Oddity is a magnificence firm with a powerful concentrate on tech. They’ve launched a number of revolutionary tasks from hyperspectral imagery to micro-influencer apps designed to revolutionize the net magnificence business. Now they’re making a crypto token tied to a future IPO to incentivize curiosity in a possible future public providing. The tokens will go on sale on Could 11 and solely be accessible to accredited traders.
IPO token conversion
The safety token will convert into realized conventional inventory at a 20% low cost to the IPO value ought to the corporate go public. The tokens won’t be tradeable till the IPO which means that traders may have their funding locked till that date. There’s at present no data on there being a lockup after the conversion which means there could possibly be appreciable promote strain on the inventory when it floats. Additional, if an IPO by no means occurs traders may probably be left excessive and dry.
As well as, as tokens will likely be held in custody through Securitize, questions come up as to why blockchain know-how is getting used on this occasion. Securitize promotes the flexibility of customers to commerce property 24/7 through their platform so plainly the Oddity tokens will likely be an exception to this rule. Subsequently, because the tokens will seemingly be centrally managed through a third-party supplier it appears a wierd use for a distributed ledger.
Oddity Chief Monetary Officer Lindsay Drucker Mann believes that “safety tokens may sooner or later turn out to be an essential device for corporations trying to elevate capital.” Safety tokens are a “distinctive sort of crypto asset designed to validate and guarantee possession rights and function value-transfer devices for a selected asset, asset bundle, or set of rights.”
This seems to be the primary focus of the selection to make use of a crypto token as an alternative of one other monetary car. Decentralization, non-custodial and free switch is simply a part of the attraction of crypto. The flexibility to tokenize an as but unrealized asset in a regulated safety is the important thing to Oddity’s revolutionary transfer into crypto.
Oddity is the father or mother firm of two well-known magnificence manufacturers, Il Makiage and Spoiledchild. Il Makiage grew to over $250 million in simply 3 years. The success of the model up to now, together with its popularity within the tech house, may imply that the crypto token elevate is extraordinarily standard. There are not any particulars on when the corporate could also be prepared for an IPO however there have been rumors because it continues to lift funds at a $1.5 billion valuation.
Is that this the proper use case for blockchain?
Whether or not that is probably the most revolutionary use case for crypto or not, it’s one other step ahead towards mass adoption. The usage of blockchain know-how by non-crypto corporations is a vital step within the course of integration into society at giant. It will possibly solely be hoped that we see blockchain utilized in locations the place it provides worth quite than merely being a gimmick to draw consideration.
Oddity has a historical past of discovering methods to use revolutionary know-how to the sweetness business. Will this be a landmark transfer for tokenized securities or a public show of how to not use blockchain? Tell us what you suppose on Twitter.