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Bakkt to Start Listing at the New York Stock Exchange

On Monday, October 18, another crypto-based firm, Bakkt Holdings, will become a publicly listed company. This listing comes a few months after the firm outlined its plans to make this listing. With this new listing, Bakkt will be joining firms such as Coinbase that already have shares trading on leading stock exchanges.

Bakkt Holdings Merges with VPC Impact Acquisition Holdings

When Bakkt Holdings announced that it wanted to go public, it noted that an acquisition would be the way to go. To effect this, Bakkt stated that it would make this development happen through a merger with VPC Impact Acquisitions Holdings.

The merger between two firms also paved the way for ICE’s Bitcoin futures platform. Hence, its shares will be traded on a US cryptocurrency exchange. The shares will start trading on exchanges with a company valuation of around $2.1 billion.

In a press release issued at the beginning of the week, the company stated that it had finalized all the negotiations regarding the share listing. The shares will be listed as a Class A common stock. The shares will be listed at the New York Stock Exchange under the ticker symbols BKKT and BKKT WS.

Move to Increase the Firm’s Capital

Speaking on this public listing, the firm’s CEO, Gavin Michael, stated, “Today marks a special day for Bakkt. Closing the business combination provides us with the necessary capital to continue to do what we do best, which is to innovate. We are thrilled to enter the next chapter, and we look forward to propelling our growth initiatives and advancing our mission of connecting the digital economy.”

The press release also stated that Bakkt has also generated major financial gains from this merger. The gross proceeds of the merger came in at around $450 million, which is a major gain for the firm.

The firm stated that these proceeds would be used to finance investments in the firm. Among the fund’s objectives will be to boost the firm’s capabilities and boost its marketing efforts. Besides, the funds will also be used to facilitate the firm’s current and future partnerships.

Crypto firms have been enjoying a growing rate of adoption. Bakkt will be joining the likes of Coinbase, which became the first major exchange platform to become a public company. At the time of listing, Coinbase had a valuation of more than $100 billion. However, the current share price is 25% lower than what it was trading at in April.

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Michael Saylor Discusses How The Future Of A Crypto Is Determined

The value of crypto and how it is determined is one that is still being debated strongly in the financial community. A lot of figureheads pop out to say that there is no value and crypto is just internet money, not real money. These arguments are however put to shame with the value that cryptocurrencies::Listen

The value of crypto and how it is determined is one that is still being debated strongly in the financial community. A lot of figureheads pop out to say that there is no value and crypto is just internet money, not real money. These arguments are however put to shame with the value that cryptocurrencies currently command in the market. The total crypto market valuation is over $2 trillion, higher than some of the most valuable companies in the world.

Related Reading | Jack Dorsey Focuses On Bitcoin After Stepping Down As Twitter CEO

For most, how the value of a cryptocurrency is determined is by the investors. As long as investor A is willing to buy crypto from investor B, then the cryptocurrency is valuable. MicroStrategy CEO Michael Saylor, Bitcoin maximalist and crypto enthusiast, has weighed in on this debate.

Determining The Value Of A Crypto

Michael Saylor is a vocal supporter of bitcoin and crypto in general and has always emphasized the value which they carry. One of these is as an inflation hedge which is becoming an increasingly popular reason why investors are flocking to the crypto market. However, it is also important to address why cryptocurrencies are so valuable and how they attain this value.

In a video posted to popular social media platform Twitter, Saylor explains that investors are the ones who determine the value of an asset. The CEO emphasized that as long as there is someone willing to purchase the crypto, no matter which one, then that digital asset has value.

Crypto total market cap chart from TradingView.com

Total crypto market cap falls to $2.5 trillion | Source: Crypto Total Market Cap on TradingView.com

This is the main driver behind the recent success of the meme coins. These coins have no utility to speak of per se, but since there are hundreds of thousands of investors willing to pay for them, then they become very valuable.

The Destiny Of An Asset

In the video, Saylor also mentions that people do not only determine the value of a cryptocurrency, they also determine its destiny. It all boils down to the motive with which investors are buying the coin.

“If you own a ‘Joe random yoyo coin’ and you’re owning it to flip it on Saturday night depending upon which way a football game goes, that’s the destiny of the asset,” Saylor said. “It’s going to be short-term because the people are short-term,” he added.

Related Reading | Ethereum Fees Suggest DeFi Is Becoming The Playground Of The Rich

Saylor explained that before anyone buys crypto, they should ascertain what the strategy or intent of the people purchasing that asset is. For some, they are only in it to make short-term gains. Others are usually in it for the long-term and as such make a stronger asset.

Making the case for bitcoin, the CEO said, “What’s the character of the people that own Bitcoin? If everybody bought it because they intend to hold it forever, isn’t that the kind of asset you want?” According to Saylor, Bitcoin is something that cannot be recreated, hence why it’s so valuable,

“I think that my conviction grows with time, but it’s pretty evident, it’s going up forever,” Saylor said.

Featured image from Money Inc, chart from TradingView.com

Bakkt to Start Listing at the New York Stock Exchange

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