NFT marketplace OpenSea has denied it is planning an initial public offering (IPO), amidst a backlash from the cryptocurrency community.
No IPO would mean no token for its early adopters, much like the US leading crypto exchange Coinbase, which only went public in April – nine years after being founded.
Responding to speculation that followed earlier comments, Brian Roberts, OpenSea’s new chief financial officer, said: “let me set the record straight - there is a big gap between thinking about what an IPO might eventually look like and actively planning one.
“We are not planning an IPO, and if we ever did, we would look to involve the community.”
Roberts joined OpenSea earlier this week and apparently off-the-cuff comments by the former Lyft, Microsoft, and Walmart exec in a Bloomberg interview included the soundbite, “when you have a company growing as fast as this one, you'd be foolish not to think about it going public [as] it would be well-received in the public market given its growth.”
Roberts has a recent and successful track record in tech floats, having guided Lyft to a successful IPO in 2019 – bringing the ride-sharing app to market with a US$20bn valuation.
OpenSea’s potential IPO retreat came as the crypto community voiced dissatisfaction with the plans, as users say they would prefer to be rewarded in digital assets rather than see the traditional financial route be taken.
Crypto-heads want ‘token airdrops’ instead of the invitation to buy equities, according to Raj Gokal, co-founder of Solana Labs.
The NFT platform previously raised US$100mln at a US$1.5bn valuation in July, and, reportedly intends to raise further funds to pitch a valuation at some US$12bn.
Fresh capital from a new funding round will help OpenSea acquire companies and create partnerships and joint ventures, Roberts highlighted this week.