The Shift in Financing Strategies for Web3 Enterprises: Strategic Evolution from Token to IPO

Recently, the Web3 industry has shown a noticeable trend: companies are beginning to shift from traditional Token financing models to Initial Public Offerings ( IPO ). This transition not only reflects the maturity of the industry but also demonstrates the emphasis companies place on long-term development and compliance.

1. The Trend of IPO Transformation in the Web3 Industry

Web3 companies are gradually recognizing the strategic value of IPOs. Through an IPO, companies can gain more stable long-term funding support, proactively reduce legal risks, establish standardized valuation frameworks, and reach a broader investor base. This shift marks the industry's evolution towards a more mature and regulated direction.

2. The Deep Logic of Choosing an IPO

2.1 Regulatory Trust as a Strategic Asset

IPO provides a platform for Web3 companies to showcase their compliance efforts. By meeting strict listing requirements, companies can convey a strong signal of trust to the market, which is particularly important for trust-driven businesses such as stablecoin issuance and custodial services.

2.2 Structural Dilemmas of Token Financing

Token financing models have some inherent problems, such as severe price fluctuations, high regulatory uncertainty, and significant liquidity management pressures. These issues make it difficult for institutional investors to effectively manage risks and achieve investment returns, prompting companies to seek more stable financing channels.

2.3 Expand Investor Coverage

IPO enables Web3 companies to access large institutional capital from traditional financial institutions, pension funds, mutual funds, etc., which are often restricted by internal policies from directly investing in cryptocurrencies. By going public, companies can indirectly provide these institutions with the opportunity to participate in the Web3 industry.

2.4 Strategic Value of Flexible Financing Tools

An IPO not only provides companies with large-scale capital but also grants them the ability to use stocks as a means of payment for acquisitions. This flexibility allows companies to more effectively pursue strategic expansion and business diversification.

3. Future Outlook of the Web3 Industry IPO Market

In the coming years, IPO activity in the Web3 sector is expected to increase significantly. The following types of companies are likely to become the main force behind the IPO wave:

• Centralized exchanges and custodial service providers
• Stablecoin issuer
• Web3 solution company

These enterprises can not only raise funds through IPOs but also enhance market credibility, attract institutional investors, and strengthen global competitiveness.

4. Conclusion

The shift of the Web3 industry towards IPOs marks its official entry into the mainstream capital market. However, IPOs are not suitable for all Web3 enterprises. Some companies may choose to strategically combine IPOs with Token financing models to maximize their advantages.

Companies need to carefully choose the most suitable financing method based on their business model, development stage, and market strategy. Regardless of the path chosen, compliance, transparency, and long-term sustainability will become key factors for the future success of Web3 companies.