Cryptocurrency exchange Coinbase is exploring an initial public offering

Daniel Fowler
July 11, 2020

The San Francisco-based company boasts more than 35 million users and would be the first major US crypto startup to go public, if it were to pursue a listing.

The mysterious sources additionally uncovered to Reuters that the crypto stage is preferring an immediate posting on the business sectors over an Initial Public Offering (IPO).

If the US Securities and Exchange Commission (SEC) greenlights this, which has been dragging a Bitcoin exchange-traded fund (ETF) for the past year, it will further help crypto go mainstream. It may be the first time you have SEC regulators, bankers, and cryptocurrency enthusiasts in the same Zoom. Its users can trade virtual coins, including bitcoin, ethereum, and XRP, in over 100 countries.

Founded in 2012, Coinbase is one of the earliest digital currency exchange, launching three years after Bitcoin was proposed by Satoshi Nakamoto as an alternative form of digital cash. If it pursues to go public, Coinbase will be the first cryptocurrency exchange in the United States to do so.

The main reports about a Coinbase IPO were released by Reuters citing Coinbase Sources. The company has not yet registered its intention to go public with the SEC, according to Reuters, but it has been in conversation to hire investment banks and law firms.

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Until now, Coinbase has raised a total of $525.3 million. In a conventional IPO, new shares are sold in the open market.

In a direct itemizing, "no new shares are created and only existing, outstanding shares are sold", eliminating the danger of diluting present shareholding. They are able to skip expenses around underwriting and roadshows.

The crypto community is seeing this as a bullish narrative for space, which has already started to record substantial gains.

"This will not be a traditional investor day, but rather an opportunity to hear our perspective on the crypto economy and learn about Coinbase's role in the ecosystem". Throughout Paul's career, he has repeatedly encountered some of the largest and most complicated legal issues in tech, and we look forward to him bringing that experience to bear for Coinbase. At Coinbase, he will preside over the company's global legal operations.

Should the Securities and Exchange Commission approve of the company's plans, it would usher in the first stock-market listing for a cryptocurrency marketplace and mark a major achievement for cryptocurrency investors.

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