Coinbase Gets the Green Light from The SEC

The Sec, the primary regulator of US financial markets, has declared Coinbase effective for a public offering. It is expected that the common shares of Class A Coinbase listed on the Nasdaq under the symbol “COIN” on April 14. 

This way, the first Initial Public Offering of a company specially dedicated to the cryptocurrency industry in the United States’ entire history would occur.

Coinbase Has Unbeatable Financial Results

According to a CNBC report that took into account the financial results of Coinbase stipulated in its S-1 form, the company’s latest valuation returned a figure of 68 billion dollars.

BeInCrypto analyzed in depth all the financial data from Coinbase. It clarified that the large amount of money that this company makes would make the cryptocurrency industry rebound above other traditional sectors.

Much of all this boom in its business has been due to institutional participation. The last quarter of 2020 accounted for 64% of all trading volume on the platform.

According to the Business Wire portal, Coinbase’s financial results for the first quarter of 2021 will be published on April 6.

Currently, users can buy and sell tokenized shares of Coinbase on the FTX exchange under the pre-IPO tag. The price of CBSE/USD is marking $454.84 per unit at the time of writing.

What Do Class a Shares Mean?

Classes in shares refer to a traditional classification to differentiate the voting power of each type of share. Usually, the first letter of the alphabet, “A,” denotes the shares with the most voting power in a company’s management.

In the case of Coinbase, declaring its shares as class A would estimate that its power of participation in the board of directors is the most important.

Notably, the Nasdaq Global Select Market, where Coinbase will list its shares, is the Nasdaq exchange’s highest category division. This division contains the strictest requirements for the listing of companies on the world’s largest electronic exchange.

Coinbase is one of the biggest cryptocurrency exchanges in the US, launched in 2012. Coinbase Pro is moving more than $3 billion in daily transactions, according to CoinMarketCap. Cryptocurrency exchange Kraken, also based in California, has not yet confirmed whether it will follow Coinbase’s footsteps when going public. However, it said it would do so through a direct listing.

Moreover, Receiving Coinbase Ventures’ backing is considered a major achievement. This is due to the number of successful projects the investment firm has supported in the past. Some of the most significant investments from Coinbase Ventures are BlockFi, Compound, and Etherscan.