10 Mar 2021 — With SPAC being one of the hottest trend for Wall Street, the asset class has been growing at a breakneck pace in recent times. According to SPAC Track, a platform that provides the latest info on SPAC market, there are currently 500 active SPACs with a total trust size of $159.15B.
So what is SPAC?
In short, SPAC is a Special Purpose Acquisition Company, formed and raises capital through an initial public offering (IPO) with the sole intention of merging with or acquiring an operating company subsequently, thereby taking the private company public.
According to the SEC, a SPAC has no commercial operations as it makes no products and does not sell anything with the money raised in its own IPO as its only asset.
Now we know what SPAC is, let’s explore its latest variant, a new kid in the block, the Digital SPAC – issuing a SPAC using blockchain. Reportedly, this provides wider distribution channels for global investors who are prevented from, or prefer not to invest through traditional SPACs listed on USA stock exchanges.
Claimed to be the world’s first Digital SPAC, InvestaX will open source the smart contract code for the Digital SPAC, to bring greater openness, velocity, interoperability and global distribution.