March 28, 2024

Coinbase will go public via direct share listing

Coinbase will go public via direct share listing

Cryptocurrency giant Coinbase, which announced plans to go public in December, intends to sell its sharesthrough direct listing.

We believe that a direct listing is more true to 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 watershed moment that will help bring legitimacy to an industry that has long been mistrusted by regulators and traditional investors. 

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

According to experts from Messari, after acquiringpublic status, the exchange's capitalization could grow to $28 billion. The company recently announced that Coinbase's 43 million verified users hold about $90 billion on the exchange.

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

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