expired. This current attempt marks Canaan's third attempt, and a potential chance to beat Bitmain to the public markets. At a rumored valuation of $2 billion - $3 billion Canaan could be the first crypto unicorn to go public.
2) Binance charged Blockstack $250,000 prior to listing Stacks, but both say it's not a listing fee
Binance charged Blockstack $250,000 to list Stacks. Blockstack says it was a “long term payment” not a “listing fee”. Several 20-year plus exchange veterans tell The Block that’s likely a bunch of malarkey. As per a recent filing, Blockstack paid cryptocurrency exchange Binance 833,333 STX tokens (~$250,000) to list its Stacks token on the venue. Binance is the first marketplace to support trading of Stacks. Blockstack raised $23 million in a RegA+ and RegS.
CRC Commentary: Actually, there is nothing surprising about an exchange charging projects for listing fees. That has become a norm in the blockchain industry, and it is also a norm in the traditional stock markets as NASDAQ, NYSE are also charging fees for project listings. The problematic thing here is that, Binance did a bad job in terms of PR as they always argue that they don’t charge any listing fees for projects. The reality, as it appears in the financial filings of the Blockcstack project to the SEC, is that, Binance, just like any other exchange is charging a listing fee. The number 250,000 USD seems normal, but I wouldn’t be surprised if this is the highest listing fee in the whole industry, considering the Binance trading volumes and higher competition in the Chinese exchange market.
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