There could be an IPO of the world’s leading crypto companies. That could be beneficial for both companies and the crypto market in general.
For a long time, people have seen the world of cryptocurrencies as an enemy of traditional finance. After all, the main reason for Bitcoin to exist is to become a replacement for fiat money.
However, this view has been changing over the years. Each time, an increasing number of actors are seeking integration between traditional finance and crypto assets. For that reason, many believe that crypto companies would benefit from making an initial public offering (IPO).
IPO of Coinbase
Even today, many people within the crypto market consider that the traditional financial market is an enemy to beat, rather than a support for the crypto world.
Therefore, these users believe that the most logical thing is that cryptocurrencies completely sweep away the current international financial system. In this way, a new economic framework based on blockchain technology would take its place.
This view has dominated the crypto world for a long time. However, that way of thinking is starting to change faster and faster, along with the goals of the top crypto companies. Among them, Binance and Justin Sun’s conglomerate are beginning to move towards the development of decentralized finance.
This is a mission in which traditional finance could be very useful since it would allow crypto companies to obtain the necessary financing. Coinbase would attempt to achieve this by making its IPO in the coming months. By doing so, they would become one of the first major crypto companies to turn to traditional finance to drive the cryptocurrency market.
Benefit for Crypto Companies
This decision by Coinbase could have already started to impact other crypto companies, which could be considering going ahead with their IPO. This makes sense, given that the traditional financial market has recently reached USD 35 trillion in size, compared to just USD 287 billion in the entire cryptocurrency market.
In other words, if crypto companies receive only a small fraction of the resources that the stock market moves, there is the potential to double the value of the cryptocurrency market. In that way, they would be able to finance projects related to blockchain technology in all sectors.
Such a move by crypto companies would not be unprecedented within the crypto market. In that sense, at least 20 companies in the entire cryptocurrency ecosystem have traded different exchanges around the world. Among them are mining giant Bitmain, which is currently listed on the Hong Kong stock exchange.
However, there is now a possibility that this trend will become a widespread move within crypto companies. Furthermore, this would lead to higher levels of integration between traditional and crypto-asset markets. Ultimately, there would be substantial growth in the crypto market.
By Willmen Blanco