Bakkt, a crypto exchange owned by the Intercontinental Exchange, prepares to go public
The company wants to be one of the first crypto exchanges to be listed in the United States.
Bakkt has a current value of $ 2.1 billion.
Many crypto companies like Bakkt, whether mining farms or exchanges, choose to go public to raise additional capital and increase their credibility.
The latest organization is Bakkt , the crypto exchange owned by Intercontinental Exchange Inc. (ICE). ICE owns the New York Stock Exchange and various other financial and derivative markets.
Preparing for an IPO
It is arguably no surprise that the company behind the Wall Street Stock Exchange intends for its crypto exchange to go public . This follows the drastic price increases observed in the markets in recent months.
Bakkt will be the first major U.S. cryptocurrency platform to be listed. Competing companies like Coinbase and eToro are also gearing up for their own IPOs.
Bakkt entered the cryptocurrency space as a super exchange backed by institutions, like venture capitalists such as Pantera Capital and the venture capital arm of Microsoft.
With a current value of over $ 2 billion, the IPO is expected to attract large investors. Bakkt’s IPO could be beneficial for the company and serve as a general indicator of the public’s outlook on cryptocurrency-based businesses as a whole.
Does Bakkt keep up with its competitors?
According to the @BakktBot Twitter account, an automated account that tracks Bakkt’s trading volume, the company’s daily volume has taken a pretty big hit. The volume is down about 40% and barely exceeds $ 20 million.
That’s around 606 bitcoins, a massive drop from her record 18,718 BTC trading volume, which she secured in mid-September 2017.
The other centralized and decentralized exchanges having recorded record transaction volumes in parallel with a rise in prices, this does not bode well for the trailing operator.
By comparison, Coinbase, a competitor to Bakkt which is also preparing to go public, has a daily trading volume of nearly $ 4 billion.
Coinbase is expected to have a much higher valuation than Bakkt, which could reach $ 28 billion. This is a 12 times multiplier compared to Bakkt. Same goes for daily trading volume, Coinbase performs over 12 times that of Bakkt.