According to Reuters, the Coinbase cryptocurrency market has begun planning to launch the stock market this year.
Coinbase has started planning for a stock market listing that could take place as soon as this year
Even so, the listing still requires approval from the Securities and Exchange Commission. If the agency approves the company’s plans, it will open the first stock market list for the cryptocurrency market and mark a significant accomplishment for cryptocurrency investors.
Coinbase has not yet recorded its intention to go public with the SEC, but the company has talked to investment banks and law firms about its plans. The company’s most recent funding round in 2018 valued the company more than $ 8 billion. The company is more interested in publicizing through a direct listing than a traditional initial public offering, sources familiar with the plans told Reuters. The direct list allows companies to go public without raising capital in stock sales. Shareholders can sell their equity without losing their stake by a new issuance.
The SEC has not yet established many basic rules for digital tokens. The agency previously classified several currencies as securities and said they could be regulated accordingly. The lack of regulatory recognition of the asset class has long scared investors from tokens.
The massive protests of the cryptocurrency market and the ensuing crisis in 2018 have further raised concerns around volatile markets. Most recently, a viral TikTok challenge urging viewers to buy Dogecoin has revived comment on the speculative nature of the cryptocurrency market.
Read more:
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