Just a few days ago, Coinbase, one of the crypto market’s best-known companies, held its initial public offering (IPO). This entails the sale of shares and the listing of the aforementioned company on a publicly-traded stock exchange. Companies often do this to usher in veritable cash flow that is then utilised to expand by building new products and enhancing the ones that are already available. Coinbase is therefore one of the first crypto companies to ever go public, but it’s recent endeavour may pave the way to numerous other crypto-based businesses taking similar steps.
It’s very likely that over the next few years, as crypto companies scale, there’ll be considerable opportunity to purchase crypto stock, some of which will likely be tradeable within blockchains as synthetic assets. This is exactly what Binance did for Coinbase’s $COIN ticker, but also for Tesla.
Who are the candidates?
Since some companies are very well financed by private entities, their interest in going public may not be as high, especially as leadership wishes to retain full control. But when aiming to become an industry behemoth, a public offering is oftentimes the right way to go about things.
Kraken, which is the 4th largest cryptocurrency exchange, may have plans to hold an IPO sometime in 2022, through the usage of the direct listing format, as announced by the CEO. According to recent reports on the matter, the private value of the firm is situated around the $20 billion mark.
Gemini, the crypto exchanges started by the Winklevoss twins may also have plans of going public, as hinted by the CEO earlier in 2021. Such is the case with companies like Blockchain.com, one of the world’s largest crypto wallet providers.
The benefits of crypto stock
Crypto is highly-volatile and unregulated in nature, so seeing companies carry out sustained efforts to comply with stock trading regulatory frameworks may do away with the uncertainties usually surrounding the industry, thereby leading to an increased degree of trust and attracting institutions who have been crypto-avoidant until this time. Sustained in-flow of capital from institutions is what the crypto industry needs to really hit the mainstream market, so it’s always good for the industry’s health to see companies going public.