A possible listing may offer a valuation anchor, for future crypto IPOs and crypto-native exchange tokens.
After Coinbase crypto exchange filed a draft registration for a public offering with the US Securities and Exchange Commission on December 17, Messari research firm has valued the exchange at $28 billion.
Messari’s model was seen to examine the firm’s different business segments, including trading, custody, and debit cards, to come to this valuation. Coinbase is one of the largest exchanges globally; recording daily trading volumes of at least $1 billion. Furthermore, assets under custody have increased to $20 billion from $7 billion in 2019.
A past fundraising round in August 2017 saw Coinbase’s valuation surpass the $1 billion mark, gaining its unicorn status. The most recent round gave the firm a value of $8 billion in October of 2018.
Interestingly, an August 2020 report compiled by Hurun research company failed to update this $8 billion valuation; despite increasing daily trading volume and assets under custody. After Messari analysts offered the latest $28 billion valuation for Coinbase, they acknowledged the importance of such a major IPO in the cryptocurrency sector:
“This listing is critical even for Token valuations as the Coinbase exchange will offer a valuation anchor for future equity listings and crypto-native exchange tokens.”
In the meantime, an unconfirmed report alleges that Teeka Tiwari’s Palm Beach Research Group has projected a future valuation of $242 billion for the Synthetix DeFi platform.
The purported buy notice for Synthetix (SNX) tokens “conservatively” says that the decentralized exchange may “command a premium five times higher than traditional exchanges,” or approximately ten times Messari’s current valuation for Coinbase.
Notably, a target valuation of $2,192 per coin could represent a return of at least 41,000% compared to the current market price.
Twitter commentators said that the firm has already made similar forecasts that did not come to pass in the past.