A major US crypto exchange is expected to Coinbase may go for an IPO in early 2021.
Reportedly leading American crypto exchange Coinbase has begun preparing for an IPO. According to ReutersThe listing must be approved by the United States Securities and Exchange Commission (SEC). If bliss, Coinbase could be the first major US digital exchange to offer its shares through an IPO.
Coinbase declined to comment on the news, and those who provided some of the details chose to remain anonymous. According to sources, the listing could take place this year or early 2021. Additionally, there are rumors of Coinbase's intention to go public with a direct listing instead of the traditional initial public offering. Compared to an IPO, a direct listing allows a company to trade publicly without formally pricing its shares through a sale. Existing investors have no restrictions on when they can divest their assets after they debuted in the market, which has made direct listings more popular in recent years.
We'll see if the exchange will be direct listing or traditional IPO in its S-1 filing. This whitepaper will describe the company's historical financial performance and see how Coinbase has succeeded during various crypto booms and bustles.
It is also known that the company has not yet registered its plan to release information about the SEC, but is in talks with investment banks and law firms.
In the most recent private fundraising round in 2018, Coinbase was valued at over $ 8 billion.
Previous Coinbase IPO Rumors
This is not the first time the crypto community has discussed the possibility of Coinbase's public posting. Back in October 2018, Ran Neuner, host of CNBC's "CryptoTrader" show, suggested the idea that the exchange would go to an Initial Public Offer.
Former Coinbase president Asiff Khirji said the company's goal could be a public listing. But before the IPO, Coinbase had a lot to do. Coinbase partnered with JPMorgan in May. Some have even speculated that JPMorgan could benefit from Coinbase's future IPO.
JPMorgan said:
“The fees associated with processing bank payments and ACH payments are small and I expect JPM to get other co-benefits from any related banking services, additional partnerships with both of these firms, the potential to win any future IPO or otherwise like JPM coin offered on any of these platforms. "
Another company poised for an IPO is crypto lender BlockFi. According to CEO Zac Prince, BlockFi could go public as early as the second half of 2021. Now BlockFi is looking for an experienced CFO with experience in the financial and public markets.