Are Crypto IPOs Overhyped? A Closer Look at the Boom

By going public, crypto companies list their shares on the stock market, allowing them to raise capital, attract traditional investors, and potentially increase their valuation.

In the crypto space, IPOs (Initial Public Offerings) also help build visibility and drive adoption. Circle, Coinbase, and Robinhood are among the major publicly listed crypto-related companies. 

More Crypto Companies Are Going Public 

Overall, there are more than 40 publicly listed blockchain companies, mostly on NASDAQ. Some of the biggest are Coinbase, MARA Holdings, and Core Scientific. In 2025, optimism around crypto has led to a wave of IPOs. This is partly because the Trump administration showed support for crypto-friendly rules. Rising crypto prices have also made the financial outlook better, encouraging more companies to go public.

According to data from PitchBook, the number of crypto public listing filings has increased. On June 5, 2025, USDC issuer Circle debuted on the New York Stock Exchange under the ticker “CRCL.” The company raised over $1 billion, surpassing its projected amount of $896 million. CRCL closed its first day of trading at $83.23 per share, 168% above its IPO price of $31 set the previous day.

Other notable crypto companies reportedly considering IPOs include exchanges Gemini and Kraken, XRP issuer Ripple, and blockchain analytics firm Chainalysis. In contrast, only one VC-backed crypto IPO happened in the US in 2024, when Japanese exchange Coincheck began trading on Nasdaq. 

In the past, legal uncertainty often discouraged public listings. A key example is Coinbase’s experience with the SEC: although the company received regulatory approval and went public in April 2021, it was sued two years later for allegedly operating an unregistered securities exchange, highlighting inconsistencies in regulatory policy. The lawsuit was dropped in February 2025 under the new administration.

As the legal landscape stabilizes, more crypto firms may consider public markets.

Why Does It Matter When Crypto Companies Go Public? 

​​Launching an IPO is a strategic move that gives a company access to capital and can shift how institutional investors view the crypto market. Some key benefits of going public include: 

Stronger Capital Position 

One of the most immediate benefits of going public is access to capital. By listing on a stock exchange, companies can raise funds through the sale of shares, capital that can be reinvested in technology, talent, infrastructure, and global expansion. 

Case in point: Coinbase. The public launch of the crypto exchange in 2021 on Nasdaq was one of the key events in crypto. Coinbase shares closed at $328.28, a sharp increase from the reference price of $250. The company ended the day with a valuation of around $86 billion. In its 2018 venture financing round, investors had valued Coinbase at $8 billion.

Trust and Transparency 

Public companies need to provide greater transparency into various corporate practices, including detailed financial disclosures, reliable data reporting, and regulatory compliance. They must analyze performance and communicate it effectively to shareholders. Overall, going public changes the company’s operating cycle, while transparent reporting builds greater market trust. At the same time, company image can drive stock prices up or down, as public perception influences value.

Capital for Bear Market 

Going public gives early investors and employees a way to realize returns through the public markets. Stock options become more valuable, and founders can sell a portion of their stake, often reinvesting that capital into new ventures. After the IPO, liquidity provides more flexibility for the company and supports operations during a bear market. 

Publicly traded stock can be used for:

• acquisitions, 
• attracting top talent with equity compensation, 
• raising additional funds through secondary offerings. 

Founders and early stakeholders benefit from being part of a more stable, well-capitalized, and market-visible organization.

Legitimacy to the Crypto Industry 

IPOs help change the speculative narrative around crypto. Each successful IPO brings a level of legitimacy that the industry has long struggled to achieve. When a crypto company goes public, it demonstrates to regulators, institutional investors, and the broader public that it can:

• meet strict financial reporting standards, 
• pass regulatory scrutiny, 
• operate transparently in line with traditional public companies. 

Going public also forces crypto companies to mature operationally by strengthening internal controls, improving governance structures, and adopting traditional corporate best practices.

What Are the Risks of Going Public? 

Despite the benefits, there’s another side to IPOs: risks and challenges.

