Coinbase Listing News: The company that helps one buy and ‘hodl’ cryptocurrencies such as Bitcoin, Ethereum, Litecoin among others is soon coming out with its public offer of shares. ‘Hodl’ is a term used in the crypto community for holding a crypto asset through ups and downs, rather than selling it. Coinbase Global, Inc. has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed public direct listing of its Class A common stock. The Coinbase share will be listed on the Nasdaq Global Select Market under the ticker symbol COIN.
Founded by Brian Armstrong and Fred Ersham in 2012, Coinbase is a decentralized company that powers the cryptoeconomy. Coinbase’s mission is to create an open financial system for the world by leveraging the power of digital assets built using blockchain technology. The platform now has over 43 million users worldwide and has transacted more than $456 billion to date, according to the company’s latest filing with the SEC.
The Coinbase listing will not be through the IPO route rather the company is going public through Direct Listing. An IPO is the most common way that companies choose to join the public markets in order to raise capital while in Direct Floor listings, companies are allowed to list their shares directly and begin trading publicly on the exchange.
While the jury is still out on whether the cryptos will come into the mainstream or remain a speculative asset, the company is increasing the dissemination of information as far as the interest of investing community is concerned.
On March 17, 2021, the Company issued a Company blog post, a Reddit blog post, and Twitter posts announcing its plan to take questions from the public related to the Company’s proposed direct listing on Reddit. In the lead up to the proposed Direct Listing, Coinbase has released videos with information on their business and is also launching a Reddit “Ask Us Anything” to engage with investors of all types.
The platform enables approximately 43 million retail users, 7,000 institutions, and 115,000 ecosystem partners in over 100 countries to participate in the cryptoeconomy. As of December 31, 2020, the total value of trade was over $456 billion on the platform since inception and had stored over $90 billion worth of assets across their platform. Since inception through December 31, 2020, the company had generated over $3.4 billion in total revenue, largely from transaction fees that they earn from volume-based trades on the platform by retail users and institutions. In 2020, Coinbase had generated more than $1.3 billion in revenue, more than double the $534 million earned in 2019.
As per a Nasdaq website report, the direct listing of Coinbase stocks has been postponed to April 2021 instead of being listed in the month of March.
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