Even though the IPO market is now closed, Kraken is working on staffing its executive suite with individuals with previous experience in initial public offerings. According to the opinions of several experts, the US crypto currency exchange is playing the waiting game and setting itself up for the long run.
Kraken thinks the "short-term" challenges in the digital asset field will make way for more favorable circumstances. Amid its ongoing global layoffs, the San Francisco-based business is looking (1) to recruit leaders with prior expertise in leading companies through the public offering process.
The fact that Kraken has decided to put up an initial public offering (IPO) team indicates that the crypto currency exchange is considering a listing shortly.
A representative for Kraken stated in an email that the latest hiring is indicative of the growth of both the firm and the sector.
The board of the United States exchange now consists of four members, comprising two directors from outside the business, of which one is an independent contractor.
Notable Companies Joining the Kraken Team as IPO Participants
A position on Kraken's board of directors opened up for Dan Ciporin one month ago. In addition to Ciporin, a highly experienced CEO of a SPAC, the business employed numerous highly skilled financial professionals.
These positions include Chief Financial Officer Carrie Dolan, Chief Compliance Officer C.J. Rinaldi, Managing Director of the United States Guy Hirsch, and Managing Director of the United Kingdom Blair Halliday.
Ciporin and Dolan are two veteran IPO professionals who were instrumental in the success of LendingClub's first public offering in 2014. The initial public offering was a significant event in the history of the US at the time.
Moreover, Dolan was forced to pay a fine for engaging in dubious business activities after that first public offering. Despite this, the team working on the Kraken IPO has already begun preparing the firm for the possibility of an imminent public offering.
In the past, Kraken has dropped hints that it may pursue a direct listing, similar to what Coinbase has done. However, for the time being, the US exchange is maintaining its silence on an update.
The IPO collapsed last year due to increased volatility and falling values. Research by PWC found that proceeds from IPOs were at their lowest level since the financial crisis of 2008. In addition, the study disclosed that the number of offers in 2022 was the lowest it had been in the previous six years.
Owen Lau, an equities analyst at Oppenheimer, mentioned that the initial public offerings (IPOs) fall in 2018 was not limited to the crypto currency industry. In addition, Lau pointed out how persistent interest rate increases were a contributing factor that led to a disappointing market.
According to the equities analyst working at Oppenheimer, "the market is still quite tough, it's still pretty unpredictable, and the Federal Reserve is hiking interest rates." It's not only crypto firms needing help being listed; the broader listing climate is difficult for everyone.
In November 2016, Kraken terminated the employment of 1,100 workers, which represented around 30% of the company's entire staff.