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Crypto IPOs: What to Know and Who to Watch

Like every other major industry, some of the largest cryptocurrency and blockchain-based companies have big plans to go public and raise additional capital from institutional and retail investors alike. Probably the most notable upcoming IPO is Coinbase, which is expected to open the doors for other companies to follow assuming all goes as expected. One could argue the timing for crypto IPOs has never been better as institutional investors flood the market and bring an […]

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Like every other major industry, some of the largest cryptocurrency and blockchain-based companies have big plans to go public and raise additional capital from institutional and retail investors alike. Probably the most notable upcoming IPO is Coinbase, which is expected to open the doors for other companies to follow assuming all goes as expected. One could argue the timing for crypto IPOs has never been better as institutional investors flood the market and bring an additional element of legitimacy for traditional investors. 

When thinking about IPOs in the industry, it is important to recognize companies that are well poised to gain critical market share and eventually go public. These include exchanges, protocols, hardware providers, and even DeFi applications. This list highlights companies that are in a strong position to eventually IPO based on their roadmap, traction, and focus in the market. 


Coinbase 

As one of the leading cryptocurrency exchanges globally and the top in the US by daily trading volume, Coinbase will be the largest cryptocurrency firm to hold an initial public offering to date. With over 35 million users and an $8 billion valuation as of 2018 (which will inevitably be much higher as the company and cryptocurrency ecosystem as a whole have subsequently grown), Coinbase has a lot of potential investors interested in its IPO. An additional aspect sometimes considered rare amongst unicorn companies is that Coinbase has been profitable for years now, something large companies can struggle with as they try to increase their growth and underlying valuation rapidly. Coinbase plans to launch its IPO this year.

Finxflo

Asia is one of the most important markets for the cryptocurrency space, and having a regulated exchange is essential to inspire investor confidence. Headquartered out of Singapore, Finxflo is a hybrid liquidity aggregator that has the ability to offer the best rates from both centralized and decentralized exchanges to its users. Using just one protocol and a single KYC process, Finxflo users get access to cryptocurrency liquidity across the entire market, with low fees and over 25 exchanges and liquidity providers, aggregated for trading rates. Finxflo has already sold out its private sale and has a high potential for an IPO in the future as it is the first liquidity aggregator offering both institutional and retail functionality. 

Blockfi

Blockfi is a three-in-one hybrid platform (with more product offerings coming in the future) that allows its users to trade cryptocurrencies, receive crypto-based loans, and earn interest on their crypto deposits similar to a bank account. A few platforms compete in this sector, such as Celsius and Crypto.com, but Blockfi is one of the most successful. It seems that Blockfi is prepping for an ICO, which would make it the first among these multi-product crypto platforms to do so, as the company has been actively looking for an experienced Chief Financial Officer (CFO) able to guide them through the process. If this IPO takes place, expect strong demand from retail and institutional investors.

Bitmain

Bitmain, one of the largest cryptocurrency mining firms in the world, is rumored to be preparing for an IPO – although the current status of its long-awaited public sale is unknown. Bitmain produces novel chips for mining equipment to be sold to customers and also utilizes its own equipment in cryptocurrency mining farm operations, allowing it to capitalize on a vertically integrated business model. It’s been reported that Bitmain is looking to raise a whopping $18 billion in funds from public investors, giving Bitmain a valuation of around $40 to $50 billion. Previously, Bitmain raised $450 million from a private funding round at a valuation of $12 billion in June of 2020; the growth in the cryptocurrency market has no doubt contributed to its huge valuation.

Bakkt

Bakkt is the latest cryptocurrency exchange looking to go public. Founded in 2018 by Intercontinental Exchange Inc, a company with a $66.15 billion market cap and the owners of the New York Stock Exchange, Bakkt was created to facilitate the tracking, spending, and sales of cryptocurrency in a fully regulated manner. Bakkt also works to facilitate the integration of cryptocurrency payments and loyalty programs for multinational businesses, with large companies such as Starbucks already integrating Bakkt-based payment methods. It’s no surprise that the owners of the New York Stock Exchange would want to take their cryptocurrency firm public, and with a $2.1 billion valuation, it will generate a lot of interest both from the cryptocurrency and traditional finance space.

These aren’t the only cryptocurrency firms that have plans to go public, with other mining companies and exchanges likely to follow suit. As cryptocurrency investing continues to become more mainstream, the ability to own and trade crypto-based firms on the public market should add an additional level of legitimacy to the ecosystem, allowing some of the most prominent investors in the world access to this new and emerging asset class.


Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

Source: https://bitcoinist.com/crypto-ipos-what-to-know-and-who-to-watch/?utm_source=rss&utm_medium=rss&utm_campaign=crypto-ipos-what-to-know-and-who-to-watch

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NEXT Chain: New Generation Blockchain With Eyes on the DeFi Industry

[Featured Content] The cryptocurrency industry is booming throughout the past year, and the increase in the total market capitalization is definitive proof. The market is, at the time of this writing, valued at about $1.5 trillion. The same can be said about the DeFi industry. The total value locked in various protocols exceeds $39 billion, […]

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[Featured Content] The cryptocurrency industry is booming throughout the past year, and the increase in the total market capitalization is definitive proof. The market is, at the time of this writing, valued at about $1.5 trillion. The same can be said about the DeFi industry. The total value locked in various protocols exceeds $39 billion, […] Checkout PrimeXBT
Source: https://cryptopotato.com/next-chain-new-generation-blockchain-with-eyes-on-the-defi-industry/

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‘Bitcoin Senator’ Lummis Optimistic About Crypto Tax Reform

Sen. Cynthia Lummis, the first in the Chamber to own Bitcoin, says bipartisan support will accelerate crypto tax reform.

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Sen. Cynthia Lummis (R-Wy) expressed hope on Wednesday that Congress will be able to reform the tax rules governing cryptocurrency, which have been a longtime bugbear for Bitcoin owners and the burgeoning crypto industry.

“We’re optimistic we can find bipartisan agreement on that issue,” said Lummis during a meeting with crypto executives and policy makers on the social media app Clubhouse.

The comment from Lummis, who has owned Bitcoin since 2013, came in response to a question about whether Congress will pass a proposed law calling for a “de minimis” tax exemption for small cryptocurrency transactions.

Currently, IRS guidance stipulates that any minor crypto transaction—such as sending $5 worth of Bitcoin to a friend or using it to buy a cup of coffee—can amount to a capital gains event. Critics say this rule creates needless tax headaches, and discourages innovation by limiting the use of crypto in day-to-day transactions.

And while the IRS has become preoccupied with collecting tax on crypto—a question about virtual currency is now at the top of filers’ income tax return—the agency has done little to simplify the process for reporting it.

Lummis’s interest could help accelerate the passage of crypto tax reform, which has been proposed in bills before the House of Representatives, but never in the Senate. Lummis, whose home state of Wyoming has branded itself as a crypto hub, also pointed to a new Financial Innovation Caucus she is leading with Sen. Kyrsten Sinema (D-Az) as evidence of bipartisan interest in the issue.

Bitcoiner Cynthia Lummis Wins US Senate Seat

Policy researchers on the Clubhouse call cautioned, however, that passage of crypto legislation is unlikely to occur in the near future. The Biden Administration and Congress is currently wrangling over weighty issues related to the pandemic and economic stimulus, so crypto taxation—a relatively boutique issue—is unlikely to be a high priority.

More broadly, members of the call noted that lawmakers are becoming more knowledgable about cryptocurrency, and not only at the federal level.

Nathan McCauley, the CEO of crypto storage service Anchorage, said that his company has been speaking with several state governments about adding crypto to their corporate treasuries—a move that would mirror what big private sector companies like Tesla and Square have done in recent months.

McCauley suggested the states’ interest in crypto is related to a search for alternate finance and investing options at a time when bond markets are in a prolonged slump.

Checkout PrimeXBT
Source: https://decrypt.co/60059/bitcoin-senator-lummis-crypto-tax-reform

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Billionaire Hedge Fund Manager and a Former CFTC Chairman Reportedly Invested in Crypto Firm

The hedge fund manager who predicted BTC’s rise to $40k in 2018 and the former CFTC Chair, a.k.a ‘crypto dad’, have invested in BlockTower Capital.

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The hedge fund manager who predicted BTC’s rise to $40k in 2018 and the former CFTC Chair, a.k.a ‘crypto dad’, have invested in BlockTower Capital. Checkout PrimeXBT
Source: https://cryptopotato.com/former-cftc-chairman-and-a-billionaire-hedge-fund-manager-reportedly-invested-in-crypto-firm/

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Bitcoin Price Analysis: Back Above $50K, But Facing Huge Resistance Now

Bitcoin is up by a solid 6% today as the primary cryptocurrency surged by over $3000 over the past 24 hours. Quick recap: bitcoin is recovering after a heavy correction over the past week, in which the cryptocurrency dropped by around 25% as it broke beneath the February ascending price channel (as shown on the […]

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Bitcoin is up by a solid 6% today as the primary cryptocurrency surged by over $3000 over the past 24 hours. Quick recap: bitcoin is recovering after a heavy correction over the past week, in which the cryptocurrency dropped by around 25% as it broke beneath the February ascending price channel (as shown on the […] Checkout PrimeXBT
Source: https://cryptopotato.com/bitcoin-price-analysis-back-above-50k-but-facing-huge-resistance-now/

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