CoinBase all set to go public through Direct IPO Club

CoinBase chooses direct listing over traditional IPO
  • Coinbase Global is anticipating going public via a direct listing
  • The decision will mark the debut of cryptocurrency exchanges in the field of public markets to raise cash
  • Coinbase will be able to sell fresh shares and hoists new capital in a single colossal transaction directly on the exchange without underwriters

Coinbase is a secure digital platform that facilitates buying, selling, transferring, and saving digital currency. The company intends to establish an open financial system. It aims to be at the top among global brands that support people in digital currency conversions.

Coinbase’s plan to go public

The largest U.S. cryptocurrency exchange, Coinbase Global, is anticipating going public via a direct listing. This decision will mark the debut of cryptocurrency exchanges in the field of public markets to raise cash.

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The San Francisco-based firm earlier registered its filing documents with the Securities and Exchange Commission. However, it did not specify that it will chase a direct listing rather than the regular initial public offering.

Coinbase has quickly emerged as one of the well-known exchanges for trading cryptocurrencies. It is renowned for trading in Bitcoin, Litecoin, Ethereum, and various not-fiat currencies. These non-fiat currencies are not bound to a particular currency by a specific country’s government, for example, the U.S. dollar. The exchange prides itself on having more than 43 million authenticated users across 100 countries.

A complete turndown of intermediaries 

A Direct Public Offering, also known as a direct listing, is a method for companies to establish public trading. It then discards the conventional bank-backed Initial Public Offering. Thus, it is essential to examine the risks and opportunities of a direct listing and research thoroughly before investing.

The company that accesses the facility of direct floor listing has a different process than the conventional one. It sells new shares and hoists fresh capital in a single colossal transaction directly on the exchange without underwriters. 

Underwriters, especially the big financial institutions like banks and investment houses, are included in conventional IPOs as patrons. These guarantors accept the financial risk for accountability in case of damage or economic loss.

Coinbase is the latest institution to choose direct listing rather than spring for a conventional IPO. A gaming platform, Roblox, stated previously this month that it is likely to go public using a direct listing. Palantir Technologies (PLTR) also used the same mode to go general last fall.

Slack Technologies went public through a direct listing in April 2019. Spotify Technology (SPOT) also opted for the direct IPO route back in 2018.

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Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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