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Cryptocurrency trading platform Coinbase announced that it has confidentially filed an application with the United States Securities and Exchange Commission for its Initial Public Offering (IPO). Without specifying the volume of shares it will offer in the market, as read in the brief note on its official blog.
Some researchers They estimate that the exchange could be valued at around $ 28 billion.
Depending on market conditions and continued positive momentum from crypto, Coinbase may list in the high-end valuation of $ 32 billion, although we think $ 28 billion is a fair valuation.
Look at Christanto, Messari researcher.
Coinbase, a company that offers exchange services between cryptocurrencies and fiat currencies, such as the dollar or euro, chose the firm Goldman Sachs to direct the operation carried out through the stock market.
For the selection of the investment bank based in New York it did not weigh that the members of his team have made comments less than “bullish” on bitcoin. Including a report that circulated in May outlining why bitcoin and other cryptocurrencies “are not an asset class.”
Earlier this week, the firm also published a memo to clients saying that bitcoin does not represent a serious asset for gold status as a monetary commodity of last resort.
However, Goldman has been active in the crypto industry from the beginning, with investments in Circle, Bitgo, and other leading companies.
Although experts in the field relate an Initial Public Offering (IPO) with an Initial Coin Offering (ICO), a differentiation must be made.
The first of these consists of the sale of shares to investors for the first time, offering several advantages for the company, investors and insurers (the investment bankers who make the initial public offering).
For its part, the second (ICO), is a financing mechanism that allows a project or company to raise capital in highly liquid cryptocurrencies through the issuance of non-equity tokens, explained CriptoNoticias.
Coinbase Token Actions
But while public investors wait for the San Franscico-based company to offer the details of the IPO, cryptocurrency exchange FTX is working on a contract to trade token shares on Coinbase before it debuts on the stock market.
“We’re going to try to do it, but I’m still not sure if we can do it,” Sam Bankman-Fried, CEO of FTX, told Decrypt.
Recently, FTX conducted a pre-IPO market for Airbnb prior to its launch on December 10, 2020 on the stock market, causing the stock to double in price. Situation you are trying to repeat for Coinbase.
