Does Coinbase’s slight direct listing performance have got emerging crypto platforms considering twice about going community? The latest comments from main cryptocurrency exchange Kraken may be suggesting so.
In an interview with CNBC earlier this year, Kraken CEO Jesse Powell shared that the organization was considering going general public via a direct listing within 2022. Coinbase went open public less than a month later, and today just a few months after the Wall structure Street debut, Powell and company may be having 2nd thoughts.
The IPO… I Don’t Know
Kraken is a best 3 exchange when ranked by volume, and keeps growing. However , Kraken’s future with regards to a public listing remains a question mark. In a current appearance on Fortune’s video clip series “ Balancing The particular Ledger”, Powell stated how the firm was taking a more difficult look at going public, particularly when it comes to a direct listing.
“ An BÖRSEGANG (ÖSTERR.) is looking a little more appealing in light of the direct listing’s performance”, said Powell. “ I would say we’re looking at it more seriously today having the benefit of seeing how the direct public offering played out for Coinbase”.
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Coinbase Struggling Since Direct Listing
In just a few short months, Coinbase has seen it’s initial valuation cut by roughly a third, going public at over $68B, to a present day valuation simply shy of $48B. The company is nearly ten years deep in operations, and undoubtedly nevertheless feeling strong about it’s long-term successes. Additionally , the company is paving the way for other crypto-focused businesses to follow suit. However , the direct listing approach for the company appears to leaving investors cautious, and to Powell’s point, has likely been a “ watch and learn” experience for some of the biggest public-facing crypto firms considering going public.
Since going public via direct list in April, it's been a stable slide for Coinbase. | Source: $COIN-NASDAQ on TradingView. com
Can Kraken Crack The Program code?
Despite the struggles seen from Coinbase gives, bolstered by a less than good earnings report debut, CEO Brian Armstrong saw the particular direct listing route because appropriate. Armstrong told CNBC in April that a immediate listing was “ more true to the ethos of crypto”.
Kraken’s Powell doesn’t quite find it the same way. “ I believe [Wall Street] is so tied up in the legacy method of doing things”, Powell stated in his recent appearance. Nevertheless, Powell didn’t commit one method or another when it came to direct listing vs . IPO – but he did rule out one ‘ hot’ public route: SPACs, or special purpose acquisition companies. SPACs happen to be an increasing topic and rumor-mill for emerging companies, like crypto start-up Circle.
It remains to be seen exactly what approach Kraken and other emerging crypto firms will take, but rest assured that they are paying shut attention to the market forces at work.
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Featured image through Pixabay, Charts from TradingView. com