Bitcoin and blockchain startups: OTC markets outperform stock exchanges

Until recently, NASDAQ and the New York Stock Exchange were the main points of interest for developers developing blockchain technology. But Digital Currency Group CEO Barry Silbert believes that blockchain and bitcoin startups should stop targeting these two platforms because their appeal has declined.

NASDAQ and NYSE are losing their glory

Contrary to the opinion of most entrepreneurs and startups, being listed on a major exchange is no longer “sexy.” Investors are avoiding IPOs rather than following them. Even tech giants like Microsoft and Facebook only choose to go public when they have a certain number of shareholders.

On the other hand, selling stocks through OTC is a completely different market. In fact, the first Bitcoin listed investment vehicle, the Bitcoin Investment Trust, can be purchased through OTC. This strategic move can make it easier for global investors to gain exposure to Bitcoin and other digital currencies.

As of now, the Bitcoin Investment Trust remains the only publicly traded investment vehicle that allows investors to invest in Bitcoin without having to purchase, store and keep the digital currency themselves. Although digital currencies are only intended to give users financial control at all times, investors still prefer portfolios managed by third-party entities.

Barry Silbert believes that going public is not the best strategy for bitcoin and blockchain startups. Over-the-counter trading of stocks seems to be the way to go for now.

Barry Silbert

The appeal of going public through the stock market has changed dramatically in recent years. Many companies have shunned the major stock exchanges because of stringent listing requirements. In addition, for those that are already listed, there is the threat of delisting. The OTC market is less likely to cause damage to companies and shareholders, making it a better choice for Bitcoin and blockchain startups.

Original article: http://themerkle.com/otc-markets-trump-stock-exchanges-for-bitcoin-and-blockchain-startups/
By JP Buntinx
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/otc-markets-trump-stock-exchanges)