Transformation of Web3 Enterprise Financing Strategies: From Token to IPO

Recently, a noteworthy trend has emerged in the Web3 industry: an increasing number of companies are turning to Initial Public Offerings (IPO) as a means of financing. This shift signifies that the industry is maturing and seeking deeper integration with mainstream financial markets.

The Transition from Token Financing to IPO

The early Web3 industry primarily relied on token financing models, such as ICOs and IDOs. These methods once drove the rapid development of the industry, but also presented numerous issues, such as extreme price volatility and high regulatory uncertainty. These factors have severely impacted institutional investors' participation and investment returns.

In this context, IPOs are gradually becoming a more attractive option. Through an IPO, Web3 companies can obtain more stable long-term funding support, actively comply to reduce legal risks, establish a standardized valuation system, and attract a broader group of investors.

The Deep Logic of Choosing an IPO

1. Establish regulatory trust

The IPO process can serve as a strong testament to a company's compliance efforts. This is particularly important for businesses that require a high level of trust, such as stablecoin issuance and asset custody. Taking a stablecoin issuer as an example, its continuous advancement of the IPO process demonstrates the company's commitment to compliance, which helps to build market confidence.

2. Solve the inherent problems of Token financing

The Token financing model has many structural issues, such as opaque listing standards and severe price fluctuations. In contrast, IPOs follow standardized procedures and a clear regulatory framework, which can provide a more stable financing environment for companies.

3. Broaden the investor base

IPOs enable Web3 companies to reach large institutional investors such as traditional financial institutions and pension funds. These investors are often restricted by internal policies from directly investing in cryptocurrencies but can invest in publicly traded company stocks.

4. Flexible Financing Tools

An IPO not only helps companies raise large-scale capital but also allows stocks to be used as a means of payment for mergers and acquisitions, enabling more flexible strategic expansion. After going public, companies can also utilize diverse capital market tools such as secondary offerings and convertible bonds for continuous financing.

Outlook on the IPO Market in the Web3 Industry

In the coming years, IPO activities in the Web3 sector are expected to increase significantly. The following types of companies may become the main force behind IPOs:

1. Centralized exchanges and custodial service providers
2. Stablecoin Issuer
3. Web3 Solution Provider

These enterprises can not only obtain financial support through IPOs but also enhance market credibility and strengthen their global competitive position.

Conclusion

The shift of the Web3 industry towards IPOs reflects the trend of the industry deeply integrating with mainstream capital markets. However, IPOs are not suitable for all Web3 companies. Some companies may choose a hybrid strategy that combines IPOs and Token financing to balance the needs for rapid growth and long-term stability.

In the future, Web3 companies need to carefully choose the financing method that best suits their business model, development stage, and market strategy. In any case, this trend signifies that the Web3 industry is moving towards a more mature and standardized stage of development.