Coinbase’s Listing will Send Other Crypto Companies’ Valuations “Much Higher,” says Kraken CEO
The US exchange is “gearing up” to go public itself. Jesse Powell, meanwhile, sees per Bitcoin worth a Lambo by the end of the year and one Bugatti probably by next year-end.
While Jesse Powell, CEO, and founder of cryptocurrency exchange Kraken, believes Bitcoin is going to infinity in his recent interview with Bloomberg, he provided more clarity.
According to him, because of all the money printing that’s going on, it’s hard to comprehend in terms of dollars, “it might be easier to understand if we measure it like in terms of Teslas.”
“By the end of the year, I think it'll be one bitcoin per Lambo, and probably by the end of next year, it'll be one bitcoin per Bugatti,” Powell said. One Lamborghini costs in the range of $200,000 to $500,000, while a Buggati’s price starts well over a million dollars.
Tesla started accepting Bitcoin as payment this month following a $1.5 billion investment last month. And thanks to Tesla CEO Elon Musk, “everyone who owns a piece of the S&P 500 now owns a piece of Bitcoin,” and in a single stroke distributing bitcoin to more people than anyone else on the planet,” he added.
And for those who are still on the sidelines, Powell said, they owe themselves to “really take a look at the fundamentals and try to understand why that is. And if you're not understanding that, I think you must not understand how the existing financial system works and how much benefit there is to the world.”
ETH, DOT, & NFTs
As for other assets, Powell spoke about Ethereum’s PoS transition, in the process of which millions of Ether are being locked for an indefinite amount of time which is constraining the supply.
Powell predicted, “north of two thousand dollars a coin for eth by the end of this year.” ETH is currently trading above $1,800 and made ATH at $2,035 last month.
Powell also mentioned Polkadot DOT -2.80% Polkadot / USD DOTUSD $ 27.96
-$0.78-2.80% Volume 1.53 b Change -$0.78 Open $27.96 Circulating 987.58 m Market Cap 27.61 b 1 h Bitcoin’s Monthly Inflow Crosses $100 Million, Solana and Polkadot See “Outsized Inflows” 1 d South Korea’s Largest Crypto Exchange Operator Raises $85 Million at an $8.65 Billion Valuation 6 d Deutsche Boerse Expand Crypto Offering to Include Polkadot (DOT), Solana (SOL), and Tron (TRX) ETNs , “which is sort of the next Ethereum,” and said, “you'll see a lot of things that were on Ethereum be ported over to Polkadot for lower transaction fees.”
He also touched on NFTs, for which there is already a “huge market” as “collectibles business has been around since the dawn of humanity.” Now, it is just moving into the digital format with “tremendous commercial application.”
So, “NFTs are here to stay. Whatever you think about, you know the collectibles segment,” he added.
Valuations Will Go Higher
Talking about Coinbase’s upcoming trading debut in April, Powell said their direct competitor going public is “very exciting.”
While Coinbase was worth about $100 billion pre-IPO, it would “probably be a pop after that.” And because cryptos “really are the future of finance” and can replace everything that exists in the traditional system, “these valuations are very reasonable right now, and they can go much higher.”
This listing, Powell said, will provide them with an example and how to value Kraken.
“Historically, the crypto space has been all private. So we've kind of just got to speculate about how the public markets would value these businesses. And I think it's going to be an indicator for the entire private market. And I think it's going to send valuations of other crypto companies much higher.”
But, Powell assured that the exchange is “gearing up” for that by involving in discussions and “doing more acquisitions,” as their clients are constantly looking for ways to participate in the upside and the performance of the business, something that the SEC doesn’t allow.