Crypto Startup Blockchain.com Plans 2022 IPO

Blockchain.com is a popular crypto exchange and trading platform.

This decentralized startup provides trading and financial services to retail and institutional investors.

CoinGecko says Blockchain.com processes about $15 million in trading volume daily.

The current valuation of Blockchain.com is $14 billion, with over 37 million users across 200 countries.

The startup has begun talks with an investment bank to hold an initial public offering to become publicly listed.

After receiving a private valuation of about $5.2 billion, Blockchain.com attempted to hold its initial public offering in April 2021.

Selecting an investment bank, due diligence, findings, and pricing are some of the procedures for an initial public opening.


More startups are springing up online in recent times than ever. These startups have various use cases ranging from game development, online financial services, software development, training, cryptocurrency, etc.

After gaining acceptance and garnering enough patrons and investors, these startups plan to become publicly listed by the Security and Exchange Commission. Holding an Initial Public Offering is not easy, but it is achievable.

This article will look at Blockchain.com, a crypto startup, and some of its strides in recent times.


What Is Blockchain.com?

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Blockchain.com is one of the popular and widely used crypto exchange platforms. Asides from that, Blockchain.com provides users with non-custodial wallets for its patrons and provides trading and financial services to retail and institutional investors.

According to CoinGecko, Blockchain.com processes about $15 million daily trading volume. The statistic indicates how widely accepted the crypto exchange platform is.

In 2011, Blockchain.com became the first bitcoin block explorer, and it later created a popular crypto wallet application.

Block chain.com is a London-based cryptocurrency startup whose current valuation is about $14 billion. The valuation estimate followed a funding round with a global venture capital firm, Lightspeed Venture Partners.

Blockchain.com is a full-stack crypto services platform that works with native-crypto businesses. The platform provides bespoke lending, trading, and custody solutions for its users.

Blockchain.com has over 37 million users across 200 countries. The platform allows you to store, trade, and exchange crypto tokens via dollars, pounds, and euros.


Blockchain.com Plans An Initial Public Offering (IPO)

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It is no longer news that the crypto exchange and block explorer, Blockchain.com, has initiated talks with the United States banks on how it will hold an initial public offering as soon as possible.

According to a popular report, Blockchain.com is conducting consultations with banks that can help them conduct an initial public offering (IPO). Should the agreements be sealed, the crypto exchange firm will be ready to offer its shares publicly.

Experts opine that blockchain.com has continued to attract private investors due to its unprecedented growth and achievements. The firm was advised to consider choosing the best partner and banks to ensure the company maintains its initial valuation, with time being essential in going public and finalizing its IPO.

Block chain.com attempted an Initial public offering (IPO) in April 2021. The move was pushed by the successful IPO of its rival crypto exchange firm, Coinbase. At that time, Blockchain.com received a private valuation of about $5.2 billion.

In 2022, the crypto exchange firm tripled that valuation amount and sold more equity in its just-concluded March raise. The valuation is now at about $14 billion.

Should Blockchain.com succeed in going public with an IPO, it is expected to be the second crypto exchange platform to achieve the feat in the United States.

While Coinbase is unarguably the first to achieve the public offering feat, the race is now between Blockchain.com and Binance US, which is also planning to go public as soon as possible.

Having explained the functions of Blockchain.com and the plans for its public listing, it is pertinent to identify what it takes for a company to be an IPO and the steps involved.


What Is An IPO?

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IPO is an acronym for Initial Public Offering. It is a process whereby a previously unlisted company that is considered private sells new or existing securities to the public.

The Initial Public Offering procedure involves companies that have a smaller number of shareholders and early investors to become publicly listed companies.

A company that files for initial public listing is private, and after the public offering procedure, it will become a publicly listed company and recognized on the Stock exchange.


Procedures And Steps Of Initial Public Offering

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The procedures for going public have no specified date. Experts suggest that it could take between 6months to a year.

The steps include;

Select An Investment Bank
The foremost step in becoming a publicly listed company is for the issuing company to choose an investment bank. The bank's role will be to advise the company on its IPO requirements and provide the necessary services.

Before a company selects its investment bank, it should consider its reputation, industry expertise, and its prior relationship with such a bank.

Due Diligence And Filings
One of the services to be rendered by the investment bank is underwriting. The underwriting service is the process where the investment bank serves as the broker between the investing public and the issuing company.

The underwriting arrangements include firm commitment, engagement letter, letter of intent, a Best efforts agreement, a syndicate of underwriters, etc.

Pricing
The third step to getting publicly listed is pricing. After the IPO is approved by the Security and Exchange Commission (SEC), the effective date is fixed.

Before the effective date, the underwriter and issuing company will decide the offer price to sell the shares to the public. The price is where the issuing company raises capital for itself.

Transition To Market Competition
The final step in becoming a public listed company is the transition to market competition, and this transition starts 25 days after the initial public offering.

Before the transition to market competition is called the "quiet period," and the Security and Exchange Commission mandates it. After the 25 days elapses, the underwriter will have to provide an estimate regarding the earnings and valuation of the issuing company.


Conclusion

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Since the launch of Blockchain.com in 2011, it has continued to record giant strides and achievements. It has surpassed $1 trillion in transaction volumes in 2022.

Having taken some steps to be an IPO in 2021, the crypto exchange firm is not backing down in becoming publicly listed by 2022 or 2023.

Private investors are already showing active interest due to the growth of Blockchain.com. There are expectations that when they go public, many investors will be willing to buy the shares.



Author: Valentine A., Gate.io Researcher
This article represents only the researcher's views and does not constitute any investment suggestions.
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