Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions. According to Reuters, China-founded fast fashion retail company Shein plans to launch an initial public offering (IPO) in the US next year. The report says the company confidentially filed for its public debut and hired leading Wall Street banks as its underwriters. Shein was last valued at over $60 billion in a May funding round, meaning this could be one of the biggest US listings for a China-founded company.  Shein Reportedly to Go Public in 2024 Shein, a Chinese fast fashion retailer headquartered in Singapore, has confidentially filed to go public in the US, Reuters reported on Monday. Per the report, the company hired Goldman Sachs, JPMorgan, and Morgan Stanley as lead underwriters on the planned IPO. The report said the retailer is reportedly looking to launch its new share sale at some point in 2024, and it would likely make Shein one of the most valuable China-founded companies to trade in the US.  Shein has not yet ascertained the size of the deal or its IPO valuation, although Bloomberg reported earlier that the company targeted up to $90 billion in the float. The fashion retailer was valued at over $60 billion in May, down more than 30% from a 2022 funding round.  The most valuable Chinese company that went public in the US is ride-hailing firm Didi Global, which debuted two years ago at a valuation of $68 billion.  Join our Telegram group and never miss a breaking digital asset story. IPO Market Still Struggling Despite High Expectations Shein’s decision to stage a US debut comes amid a critical period for the IPO market, struggling to bounce back after multiple major debuts failed to live up to investors’ expectations. Notably, there were four major IPOs in recent months in the US, and three of those companies saw their stock price decline in the following days. Those include German shoemaker Birkenstock, grocery delivery firm Instacart, and SoftBank’s UK-based chipmaker Arm Holdings. However, Arm’s shares are currently trading above its IPO price.  “It doesn’t strike me as the most opportune time for Shein to come public, but if they need capital the markets are open … and investor sentiment has been more positive than it was a few weeks ago.” – said CI Roosevelt’s senior portfolio manager Jason Benowitz. Although expectations were much greater initially, US IPOs raised roughly $23.64 billion so far in 2023, slightly above the $21.3 billion during the same period in 2022. Both figures are far from the $300 billion raised in 2021 when the IPO market was booming.  If it goes public as the report suggests, do you think Shein’s debut could positively surprise investors? Let us know in the comments below.  The post This $60B China-Founded Giant is Reportedly Looking at a US IPO Soon appeared first on Tokenist.

In a notable departure from his historical aversion to technology stocks, Warren Buffett, the renowned CEO of Berkshire Hathaway, has strategically invested in companies at the forefront of artificial intelligence (AI). Despite his previous assertions about the complexity of technology, Buffett has accumulated substantial stakes in prominent AI players, signaling a shift in his investment strategy. Apple: A core holding in the AI revolution At the heart of Berkshire’s foray into AI is its substantial holding in Apple, a company that has seamlessly integrated AI into its product ecosystem. With over 915 million shares valued at approximately $174 billion, Apple represents one of Berkshire’s most significant AI investments. Apple’s commitment to AI is evident through innovations such as Siri, Face ID, and the Apple Neural Engine, which power various features on its devices. CEO Tim Cook has emphasized AI and machine learning as integral to Apple’s product development, reflecting the company’s dedication to advancing in this transformative field. Amazon: Riding the AI wave While Buffett may not have initiated Berkshire’s stake in Amazon, the conglomerate holds a substantial position, with 10 million shares valued at nearly $1.47 billion. Amazon, a pioneer in AI, has leveraged the technology across its operations, from recommendation algorithms to logistics optimization. The company’s virtual assistant, Alexa, embodies its commitment to AI-driven innovation. Amazon Web Services (AWS), a leading cloud infrastructure service, further expands the company’s influence in the AI space. CEO Andy Jassy’s acknowledgment of significant investments in large language models highlights Amazon’s ongoing commitment to AI research and development. Snowflake: Early bet on AI-driven analytics Berkshire’s investment in Snowflake, even before its IPO, underscores the conglomerate’s strategic foresight. With a stake valued at approximately $1.05 billion, Snowflake specializes in data cloud and analytics, positioning itself as a key player in AI-driven decision-making. The platform’s explicit support for machine learning and AI applications aligns with the growing importance of these technologies in business processes. Snowflake’s recent addition of support for large language models further enhances its appeal in the evolving landscape of generative AI systems. Buffett’s endorsement and market dynamics Buffett’s vocal endorsement of Apple at Berkshire’s 2023 shareholder meeting highlights the company’s exceptional business prowess. The iPhone’s sustained market dominance, coupled