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Home / Business / The SEC approves the direct listing of Coinbase scheduled for April 14

The SEC approves the direct listing of Coinbase scheduled for April 14



The Coinbase cryptocurrency exchange application can be seen on the iPhone screen.

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Cryptocurrency exchange Coinbase said on Thursday that it will start trading on April 14, after having previously obtained regulatory approval from the Securities and Exchange Commission (Securities and Exchange Commission) for its direct listing.

The company ranked 1

0th in the 2018 CNBC Disruptor 50 list and published a short blog post announcing the SEC’s approval. Companies such as Roblox, Spotify, Slack and Palantir have previously been publicly listed through direct listing on the New York Stock Exchange, and Coinbase will be the first major direct listing method for Nasdaq.

The company said it plans to register nearly 115 million Class A common stocks with the stock code COIN. In a direct listing, the issuing company gives up selling new shares and instead allows existing stakeholders to sell their shares to new investors.

The SEC’s green light marks a milestone for cryptocurrency advocates who champion blockchain-related assets such as Bitcoin. Until recently, many traditional banks and institutional investors began to adopt cryptocurrencies, which were previously thought to be too speculative and volatile.

Over the past year, as Bitcoin has risen by about 800% and surrounded the ecosystem of infrastructure companies and trading platforms, Coinbase has soared in value as an agent of the broader crypto economy.

Coinbase listed the potential price drop of Bitcoin as one of its risk factors in its prospectus. The company claims to have 43 million users in more than 100 countries/regions to conduct digital asset transactions.

Last month, an updated document showed that Coinbase’s private equity market valuation reached an implied price of US$68 billion, and its average stock price was US$343.58. Although the value of the private equity market is not sufficient to indicate the value of the company’s stock, Nasdaq will use this information to set a reference price before Coinbase goes public.

Watch: Goldman Sachs will provide Bitcoin investment to wealthy customers


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