Identitii Limited, a blockchain-based digital identity management innovator, has launched an $11 million IPO on the Australian Securities Exchange (ASX).
The Australian company aims to sell 14.6 million shares at the rate of 75 cents per unit. The proceeds will be used for the additional development and marketing of Identitii’s anti-money laundering solution, Serra. The blockchain-enabled solution will upgrade ‘FIS’, an risk & compliance software to lower compliance costs, speed up payment processing and to generate additional revenue for the company.
Blockchain technology is one of the most reported innovations in 2018. The promise here is that any information of any kind can be stored in blocks and organized in sequence, and can be validated and verified by nodes – a network of computers, including the sender and receiver of that information. As a result, blockchain can be termed as digitally created, verified and authenticated ledger which is faster, more secure and much cheaper than traditional database systems.
Identitii’s blockchain solution for FIS, therefore, makes payment information more accessible to parties. It helps the banking software company innovate to a point where it can uniquely identify business transactions without needing the traditional KYC, customer-level based standards.
Identitii has joined Kyckr (ASX: KYK) to become the only other blockchain-based IPO on the ASX. The latter had raised $5.2 million at FinDEVr Silicon Valley conference 2016 for its corporate identity management platform. Soon after its listing on the ASX, the securities exchange witnessed an increase in application from companies that had added blockchain to their range. By the time of this writing, ASX lists the stocks of more than 30 blockchain-enabled companies, if not entirely blockchain-centric.
However, ASX is researching whether any of these stocks have created value for their stakeholders or not. The Krckr shares, which was launched at the rate of 20 cents per share, have now dropped around 32.5 percent, currently available for 13.5 cents per unit.
Stockhead reports that despite a decent performance of blockchain stocks on yearly charts, only a few ASX stocks have actually made gains in the past six months – and blockchain is not the central attraction in many of them. They include Animoca Brands (ASX: AB1) with a gain of 777 percent, Sportshero (ASX: SHO) with 450 percent gains, and DigitalX (ASX: DCC) with over 278 percent gains – all for this year.
Investments in the blockchain projects have increased in 2018 compared to what it was in 2017. But despite the attractive influx, over half of 2018’s blockchain projects have failed, a report from ICOBench reported recently. It is believed that most of these ICOs have begun dumping the raised crypto capital – derived mostly in Bitcoin and Ethereum – to crash the market eventually. It has created a negative sentiment among investors for the upcoming blockchain projects.
The ICOBench report, however, does not concern projects that are building blockchain products for the enterprises via traditional funding methods, such as IPO. But the pessimistic crypto market sentiment could be some of the many reasons why ASX blockchain stocks underperformed in the past six months.
DigitalX share value has also tumbled in recent days due to the fall in its own cryptocurrency value.
Both Identitii and Kyckr, whose blockchain projects are concerned with private enterprise solutions, should hope to stay unaffected by the market’s bearish bias.
Featured image from Shutterstock.
Last modified: May 20, 2020 6:07 PM