with robust services growth and consistent cash-flow generation, cements Apple’s status as a preferred investment for Buffett. At a valuation of just 31 times earnings, Apple appears attractively priced compared to its historical benchmarks. Amazon, despite facing challenges, continues to rebound in its e-commerce business, maintaining a commanding 38% market share in the U.S. The company’s diverse revenue streams, including cloud infrastructure services and digital advertising, contribute to its resilience. With a valuation of only 2 times forward sales, Amazon stands out as the most cost-effective option among Berkshire’s AI investments. Snowflake, on the other hand, represents the riskiest choice among the trio. Its stock’s volatility and economic uncertainties have impacted its recovery, and the current valuation of 16 times forward sales raises caution. However, for investors seeking potential gains and willing to navigate volatility, Snowflake may present an intriguing opportunity in the AI-driven analytics space. Investment considerations in a changing landscape As Buffett strategically navigates the evolving landscape of technology and AI, investors are left to ponder the implications of Berkshire’s significant investments in Apple, Amazon, and Snowflake. Each company’s unique positioning within the AI ecosystem offers distinct opportunities and risks. Apple’s integration of AI into consumer devices, Amazon’s diversified AI applications, and Snowflake’s focus on AI-driven analytics contribute to the conglomerate’s diverse AI portfolio. Investors must weigh their risk tolerance and investment objectives carefully, considering the dynamism of the technology sector and the evolving role of AI in shaping the future of business. While Buffett’s endorsement carries weight, prudent investors should conduct thorough research and analysis before making investment decisions in this rapidly changing landscape.

According to Cointelegraph, cryptocurrency mining firm Phoenix Group has revised the date for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) due to public holidays declared for the United Arab Emirates National Day. The firm now expects to list its shares on Dec. 5 instead of Dec. 4, 2023. The UAE National Day, celebrated on Dec. 2, commemorates the formation of the UAE, with the Ministry of Human Resources and Emiratization marking Dec. 2, 3, and 4 as public holidays for the private sector. Phoenix Group successfully closed its IPO with a 33 times oversubscription on Nov. 18, reporting that its offer of 907,323,529 shares saw an overwhelming demand. Retail investors oversubscribed the offering 180 times, while professional investors contributed to a 22-fold oversubscription. The UAE-based mining operator is developing one of the largest mining facilities in the Middle East and has been discussing the IPO launch in UAE since at least July 2023. The UAE has emerged as one of the most crypto-friendly jurisdictions in the world, launching various initiatives, including multiple Web3-focused economic free zones to support crypto development. On Nov. 28, the crypto exchange M2 received regulatory approval and partnered with Abu Dhabi Commercial Bank to enable retail and institutional clients in the UAE to buy, sell, and store cryptocurrencies like Bitcoin (BTC).

You’ve probably read the headlines about the $4.3 billion fine that Binance – the world’s largest crypto exchange – has agreed to pay the U.S. government. In my view, it’s worth every penny. With this fine, Binance has essentially bought its freedom. Binance is now legit. I have not read a single article that explains clearly what the deal means for crypto users – especially investors in the Binance token (BNB). (Full disclosure: I’m an investor.) Here’s what happened, and what it means for the coming age of crypto. A Brief History of Binance Binance was founded in 2017, during the heyday of crypto. Initial Coin Offerings were all the rage, when entrepreneurs would launch a new crypto company, mint new tokens to raise money (just like issuing shares in an IPO), then use the proceeds to build the company. Bitcoin was reaching new all-time highs, new tokens were launching every day, and a new class of “crypto trader” sprung up to provide liquidity between all these digital assets: buying, selling, and occasionally hodling them for the long-term. Changpeng (“CZ”) Zhao, a developer who worked on trading software for the Tokyo Stock Exchange, started Binance in the midst of this maelstrom. With Binance, users could buy, sell, and trade all the major cryptocurrencies, with Binance getting a cut out of each transaction. It was a money-printing machine. In the beginning, it was easy to open an account without providing much identification, which attracted both legitimate customers (by the millions) and illegitimate customers (the occasional money launderer, ransomware scammer, and terrorist financer.) Where Binance erred was in not implementing stricter customer checks, sooner: as the Department of Justice has documented, CZ prioritized growth of the company above compliance with the law. The company helped “VIP customers” (crypto whales moving a lot of money and generating hefty profits), even when their behavior seemed sketchy. And Binance seemed to know that money was illegally flowing between the U.S. and sanctioned countries like Iran. In CZ’s defense, the company spun