With interest in cryptocurrencies skyrocketing in recent times, popular New York-based crypto exchange Gemini is considering taking its platform public through an Initial Public Offering (IPO).
The Winklevoss twins, Tyler and Cameron disclosed to Bloomberg in an interview today that the current market bull run has prompted the consideration for an IPO, and to make adequate preparations for it, should the need arise.
“We are watching the market and we are also having internal discussions on whether it makes sense for us at this point. We are certainly open to it,” Cameron Winklevoss, Gemini’s co-founder and president was quoted as saying.
U.S Crypto Exchanges Going Public
Conducting an IPO, direct listing, or a merger with a special purpose acquisition company (SPAC) in the United States seems to be one of the hottest topics among cryptocurrency exchanges in the region of late.
While Gemini is still considering the move, popular trading platform Coinbase has made significant efforts in becoming the first U.S.-based exchange to conduct an IPO.
As reported in December, Coinbase revealed that it submitted a draft registration statement on Form S-1 with the United States Securities and Exchange Commission (SEC) to take its exchange to the public.
Similarly, Bakkt announced earlier this week to go public through a merger with VPC Impact Acquisition Holdings, in a bid to further its goal of launching a consumer app for trading and making payments with digital assets.
The merger, when completed, will bring Bakkt’s valuation to $2.1 billion, with a possibility of raising an additional $532 million from VPC’s funds and a concurrent capital raise.
Regardless of which firm first goes public, an IPO for a crypto-related firm would help create more opportunities for the market, especially providing a clear regulation for the crypto industry, a factor that has prevented more institutional players from interacting with the cryptocurrencies.
Furthermore, an IPO would dismiss the false impression that cryptos are mostly used to conduct nefarious activities, thus boosting adoption.
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Author: Lele Jima