Coinbase Files with SEC to go Public and then Proposes Direct Listing of Shares

(Last Updated on January 29, 2021)

We’ve heard the rumors for a while but now Coinbase is fully committed with extensive filings on hand with the U.S. SEC for taking the cryptocurrency exchange company public. The crypto giant has been successful at racking up over $550 million in investor funding up to this point and has a long established reputation as one of the leading digital asset platforms in the United States.

Yes.

We have plenty of complaints about Coinbase too.

Odd downtime issues at peak trading times with high fees for trading and transfers/withdrawals. Also I think they have done some disservice to new customers by listing complete junk, scam altcoin projects and promoting them by giving away free cheap tokens through “educational videos”..

But overall they have done a lot of good for the industry by onboarding millions of new investors into digital assets.

Coinbase has not pulled an exit scam, stolen/lost everyone’s Bitcoin, or been hacked.

Sadly, that is an impressive track record when compared to previous crypto exchanges around the globe.

So they are doing an awesome job especially when compared to many crypto scam exchanges before them which many of us have been robbed of funds..

And through all of that they have survived to be one of the clear leaders of the cryptocurrency investing industry inside the United States.

They know how to handle murky waters when it comes to unclear regulations and digital asset pioneering in our traditional financial markets. The legal staff at Coinbase has been building an adaptable system while consistently driving ahead with state and federal regulators to get better outlines for U.S. companies.

With Coinbase already filing their S-1 in mid December, we could see the writing on the wall but still a lot of naysayers on whether the first cryptocurrency exchange “IPO” was even possible.

Coinbase Global Inc. requests “direct listing” for public common stock with the SEC

Why is this different from an “IPO”?

-> IPO = new company shares created and issued by an intermediary

-> Direct Listing = no additional or new shares created does not dilute company value and current stockholders shares. Plus no intermediary to increase fees and bloat of the listing.

Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock

Now they are asking specifically for a direct listing to skip some of the pains and hassles with a traditional IPO style listing. I think this will give a lot of value and worth to their employee base immediately. And they should have plenty of shares of stock to sell at strong prices as needed for funding or by any investors. Demand should be strong with Coinbase in full control as they won’t have to deal with the IPO style of brokering in a partner, or multiple partners, to do the listing.

Expect high prices and low supply of stock if you want anything to do with this public listing.

I’d continue to invest my focus on decentralized finance (DeFi) and other upcoming projects in crypto that allow better access to retail investors. But the direct listing of CB should provide more confidence, legal framework, and support for digital asset trading in America.

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