off a subsidiary called Binance.US in 2019, blocking U.S. users from the Binance.com platform and redirecting them to Binance.US instead. The idea was that Binance.US would adhere to the more stringent U.S. regulations. The problem, according to the DOJ, was that determined U.S. users could still use Binance.com through a VPN or proxy tool, so the bad behavior continued … and Binance knew about it. Meanwhile, CZ made it a point to establish Binance in a kind of no-man’s-land, getting rid of any physical headquarters, and constantly staying on the move. He asked employees to use encrypted messaging services, so there was no paper trail. When the U.S. government began turning up the heat in 2021, CZ resisted, but eventually the threat of a massive lawsuit changed his thinking. He had just seen how a run on FTX crippled the company and landed Sam Bankman-Fried in prison. (In fact, he helped FTX crash and burn.) If it came to an FTX-style trial, customers might get spooked and withdraw all their funds, and that really would be the end of Binance. (It was also in the government’s best interest to settle: remember how the contagion from the FTX collapse spilled over to traditional banks as well.) So Binance and the U.S. government came to a deal. The Deal, Explained In plain English: U.S. customers will not be allowed to trade on Binance.com, and the government will appoint compliance monitors to audit and ensure that Binance is behaving, for real this time. U.S. customers will still be allowed to use Binance.US (if you’re reading this from the U.S., you can try Binance.com and Binance.US for yourself). Binance.US will, of course, be more closely monitored for compliance, which should be a good thing for customers. CZ will step down as CEO, to be succeeded by Richard Teng, a former CEO of Abu Dhabi’s financial services regulator. CZ still maintains his ownership stake in Binance, though he is giving up voting rights. And then there’s that pesky $4.3 billion fine. ($4,316,126,163, to be exact.) Binance claims it had set aside up to $8 billion for an eventual settlement, so apparently they were saving for a rainy day. The news media keeps saying Binance is making a “complete exit” from the United States, which is inaccurate. U.S. customers are some of Binance’s most valuable. They’re critical for the long-term growth of the company. To be clear, U.S. users cannot use Binance.com, but they can continue to use Binance.US. Which is the same way it’s been since 2019, only now with better compliance. But saying “Things remain exactly the same at Binance” does not make for a great headline. The Investor Takeaway I am supremely bullish on this turn of affairs. I don’t condone breaking the law, so I think Binance was absolutely wrong to help criminals get around their controls. When you build a company culture around skirting the edges of the law, it’s hard to wash that out of your system. That worries me. On the other hand, I learned a lesson from watching the rise of Uber under its founder Travis Kalanick. Here was another disruptive technology company breaking into a heavily-regulated market. At the time, taxis were terrible, and Uber truly provided a better customer experience. Under Kalanick, Uber played hardball to win new markets, often skirting or flouting the law. We should all feel conflicted about these moral dilemmas. Is it right or wrong for an enterprising entrepreneur to aggressively promote a better product — even if it means breaking laws that might be outdated or unfair? In the case of Uber, the taxi industry was ripe for disruption, Uber was a far superior product, and society benefited as a result. (In fact, I took a NYC taxi the other day, and was astonished at how much better the taxi experience has become – it’s a lot like taking an Uber.) Binance legitimately provides great products and services. It’s one of the most user-friendly, trustworthy crypto exchanges in the world. It keeps funds secure. It continually innovates, from high-yield staking products to its own blockchain. It even has its own charity. Would the company have become successful if it waited for U.S. regulators to catch up? The SEC still cannot even define whether a token is or is not a security. If you want to see the results of the “wait and see” approach, just look at U.S. banks. No crypto innovation. For me, this settlement allows the DOJ to score a political win, lets Binance play nice with the government, and releases the entire industry to move forward. This is why I am very pleased about Binance’s $4.3 billion fine. The company can afford it, and now there is an understanding in place. The U.S. government will monitor Binance, they’ll appoint a grownup CEO, and the company is now legit. (Remember, Uber ultimately ousted Travis Kalanick and brought in a grown-up CEO in Dara Khosrowshahi. The company launched an IPO and now its stock price is approaching all-time highs.) I’ll repeat those four important words: Binance is now legit. This is a huge deal. It’s worth every penny of the $4.3 billion. My belief is that investing in the BNB token is like investing in Binance. Now that Binance is “government approved,” my view is that the company will not only survive, but thrive. They have great products, an enormous competitive moat, and now they’re officially regulated. For my money, BNB is a better buy than ever. #binance #CZBinance #BNBecosystem $BNB