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Are the Crypto Exchange IPOs the end of BTC?

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neweraoffshore

IT Nerd Offshore Guy
Mentor Group Gold
I was wondering what the intentions of for example the Coinbase IPO and the upcoming Kraken IPO are.
Normally companies go IPO after they have their fastest growth rates behind them and growthrates are in decline. Still positive, but a lot less positive compared to their startup times. An IPO because of cash and liquidity reasons only make sense for highly money intensive companies like for example Tesla and the space companies or in the old times the railroad/train companies.
So come on, for what does Coinbase need a vast amount of money? What can they achieve with this amount of money what they couldn't have achieved before? The exchanges are automated companies, they don't need a lot of employess, not a lot of manufacturing ressources and overall less ressources. They had more than enough resources for the last few years.
In my opinion, they see that we are at the end of the bubble, cash out what is cashable and then wait until the bubble bursts.
Especially on the Coinbase IPO day I once again saw that BTC will never receive broad adaption. BTC transaction took over 6 hours until first confirmation with a transaction fee of around 2% of the transaction value. BTC will not be able to be the currency of the masses. Just imagine a world where let's say 1 billion people use BTC. Good luck waiting 2 weeks until the first confirmation...
Don't get me wrong, I love cryptos and I am doing a lot with them. But the IPOs make me worry and the more people come into BTC the less useable it becomes. I think the exchanges which went IPO know what will come as they know if BTC falls, all cryptos will fall doesn't matter if there are cryptos out there which address the broad usability issue.

What do you think? What are pro crypto reasons for the IPOs? Do you think the IPOs are good longterm or just a short term boost which will result in just a bigger crash?
 

azb1

Entrepreneur
I am not an expert.
But I want to mention that
The biggest benefit of IPO is early investors, They want to sell their share.
The biggest Pressure for any startup to face is from early investors, As startups successful, They want big cheques.
So if Startup does not require cash , Due to the pressure of Early investors they going public.
It is the right time for a crypto-related company to goes to the public.

Now Most of the Bitcoin investor sees Bitcoin as a Gold Alternative. So the problem of transaction time becomes irrelavant.
For Mass Adaptation and Daily usage, There are so many cryptocurrencies for instant transfer. I.E. "Bitcoin Cash" It transfers money nearly instantly. For any new technology It takes time for Mass adoption and understanding.
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When Computer is new things, So many third world countries banned the "computer". People thought that It creates a mass unemployment problem. Rest is history.

I am not a bitcoin lover or hater. I do not know what will be the price of the bitcoin.
But Bitcoins are here to stay. Nobody can stop Crypto Development. Virtually It is next to impossible to ban crypto.
Price Speculation is a different game.

Thanks
 

khinkali

Entrepreneur
It was a direct listing not a traditional initial public offering. As @azb1 says it's to make trade easier for shareholders. This includes employee options and maybe convertible bond holders. The NASDAQ listing helps with liquidity and price discovery.

It would have been nice to see a crypto offering instead, but we're a little while before institutional investors can just load up on tokens. FTX are already trading tokenised stock and Binance has announced a COIN token market too.
 

Kol019201

Silver Member
What do you think? What are pro crypto reasons for the IPOs? Do you think the IPOs are good longterm or just a short term boost which will result in just a bigger crash?
I think its a good sign for crypto that exchanges like coinbase and kraken join the stock market. That will result into two worlds connecting.
The initial investment into crypto will always be over exchanges like this, because they are the only ones that can handle all the compliance stuff for FIAT deposits.
 
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