After cryptocurrency exchange Coinbase submitting a draft registration for a public offering with the US Securities and Exchange Commission yesterday, research firm Messari estimated the company at $ 28 billion.
Messari’s model examined the various business segments of the company, such as commerce, custody and debit cards, to arrive at this figure.
Coinbase is one of the largest exchanges in the world, with daily trading volumes exceeding $ 1 billion. Custody assets have grown from $ 7 billion in 2019 to $ 20 billion.
A previous round of fundraising in August 2017 saw Coinbase’s valuation break the $ 1 billion mark and achieve unicorn status. The most recent round gave the company a value of $ 8 billion in October 2018.
An August 2020 report from research firm Hurun had not updated this $ 8 billion figure, despite an increase in daily trading volume and assets in custody.
Providing the latest $ 28 billion valuation, Messari’s analyst pointed out the importance of such a large IPO in the crypto space:
This listing is important even for token ratings, as Coinbase will provide a valuation anchor – not just for future stock listings – but also for crypto-native exchange tokens.
Meanwhile, an unconfirmed one report claims that Teeka Tiwari’s Palm Beach Research Group has predicted a future valuation of $ 242 billion for DeFi platform Synthetix.
The alleged buy notice for Synthetix (SNX) tokens “conservative” estimates that the decentralized exchange “could charge a premium five times higher than traditional exchanges,” or roughly ten times Messari’s current valuation for Coinbase.
A target value of $ 2,192 per token would represent a return of more than 41,000% on the current price.
Twitter commenters noted that the company has made similar predictions that have not come true in the past.