Exclusive: Blackmoon Allows Users to Participate in Lyft IPO

As the ride-hailing IPOs race is on, Blackmoon Financial Group today launched a new investment product that will allow users to make bets on the performance of Lyft Inc’s anticipated initial public offering (IPO).

The financial matchmaking platform says its traders can speculate on the valuation of the San Francisco-based company starting right from the date it becomes publicly traded.

The high-profile float could raise billions for Lyft, which is the smaller and less diversified rival of Uber, with some valuations at investment houses, are pegging with a potential market cap of around $25 billion.

Blackmoon’s product offers unique benefits that won’t be available when retail investors get exposure to the IPO with traditional Stock Brokers Stock Brokers A stock broker is a company, individual, or entity that is authorized to buy and sell stocks or other financial instruments. Brokers’ main function includes buying and selling orders on a trader’s behalf. Through innovation and a byproduct of us residing with the technology era, more and more traders are beginning to open brokerage accounts with online brokers.In the past, many brokers accrued money through charging a commission on every trade but as competition has strengthened and technology h A stock broker is a company, individual, or entity that is authorized to buy and sell stocks or other financial instruments. Brokers’ main function includes buying and selling orders on a trader’s behalf. Through innovation and a byproduct of us residing with the technology era, more and more traders are beginning to open brokerage accounts with online brokers.In the past, many brokers accrued money through charging a commission on every trade but as competition has strengthened and technology h Read this Term. Specifically, the company has removed the lock-up period, which is a contractual restriction preventing certain investors from selling their shares after a company has gone public. Although this waiting period varies on a case-by-case basis, it typically ranges from three to six months after the date of the IPO.

A Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat Read this Term between retail investors and IPOs

Blackmoon also says its product combats many of the challenges faced by retail investors in getting access to IPOs, where their chances of bagging shares of a hot float are slim. Typically, in high-profile IPOs like Lyft, there is a general outcry that the shares were allocated to institutional investors while the majority of individual investors were unable to participate.

Moreover, Blackmoon does not require the user’s physical presence to pass verification which "excludes depressing red tape,” the company says.

Finally, Blackmoon explains its bidding process in a few painless steps.

1. During the book building period, Blackmoon is accepting primary market orders for the IPO.
2. To participate, investors must purchase BookLyft product for the nominal value, which they intend to place for the IPO.
3. Before the first trading day, the IPO results will be released, and in case of successful allocation, BookLyft product will be converted to BMxLYFT.
4. BMxLYFT will be priced at the gross IPO price and will provide investors with exposure to the performance of Lyft Inc. shares.
5. In case of oversubscription, the allocation will be conducted on a pro rata basis. All unallocated funds will be returned to the investor’s dashboard in the currency of the initial purchase.

Background

Founded in 2014, Blackmoon Financial Group is a US-based financial technology and investment management company with Russian roots. Blackmoon Crypto Platform presents what it calls a one-stop solution for asset managers to create and manage legally compliant tokenized funds. As such, it combines the benefits of crypto-oriented investment products with traditional diversification of investment opportunities.

The startup secures IT, compliance, licensing, and bank partnerships for its clients and the turnkey solution also issues the tokens of the Blackmoon Crypto Platform.