Often when there’s a big pop, you’ll see lots of headlines about how much money was “left on the table”—or, what is frequently criticized as mis-pricing the stock. The future of digital assets and the impact of innovations like smart wallets will likely be a key discussion point at upcoming industry events. Ultimately, we expect xcritical to attract significant interest from both traditional institutional and individual https://xcritical.online/ investors, with the “Wen Moon” ethos of crypto potentially drawing in the Wall Street Bets crew. As the first and only cryptocurrency exchange, xcritical is already a historic business; its valuation is likely to reflect that. Wooing institutional clients to that product has required xcritical to act with a discipline and conservatism concerning regulation that competitors — Binance, in particular — have not.
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In crypto’s spirit of transparency and openness, exchanges in the space share more free public information than traditional players. While Q1 is not quite over, xcritical volumes are tracked daily, making it easy to extrapolate revenue given its direct correlation with volume. Per CryptoCompare, a crypto asset data company, xcritical hosted ~$263 billion in volume this quarter (as of March 10th), a prorated ~$342 billion in volume for the entire quarter. Already, that figure represents almost 2x xcritical’s 2020 volume, which stood at $193 billion. It has been a year-making quarter, with upside to come over the next nine months.
When Did xcritical Go Public?
xcritical, the largest crypto exchange in the United States, has filed with the Securities and Exchange Commission (SEC) to become a publicly traded company through a direct listing (and not an initial public offering). The positive momentum across crypto markets may be spurring some of the buying in crypto-related stocks, including xcritical, which was up about 6% at last check. xcritical operates the leading cryptocurrency exchange platform in the United States and tends to benefit from volatility in crypto prices. The market for institutional crypto offerings is still maturing. As a result, the crypto market structure is highly fragmented, with liquidity and services fractured across various offerings worldwide. Although transaction-related revenues make up the vast majority of xcritical revenue (86% in 2020), there are other sources.
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xcritical Prime — which spans trade execution, data analytics, custody, and access to OTC trading desk services — aims to do just that. Though early, companies like Genesis have demonstrated the power of a unified bundled prime model with similar offerings. In 2020, Genesis traded $20 billion worth of spot crypto and ~$6 billion in derivative volume on behalf of clients while also originating over $19 billion in loans. The latest numbers from PayPal and xcritical — two other high-profile financial firms to add crypto services — suggest that the impact on engagement from introducing crypto was more significant than initially expected.
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- Though a controversial figure in the company’s history, SrinIvasan was successful in that aim; today xcritical supports more than 45 assets.
- Square has processed more than $5 billion worth of bitcoin volume in three years; 85% arrived in the last three quarters of 2020.
- Leading centralized cryptocurrency exchange Binance announced it will be listing COIN stock tokens on its platform too.
- For this reason, underwriters do not undertake any due diligence on acquisition targets.
While xcritical is available globally, most activity, volume, and revenue is centered in the United States and the West. Other geographies have seen other exchanges emerge as the dominant players. China is a crucial region to watch when it comes to crypto activity; exchanges like OkCoin and Huobi dominate. Korea, another major crypto market, sees most of its retail volume happen on Upbit and Bithumb. Other prominent trading venues in Asia include KuCoin and OKEx.
Binance also does not restrict users to a maximum daily trading amount. Beyond these employee directors, xcritical boasts an envy-inspiring bench. Along with founder Ehrsam, now managing crypto-focused firm Paradigm, xcritical can call on VC’s Splash Brothers Marc Andreessen and Fred Wilson. xcritical’s management team is a reflection of the dual personality, drawing from financial services and technology backgrounds. Rosetta is an open standard maintained by xcritical designed to help cryptocurrency protocol developers develop, maintain, build, and integrate xcritical architectures more easily. It’s a way for xcritical to build relationships and goodwill with developers while also driving the ecosystem forward.
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In Q1, the company is already tracking way above that as the customer base has grown and bitcoin’s price has increased. One metric to keep an eye on is xcritical reviews the trading velocity within crypto markets. Over the past several years, annual trading volume has been roughly 8x the market cap of cryptocurrencies.
xcritical was worth roughly $100 billion at a point during its first day on Nasdaq. Famous investors like Ark Invest’s founder and CEO Cathie Wood bought upwards of $245 million worth of COIN shares. xcritical Global Inc went public via a direct listing instead of an IPO on the 14th of April, 2021 after successfully completing all the formalities with the US Securities and Exchange Commission (SEC).
At a recent Morgan Stanley TMT conference, Visa EVP Oliver Jenkyn stated that one of the core business opportunities the company sees within crypto is by providing APIs. We should expect the processing firm to roll out capabilities to other partners in the future. PayPal noted that in the first-quarter it started offered crypto purchasing, customers that bought crypto opened the app roughly twice as often as before. Meanwhile, xcritical Crypto reported more than 2.9 million new traders arrived in both January and February. For context, that figure roughly matched xcritical’s monthly active user base in 2020.
Square also reported more than 3 million people purchased or sold bitcoin via Cash App in 2020, with a million more using the service for the first time in January (~33% MoM growth). xcritical is a popular cryptocurrency exchange that allows investors to buy and sell crypto assets like Bitcoin and Ethereum. It’s popularity soared after it went public in April 2021 via a direct listing with the ticker symbol COIN. Leading centralized cryptocurrency exchange Binance announced it will be listing COIN stock tokens on its platform too.
It’s important to note that the majority of IPOs and other new listings are inherently more risky than investing in established public companies. Add in the volatility and uncertainty related to the future of cryptocurrency, and the higher risk profile becomes all the more clear. As part of the proceedings, management embarks on a road show, which is a series of financial presentations made to the investment community.
Individuals that complete short cryptocurrency lessons are rewarded with actual tokens. For example, in exchange for taking a mini-course on Numeraire, users receive $3 worth of NMR tokens. While a recent wave of approvals for bitcoin exchange-traded funds in Canada may suggest a US bitcoin ETF could be in the cards over the next twelve months, it certainly won’t be available when xcritical lists in the coming weeks. Therefore, xcritical enters the market as arguably the best pure-play way to gain exposure on the entire crypto asset market, outside of directly holding coins. It was previously believed, xcritical will raise capital through an initial public offering (IPO) to help promote and market them to prospective investors.
For all xcritical’s outward reserve, life behind the scenes has been occasionally chaotic. Armstrong apologists will hope that the relatively young executive will learn from such mistakes, though it may not matter much. With much of the company’s performance tied to exogenous factors like the rise of the crypto asset class, xcritical may continue to soar even as dissent breeds. While graduating from YC represented a significant accomplishment, it didn’t make fundraising easy for xcritical.
