Following cryptocurrency exchange Coinbase filing a draft registration for a public offering with the United States Securities and Exchange Commission yesterday, research company Messari has valued the company at $28 billion.
Coinbase is one of the biggest exchanges worldwide, with daily trading volumes of over $1 billion. Assets under custody have grown to $20 billion from $7 billion in 2019.
A previous fundraising round in August 2017 saw Coinbase’s valuation break the $1 billion mark, gaining it unicorn status. The most recent round gave the company a value of $8 billion in October 2018.
An August 2020 report from research company Hurun had not updated this $8 billion figure, despite increases in daily trading volume and assets under custody.
On providing its latest $28 billion valuation, Messari’s analyst noted the significance of such a major IPO in the crypto space:
This listing is important even for Token valuations as Coinbase will provide a valuation anchor — not only for future equity listings — but also for crypto-native exchange tokens.
Meanwhile, an unconfirmed 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 “conservatively” estimates that the decentralized exchange could “command a premium five times higher than traditional exchanges,” or roughly ten times Messari’s current valuation for Coinbase.
A target valuation of $2,192 per token would represent a return of over 41,000% on today’s price.
Twitter commenters noted that the company has made similar predictions that did not come to fruition in the past.