Founder of cryptocurrency exchange OKCoin, Star Xu, has bought shares in a Hong Kong-based company, confirming the rumors which ASIA Crypto Today reported on last week.
LEAP Holdings Group, the construction engineering firm taken over, announced the completion of the deal on Wednesday. OKC Holdings Corp, purchased about 3.2 billion shares of the company for HK$0.15 (around $0.02) per share in order to gain majority shares, totaling around 60.4%. The acquisition costing around $60 million.
This new development and purchase from Xu and OKC Holdings Corp has now made it possible for the company to make their own company, OKcoin, listed on the Hong Kong Stock Exchange (HKEX). The conventional IPO route is a long and complex process. This has forced many to now consider and take this back door option, with OKcoin seeming to now take this route.
This back door dealing could be a pivotal moment and pave the way for other large cryptocurrency exchanges and miners to get their companies listed in Hong Kong and elsewhere in the world
It seems others have already begun similar steps. The holding company of South Korea’s Bithumb exchange signed a binding letter of intent agreement with U.S.-listed investment firm Blockchain Industries for a reverse merger.
Huobi, last August, acquired an HKEX-listed firm called Pantronics Holdings, holding around 60% of the shares for around 70 million dollars.
We can only wait and see if this back door dealing comes off and if this will be the new trend for these big crypto organizations to take in the future. Watch this space, to find out all the latest developments.