The two major factors that could strengthen the legal position of the cryptocurrency in the United States are the decreased volatility of Bitcoin and Public listings of major crypto enterprises. A few days ago, Coinbase received authorization from NASDAQ to list their security under the ticker COIN from April 14th. Now, another major crypto exchange Kraken is making plans to go in the same direction.
Kraken was founded in 2011 and owned by Payward Inc. The US-based crypto exchange boasts more than 4 million users at present, and the number keeps getting bigger every passing second. Jesse Powell has remarked the exciting news in a new interview with CNBC about the plans of the enterprise to go public by 2022.
Are Public Listings and IPOs of Crypto Exchanges Good for the Digital Currency Market?
There have been some speculations that the IPO or initial public offering can cause a crash in the crypto markets and bring price volatility by increasing the selling pressure on the market. However, Coinbase has decided to eschew the traditional IPO debut at the stock market and go for a direct listing. A direct listing is a process where a company facilitates its shares directly at NASDAQ without hiring investment banks for drumming up the interest.
Meanwhile, Kraken CEO Jesse Powell also told the media that the exchange is not in a hurry to get listed on the stock exchange, and they are taking things slowly to see how everything works out for Coinbase first. It should be noted that Kraken’s overall market capital could inflate to $20 billion in the aftermath of this public listing.
Online Brokerage Application Robinhood Reaches 9.5 Million Cryptocurrency Traders
Robinhood broke many records when it was introduced in 2013 as a free online brokering firm. Robinhood is not a conventionally cryptocurrency-centric platform. However, it introduced digital asset trading for its users as early as 2018. There are about 17 cryptocurrencies that are accessible on the platform presently. Robinhood does not allow users to transfer their stash from digital wallets.
The users of Robinhood have to purchase the digital currencies from the existing sources on the platform. In the first quarter of 2021, the trading platform has witnessed an uncanny 458% growth in crypto traders. It should be noted that the enterprise has filed the application with SEC for public listing approval. The listing application is a result of customer insistence and backlash for limiting trading during the GameStop Fiasco.