The former CTO of Coinbase, Balaji Srinivasan, has suggested that Security Token Offerings (STOs) could become a new exit strategy for technology startups. Srinivasan explains that the regulatory climate has made it difficult for startups to pursue Initial Public Offerings (IPOs) or mergers & acquisitions (M&A), leading to a decline in the number of publicly traded companies. However, STOs allow companies to issue equity-backed digital tokens that can be traded on blockchain-based markets, providing liquidity and bypassing regulatory restrictions. Srinivasan believes that STOs could become the next big financial instrument and align with the US government's emerging financial philosophy. STOs offer benefits such as cost reduction, global accessibility, transparency, and efficient capital raising for smaller businesses.



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