How the New Long-Term Stock Exchange Can Help the Crypto Industry

Long-Term Stock Exchange, which recently got approval from the United States Securities and Exchange Commission to launch a new stock exchange, could soon make it possible for companies to also raise funds through traditional means.

An LTSE spokesperson telling Cointelegraph that "The exchange will be available to companies in every industry" only supports that notion.

Liquidity at the security tokens exchange tZero has been reported low, and the company was reported making a loss.

LTSE, building on an already mature stock market, could become a viable alternative for both for blockchain-related and nonblockchain companies that may have been looking to leverage the security token market to raise funds from patient investors.

The new stock exchange believes that companies delay IPOs mainly because of the market's short-term thinking, which compels companies to focus on delivering stellar financial results from quarter to quarter.

The stock exchange believes its own approach will help build more sustainable companies.

The company aims to mandate companies that list on its exchange to adopt a set of corporate governance principles that foster long-term thinking - both for the company and for the shareholders.

The exchange will encourage listed companies to focus on publishing key indicators of future growth and limit emphasis on quarterly predictions.

One significant downside of LTSE is perhaps that its attractiveness may be limited to just U.S. companies, since the exchange is basing its operations in the U.S. While foreign companies are able to list on the U.S. exchange, smaller companies that turn to the crypto market for funds may be overwhelmed by the listing requirements.

Having a stock exchange on which crypto companies could list may level out the playing field between the crypto and other industries.