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- U.S. Securities and Exchange Commission (SEC) reviewed plan for a direct listing is by Coinbase.
- Since Coinbase’s plan for a March listing “slipped,” it decided to delay the debut to the next month.
- The announcement’s timing makes users link the delay to CFTC’s allegations and Coinbase’s penalty of $6.5 million.
Coinbase postponed its upcoming highly-anticipated direct listing from March to April.
The cause of delay was not disclosed, however, Coinbase’s plan for a direct listing was reviewed by the U.S. Securities and Exchange Commission (SEC).
Coinbase Public Offering
Previously in January, the San Francisco-based digital currency exchange announced its plans to go public. The past week, it registered the resale of over 114.9 million of its class A shares on the Nasdaq Global Select Market under the ticker “COIN”. The price offering of $943 million marked the public offering as one of the greatest market debuts ever. However, in light of the recent events, after its plans for listing in March “slipped,” it seems the exchange decided to delay the debut to the next month.
Reasons remain Unsaid
The matter was discussed vaguely, and no reason behind such a decision was offered. But the discovery of SEC reviewing Coinbase’s plans for debut and that too around the time that CFTC alleged Coinbase to be engaged in illegal trade practices and thus has been ordered to pay a penalty of $6.5M, announced yesterday; has made netizens contemplate various scenarios that might have led to Coinbase’s this decision of delay.
CFTC Accusations
The CFTC accused the crypto exchange of engaging in illegal trade practices (self-trade and wash trade) from 2015 to 2018. The exchange even gave misleading information to crypto services like the Coinmarketcap and the CME Bitcoin Real Time Index. Coinbase agreed to pay the penalty worth $6.5 million to avoid any dirty spots before its direct listing. And immediately after came the news of the delay of their debut. One can’t help but link the two.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
