August 20, 2022

Catalytic event or unbridled optimism? Coinbase approaches public listing

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The Coinbase direct stock listing could be a rite of passage for the blockchain and cryptocurrency industry, and the announcement on March 20 by the United States Commodity Futures Trading Commission of a $6.5-million fine against Coinbase for “wash trading” and filing misleading information probably won’t do more than postpone by a few weeks the distinction of being the first crypto-native corporation to be listed on a major U.S. stock exchange.

But questions surround Coinbase’s upcoming debut on the Nasdaq exchange: Is the crypto exchange really worth the $100 billion — as suggested by a pre-IPO public auction? Is its timing propitious? Are the firm’s revenues too dependent on the market price of Bitcoin (BTC) and Ether (ETH)? And are its profit margins really sustainable — is this really an industry breakthrough event, and if so, which crypto enterprise might be next to test Wall Street’s waters?

But first, what is one to make of charges of improper reporting of exchange volume and “self-trading” that were settled with the CFTC? Could they scuttle the listing?

“The CFTC announcement should not really derail investor interest with the Coinbase direct listing,”Title: Catalytic event or unbridled optimism? Coinbase approaches public listing
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Published Date: Fri, 26 Mar 2021 13:57:00 +0000