Is Crypto IPO Fever Sign Of Possible Market Top?

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Last Updated on 25 January 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Coinbase has filed for a possible 2021 IPO, eToro is readying theirs and Bakkt is also preparing to go public through a special acquisition vehicle. The Winklevoss twins are said to be in talks with major US investment banks to take Gemini public and rumor has it that two Bitcoin mining equipment firms in China are also negotiating with authorities in Beijing to be listed on either the HongKong or Shanghai stock market.

It looks like IPO fever is heating up in the cryptosphere.

Problem is that last time that crypto and IPO was mentioned so many times in the same sentence was when the 2017-2018 bull run topped.

Are there any similarities and is this a sign of Bitcoin fatigue setting in?

Advertentie.

Harvest?

Barry Silbert, founding member of Grayscale, possibly gave an interesting hint to many others considering going public when he declared that the:

Bakkt valuation is an interesting (read: insane) data point for the Coinbase IPO.

This was a clear signal that the cryptosphere seems to have interpreted as time to harvest.

Given that long tech has been the market play of 2020, which was replaced by long bitcoin in January 2021 only, it indeed looks like an ideal time for crypto companies to reap the benefits of the Wall Street interest in their futuristic digital currency plans, and best to do it before new Treasury Secretary Janet Yellen slaps any regulatory oversight on them.

Tech valuation

Emmanuel Goh, CEO of data analytics firm Skew said:

Given current appetite for cryptocurrencies, I expect extremely strong demand for bellwether crypto companies that are already turning a profit.

It’s clear a gap has opened between private and public market’s valuation for tech companies, inciting startups to fast track a potential IPO.

However, as many of us know, the IPO sign combined with a string of B-list celebrities openly advising you to buy Bitcoin all of a sudden, could also be an indicator that a top (albeit temporary) has formed.

Perhaps that whole Lindsey Lohan advice of two weeks ago was a first sign indeed. Remember that back in the noughties (2000 to 2010) the enthusiasm for the Euro over the dollar also ended when Gisele Bundchen started asking companies to pay her in that currency. Where is she now?