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?
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?
