June 25, 2021

Coinbase will go public via direct share listing

Coinbase will go public via direct share listing

Cryptocurrency giant Coinbase, which announced plans for a public offering in December, intends to sell its shares through direct listing.

We believe direct listing is more in line with the spirit of cryptocurrency and Coinbase because it democratizes access and opportunity for all investors.

A direct listing means that the company is notrelies on investment banks to set the price. This process has been used by companies like Spotify and Slack. Direct listing has gained popularity in part because it allows firms to waive bank fees and prevents large buyers from making a profit on the opening day when prices “rise”.

Coinbase's upcoming IPO is being considered by manyin the cryptocurrency world as a tipping point that will help give legitimacy to an industry long distrustful of regulators and traditional investors.

In recent weeks, rumors have surfaced that Coinbasecan be valued at $ 75 billion. Following the Series E funding round in 2018, the company was valued at $ 8 billion.

According to experts from Messari, after the acquisitionpublic status, the capitalization of the exchange could grow to $ 28 billion. Recently, the company said that 43 million verified Coinbase users are stored on the exchange in the amount of about $ 90 billion.

The Coinbase IPO could take place in late February or early March this year.

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