Ondo Finance brings pre-IPO AI exposure on-chain — But there’s a catch

Technical Highlights

The token itself has had a decent few weeks, with ONDO at press time trading at $0.507, approximately 50% above its mid-September low near $0.33. The token has since been moving sideways, with RSI still in bullish territory but below its signal line at 63. OBV also peaked near 365 million during the rally, dropped, and has since crept back to 329 million.

Market Outlook

If the new notes pull real volume this week, $0.55 is the first level worth watching. If they don't, $0.48 is where things get uncomfortable. Ondo Finance has done this before with public companies, listing over 450 US stocks and ETFs, and holding over $1 billion in TVL. Private markets are the next room over, but it's getting crowded. Robinhood's venture fund put $75 million into OpenAI common stock, and Citi is reported to be building a blockchain marketplace for private-company shares.

Ecosystem Fallout

The token's value is linked to the value of the company's common shares when it undergoes a qualifying liquidity event. If the company does well, the buyer does well. If it flops, so does the note. There's no shares with your name on them, and no say in how the company is run. However, eligible investors can hold the notes in their own self-custody wallets or trade them on secondary markets.

Impact on Crypto Market

The introduction of this new product highlights the growing trend of tokenized assets in the crypto market. It also underscores the increasing competition in the private markets space, with multiple players vying for attention. As the market continues to evolve, it will be interesting to see how Ondo Finance's new product is received by investors and how it fits into the broader ecosystem.