The preparation and process of going public are complex, expensive, and require companies to share ownership with investors. Preparing for an IPO and maintaining public company status comes with high costs, including legal fees, accounting upgrades, investor relations, and hiring experienced compliance staff. These expenses can stretch a company’s resources, especially if revenue isn’t yet stable.

One of the biggest risks during an IPO is pricing it wrong, either too high or too low. If the price is too high, the stock might fall quickly after trading begins, damaging both the company’s image and investor confidence. If it’s too low, the company raises less money than it could have, while early investors benefit at its expense. This is especially tricky for crypto companies, where market sentiment can swing wildly.

• In a bull market, hype can push valuations too high, setting the stage for a sharp drop later. 
• In a bear market, negative sentiment might pull the price down, even if the company has strong fundamentals. 

With crypto’s volatility, finding the “right” IPO price becomes even harder and riskier.

Another challenge is the increased scrutiny and strict reporting requirements. Public companies face constant pressure from the market. Stock prices can fluctuate based on news, speculation, or broader economic trends. Even a temporary dip in price can hurt investor confidence and affect the company’s value.

Crypto Business Models and the Roads to Capital

Crypto companies follow different business models depending on what they offer. Some take a traditional route with venture funding and IPOs, like Coinbase and Circle. Others rely on crypto-native methods such as ICOs (Initial Coin Offerings), token launches, and airdrops to raise funds and build early user bases.

Each approach has its own demand drivers. For token-based models, demand often depends on network activity, user incentives, and market hype. For IPO-driven models, it’s more about revenue, user growth, and regulatory compliance.

Ultimately, there’s no one-size-fits-all model. Crypto companies choose different paths depending on market timing, regulation, and the type of value they create. In short, they blend Web2 and Web3 strategies based on market conditions, regulatory clarity, and growth goals, all while finding the best road to capital.

Are Crypto IPOs Overhyped? 

The benefits of going public, like access to capital, increased transparency and legitimacy, plus more options for investors, are clear. But the risks and challenges, such as volatile pricing, regulatory uncertainty, and swings in market sentiment, mean that not every crypto IPO is a guaranteed success.

Sometimes, the hype around crypto IPOs can push expectations and valuations too high. Ultimately, whether going public is the right move depends on the company’s readiness and how the market unfolds.

What’s the Process of Public Listing?

Through an IPO, a private company owned by a few shareholders becomes a public company owned by many investors. From the moment a company announces its IPO plans to the actual launch, the process usually takes several months up to a year, depending on the region. This is because the process is complex.

First, the company needs to be IPO-ready, meaning it must meet certain criteria to increase its chances of a successful offering and strong market performance. The success of an IPO largely depends on how attractive the stock appears to investors.

Regardless of the market, to file for an IPO, a company needs to adopt financial reporting and accounting standards and have a business strategy with growth potential. Here are the key steps of an IPO:

1. Preparation

The company organizes its finances, ensures it meets legal requirements, and selects advisors, usually investment banks. In formal terms, this stage is called underwriting. 

2. Due diligence and valuation

The advisors help determine the company’s value, how many shares to sell, and at what price.

3. Documentation

​​The company prepares all the legal and financial documents required by the local financial authority, such as the Financial Conduct Authority (FCA) in the UK, the Federal Financial Supervisory Authority (BaFin) in Germany, or the U.S. Securities and Exchange Commission (SEC), depending on where it plans to go public. After submission, the authorities begin reviewing the company’s request.

4. Marketing phase, often called a roadshow

Company leaders meet with potential investors to build interest in the IPO.

5. IPO pricing

The company and its underwriters decide on the final share price and number of shares to be sold, based on the demand gathered during the roadshow (or book-building process). This also includes setting the official listing date.

6. Actual listing

The shares start trading on a stock exchange, and the company becomes public. From that point, anyone can buy or sell their shares.

The public listing process is structured and governed by country regulations and the rules of the corresponding stock exchange. At the same time, each IPO is different. Whether it goes well depends not only on company demand but also on factors like timing and well-evaluated pricing that make an impact.