The prominent exchange recently announced through a post on its site that it would go public through a direct listing. The exchange is a known favorite of many traders, both experienced and new. The platform’s framework allows users to trade efficiently while still enjoying privacy and streamlined processes. The exchange also announced the recent amount of traders flooding the space, leading to overwhelming traffic on the exchange.
The trading platform also hinted at the FinCEN’s regulation being a major source of concern, with the stringent rules Trump’s administration proposed. The firm’s CEO was an influence against the rushed law’s passing. The founder created the highly-esteemed platform around 2012, where the services it offered were majorly trading between prominent cryptos like ETH and BTC. The exchange has had immense support from investors, even as a private organization, having raised almost $500 million in funds.
Coinbase’s recent filing with SEC
In December, the exchange platform revealed that it underwent some SEC filling in preparation for its new plans. However, the company has not announced its financial state, only that it would find an alternative to the initial public offering that it proposed previously. Nowadays, many companies opt for direct listings as opposed to the IPOs. Coinbase should go public soon via the new alternative.
Not surprisingly, other companies like Roblox changed their previous public offering plans to explore direct listing. The firm had to stop its plans to accommodate the listing because 2020 did not have a good structure for IPOs. Following its new projects, Coinbase wants to keep things on a low profile till it eventually goes public.
Crypto space members anticipate the new opportunities and changes this new path would mean for the popular platform. The platform offers crypto-related services, and it also works towards making the digital asset industry go mainstream with its supportive outlook for the space.
Differences between direct listing and IPOs
The crypto community understands that Coinbase opted out of the IPOs, but not many know why the change was necessary. Direct listings are a lot faster because it skips the equity pricing, like in IPOs, and make available its shares for trading.
Unfortunately, only well-known companies can experiment with the modern option because it might be harder to attract investors and lose a potential way to raise capital. Most companies that utilize the direct listing are top-rated and have the financial capacity to stand on their own.
Experts predict that its choice would be an excellent opportunity for it to explore that line. The platform recently rectified some technical issues it had, which caused a lot of discomfort for traders who wanted to utilize the BTC surge. Unfortunately, a notable amount of the firm’s traders could not access their accounts, restricting them to the activities they could do.
However, the firm issued a public apology concerning the technical glitch and assured it would soon resolve all the technical problems. The firm attributed the issues to the massive activities due to the early January surge, which most utilized for profit-taking.
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