Blake Cassidy, CEO of Australian micro-investment app Bamboo, has given reasons why Australian firms may seek a U.S. listing. He claims that the Australian Securities Exchange (ASX) has an undeniable bias against listing crypto companies, resulting in what he calls “an Aussie brain drain.”
Bamboo raises $3 million in Series A funding.
Cassidy’s remarks come after the company recently announced the completion of a $3 million ($4 million AUD) Series A investment round. Orthogonal Trading, VP Capital, and Mountain Ash Investment Management, Australia’s largest cryptocurrency hedge fund, took part in the round.
Cassidy said that he was asked if he was thinking about getting a local Australian listing. That was around the time he and his team were looking for backers for their crypto-based micro-investment app. He claims he simply replied “No.”
He is adamant that companies like his will have to look to North America because they simply cannot do it here.
Bamboo may be preparing to expand and enter the American market based on recent activities and announcements. In fact, a potential listing may not be out of the question.
As a result, a portion of the $3 million raised will be used to expand to the United States.
Is the ASX really skewed?
Bamboo is not the only company that believes the ASX is biased against crypto-related businesses. Animoca Brands, the NFT-game behind F1Delta, was kicked off the ASX in March 2020 for failing to follow ASX rules.
Animoca, which is now headquartered in Hong Kong, is currently valued at approximately $2.2 billion, following a $65 million funding round in October.
Meanwhile, the ASX has clarified its position on the matter. The commission insists that, while it is fully aware of the interest in Australian crypto businesses, there is an undeniable need to keep them in check in order to protect the market’s interests. The ASX also emphasized the recent provisional approval for Bitcoin and Ethereum ETFs.
Back in July 2021, the ASX expressed concerns about exchange custody and self-ownership, advising Australian investors to stop buying digital currencies on exchanges at the time.