Singapore-based holding firm Blockchain Exchange Alliance, that incorporates a controlling stake in major crypto exchange Bithumb, is wanting to list in U.S. by acquiring a publicly listed company in the country, Top Market Group reports on Jan. 22.
According to Top Market Group, a publicly-traded company referred to as Blockchain Industries declared that it had a binding letter of intent with Blockchain Exchange Alliance. Acquiring a publicly-traded company, or a so-called reverse merger, are often a quicker way to take a corporation public than a standard Initial Public giving (IPO).
Should the reverse merger prove prospering, this could reportedly be the primary instance of a cryptocurrency exchange going public.
An unidentified supply told Top Market Group that Blockchain Exchange Alliance had thought-about filing for a public offering in Singapore, however, didn't wish to attend up to 2 years to finish an initial public offering. The sources added that the combined companies can eventually “up-list” from over-the-counter (OTC) markets to the New York stock exchange or NASDAQ.
Mike Novogratz, an ex-hedge fund manager at Fortress Investment group and well-known crypto bull, conjointly used a reverse merger to list his crypto investment bank on the Canadian stock exchange in 2018.
Novogratz bought a crypto start-up referred to as Coin Capital, then merged through a reverse takeover with Canadian shell company Bradmer pharmaceuticals. The corporate was afterwards renamed and trades on the TSX Venture Exchange as Galaxy Digital Holdings.
Bithumb was recently the target of some controversy when it denied allegations that it faked trade volume. Cryptocurrency exchange ratings and analytics service CER has suspect Bithumb of faking up to 94 % of its trade volume since the late summer of 2018.
In response to the accusations, Bithumb reportedly said, "Bithumb is doing nothing to inflate trade volume. Bithumb isn't selling the mining-based coin. Bithumb is attempting to get a lot of customers by providing various promotions similar to any other company within the world as a normal business."
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