The parent company of the famous beauty brand Il Makiage and Spoiled Child, Oddity, unveils its digital security token on the Ethereum blockchain. The company has named it Oddity Token. It is the first-ever non-crypto firm that linked cryptocurrency as a way for investors to purchase equity ownership of the firm.
This move aims to extend the investment opportunities as security tokens allow private companies to raise funds before an IPO (Initial Public Offering) and get pre-IPO investments.
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Oran Holtzman, the CEO, and co-founder of the Oddity expressed;
By offering this trailblazing token, we are democratizing investor opportunity by broadening individual access to Oddity securities, as we continue to disrupt and redefine the beauty and wellness category.
At the time of IPO, the digital security token, Oddity Tokens, would be changed into A Class common shares of the conventional firm. Additionally, digital security tokens provide the benefit of securing key data on blockchain technology that remains encoded and also enable platforms to deploy smart contracts to perform specific operations. As per expectations, when this project reaches its growth, it will cascade capital efficiency benefits across capital markets.
Moreover, Oddity uses Securitize, approved by SEC, to issue its tokens.
Oddity Expands Investment Opportunities Via Security Token
Security tokens have the potential to widely spread crypto adoption by reaching the mainstream via traditional businesses. Simply put, because these tokens are created and traded like cryptocurrencies while working as stocks or bonds, it extends cryptocurrency access when it comes to regulations.
Global CFO at Oddity, Lindsay Drucker Mann, commented,
We believe in a future where securities are not just records of ownership, but also functional lines of code. The potential use cases of this technology are enormous, and as a digital and technology-powered company, we believe we are especially well-positioned to help drive it forward.
In its previous funding round of the past January, Oddity raised over $130 million. At the time, its valuation has reached 1.5 billion. Therefore, the company is expected to go public soon.
“Crypto and blockchain technology unlocks massive opportunity for consumers and capital markets. With this offering, we are building a new bridge to link traditional markets with the vibrant world of digital assets, where the innovation potential is huge.”
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If the Oddity holds IPO, the Oddity Tokens will be converted into the stock shares, decreasing 20% as a discount on the IPO price. Not only that, it more likely will attract investments from more than a few capitalists. Accredited investors will also compensate the project either with $200,000 per year or 1 million net worth.
As it seems, this move makes the investment into a prominent traditional business accessible for traders beyond institutional investors. However, the token will trade on the crypto exchanges after the IPO.
Featured image from Pixabay and chart from TradingView.com