Coinbase will likely issue an native token, will the market change?
Exchange Coinbase has received a lot of attention following the news that the company has filed for an official listing on Nasdaq. In the attached document, there is some information revealing the possibility that the exchange will issue tokens in the future.
Coinbase will likely issue an exchange token
On page 68 of the brochure, specifically the Risk section, Coinbase says it can raise more capital to support its business. For this purpose, the exchange will likely issue additional shares and tokens on the blockchain platform, all closely related to the interests and development of customer trust.
The company emphasizes in the document:
“If we issue more securities, including tokens on the blockchain, the management will likely have the stock diluted and the new stock will take effect as the common shares are issued.”
In another part, the company said it might issue preference shares and ordinary shares to the board of directors. With these documents, the Board of Shareholders can decide on the issuance of additional preferred shares or ordinary shares, including the blockchain token.
However, the above mentioned in the Risk section does not mean that Coinbase has a specific plan to issue tokens. The conclusion from the floor shows that many decisions are in the stage to be considered, but the exchange is very interested in the direction of many companies in the market such as FTX or Binance.
Exchange tokens are provided to traders for free and reduced transaction fees. However, whether these tokens will be considered a security is still under debate.
The document also revealed that Coinbase acquired Keystone Capital (a brokerage affiliate), which can provide legal assistance to the exchange if it wants to develop an internal token.
In the tweet from former Coinbase employee Adam White – who is currently the chairman of digital asset management at Bakkt – the question of whether or not Coinbase will issue exchange tokens is awaiting an answer:
“I am very interested in how many other exchanges will react to this news.”
Coinbase has yet to comment on the information above.
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