Encryption Vault Innovation: A New Trend of Public Companies Transitioning to On-Chain Protocols

One of the hottest trends in the current encryption market is PIPE trading and the large-scale allocation of encryption assets by listed companies. From a well-known blockchain project reverse merging with a listed company to enter Nasdaq, to emerging DeFi platforms using tokens as core assets and staking targets, this shift is blurring the lines between "listed companies" and "on-chain native protocols."

PIPE Trading: The Shortcut to Listing for Cryptocurrency Companies

PIPE is short for "Private Investment in Public Equity," referring to private investors injecting capital into publicly listed companies at a discounted price. This method is favored for its speed and efficiency, avoiding the cumbersome processes of traditional IPOs. Nowadays, PIPE transactions are increasingly used by encryption-native companies as a preferred route for listing or expanding market influence, often combined with "reverse mergers" to provide "backdoor listing" opportunities for encryption projects.

Landmark Case

capital operation of a well-known blockchain project

The founder of the project renamed the company through a reverse merger with a NASDAQ-listed company and plans to complete PIPE financing with a project token worth $100 million. This not only makes the project token a core asset of the company but also suggests the potential introduction of a token-based dividend mechanism in the future. Furthermore, family members of the founder and members of a well-known political family may join the company's executive team, adding political and family elements to this financial maneuver.

Eyenovia transforms Hyperion DeFi

Originally focused on eye drop technology, Eyenovia has transformed into Hyperion DeFi through a partnership with Hyperliquid, aiming to become the first publicly listed company with HYPE tokens as the main asset. The company will hold a large amount of HYPE tokens, operate native staking validation nodes, and hire experts from the encryption industry as the new CEO. Hyperion DeFi may also obtain an additional $100 million in token subscription rights through a second round of PIPE transactions.

Global Trends: Diversified Encryption Vaults

The trend of publicly traded companies establishing encryption vaults has become global and is no longer limited to Bitcoin:

• France: A certain blockchain group holds about 1600 BTC, with a market value approximately three times that of its Bitcoin holdings.
• Japan: A company known as "the Japanese version of MicroStrategy" holds 10,000 bitcoins, and its stock price is nearly 7 times the value of its bitcoin holdings.
• Hong Kong: A company supported by a founder of a well-known website has added Solana to its treasury, and the stock price subsequently rose by approximately 30%.

These cases reflect the level of demand for encryption assets in different national markets. In contrast, SBET, supported by the co-founder of Ethereum, has performed relatively flat, which may provide opportunities for contrarian investors.

Importance and Future Trends

PIPE trading and token vault strategies represent a fundamental shift in the way public companies enter the encryption space:

1. Encryption vaults become market signals, indicating the company's support for specific ecosystems.
2. The rise of token-native listed companies has formed a multi-token strategy bound to specific ecosystems.
3. PIPE transactions have become the standard route, providing encryption companies with a fast and flexible way to go public.
4. Institutions are betting on a multi-chain future, no longer limited to Bitcoin investments.

We are witnessing the emergence of a new batch of public companies that operate according to Web3 rules while performing on the traditional capital market stage. This is not only a shift in corporate strategy but also an innovation in the operational paradigm of the capital market. In the future, it is possible that every mainstream encryption project will have a corresponding "public representative," and this is just the beginning.