Leading Regulated Crypto IPOs Are Expected To Open Trading At 5x the IPO Price
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INX Limited was the first to approach the SEC back in 2018 for approval to issue the world’s first regulated digital asset, the INX blockchain-based token, as a full-fledged security to be freely traded without limitations on any exchange. Coinbase followed INX footsteps in terms of understanding that there is no future for non-regulated digital assets. INX has received the SEC greenlight in late 2019. The crypto giant has received SEC’s clearance as well for listing its shares on NASDAQ, and while Coinbase did not go the whole-nine-yards on the regulatory clearance like INX did, they are definitely setting an example for the rest of the crypto exchanges out there.
INX has listed a ‘pure’ digital asset as a security while Coinbase listed its equity shares, but both companies are blazing a trail for a new asset class to be born under the capital markets’ sky. The question in such Fintech novelties is always about the measure of acceptance by the general public and institutional investors. A company may present financially groundbreaking concepts, but without public acceptance in the form of real-life demand, any such concepts may find themselves short-lived.
A brief glance at the pre-market demand for both companies send clear indications that they seem to be on the right path to massive public adoption.
Coinbase contracts are traded already at nearly $100 billion market cap while INX is forecasted to open at $5.06 per token (yahoo finance, April 6th, 2021) – both at 5x or higher beyond their original public offering pricing. In both cases, global demand is overwhelming with only days left for closing of their offerings and registrations.
Only time will tell if these predictions reflect a possible reality, but one thing is for certain, both INX and Coinbase will be remembered by history as the companies that drove capital markets to its next evolutionary stage.