According to the previous IPO document published by the U.S. Securities and Exchange Commission, BFFI GROUP INC. (Hereinafter referred to as BFFI), which is positioned as a global blockchain enterprise compliance service market, will launch an IPO financing in the near future to land on the Nasdaq Stock Exchange.
As the first listed blockchain investment bank, BFFI’s IPO adopted a dual-track system of blockchain securities and traditional securities. According to the prospectus, its IPO sale simultaneously sells BFFI OPTIONS TOKEN and BFFI common stock based on the ERC-20 standard of the Ethereum network, and it will be sold to prospective investors on the premise of complying with the global financial management system.
This is also the first time the US Securities and Exchange Commission has recognized blockchain securities and traditional securities for an IPO. BFFI OPTIONS is characterized as a form of warrants and enjoys the same rights as ordinary shares.
In this IPO, BFFI issued a total of 200,000,000 BFFI OPTIONS and sold 160,000,000 of them.
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BFFI is not the best time to run this time. First, the blockchain securities market is not yet mature, and there is still too much uncertainty about crypto asset supervision. Second, BFFI itself has not yet started to make a profit, and is still in the development of customer legal education and service markets.
BFFI’s IPO is to supplement the company’s operating capital, to enhance the company’s influence, and to test the SEC’s attitude toward the dual-track system of blockchain securities and traditional securities.
Blockchain compliance services, crypto asset trading license business, and IPO business underpin an IPO
The prospectus shows that BFFI’s business depends on three categories: blockchain compliance services, crypto asset trading license business and IPO business. The rapid expansion of BFFI and its own IPO still rely on a large number of customer educations to let customers understand compliance requirements and understand the meaning of compliance, so that crypto assets can move towards the path of compliance issuance and compliance transactions.
Based on the registration and issuance principle, BFFI started its compliance business in the United States as early as March 2018, providing legal advice and blockchain securities issuance for blockchain companies.
For the blockchain industry, the listing of BFFI is also inevitable for the compliance of the blockchain industry. It also means that future blockchain securities are likely to coexist with the securities market in the same way as traditional securities.
Letting crypto assets move towards compliance issuance and compliance transactions is the only way for the development of the blockchain industry.
After experiencing a large number of illegal fundraising and fraud in the name of crypto assets, the market is both very hot and worried about the blockchain. For practitioners, the legitimacy of the business is questioned, and there is greater doubt as to what can and how to do it; for government agencies, how to manage and how to encourage the development of technology, while restricting and cracking down on fraud are still controversial.
The question of “how to control” has forced some countries or regions to adopt the form of old bottles and new wines to characterize crypto assets of a security nature as a form of securities, and then to apply them to crypto assets through previous securities laws, such as the United States. The SEC’s current attitude towards crypto asset issuance and fundraising is that all forms of securities must be registered and issued with the SEC, including crypto assets.
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