Today is Friday, November 26, 2021.
Ride-Hailing Giant Didi's China Problem
Chinese regulators have asked executives from Didi Global (NYSE: DIDI) to delist the ride-hailing giant from the New York Stock Exchange due to data security concerns, according to a report Thursday from Bloomberg.
Details: According to the report, China has asked Didi to either choose privatization, which would be at the original price of its initial public offering at $14, or get listed in Hong Kong, which would likely be at Wednesday’s closing price of $8.11.
Background: Didi went public over the summer and has since lost 42% of its IPO price. China has reportedly been upset at the company for listing in the U.S. and retaliated in July by banning new downloads of the company’s mobile application. Last month, China’s internet watchdog suggested that Didi explore a listing in Hong Kong.
Fine Print: Didi is still negotiating with Chinese regulators, according to the report, and it is possible that the company might remain on the New York Stock Exchange.
Final Thoughts: For investors, the big concern is that Beijing could also do this to other Chinese tech stocks. In 2021, many of these stocks have fallen due to potential regulatory challenges in China.
Notable Earnings Today: N/A.
Notable IPOs Today: Enphys Acquisition Corp. (NYSE: NFYS), Information Analysis Incorporated Common Stock (Nasdaq: IAIC), Crixus BH3 Acquisition Company Class A Common Stock (Nasdaq: BHAC), Phoenix Biotech Acquisition Corp. Class A Common Stock (Nasdaq: PBAX), Maxpro Capital Acquisition Corp. Class A Common Stock (Nasdaq: JMAC).
Notable Equity Crowdfunding Campaigns Ending Today: Golfboards by Sol Boards (StartEngine), Fuego Fino (Wefunder), Forever Home Movie (Wefunder), Thai Bird NYC (MainVest), audiobridge (Wefunder), Private Packs (Wefunder), Blue Pizza (MainVest), Lil Mama’s (MainVest), Detroit Pizza Joint (MainVest), Up Sonder (StartEngine).
Notable Economic Events Today: N/A.
How Blockchain Accelerates Equity Crowdfunding
Photo by Launchpresso / Unsplash
The use of blockchain technology could revolutionize equity crowdfunding, where retail investors buy shares in startups, by making the process more transparent and by eliminating certain investing risks.
History: The idea of using blockchain in equity crowdfunding is not entirely new. It dates back to at least 2016, when research in Financial Innovation detailed the application of blockchain for equity crowdfunding in China.
Innovators: Around the same time in 2016, the fintech startup Neufund was founded. The company uses blockchain for its equity crowdfunding platform.
Newcomer: Last month, SeedOn launched as a blockchain-based equity crowdfunding platform. SeedOn offers securities transactions using cryptocurrency.
Final Thoughts: Blockchain is one of the main technology trends that could disrupt equity crowdfunding.
1 Million Ethereum Burned Since August
Over 1 million Ethereum have been burned since the cryptocurrency went through a technical upgrade called the EIP-1559 protocol in August, according to a Tweet on Wednesday from market data aggregation and analytics platform CryptoRank.
Background: The EIP-1559 protocol, also known as the London Hard Fork, resulted in some Ethereum being burned to lower inflation of the coin and limit transaction fee volatility.
Details: According to the CryptoRank research, the 1 million burned Etherum would be worth over $4 billion.
Numbers: Since August, the price of Etherum has been up by over 25% and reached a new high earlier in November.
Final Thoughts: Most Etherum traders will say that the EIP-1559 protocol has been positive, but we’ll have a better idea about the long-term impact in 2022.
Trends to Watch
Oil Together Now: OPEC says U.S.-led SPR oil release may swell surplus next year (Reuters)
Can’t Stop, Won’t Stop: What Inflation? Small Investors Keep Piling Into Flashy Growth Stocks (The Wall Street Journal)
Keep Going: Bitcoin and Ether Are Rising. India’s Crypto Ban May Not Be So Bad. (Barron’s)
No Surprises Here: Collins Dictionary announces NFT as word of 2021 (CoinTelegraph)
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