Connect with us

Blockchain And Crypto News

5 questions concerning Coinbase rumored IPO



__________________________________________ Looking for your dream job? Hold on, your search ends here! Please CLICK HERE to grap every opportunity today. __________________________________________

A news report that was published last week claimed that Coinbase, the country’s most prominent cryptocurrency company, is exploring an initial public offering.

According to the report, it is said that the company is talking to bankers and lawyers and could go public late this year or sometime in 2021.

This is not really a bombshell. Every prominent Silicon Valley startup, including names like Robinhood and Stripe, also have plans for an IPO at some point.

In the case, though, any eventual IPO will be more intriguing than most, given how it has become the effective standard-bearer for Bitcoin and the still-emerging cryptocurrency industry.

Regardless of when Coinbase formally announces its IPO, here are are five questions potential investors and the finance industry should be asking.

Will Coinbase’s IPO involve blockchain?

Blockchain, which creates a tamperproof ledger across multiple computers, is one of the most important new technologies of this century. It is what makes Bitcoin such a disruptive currency, and it underpins every other major cryptocurrency project.

Blockchain can also track and record ownership by means of digital tokens—the perfect tool, in other words, for issuing shares in a new company.

Coinbase cofounder Fred Ehrsam recently said the company is “spiritually” built to go public via some sort of token offering, and many of its employees would doubtless be dismayed if it pursues a garden variety Wall Street IPO. But any blockchain offering (even a hybrid one) would depend on the blessing of the SEC. That could be a tall order given the agency’s long-standing skepticism toward cryptocurrency.

Will Coinbase do a direct listing?

Alex Wilhelm, a longtime Silicon Valley watcher at TechCrunch, described Coinbase as “archetypal” for a direct listing. This process involves existing shareholders of a startup selling their shares to the public, as opposed to the company working with Wall Street underwriters to issue new blocks of shares.

Wilhelm points out that, like other recent firms to pursue a direct listing (notably Slack and Spotify), Coin base has a similar profile in that it has a high valuation and ample cash reserves. A direct listing would also be more palatable to cryptocurrency fans, many of whom abhor Wall Street and the traditional IPO process in which the well-connected get first bite at a company’s stock.

What will Coinbase’s ticker symbol be?

The obvious choice would be COIN, which would invoke the startup’s name while also nodding at Bitcoin. A more cryptic choice could allude to blockchain tech or Bitcoin’s pseudonymous founder, Satoshi Nakamoto.

See Also: BTC whale moves 10,250 BTC valued at $95,000,000

Will an IPO produce the ‘Coinbase effect’ for the broader crypto markets?

The term “Coinbase effect” describes the price boost many cryptocurrencies have enjoyed as a result of being listed on Coinbase. The effect likely occurs because Coinbase is the primary gateway to crypto for many buyers.

Given Coinbase’s status as the de facto leader of the crypto industry, a successful IPO could create a coattail effect that boosts the price of Bitcoin, Ethereum, and other cryptocurrency. Conversely, if the company flubs its IPO, crypto prices could tank.

Will Coinbase try to time the crypto market?

As veteran crypto journalist Laura Shin recently noted, they may take into account the state of the broader cryptocurrency market in deciding when to go public.

Bitcoin and other cryptocurrencies are notoriously volatile and, despite a formidable rally in the late spring, prices and trading activities have been in a slump. An ongoing bear market in crypto prices could prove a drag on Coinbase’s initial stock price, and lead the company to put off an IPO till more favorable conditions arise.

In conclusion

Coinbase is perhaps archetypal for the sort of company that might consider a direct listing. It’s wealthy, having raised north of $500 million during its life as a private company, and highly valued. Coinbase’s most recent private financing of $300 million valued it at $8 billion, according to Crunchbase data. A high valuation and the possibility of ample cash reserves are what previous direct listings Slack and Spotify had as well.

Trade with Nairabusiness
Looking for your dream job? Hold on, your search ends here! Please CLICK HERE to grap every opportunity today.

I am a student studying computer science. I'm a passionate blogger that loves reading and writing, business minded with solution to complete financial tips. You love business? Stay tuned to

Continue Reading
Click to comment

Please Leave a Reply

Profiles, Interviews & Biography2 weeks ago

Tunde Ednut Biography, Age, Career and Net Worth

Tech4 weeks ago

Just In: You can now buy a Tesla with Bitcoin

Bella Shmurda
Profiles, Interviews & Biography4 weeks ago

Bella Shmurda Biography, Age, Career And Networth

emoji picture apps
Tech1 month ago

Best Emoji Picture Apps For Android & iOS in 2021

Review1 month ago

Goldomc Review | Scam or Legit? 1st read this

Review1 month ago

Kobobid Review | Scam or 100% Legit? Find out!!!!

Job Opportunities1 month ago

EFCC Recruitment for 2021/2022 | How to apply for EFCC recruitment

phoenix browser
Tech1 month ago

How to add website/blog to Phoenix browser in 2021

Review2 months ago

Nairapeeps Review | Scam or legit? 1st read this

wyzdom noble
Profiles, Interviews & Biography2 months ago

Wyzdom Noble Biography, Age, Career and Net Worth

Review2 months ago

Montek Investment Review | Scam or Legit? Don’t miss this 1

Review2 months ago

Earnathon Review | Scam or legit? Read 1st before you invest

Review2 months ago

Mydailymula Review | Scam or legit? 1st read this

Review2 months ago

Moolatask Review | Scam Or Legit? 1st read this

Review2 months ago

Prepxy Review | Scam or legit? 1st read this

bank transfer codes in nigeria
Finance2 months ago

All bank transfer codes in Nigeria 2021

Access Bank, GTBank and other banks begin closing customer accounts that have traded cryptocurrency
Blockchain And Crypto News2 months ago

Access Bank, GTBank and other banks begin closing customer accounts that have traded cryptocurrency

Clapper permanently bans QAnon-related content
Tech2 months ago

Clapper permanently bans QAnon-related content

Oil exploration drops by 150 percent in Nigeria
Business News2 months ago

Oil exploration drops by 150 percent in Nigeria

Review2 months ago

JasEarn App Review | Scam or Legit? Read 1st

%d bloggers like this: