Coinbase IPO : Unicorn Crypto Exchange Preparing for Stock Market Listing

Coinbase IPO

Coinbase IPO is the hottest news in the Crypto City. Coinbase, with its headquarters in the Golden Gate City San Francisco, was the first cryptocurrency company to become a unicorn. Unicorn is a start-up with over a $1 billion valuation. The behemoth exchange company is preparing for a public listing in the stock market. According to Reuters, IPO may arrive by the end of 2020.

The above report claims Coinbase may be already in advance discussions with investment banks, regulatory board and law compliance firms about the public listing. Coinbase has not yet sent an official notice to the SEC about their intentions. But, as always, they may be working with a few officials.

 

What is a Direct Listing?

According to one of the sources, the unicorn company is opting for a listing directly in the market as a replacement of traditional IPO.

What does direct listing mean? Direct listing means that the company will not create, underwrite and sell any new shares in the company during the listing. Only outstanding shares that already exists come to the market for trading. This way, they avoid the huge underwriting fee that the investment banks charge.

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Listing directly is now the most preferred way to avoid fee and reach masses in the last few years. Companies don’t want to raise new cash or a fund raise in the public IPOs anymore.

 

How Successful will Coinbase IPO be?

Coinbase is a high cash flow generating company, raising more than $500 million since its inception as a limited liability company. It provides a highly reliable on ramp off ramp for the Cryptocurrency ecosystem in many countries. Coinbase recent successful funding of $300M creates a valuation of 8 billion for the company.

Coinbase IPO

Coinbase’s revenue stands at $1B in 2017, may be the highest peak for the company with the huge bull run. Precisely, no one knows the performance of Coinbase in 2018 and later years, TheBlockCrypto says it shrinked.

I’m eagerly waiting to see Coinbase’s S1 form SEC filing, regardless if they go for direct listing or not. It will exhibit an accurate overview about the behemoth’s financial results in the previous years. It will give us a clear picture on the cyclical Cryptocurrency market’s bull and bear cycles.

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I was thinking that no company in their best mind would not want to list their stock when the public markets are at all-time highs. Especially, tech stocks are overheated with the Pandemic lockdown and PE rocking new highs. I still expect Robinhood newbies to pump more and the obliteration by whales will happen later.

High profile Investors that invested into unicorns at a early stage may want to take some profits when the markets are at its highest ever. That’s why you see sudden public listing interest by successful companies. The venture capitalists may not see much growth in the economy in the next one or two years.

 

24 thoughts on “Coinbase IPO : Unicorn Crypto Exchange Preparing for Stock Market Listing”

  1. woah this blog is excellent, i love reading your posts.
    Keep up the good work!

  2. Lourdes

    Ahaa, its pleasant discussion regarding this piece of writing about Coinbase IPO in this blog

  3. Gloria

    Eagerly waiting for the Coinbase IPO to happen but looks like it might be pushed to 2021

  4. Verna

    Coinbase IPO is one of the most important IPO for Crypto space. Let’s see how it goes.

  5. Shannon

    Greetings! Very useful advice in this particular article! Waiting to load up Coinbase Stock once it becomes publicly available.

  6. Tahlia

    Great blog article. How to load up on Coinbase pre IPO? Any idea?

    1. I’m not aware if we can get it before IPO but I’ll explore more and let you know if it is possible.

  7. Hudson

    Thanks for the valuable information

  8. Kathleen

    Coin base IPO is truly big IPO of the year whenever it comes

  9. Myles

    I am able to find good info from your content.

  10. Wilfred

    Usually I do not read post on blogs, but your Coinbase IPO attracted me to read fully and get my position strategy ready.

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