Cryptocurrency exchange platforms like Coinbase have been very lucrative in getting digital assets to worldwide investors for years. As the cryptocurrency market expands and evolves, exchange platforms are becoming more of a necessity than a hobby for many.
Coinbase Has Been a Successful Entity for Some Time
Coinbase has successfully operated online since 2012, providing cryptocurrency services to its users around the world. As one of the most well-known cryptocurrency exchange platforms, they are now planning to enter the stock market. If they can proceed, this will be one of the most talked-about public debuts in recent history.
Digital finance companies need to keep abreast of recent trends to maintain their popularity with investors. The cryptocurrency market is a fickle one, with many new tokens entering the market regularly, vying for a top spot. With over 5,500 active cryptocurrencies in the world currently, digital exchange platforms have their work cut out for them.
How Coinbase is Changing the Face of Cryptocurrency
Large names like Coinbase aim to carry crypto assets that users want and regularly use, catering to investors’ needs. Stating over 35 million worldwide users, they continue to evolve and sit at an approximated value of $8 million USD. The recent acquisition of Paul Grewal for Chief Legal Officer foreshadows what could be in Coinbase’s near future.
Current cryptocurrency news states they are now planning to go public on the stock exchange. If this is true, Coinbase will be the first exchange platform in the U.S. to achieve this. If they are successful, this could be the turning point for the cryptocurrency market, opening up to mainstream investment attention. Once a platform like Coinbase is listed openly on the stock market, many more could possibly follow.
How Likely is a Crypto Exchange Listing on the Stock Market?
Before Coinbase can go public the Securities and Exchange Commission (SEC) must approve the listing. Currently, the SEC does not have current regulations for digital tokens in place. As it stands right now, Coinbase is looking at using a direct listing rather than an Initial Public Offering (IPO).
By avoiding the IPO route, they don’t need to raise capital funds and will make shares available to the public. This seems like the best solution for a digital exchange like Coinbase to break into the stock market. Although they have yet to register with the SEC, investors are enthusiastic about what could transpire in the next few months.
Nothing is Written in Stone
So far, nothing has been confirmed, but cryptocurrency enthusiasts are hopeful. Going public would not only give Coinbase the much-needed recognition of the traditional markets but also cryptocurrencies in general. Crypto assets could be the investment security that many investors are looking for in their portfolio.
With the world focusing on digital assets since the worldwide Coronavirus pandemic, this move could be the next logical step. Now could be the time to shine for digital assets as Coinbase paves the way for the future in investments.