Alt Coin Era
altcoin era
  • Home
  • Development
  • Cryptocurrency Startup Swarm Looking Forward to Tokenize Robinhood Shares
ALTCOIN NEWS Development Transaction

Cryptocurrency Startup Swarm Looking Forward to Tokenize Robinhood Shares

Cryptocurrency startup Swarm made an announcement that it will be listing tokens backed by shares of an extremely popular privately owned stock trading app, Robinhood, on its exchange.

The twist here is that Robinhood, which recently bagged a $5.6 billion valuation, is neither holding a Security Token Offering (STO) nor has it come up with any announcement of making its shares public by the means of public listing.

Swarm still found a way to make Robinhood’s shares available publicly. Here’s how:

The startup has made a deal with brokers and is reaching out to the former Robinhood employees who are looking forward to liquidating their shares before the company’s actual IPO. The previously owned shares will then be listed on the Swarm platform as SRC-20 tokens.

This raises questions on the possibility of this happening without Robinhood’s permission. Swarm has made it clear that Robinhood’s affirmation or denial won’t make any difference. To exemplify this, we’ll take a trip back in time when Swarm first expressed its wish to convert Robinhood’s shares into cryptocurrency tokens, and a representative of Robinhood replied back saying he did not even know what Swarm was.

Nevertheless, these tokens are now available on the Swarm platform, with a hard cap of $1 million in contributions. Philip Pieper, the CEO of Swarm feels that the tokenization of privately owned shares is an innovation brought about by his team.

In an effort to explain this move, he said, “One of the key innovations of tokenization is that token owners can participate in the value creation of the very network they are part of Swarm is bringing this paradigm shift to companies that are key players within this movement, but have yet to permit the network to participate.”

Swarm has future plans of tokenizing assets of other privately owned tech companies like Ripple, Didi, and Coinbase despite them not being listed on its platform.

Related posts

SEBA Crypto AG Raises $103 Million To Launch Cryptocurrency Bank

knightRider

100,000 Regular ATMs In The U.S. Converted Into Regular Vending Machines

OptimusCrime

India Not Looking to Ban Cryptocurrency Permanently

OptimusCrime

Leave a Comment