The financial innovation is convertible into a share of Oddity stock in an IPO at a 20% discount
Il Makiage owner Oddity has described its new token as 'trailblazing'
Il Makiage and SpoiledChild owner Oddity has become the first non-crypto brand to launch an IPO-linked digital security token.
The Oddity Token, built on the Ethereum blockchain, is described as a bridge between crypto assets and the conventional securities market.
It is convertible into a share of Oddity stock in an IPO, at a 20% discount to the IPO price.
"By offering this trailblazing token, we are democratising investor opportunity by broadening individual access to Oddity securities, as we continue to disrupt and redefine the beauty and wellness category," said Oran Holtzman, co-founder and CEO of Oddity.
"Crypto and blockchain technology unlock massive opportunity for consumers and capital markets.
"With this offering, we are building a new bridge to link traditional markets with the vibrant world of digital assets, where the innovation potential is huge.”
The security token also has the benefit of encoding key data on the blockchain and deploying smart contracts to perform certain functions.
When done at scale, said Oddity, this innovation can have large, cascading capital efficiency benefits across the capital markets.
The Oddity Token offering opened on 26 April and will run until 11 May, with more information available via the Oddity website.
Oddity’s move could open the floodgates for other beauty brands to follow suit.
The past year has witnessed the likes of Ciaté London, Guerlain and MAC launching NFTs as a juicy little Easter egg for brand fans.
But the Oddity Token opens the traditionally exclusionary world of investment up to individual investors and enthusiasts, rather than the elite group of venture capitalists and institutional investors who have historically had early access.
With public ‘fund me’ campaigns via sites like Kickstarter having proved a success for the beauty industry, it is clear that many out there don’t just want to buy products from their favourite brands, they want to buy into them too.
And Oddity has proved that it is easier than ever to offer this to them.