Why Are Crypto Companies Rushing for IPOs
With Circle successfully listing on the New York Stock Exchange, Gemini has also secretly submitted an IPO application to the U.S. Securities and Exchange Commission, sparking another wave of enthusiasm in the capital markets for the crypto industry. There are four key reasons why these companies are so keen on going public.
First, Compliance Endorsement
In the context of tightening regulations, going public is the most direct way for a company to prove its legitimacy and transparency. Circle's listing indicates that its stablecoin USDC's business model has gained recognition from regulators and the market. Gemini hopes to further solidify its compliance image through the IPO and maintain a positive interaction with regulators.
Second, Financing Needs
In an environment where venture capital is becoming conservative and the crypto market is volatile, going public has become an effective channel for obtaining long-term funds. Circle raised over $1 billion through its IPO, providing ammunition for the internationalization of USDC. Previously, several mining companies also raised funds through IPOs to expand their infrastructure and operations.
Third, Brand and International Expansion
Going public enhances corporate credibility and helps gain the trust of overseas financial institutions and regulators. Circle is promoting the integration of USDC into payment systems in more countries, and Gemini is accelerating its expansion in European and Asian markets; going public is their stepping stone to global cooperation.
Fourth, Cooperation with Regulators Rather Than Confrontation
Coinbase has chosen to publicly confront the SEC, while Gemini and Circle proactively accept regulation through the IPO process. This represents a path for crypto companies to seek survival and development within the system and may establish more 'compliance precedents' for the industry.
Conclusion
Going public is not just about financing; it is a crucial step for crypto companies toward institutionalization, globalization, and branding. As regulatory rules become clearer, more compliant crypto companies will move toward the capital markets, pushing the entire industry from the fringe to the mainstream.
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