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$100M IPO Alert: Kraken Eyes Major Market Move

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Kraken, a long-standing cryptocurrency exchange, is considering an initial public offering (IPO) after receiving inquiries from prospective investors. The trading platform seeks to raise approximately $100 million, and the renewed interest comes at a time of a digital-asset market rally. With discussions for an IPO currently under wraps, company representatives however made it clear that they are fully committed to the fundraising goal, slated to be completed by year-end.

This isn’t the first time: the exchange has been in talks for an IPO since 2021. However, its efforts to go public faced many obstacles like the lawsuits with the US regulators SEC. Last year, the SEC filed charges against Payward Inc. and Payward Ventures Inc., collectively known as Kraken, accusing them of operating their trading platform as an unregistered securities exchange, broker, dealer, and clearing agency.

Subsequently, the crypto exchange agreed to halt the offering or selling of securities through crypto asset staking services and pay a $30 million civil penalty. So, raising funds through an IPO can help Kraken strengthen its regulatory compliance and legal infrastructure. This can help them avoid future legal issues and build trust with users and regulators. Moreover, the fundraising could provide the necessary capital for initiatives such as expanding its operations, introducing new services, or entering new markets.

Kraken Seeking Star Board Members

Kraken is reportedly looking for a “marquee” company to join its board. An IPO could help restore or boost market confidence in Kraken’s stability and longevity. Publicly traded companies often enjoy increased transparency and credibility, which can attract more customers and partners.

Additionally, it can provide liquidity for early investors and employees, allowing them to realize returns on their investments or stock options. This can be a significant motivator for moving forward with an IPO. Furthermore, the Competitive Edge: With more funds, Kraken can better compete with other major cryptocurrency exchanges. This includes enhancing user experience, lowering transaction fees, or offering more diverse financial products.

Circle’s Secret IPO: Analysts Bullish On $1.5B 2023 Revenue

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USDC issuer Circle has confidentially filed for an initial public offering [IPO] with the intention of transitioning into a publicly traded company in the United States by early 2024. The specifics of the IPO, such as the number of shares to be offered and the proposed price range, remain undisclosed at this stage. The successful completion of the IPO is contingent on the review by the Securities and Exchange Commission [SEC] and prevailing market conditions.

As the issuer of the second-largest stablecoin globally and the seventh-largest cryptocurrency overall, according to CoinGecko, Circle’s tokens are collateralized by cash and cash equivalents, including short-term Treasury bonds.

The firm’s decision to pursue a public listing comes amidst a lengthy period of reduced deal-making activities amid elevated interest rates and market volatility. Other companies, such as Apex Fintech and Aspen Insurance, have also confidentially filed for US IPOs, signaling a potential revival in the public offering space.

This marks Circle’s third attempt at going public, with the previous attempts in 2022 through a special-purpose acquisition company [SPAC] and in 2021 with a special-purpose acquisition company named Concord Acquisition Corp. facing obstacles and ultimately being terminated. Despite the uncertainties surrounding the valuation sought in this IPO, Circle’s move aligns with its longstanding objective of becoming a publicly traded entity in the United States.

Circle’s Pursuit: Embracing Transparency

CEO Jeremy Allaire has consistently emphasized the significance of the IPO in enhancing trust and transparency for the company, which boasts major financial players such as Goldman Sachs, Fidelity, and Blackrock among its investors. While there have been rumors about Circle’s wavering commitment to an IPO, a spokesperson for the company has refuted such claims, asserting the unwavering pursuit of this strategic move.

Circle
Source: Ryan Selkis

Market analysts, including Messari’s Ryan Selkis, have noted the confidentiality of Circle’s IPO filing but highlighted the company’s strong performance, citing estimated revenues of $800 million in 2022 and a projection of approximately $1.5 billion in revenues and $300 million in profits for 2023. Circle’s decision to go public aligns with a broader trend among crypto companies seeking public status as a means to rebuild trust in the aftermath of the market challenges experienced in 2022.

Ripple’s IPO Anticipation Rises Amid 2024 Projected Market Boom

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In the midst of the reveal of the 2024 IPO market scenario, Linqto, a significant platform facilitating pre-IPO investments, provides astute observations into the economic currents molding the investment realm. In a recent X post, Linqto underscores the subdued nature of the preceding year’s IPO scene while pointing towards a burgeoning investor enthusiasm for forthcoming prospects. With this momentum, the platform delineates pivotal trends to fuel the anticipated 2024 IPO market surge.

