In countries with free market economies, large corporations play a critical role, providing citizens with jobs, the state treasury with taxes, and customs with duties. Often, these companies are public. Their stocks are listed on exchanges and are available for free purchase.
Public companies represent a huge share in countries with market economies, reaching a capitalization of trillions of US dollars. Among the largest public companies are Apple Inc., Alphabet (the parent company of Google), Microsoft Corporation, Amazon, Facebook Inc., and many other world-famous corporations from various business areas.
Such companies often have a very wide pool of investors. Holders of an especially large share of stocks may even participate in some business processes, influencing the policies of the companies.
Another important difference between public and private companies is the mandatory publication of financial results. The regulator (in the USA it is SEC) requires companies to report mandatory financial reports for a quarter, six months, or a year. This is justified by the public operating model and is done so that investors can make financial decisions based on this information.
But the responsibility of public companies extends not only to reports to the regulator and investors. The reputation and the news background surrounding such organizations are equally important. Negative news, lawsuits, and scandals can directly reduce the value of shares, reducing capitalization and investor wealth.
Market value of publicly traded shares (US$) chart
Thanks to this, investments in public companies are the most liquid. An investor can buy shares at any time, regardless of crowdfunding rounds or other events that private companies use. It is very convenient for both long-term and short-term investments, which even traders often use. The growth rates of public IT companies are now really impressive.
However, public companies continue to grow, not only making huge profits but also trying to enter completely new markets. It was recently revealed that xSigma has become the first publicly-traded company to enter the decentralized finance industry.
What is Sigma DeFi?
Although DeFi has revolutionized this year, the technology is still very crude and has many shortcomings. This technical problem prevents DeFi from becoming what it should be - financial tools available to everyone. In addition, even trading on decentralized exchanges causes problems due to poor market making. Add a low-quality interface, freezing transactions, and inexperience of teams - and we get a situation where technical problems stop the implementation of a great idea.
Therefore, to realize the potential of decentralized finance and solve most of the industry's problems, xSigma will launch its decentralized platform for trading stablecoins! XSigma DEX will retain the original idea of free trading without intermediaries but implements it in a user-friendly interface and without technical shortcomings. xSigma's DeFi ecosystem will begin with the launch of its decentralized stablecoin exchange, offering fair farming terms for liquidity providers and an intuitive user interface for users.
xSigma’s product team is led by Alex Lebed, a software engineer with career stops at Facebook, Amazon, 1Inch, and also the founder of Stableunit.org. The team also features Harvard graduate and former Google engineer Kamal Obbad, and Daniel Garay, a project manager formerly of Ripple Labs and Google.
The successful launch of a decentralized exchange will only be the first step on Sigma's journey into the world of open finance! According to plans, the company is going to continue working in this direction, and in 2022 it is planned to release its own stablecoin, which will help expand the capabilities of the Sigma open financial ecosystem.
XSigma is going to revolutionize this industry by offering it technically advanced solutions that will contribute to the rapid development of decentralized finance. By combining reputation, experience, funding and limitless opportunities, Sigma's solution has a number of competitive advantages. And this news is only improved by the fact that the company's shares are available for public trading. This means that investors will be able to profit from the successful implementation of XSigma initiatives.