A leading blockchain company's CTO lists six major pain points of private equity transactions, with IPO discussions heating up again

Source: CryptoNewsNet Original Title: Ripple CTO Lists Six Pain Points in Buying Private Stocks as IPO Talk Heats Up Original Link: A leading blockchain company’s recent series of major transactions has sparked market discussions about its IPO. As more investors attempt to gain pre-IPO exposure through secondary brokers, the company’s CTO has issued a warning, listing six key pain points affecting today’s private stock trading—these issues are not unique to this company but are common problems that arise whenever investment enthusiasm exceeds the actual mechanisms of the secondary market.

First is pricing issues. Secondary brokers often provide seemingly reliable quotes based on incomplete or unreliable data, meaning buyers rarely know whether the “market price” they see is truly justified during negotiations.

Since brokers earn more when prices go higher, sellers share the same mindset, leaving buyers as the only party concerned with the authenticity of the figures. This turns simple transactions into a slow and unbalanced process.

Schwartz also mentioned information asymmetry. Private companies do not disclose information as publicly as listed companies, making it nearly impossible for buyers to gain full visibility.

Meanwhile, insiders—often the sellers—who tend to know more, stand on the other side of the deal. This creates a situation where buyers are always playing catch-up.

Execution Is Also Crucial

The most challenging part is that transactions can be delayed for weeks due to ROFR (Right of First Refusal) processes, company approvals, or administrative delays. This exposes buyers to changing market conditions while they wait. Plus, fees—5% paid by buyers and 5% by sellers (ultimately borne by the buyer)—mean that this is no longer a shortcut to IPO.

It becomes a lengthy, costly detour, and no amount of enthusiasm can change that.