It's no surprise that the forthcoming Coinbase IPO is one of the most awaited market events of 2021, given the phenomenal development of cryptocurrencies like Bitcoin over the last year. On Monday, Bitcoin approached an all-time high after a record run for stocks and ahead of a listing by the largest US cryptocurrency exchange.
Coinbase is the first cryptocurrency exchange in the United States to be listed on the New York Stock Exchange (NASDAQ). Coinbase announced on April 1, 2021 that its shares would begin trading on the Nasdaq stock exchange on April 14, 2021, under the ticker "COIN." Brian Armstrong and Fred Ehrsam formed it in 2012.
When a company goes public without selling new shares of stock, it is known as a direct listing. Coinbase, the largest cryptocurrency exchange in the United States, makes a lot of money from transaction fees. According to Bloomberg, the IPO was postponed from March due to compliance action by the US Commodity Futures Trading Commission (CFTC). The crypto exchange operator was fined $6.5 million by the derivatives watchdog for "reckless fraudulent, deceptive, or inaccurate reporting as well as wash trading."
According to the news outlet, Coinbase was priced at about $90 billion in its final week of trading on Nasdaq's private sector. A direct listing is being used to take the company public. Coinbase reported last week that it is opening an office in India amid regulatory uncertainty, with rumours that the Indian government is considering banning cryptocurrencies.
The company's network allows 43 million retail customers, 7,000 institutions, and 115,000 ecosystem partners to engage in the cryptocurrency economy.
Since this is the first big cryptocurrency exchange in the United States to go public, it may be a major move toward mainstream acceptance of digital currencies and will help legitimise the industry. This is one of the primary reasons for the company's burgeoning popularity.