Linqto’s assessment paints an encouraging economic canvas for 2024, emphasizing positive indicators spanning diverse domains. Notably, they highlight an upsurge in the Gross Domestic Product (GDP), signaling an expanding economic terrain.

Moreover, the platform underscores a declining unemployment rate, emphasizing augmented job security and consumer confidence. This optimistic outlook is further buoyed by an observed uptick in consumer spending, collectively setting a conducive stage for companies contemplating IPOs.

Ripple’s Market Stability And Capital Surge

Adding to the favorable atmosphere, Linqto observes a dip in market volatility, as evidenced by the Volatility Index. This newfound stability, they argue, fosters an ideal environment for companies eyeing IPOs, instilling a sense of assurance and trust among potential investors.

Pitchbook data echoes this sentiment, unveiling a remarkable upswing in the U.S. VC capital-to-demand ratio, specifically at 2.76 times for late-stage startups. Linqto interprets this surge as a clear signal of burgeoning capital requirements among startups, potentially nudging them towards IPOs as a strategic avenue for sustained expansion.

Noteworthy amidst these projections is the anticipated IPO journey of San Francisco-based Ripple, a prominent player in the crypto payment domain. Anticipation surges as market watchers eye the projected 2024 IPO boom, with a Wall Street financial analyst speculating on a Ripple IPO potentially unfurling in May 2024 or in 2025.

Nevertheless, voices of caution arise within the crypto community, dampening confident forecasts regarding Ripple’s IPO schedule. These voices point to regulatory entanglements with U.S. authorities as a significant hurdle, casting doubt on the anticipated event’s timing.

As the investment landscape readies for an expected influx of IPOs in 2024, the Ripple IPO stands as an enticing possibility. However, it is overshadowed by the unresolved regulatory backdrop, creating an atmosphere of anticipation and uncertainty that has the market teetering on the edge.

USDC Issuer Circle Sets Sights On 2024 IPO

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USDC Connoisseur Circle is reportedly in talks about going public by early 2024, according to a report by Bloomberg citing anonymous sources. The stablecoin issuer has engaged consultants for a potential IPO, although the exact valuation it seeks remains unclear. This marks Circle’s third attempt at going public; in 2022, the company pursued an IPO with a valuation of $9 billion through a blank check deal. Prior to that, in 2021, Circle’s deal with a Special Purpose Acquisition Company named Concord Acquisition Corp. fell through.

The recent development has reignited speculation about Circle’s long-standing goal of becoming a U.S.-listed public company. However, a spokesperson for Circle denied the rumors, emphasizing that the company’s pursuit of an IPO has never wavered. Circle’s investors include major financial players such as Goldman Sachs, Fidelity, and Blackrock.

USDC
USDC Issuer Circle Sets Sights On 2024 IPO 3

The USDC stablecoin, initially boasting a market cap near $56 billion, experienced a significant decline in June 2022. Circle faced challenges earlier this year when it revealed a $3.3 billion exposure to the collapsed Silicon Valley Bank, leading to a brief depeg of USD Coin. Despite these challenges, Circle plans to share financial reports regularly and has enlisted Deloitte as its auditor.

USDC is a cryptocurrency pegged to the U.S. dollar and backed by reserves provided by clients to Coinbase and Circle in exchange for newly created USDC. Coinbase and Circle generate interest income on these reserves, with Coinbase benefiting directly from higher interest rates.

USDC Expansion

Circle has also focused its efforts on Asia, recognizing the potential for stablecoins to play a role in the region’s evolving payment ecosystem. Yam Ki Chan, Circle’s vice president for strategy and policy, highlighted Asia as a natural market for the company due to the growing web3 business and the broader web3 ecosystem. USDC, launched in 2018 on the Ethereum blockchain, has expanded its reach to multiple blockchain platforms, including Algorand, Solana, and Tron.

The creation of USDC was a collaborative effort between Circle and Coinbase, forming the Centre Consortium with the goal of providing a transparent and regulated alternative to other stablecoins, particularly Tether [USDT].

