Binance-Backed Crypto Exchange Tokocrypto Aims For IPO

Indonesian crypto exchange Tokocrypto, backed by the world's largest exchange, Binance, reportedly aims to hold an initial public offering (IPO).

What Happened: According to a Wednesday Nikkei report, Tokocrypto wants to debut on the public market within two to three years. 

"I'm saying two years because we need to be profitable for at least more than two years before listing. We are already profitable now. Our key focus at Tokocrypto is to grow the business further, expand our operations to more parts of Indonesia and make crypto mainstream in the country," the company's CEO Pang Xue Kai said.

Tokocrypto reportedly raked in $10 million of profits through its 0.1% trading fees this year alone.

Kai said that it is still too early to talk about valuation, but it hinted at the US-based cryptocurrency exchange Coinbase inc. COIN with its direct listing valuation of $100 billion as a "close reference," a valuation that at the time was deemed "ridiculous" by some market onlookers.

The Indonesian exchange launched in 2018, with backing from Binance and QCP Capital and reports to local regulator Ministry of Trade by the Commodity Futures Trading Regulatory Agency.

Read also: Hackers Steal $7.2M From Another DeFi Protocol On Binance Smart Chain

Tokocrypto also launched its own Toko Token TKO/USD and claimed to be gaining one user every five seconds with a current total of about 800,000 users.

Price Action: According to CoinMarketCap data, Toko Token's price increased by over 32.5% from its 24-hour low of $1.8966 to a high of $2.5142, before settling at $2.36 as of press time.

These tokens can be used to gain a fee discount, obtain free digital assets, redeem merchandise and earn interest on deposits.