▶ Coinbase Website: Coinbase.com
▶ CEX Website: cex.io
The Cryptoverse is expecting an event of major importance for the industry as US-based crypto exchange Coinbase yesterday finally confirmed it is preparing for its initial public offering (IPO) – but there are still multiple questions to be answered regarding it. Let’s look at what we do know and what we don’t about this “huge event.”On December 17, Coinbase announced that it confidentially submitted a draft registration statement on Form S-1 with the US Securities and Exchange Commission (SEC), which they said is expected to become effective after the SEC completes its review process. Besides the disclaimer that this is not an offer to sell any securities, and that the offering would be subject to market conditions and other considerations, no additional information was provided, leaving open a number of questions. Goldman Sachs is leading Coinbase’s upcoming IPO, Business Insider reported, citing two undisclosed sources familiar with the matter. The IPO was rumored already this summer, when it was reported that the company had already been in talks to hire investment banks and law firms, and that it is exploring going public via a direct listing. An IPO is a process of offering shares of a private corporation to the public in a new stock issuance, thus raising capital from public investors. In this case, the company uses the services of intermediaries called underwriters, who facilitate the IPO process and charge a commission for their work. But in a direct listing, the company sells shares directly to the public without getting help from intermediaries. According to Fortune, Coinbase co-founder Fred Ehrsam said earlier that the company is “spiritually” built to go public through an offering that involves “digital tokens on a blockchain.” But it’s uncertain whether the SEC would allow that. “If the agency refuses to do so, another option would be for Coinbase to pursue a direct listing in which it sells shares directly to the public [and] veteran tech journalist Alex Wilhelm has noted that Coinbase is an “archetypal” candidate for such a listing, in part because of its hefty balance sheet,” said the article. And despite it being described as an event that’s “anticipated to be a break-through moment for the industry,” as Bloomberg said, even more things remain a mystery for now. For example, its public valuation is unknown. The commonly cited information is that Coinbase was valued in 2018 at USD 8bn following a mega funding round. Since then, both the company and the whole crypto market has grown. As reported, major investment firm Blockchain Capital estimated that in 2021 Coinbase debuts as the first IPO in crypto and its market capitalization surpasses USD 30bn. Also, crypto researcher Messari said they value Coinbase at USD 28bn.
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▶ Coinbase Website: Coinbase.com
▶ CEX Website: cex.io
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