Ripple Gains Momentum Towards IPO Amid Legal Victories

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In a highly anticipated Ripple event, known as Swell, scheduled for the upcoming weeks, the XRP community is abuzz with speculation about potential game-changing announcements. At the forefront of these swirling speculations, Ripple is unveiling its intention to undertake an Initial Public Offering (IPO), marking a potentially game-changing event for the XRP community.

A prominent XRP enthusiast known as WrathofKahneman (WoK) is  Leading the charge in discussing Ripple’s IPO announcement at Swell. Recognizing the immense importance of the upcoming conference, WoK has ventured to explore what the future might hold for the XRP community. WoK has meticulously outlined four key potential developments that could emerge from the Swell conference, with the IPO announcement taking center stage.

The enthusiasm surrounding discussions about IPO has been steadily building in recent weeks, particularly in light of consecutive legal victories. Adding fuel to the fire, Ripple recently dropped a hint about its IPO plans by posting a job opening for a “Senior Shareholder Communications Manager.”

Ripple’s Innovations In CBDCs And Stablecoins

The XRP community’s unwavering belief in Ripple’s imminent IPO has them eagerly anticipating any official statements during Swell. In addition to the IPO buzz, WoK and other community members eagerly await a possible announcement regarding acquiring a Virtual Assets Regulatory Authority (VARA) license during the conference.

Additionally, the crypto community is on the lookout for updates on Ripple’s Central Bank Digital Currency (CBDC) initiatives, advancements in stablecoins, tokenization, and the expansion of XRP’s user base through the introduction of new services. These developments are poised to reshape the landscape of digital finance.

Ripple’s official announcement outlines Swell as an immersive two-day event scheduled to take place in Dubai on November 8 and 9, 2023. The gathering is set to bring together luminaries from blockchain, cryptocurrency, financial services, and economic policy.

The agenda includes discussions on the Future of Crypto, CBDCs, Payments, Compliance, Regulation, and Payments. Participants could delve into digital cash and payments, gaining crucial insights into combining crypto tech with conventional finance. It emphasizes a deep dive into how regulatory measures impact digital currencies.

With Ripple’s Swell event on the horizon, the XRP community remains on the edge of their seats, eagerly awaiting any potential groundbreaking announcements, especially regarding IPO plans.

Crypto Startup Blockchain.com eyeing IPO as early as 2022

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Crypto fintech firm Blockchain.com is holding talks with several banks for an initial public offering IPO that might take off as early as this year, as per sources familiar with the matter. The discussions are in their initial stage as they might get pushed back to the next year if there is a change in the company’s plan, Bloomberg reported.

At the time of writing this post, there was no official comment from the representatives of the startup firm.

Conceived in 2011 UK, Blockchain.com began its journey as the first Bitcoin blockchain explorer 10 years ago and later transitioned into a cryptocurrency wallet provider that allows users to buy and store digital tokens such as Bitcoin.

Besides that, it also operates a cryptocurrency exchange. The firm is led by CEO Peter Smith, one of its three founders.

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Crypto Startup Blockchain.com eyeing IPO as early as 2022 5

Last month, Blockchain.com said that it was valued at about $14 billion in a funding round. The financing round was spearheaded by Lightspeed Venture Partners with major participation from Baillie Gifford & Co., Blockchain.com said.

If succeeded in going public with an IPO, the firm would be only the second crypto exchange in the U.S. to accomplish the feat. Its rival Coinbase Global Inc became the first crypto entity to go live in 2021 at an opening price of $381 per share of COIN with a valuation of roughly $100 billion.

Crypto Firms Racing ahead for an IPO despite regulatory bottlenecks

Several crypto firms are mulling plans for an IPO but regulatory complications often act as roadblocks. For Instance, Texas-based, Rhodium Enterprises, was the first crypto firm to announce IPO plans this year, filing for its offering in late January, only to postpone it days later.

A few weeks ago, Enterprise blockchain firm Applied Blockchain also filed to sell $60 million of shares in an initial public offering on the Nasdaq Global Select Market. It is offering about 3.2 million shares at an estimated mean price of $18.54, according to a filing with the U.S. Securities and Exchange Commission [SEC].

The firm intends to use the money to secure sites for new co-hosting facilities, develop those facilities, and enter into energy service agreements, among other uses, it said in the filing.