3 Reasons Why Tokocrypto is the Real Deal for the Public Equity Market
The genesis of cryptocurrency can be traced back to the release of Bitcoin’s whitepaper in October 2008 but it was not until July 2013 when the concept of crypto crowdfunding came to life through the undertaking of the first initial coin offering (ICO) by Mastercoin which managed to raise 31,000 Bitcoins (BTCs) that were worth around USD18 million at the time but today are worth more than USD1.4 billion. In contrast with the rising prominence of BTC, ICO was a victim of its own success as the popularity of this method of crypto fundraising resulted in the ICO domain being flooded with scammers so much so that a study published in July 2018 found that 80% of ICOs conducted in 2017 were scams with the top 10 biggest of the lot swindling unsuspecting investors of a total of USD687.4 million.
It was in this context that initial exchange offering (IEO) came about to offer a more secure alternative to ICO by subjecting crypto crowdfunding projects to due diligence vetting by exchange platforms prior to being allowed to be launched on the relevant platform. In this manner, IEO brings into play the element of the reputation of exchange platforms which may end up falling by the wayside if any of the crypto crowdfunding projects listed on their platforms turn out to be a scam. This state of affairs resulted in an IEO market in which the listing fees charged by an exchange platform reflected, by and large, on the reputation of the platform.
Notwithstanding its benefits, IEO is conceptually antithetical to the decentralization ideals of crypto leading to the inception of initial decentralized offering (IDO) which involves the listing of crypto crowdfunding projects on decentralized exchanges. In April 2021, the crypto evolution came full circle when Coinbase was listed on the United States (U.S)’ NASDAQ stock exchange under the ticker COIN, albeit through the direct listing channel as opposed to the traditional initial public offering (IPO) method.
Riding the Crypto Public Listing Trend
Through its pioneering listing on NASDAQ which stands as a first for a crypto-based entity, Coinbase has sparked off a public listing trend in the crypto industry. Leading the way is Binance U.S whose President Brian Shroder had on 28 March 2022 announced that the company is on track for its IPO within the next two to three years with a “couple of hundred million dollars” in funding set to be announced in April 2022. A crypto exchange which is at a more advanced stage of its IPO listing plans is Japanese cryptocurrency exchange Coincheck which had on 22 March 2022 announced that it would be following in the footsteps of Bakkt (NYSE: BKKT) by merging with a special purpose acquisition company (SPAC) i.e. Thunder Bridge Capital Partners IV Inc (NASDAQ: THCP) for its public listing on NASDAQ in a USD1.25 billion deal.
In many ways, Coinbase has paved the way for the public listing of crypto market players with a host of big names including Kraken, Blockchain.com, eToro, BlockFi and Gemini currently at various stages of their public listing projects. Spoilt for choice, the million dollar question for investors is as to what precisely are the signposts which mark the potential for success of a crypto public listing prospect.
When it comes to the public listing of crypto market players, the three key factors that investors should take into consideration are market share, financial valuation and revenue streams. With regard to market share, investors should keep an eye out for crypto industry players with market dominance as the crypto market is akin to a pond in which the big fishes tend to keep getting bigger. Case in point is Binance which in the span of less than five years since its launch on 14 July 2017 has grown into the largest crypto exchange in the world in terms of trading volume while continuing to record exponential growth rates.
In relation to financial valuation, investors should look into the venture capital (VC) fundings of the target crypto market player as VC capitalists are expert investors whose eyes are trained to identify companies with high financial valuation i.e. those with strong fundamentals and growth potential. If a target crypto market player has received VC fundings from Binance who had in October 2021 launched a billion dollar growth fund, investors can bet their bottom dollar that the market player is their best bet in the public equity market. As for revenue streams, investors should study the business frameworks of the target crypto market player to look for signs of diversification because in the roller coaster crypto market, it would be wise for a market player to refrain from putting all its eggs in one basket but instead to diversify in order to optimize its business revenue from a wide cross-section of the market.
Tokocrypto, The Crypto Ace of Public Listing
Having been around the crypto block since September 2018, Tokocrypto has established itself as the household name for all things crypto in Indonesia. Whilst Tokocrypto continues to build on the operations of its exchange platform in Indonesia and expand the coverage of its services to the rest of the world through Toko Token (TKO) which is the native utility token for our Tokoverse ecosystem, our co-founder and CEO, Pang Xue Kai aka Kai has sets his sights on taking the company public within the course of the next two to three years. At this juncture, it may be apt for us to consider the 3 reasons why Tokocrypto is the real deal for the public equity market:-
Reason #1 — The Leading Exchange in Indonesia’s Crypto Market (Sizeable Market Share)
When it comes to crypto exchanges, the name of the game is undoubtedly trading volume which stands as the ultimate benchmark that serves as a conclusive yardstick with which to measure the dominance of a market player and how it stands vis-à-vis those of others in the market. In this regard, Tokocrypto’s trading volume over the last two quarters leading up to 31 March 2022 speaks for itself as the leading crypto exchange in Indonesia with a sizeable market share of the country’s crypto industry.
Reason #2 — VC Investments from Crypto Big Names (High Financial Valuation)
VC investments in Tokocrypto by big names in the crypto investment market including QCP Capital, Binance and Signum Capital stand testament to our strong fundamentals and growth potential which is why you can be rest assured that Tokocrypto with its high financial valuation is your ticket to making a killing in the public equity market.
Reason #3 — Here, There and Everywhere in the Crypto Domain (Diversified Revenue Streams)
Through our avant-garde crypto ecosystem Tokoverse, Tokocrypto’s operations has expanded beyond crypto trading services to cover other areas in the crypto domain including utility token (TKO), non-fungible token (NFT) marketplace (TokoMall) as well as blockchain venture and crypto community building (TokoLaunchpad and T-Hub). Having laid the groundwork for Tokocrypto operations with its diversified revenue streams that straddle across both the blockchain and crypto domains, investors can be rest assured that Tokocrypto’s business revenue is optimized to cover a wide cross-section of the market.
In many ways, the future prospects of Tokocrypto are inextricably intertwined with those of Indonesia’s crypto market whereby in order to further our understanding of the market, we have come up with our Indonesia Crypto Perspective Report 2022 which puts into context how Indonesia’s crypto market fares against its Southeast Asian peers.
Armed with the strong positioning of Indonesia’s crypto market, Tokocrypto is set to unleash its full potential through our future public listing. Till then, Tokocrypto will continue to work on shoring up its fundamentals to facilitate the realization of the company’s growth potential through the harnessing of its sizeable market share, high financial valuation and diversified revenue streams to ensure that Tokocrypto would be the real deal for the public equity market.
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