From Tokenization to Private Company Public Offering: A New Trend Reshaping the Capital Market

The development of the public stock market in the United States can be traced back to the early 20th century. In the 1920s, the stock speculation frenzy reached its peak, and the subsequent market crash and Great Depression prompted the government to enact a series of regulatory measures. These regulations required listed companies to disclose detailed business information and financial statements to protect the interests of investors.

However, in recent years, the rise of the private placement market is changing the rules of the game. Many high-profile technology companies choose to remain private because they can easily obtain large amounts of funding from private equity firms, venture capital, and other institutions, while avoiding the many troubles associated with going public. Although this trend brings convenience to companies, it also deprives ordinary investors of the opportunity to participate.

To address this issue, various solutions have been proposed in the industry, such as simplifying the listing process and strengthening the regulation of private enterprises. However, the most noteworthy is the rise of the "tokenization" concept. Supporters believe that by transforming private company stocks into tokens on the blockchain, existing disclosure rules can be circumvented, allowing the public to participate directly in private enterprise investments.

This concept is gradually gaining market recognition. A certain trading platform recently announced the launch of tokenized stock services and even gave away tokens from private companies such as OpenAI and SpaceX. Executives from the platform stated that this move aims to address the issue of "historical investment inequality."

However, we must recognize that the idea of "allowing the public to invest in private enterprises" is inherently contradictory. The core characteristic of private enterprises is that they are not open to the public and are not subject to the disclosure constraints of publicly listed companies. Therefore, promoting tokenization essentially means allowing companies to raise funds from the public without sufficient disclosure of information.

Nevertheless, several industry leaders, including the CEO of a large asset management company, are actively promoting the concept of tokenization. They believe that this approach can eliminate investment barriers and provide more people with opportunities for high returns.

It is worth noting that this practice still faces regulatory obstacles in the United States. However, with the continuous advocacy of industry giants, the regulatory environment seems to be becoming more open. After all, the public is eager to participate in private investment, and intermediaries also wish to provide related services, while the existing disclosure rules have become the main barrier.

Looking back at history, it is not hard to find certain similarities. Just a few years ago, the cryptocurrency market experienced a frenzy of fundraising, followed by a winter. At that time, people might have expected stricter regulation. However, the reality is that the financial industry is seeking a way to transform the stock market to resemble the cryptocurrency market, rather than going against it.

This trend is undoubtedly worth our close attention. It may completely reshape the landscape of the Capital Market, bringing new opportunities and challenges.