The Coinbase (NASDAQ:COIN) IPO is one of the biggest moments for crypto in its short-but-dense history. Investors rallied around the idea of buying from the exchange and owning it too. While COIN continues to find its footing on the market, other crypto exchanges are looking to dip their toes in the Wall Street waters. Crypto exchange Kraken is looking to be the next crypto play on the traditional stock market. And according to a company official, the Kraken IPO is on-track to come as soon as next year.
So what do we know about the incoming public offering? Let’s take a look:
- Kraken is one of the most highly anticipated incoming IPOs, due largely to its $4 billion valuation.
- However, investors worry about the IPO not happening for a number of reasons.
- Worries of over-regulation of the crypto market are spurring fears that Kraken, and other crypto groups, will move out of the U.S.
- CEO Jesse Powell has made remarks about moving the platform if harsh regulations do come down on the industry.
- Further fears of the IPO falling through come from Bitcoin’s (CCC:BTC-USD) recent and rapid decline as a result of Elon Musk and a Chinese crypto ban.
- In an interview with CoinDesk, Kraken’s head of growth, Dan Held, says that everything is still going according to plan for Kraken to hold their IPO in 2022.
- “The crypto markets are looking great right now,” Held says. “If you look at Kraken volume, alongside other exchange volume, we hit all-time highs a few weeks ago.”
- Kraken really has been thriving even through the bearish crypto trend. The exchange saw $8 billion in trades on its platform in a single day.
- Coinbase’s IPO tells us a lot about trading crypto exchanges on the stock market. As the trailblazer for the whole asset class, investors didn’t know what to think, and hype drove price points sky-high. Shares were initially valued at $250. And, while it did briefly soar north of $340, the stock has since settled around its initial price mark.
- As a second publicly-traded exchange play, Kraken shouldn’t see these issues. The kinks of figuring out how a crypto exchange asset looks on the market are largely figured out.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.