For a long time, the world of cryptocurrencies has been seen as an enemy of traditional finance. After all, the main reason for Bitcoin’s existence is to become a replacement for fiat money. However, this vision has been changing over the years, with more and more actors seeking an integration between traditional finance and crypto assets. For this reason, there are many who consider that an IPO would benefit crypto companies.
The Coinbase IPO
Even today, there are many within the crypto market that consider the traditional financial market an enemy to beat, and not a support for the crypto world.
Thus, the logic of these users is that cryptocurrencies should completely sweep away the current international financial system. And put in place a new economic framework based on Blockchain technology.
This view has been dominant within the crypto world for a long time. However, it is beginning to change faster and faster as the goals of major crypto companies, including Binance and Justin Sun’s conglomerate, begin to shift toward developing decentralized finance.
A mission in which traditional finance can be very useful, allowing crypto companies to obtain the necessary financing. Something Coinbase would try to achieve with its own IPO in the coming months. With which they would become one of the first large crypto companies that uses traditional finance to boost the crypto market.
The benefit to crypto companies
And this decision by Coinbase, would already be starting to impact other crypto companies, which would be considering carrying out their own IPO. Which makes sense considering that the traditional financial market today is $ 35 trillion, compared to just $ 287 billion in the entire cryptocurrency market.
Which means that with only a small fraction of the resources that move in the stock market enter crypto companies. There is the potential to double the value of the cryptocurrency market, and finance projects related to Blockchain technology in all sectors.
Such a move by crypto companies would not be without precedent within the crypto market. Well, there are at least 20 companies in the entire cryptocurrency ecosystem that have gone to different exchanges around the world. Including mining giant Bitmain, which is currently listed on the Hong Kong Stock Exchange.
However, there is now a possibility that this trend will become a widespread move by crypto companies. It also leads to higher levels of integration between traditional and crypto assets markets, and ultimately to substantial growth of the crypto market.
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