Crypto Exchange Kraken Considers IPO After Coinbase Performance Post Direct Listing

Kraken’s Chief Executive is reportedly reconsidering the direct listing approach to take the crypto exchange public.

What Happened: Jesse Powell, who co-founded Kraken in 2013 and acts as the exchange’s CEO, told Fortune on Thursday that an IPO now seems like a more attractive option.

Powell appears to be making his decision based on the performance of rival Coinbase Global Inc COIN after its direct listing in April.

"An IPO is looking a little more attractive in light of the direct listing's performance," said Powell. "I would say we're looking at it more seriously now having the benefit of seeing how the direct public offering played out for Coinbase."

Coinbase made its public debut on the Nasdaq in April with a valuation of $85.7 billion, far exceeding other direct listings like Roblox Corp RBLX and Palantir Technologies Inc (NYSE: PLTR).

However, the stock has fallen by over 32% in value since the date of its listing, with its most significant decline beginning as the price of Bitcoin began its own downward trend.

"I think [Wall Street is] just so tied up in the legacy way of doing things," said the Kraken CEO when asked about Coinbase's stock performance. According to him, these big players have “a lot to lose” from the success of the crypto space.

Read also: Coinbase Faces Class Action Suit From Customers Allegedly Locked Out Of Their Accounts For Long Periods

Powell hopes to take Kraken public during the second half of 2022 when he expects the market will be more experienced.

"Hopefully we'll have more analyst coverage out, and there's just more of a track record of growth for the industry that people feel like they can rely on," he said.