Coinbase, one of the most recognized crypto exchanges on the market, you could be preparing to go public. What would this imply? Will he convince the SEC?
Will Coinbase be listed on the stock exchange?
Yesterday, Reuters published a report stating that three people familiar with the matter have assured that Coinbase Inc. has started its plans to go public very soon. The news has evidently surprised the entire crypto market.
Coinbase is considered by many crypto users as one of the flagship companies in the cryptocurrency and Blockchain technology industry.
And now it seems that preparations for a listing are underway. As expected, the news has raised many questions and conspiracies.
The main one is: What will be the market valuation of the company? To get an idea we can mention its last fundraising, carried out in 2018, when the company was valued at more than $ 8 billion.
However, we cannot know if the public valuation of the crypto exchange will be above or below this amount, but it gives us an estimate.
The listing can occur at any time in 2020, sources told Reuters. However, beware, this will not happen until the crypto exchange receives approval from the United States Securities and Exchange Commission (SEC).
In fact, anonymous sources have assured the media that Coinbase has not yet registered its plan with the regulatory institution. However, the firm appears to have entered into talks with investment banks and law firms with the aim of devising a plan.
Still, if approved by the SEC, it would represent a victory for the entire crypto community.
There is nothing traditional
One very important piece of information that anonymous sources told Reuters is that Coinbase’s plan does not consist of a traditional IPO. In this sense, the strategy consists of a Direct Listing (or Direct Quote).
An IPO involves the sale of newly issued securities, while a direct listing is more like a secondary sale of existing shares that is designed to offer liquidity to the company.
In the end, they are two different strategies with a similar objective: to bring a private company closer to public investors.
What does this mean for the crypto market?
As mentioned previously, plans are still under construction and are therefore subject to change. At the moment the crypto exchange has not issued any statement or comment.
Not to mention that it has not yet been approved by the US regulatory body, so there is still a way to go.
However, analysts have already begun studying the possibilities and believe that, from Coinbase going public, it could be the catalyst that the crypto market requires.
This was precisely what Chris Burniske, a partner of Placeholder Capital, commented through his Twitter account.
“An IPO can even go into 2020 and be the initial catalyst for this cycle, with DeFi providing the narrative and the fundamentals. The catalyst for 2017 was the Winklevoss brothers’ BTC ETF that attracted attention and was later rejected, shifting interest to ETH, with the ICO narrative, “ Burniske commented.
Will Coinbase make its launch on the Stock Market? Or will the SEC stop it?