Coinbase Upsets The Wall Street Establishments With Their Proposed Direct Listing
Back in July, Coinbase started plans to go public, which would be the first major U.S. cryptocurrency exchange to go public and which would mark a major milestone for the crypto space.
Last month, Coinbase, online exchange which allows both buyers and sellers of cryptographic tokens to trade on the network.
Coinbase is not only America’s largest crypto exchange, but one of the most well-known crypto platforms in the world with over 35 million users in more than 100 countries.
Direct listing is an alternative method for raising capital through the exchange of stocks without the aid of a traditional bank. A Direct Public Offering, also called a direct listing, is an innovative means for businesses to be publicly traded without a traditional bank-backed Initial Public Offering.
Through this process, a company can list on the New York Stock Exchange or the Nasdaq stock exchange. These stock exchanges provide a public market for the stocks of the companies. In this type of listing, the shares are listed in the stock exchange and are accessible to anyone who is interested in buying the shares.
Direct listings are somewhat unusual, but there have been several high-profile companies that completed direct listings in recent years. Spotify (NYSE: SPOT) and Slack Technologies (NYSE: WORK) both went public through direct listings, and a recent example was the much-anticipated Palantir (NYSE: PLTR) listing.
There are some big benefits to direct listings for both companies and their investors. Direct listings are more economical, with fewer investment-banking fees to pay. For investors, it levels the playing field with the Wall Street investment banks.
Coinbase was lasted valued at $8 billion. However rumors have it that shares being sold in the private market indicate Coinbase is valued at $50. That is a lot of money that the Establishment on Wall Street is going to miss out on.
As much as I don't like Coinbase because of their fees, I have a little bit more respect for them.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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