The Rise of Encryption Company IPOs: How to Reasonably Price to Attract Wall Street Capital

Recently, the IPOs of companies in the encryption currency field ( have attracted widespread attention. These IPOs not only released enormous value for the industry but also highlighted the challenges the market faces in pricing. At the same time, the emerging token transparency framework aims to enhance market clarity and attract more institutional funds into the token market. In addition, stock tokenization is reshaping the financial market landscape, improving efficiency and expanding global capital access.

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The Pricing Dilemma of Encryption IPOs

The performance of a well-known cryptocurrency exchange platform since its listing can be regarded as a typical case, revealing the difficulties of pricing financial innovation in the public market. We have witnessed the company's stock surge by 52% from the opening price, briefly surpassing a valuation of $100 billion at a frenzied peak, followed by a deep correction driven by market sentiment and the volatility of the cryptocurrency cycle. Each market turn seems to be repricing with a new framework, leaving long-term investors and industry builders feeling confused.

Another recent case is the IPO of another stablecoin issuer: despite the strong demand for stablecoins in the market, the company made $1.7 billion less on its first day of trading, becoming one of the most conservatively priced IPOs in recent decades. This is not only an exception in the encryption industry but also reflects the structural pricing challenges faced by the new generation of financial companies when entering the public market.

The encryption industry urgently needs a more flexible price discovery mechanism that can bridge the gap between institutional demand and the actual value of the platform during market cycle transitions.

Proposal of a New Valuation Framework

The encryption market currently lacks a standardized disclosure system similar to the S-1 document. The mispricing of crypto IPOs indicates that when underwriters are unable to match token economics to traditional accounting standards, they either overestimate due to excessive optimism or underestimate due to panic. To fill this gap, industry experts have launched the "Token Transparency Report," which includes 40 indicators aimed at transforming protocol opacity into IPO-level clarity. The framework requires project parties to:

• Calculate income based on the actual entity.
• Announce the ownership of the labeled internal wallet
• Submit quarterly reports for token holders (including treasury, cash flow, and key performance indicators)
• Disclose details of cooperation with market makers or centralized exchanges to facilitate investors in assessing liquidity risks before listing.

This system is expected to enhance its valuation in the following ways:

1. Reduce the discount rate: Clear circulation and unlocking data bring the market closer to intrinsic value pricing.
2. Expanding the investor base: Institutional investors who were previously blocked by opaque agreements can participate in certified projects.
3. Compliance with regulatory requirements: Highly aligned with the issuance guidelines for encryption from regulatory agencies, which helps to accelerate approval and narrow the valuation gap between public and private.

The latest upgrade of Ethereum perfectly illustrates the difference between blockchain and traditional enterprises: each new block will destroy a portion of ETH (similar to automatic stock buybacks), while providing stakers with a yield of 3-5% (similar to stable dividends). The correct valuation method should consider "the issuance amount minus the destruction amount" as free cash flow, and the valuation obtained after discounting can truly reflect the on-chain ecological value. However, scarcity is only the basis for valuation; on-chain activities tell the complete story: real-time data such as stablecoin flows across wallets, cross-chain bridging activities, and DeFi collateral movements are the fundamental support for token prices.

A comprehensive valuation method should be based on the company's traditional cash flow, using on-chain revenue (staking income minus transaction fees burned) as the core element for verification. Continuous attention to the staking yield, real-time traffic indicators, and scenario analysis is essential to ensure that the valuation method keeps pace with the times and attracts traditional capital into the market.

Stock Tokenization Optimizes Trading Experience

As a well-known trading platform announces the tokenization of stocks, the field is accelerating its development. The platform recently launched tokenized stocks on its platform, highlighting the core contradiction of this new financial technology: permissionless finance vs permissioned finance, and the future role of decentralized finance (DeFi).

Unlicensed tokenized stocks allow anyone to trade on the public blockchain at any time, opening up the U.S. capital markets to global investors, but they may also become a hotbed for insider trading and market manipulation. On the other hand, the KYC-based licensing model can maintain market fairness but limits the global access advantages of tokenized stocks.

It is widely believed in the industry that tokenized stocks will reshape the DeFi landscape. The original intention of DeFi is to build an open, programmable financial infrastructure, but it has primarily served crypto-native tokens until now. The introduction of tokenized stocks unlocks new application scenarios. Its structure will determine the next wave of user and liquidity allocation:

• In a permissioned model, traditional financial institutions with user relationships may dominate the front end, while DeFi protocols can only compete for liquidity on the back end.
• In an unlicensed mode, DeFi protocols have the opportunity to simultaneously control users and liquidity, creating a truly open global market.

The latest upgrade of a certain innovative platform perfectly embodies this vision: through staking protocol token configurations for oracles, leverage, and funding parameters, anyone can create perpetual contract markets for tokenized stocks. Although some major exchanges have launched stock perpetual contracts in the EU, their model is still more closed and has lower composability compared to DeFi. If it can maintain openness, DeFi is expected to become the preferred platform for programmable borderless financial engineering.

Bitcoin Market Capitalization Milestone

In 2025, Bitcoin jumped to the fifth largest asset in the world with a market capitalization of $2.128 trillion, surpassing a certain tech giant. Driven by institutional adoption, the approval of spot Bitcoin ETFs, and clear regulation, the price of Bitcoin broke through $106,000. This milestone event proves that programmable currency has found a clear product-market fit.

Future Outlook

As industry experts say, cryptocurrency investments offer returns that traditional markets cannot match. This is precisely why the traditional public markets and the cryptocurrency space are accelerating their financial and structural integration.

• The digital asset treasury and encryption IPO provide exposure to crypto finance in the public market.
• Stablecoins and tokenization technology are optimizing traditional market structures.

It is foreseeable that in ten years, encryption technology will no longer be a niche market discussed by technology enthusiasts, but will become a core technology that supports daily life.