Is Coinbase Going Public? Reuters' Sources Say so
In a stunning but natural move, Coinbase is reportedly taking steps to become the first major United States' cryptocurrency exchange for becoming public, according to a report published by Reuters citing three people familiar with the matter.
The digital currency exchange headquartered in San Francisco, California, has not yet filed its intentions at the SEC, neither have they provided any clarification. Still, the listing would be effective in less than a year, later in 2020, or early in 2021.
According to the sources, Coinbase has been in talks with investment banks to decide who will be the IPO partner. Before, Coinbase would need approval from the United States Securities and Exchange Commission, a movement that would mean a mainstream endorsement to the whole cryptocurrency industry.
The SEC hasn't issued specific guidance on virtual coins. While the regulatory body has said that some cryptocurrencies may be treated as securities, there is no clear stance on what the SEC believes. It would consider about this emerging market.
A More Than 8 Billion Dollar Company
The deal would be huge in terms of legitimation for the crypto sphere, but also because Coinbase was valued at more than 8 billion dollars in 2018. The company is planning to go public across a direct listing, instead of Initial Public Offering.
In a direct listing, a company does not sell new shares as it does in an IPO and existing investors are not bound by lock-up restrictions on when they can divest their holdings following the market debut.
Founded in 2012 in San Francisco, Coinbase offers services to over 30 million customers in 102 countries. It has supported over 150 billion dollars in cryptocurrency exchanges.
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