For a long time, Coinbase has been deemed as the crypto and blockchain industry’s flagship company. By far, it is the most popular exchange because of its long history. Moreover, it last raised money from some of Silicon Valley’s leading venture capitalists at $8billion above valuation. Analysts are saying that Coinbase’s stock market debut will be so positive for crypto.
Comparing it with all the startup dealings with Bitcoin, Coinbase is the one investors think is the most likely to go public through a stock listing. In fact, at least as early as the year 2018, there were rumors of the said stock market debut.
On July 9, Reuters published an exclusive report confirming that yes, Coinbase is going public and is looking to trade its shares on public markets.
Reuters: $8 billion crypto upstart Coinbase for stock market listing
According to the outlet, three “people familiar with the matter” have confirmed that Coinbase is aiming to have a stock market debut that may take place as early as 2020.
However, the anonymous sources stated that Coinbase has not yet registered this plan with Exchange Commission and U.S. Securities. Coinbase needs to do it to be able to trade on the U.S. markets. On the other hand, Coinbase has supposedly been in some talks with law firms and investment banks to craft a plan.
There was no list of investment banks and law firms. However, recently, JPMorgan traded on Gemini and Coinbase. It is the Wall Street giant’s first crypto-centric clients. JPMorgan is dealing with direct listings and IPOs.
On the other hand, Investopedia explains that Coinbase’s supposed plan is noticeably not the same as an IPO. When a company lists itself on an exchange without selling new shares, that is direct selling. And an IPO is when a firm creates shares, underwrite, and sell it to the public.
Crypto firms are also looking to list shares on established stock exchanges including Bitmain and Ripple Labs.
Positive for the crypto industry
Analysts are saying that if this news is true, Coinbase’s stock market debut plan is bullish for the Bitcoin and crypto market.
A partner at Placeholder Capital and a former analyst at ARK Invest, Chris Burniske, said that a high-profile crypto listing or IPO could be “this cycle’s kickoff catalyst. He further stated that 2017,s catalyst was the Winklevoss BTC ETF attracting attention, and then getting rejected.
A pseudonymous ETH investor reverberated this sentiment, saying that the Coinbase listing will only attract attention to space and engage those people who are interested in crypto.
Furthermore, he said Coinbase’s attempt in going public means that the crypto giant is having positive internal metrics. May it be transaction volumes, user adoption, or other growth metrics.