Kraken: IPO at the end of the year

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The head and founder of Kraken referred to the second half of the year as the period in which the cryptocurrency trading platform will offer its shares for public trading.

There are just over two months left until the end of the year and, if the head of the cryptocurrency exchange platform Kraken’s statement is true, then there are two months left until Kraken goes public. The head and founder of Kraken, Jesse Powell, referred to the second half of the year as the period in which the cryptocurrency trading platform will offer its shares for public trading. ProfitLevel summarizes the most frequently asked questions and answers from investors.

What is the value of the Kraken platform?

There are mixed reviews. According to sources cited by Bloomberg last June, the market value of Kraken may range from $10 billion or more. It is said that it is not out of the question for the market to value the cryptocurrency trading platform at a price higher than $20 billion. However, this is all just speculation, which is aimed at increasing the subscription value of Kraken shares as much as possible.

How will Kraken go public?

The company is considering two options, according to various sources. Either a traditional public listing of shares through an intermediary (a normal Initial Public Offering), or using a so-called direct listing. This is the process of going public without intermediaries. At the same time, the company has excluded the possibility of going public through a so-called SPAC. This is a way in which a company is listed through the acquisition of another company that is already listed.

How many shares will Kraken offer?

That depends on how the company goes public. If it were to decide on a direct listing, then existing owners can offer any number of shares or any number of shares. If one is going to go the standard Initial Public Offering (IPO) route, there are restrictions. However, Kraken has not yet announced what stake it wants to offer to public investors.

At what price will Kraken’s shares be trading at the time of the Initial Public Offering?

This again depends on whether the company opts for a formal Initial Public Offer or a direct listing. In the case of a direct listing, the initial trading price is not known. And as it is not yet clear whether Kraken will go through a formal Initial Public Offering, we cannot know the share price.

Is Kraken the first cryptocurrency trading platform to go public?

No, it is not. Coinbase was the first cryptocurrency trading platform to go public. Its IPO took place on April 14, 2021. Also, in the case of Coinbase, the share price was not known at the time of listing, as Coinbase opted for a direct listing.

Is a potential investment in Kraken shares suitable and safe?

This question is very difficult to answer. Stock markets have declined by about a quarter since the beginning of this year. Taking this into account, it seems that Kraken will enter the stock market at a time when the market is in a downward trend.

But at the same time, it’s de facto that a technology stock and technology are receiving the
the biggest hits in the current period.

How can one buy shares of Kraken?

The easiest way will be to use one of the trading platforms. Kraken shares are expected to be offered in the most frequent category. Forward-looking statements are based on assumptions and current expectations, which may be inaccurate or the current economic environment, which may change.

Such statements are not a guarantee of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied in any forward-looking statements.

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