Bithumb Could Become First Publicly Traded Crypto Exchange Co. in the US

Blockchain Industries, Inc. (BCII), a holding company that trades publicly on US over-the-counter (OTC) markets, has announced its plans to “merge with” Singapore-based firm, BTHMB Holdings Pte. Ltd. The merger is part of an initiative that involves listing cryptocurrency exchange, Bithumb as a publicly traded company in the US.

$1 Million Committed To Escrow Account As "Consideration For Entering Into LOI" 

The “binding letter of intent” (LOI) to merge both business entities was reportedly signed on Tuesday (January 22nd). According to the LOI, the “anticipated merger” is scheduled to be finalized “on or before March 1, 2019.” As mentioned in the announcement’s press release, BTHMB Holdings will be renamed as Blockchain Exchange Alliance (BXA). The deal has been formalized by BXA as it has deposited $1 million into an escrow account as “consideration for entering into the LOI.”

Commenting on the planned merger, Patrick Moynihan, the CEO of Blockchain Industries, remarked:

We are thrilled to be part of this important initiative that is expected to bring liquidity, accessibility and expansion to the blockchain industry. By merging with BXA, we expect to bring more advanced technology and better compliance practices into the public marketplace via a consolidated focus.

BXA “intends to use” Blockchain Industries, a publicly traded merchant bank, to “market and expand” its operations in North America. At present, Blockchain Industries focuses on the blockchain and crypto industry as it provides initial coin offering (ICO) advisory and investment management services.

Blockchain Industries Expected To Provide Guidance 

Blockchain Industries also operates a Global Conference Series which is a social network for entrepreneurs and investors. Headquartered in Santa Monica, California with additional business offices in New York, Puerto Rico, and Tokyo, Blockchain Industries is expected to provide BXA the guidance and resources needed to list as a publicly traded company in the US.

Explaining why it’s important to establish business operations in the US, Dr. Byung Gun Kim, the CEO of BXA, said:

BXA is a global exchange alliance and the United States is a key factor to any global initiative. By unifying our businesses, we benefit from the focused expertise of Blockchain Industries. As a result, we have tremendous growth opportunities in this region, and we expect quality results from this in North America.

The “potential merger” between BXA and Blockchain Industries aims to address issues related to “liquidity, accessibility and expansion.” The growth of the digital currency market depends on the development of a proper regulatory framework and appropriate measures for ensuring the security of crypto exchanges.

As explained in the announcement, the BXA and Blockchain Industries aim to create a “more secure global exchange platform.” This trading platform will reportedly support “emerging blockchain e-commerce, payments, and other digital finance functions.”

Crypto Market-Maker Altonomy Receives $7 Million in Funding from Polychain Capital

Altonomy, a New York-based cryptoasset trading, advisory, and asset management company, has completed a $7 million fundraising round from Polychain Capital, a leading hedge fund and venture capital firm.

Co-founded by Ricky Li, a former Manager of Research and Product at the CME Group, Altonomy has also received funding from 7 Blocks.

Additional Capital Will Allow Altonomy to Have More Inventory

Commenting on how the additional capital could help Altonomy’s business operations, Li said: 

As a liquidity provider for altcoins, more funding will allow us to have more inventory, taking larger exposure and managing risk more effectively.

Li added that the extra funding would allow Altonomy’s trading desk to provide better services - as the platform would not need to “put constraints” on customers at settlement.

Funds May Be Used to “Source Liquidity for Customers”

Olaf Carlson-Wee, the Founder and CEO at Polychain Capital, remarked:

As a long-time user of Altonomy’s trading services, it was an easy decision for us to invest in their business when the opportunity became available.

Carlson-Wee, a former Product Manager and Head of Risk at Coinbase, also mentioned that the additional funding would help “source liquidity for customers, regardless of token type, order size, market cap, or whether the asset trades on centralized or decentralized exchanges.”

According to Coindesk, Li had suggested to investors in January 2019 that they “liquidate enough ETH so they would have at least two years of runway.” However, Li is now anticipating that cryptocurrency prices may continue to recover - after enduring a long bear market that lasted throughout 2018.

Altonomy Introduces Cloud Service for Crypto Mining

In addition to providing crypto trading and asset management services, Altonomy introduced a new product last year, called the AltMiner. According to Li, AltMiner’s cloud service allows Altonomy’s bigger investors to mine various cryptocurrencies.

Altonomy’s management claims that the AltMiner has a “superior return profile” with the “newest generation of miners, low electricity costs and a secure hosting site.”

During an interview with CryptoGlobe in May 2019, Lee explained how Altonomy’s crypto trading services were developed and their potential benefits.

One of Altonomy’s main services, called electronic execution, allows mining firms, investment companies and crypto exchanges to “enter and exit positions as an outsourced execution desk.”

As a high-frequency market-maker, Altonomy also provides liquidity for various tokens to several crypto spot and derivatives trading platforms.