The Senior Fund Manager at Coinbase is Predicting Huge Gains
Online PR News – 23-January-2021 – London, UK – In December 2020, cryptocurrency exchange Coinbase submitted a draft registration for an Initial Public Offering (IPO) to the US Securities and Exchange Commission (SEC).
Should the SEC approve the filing, the San Francisco-based cryptocurrency exchange would be the first cryptocurrency exchange to be listed on the US stock market.
An IPO would mean that anyone could buy and trade shares in Coinbase. That would draw a lot more investors into the industry. IPOs offer investors a stake in the company under the beam of the SECs regulatory headlamps. It would also give Coinbase a lot of money, which they could use to hire staff, grow their crypto empire and beef up their tech.
Its filing of the Form S-1 with the SEC kicks that process off. The application is subject to the scrutiny of the SEC.
The regulatory agency has acted against crypto companies in the past. It has chased after several companies for running unregistered securities sales (called ICOs in crypto-speak) and repeatedly blocked applications for a Bitcoin exchange-traded fund (ETF) on the grounds that the crypto market is prone to manipulation.
Will the SEC, then, approve Coinbase’s IPO, given that its fate is so intimately tied to the rest of the market?
Representing Coinbase is, reportedly, IG & Goldman Sachs, which has been enlisted to help convince the US Securities and Exchange Commission that public investors would be protected against manipulation by sinister whales in the unregulated cryptocurrency market.
We asked Simon Hunt, Senior Fund Manager at Coinbase what his thoughts are of the offering after his original views posted December 2020.
"The timing of Coinbase’s submission of Form S-1 last December is noteworthy. Around that time, the SEC was making headlines for filing a lawsuit against Ripple over the XRP cryptocurrency, alleging that XRP constitutes a security, and that Ripple was distributing securities in unregistered sales."
"Like many other exchanges, Coinbase has since suspended trading of XRP on its platform. In Coinbase's case, the exchange is likely aiming to ensure that it's fully compliant with the SEC in a bit to avoid any potential hiccups as its IPO looms."
"There is no doubt that we will see a high influx into Coinbase IPO and indeed the private equity market in the coming weeks..."
Coinbase is also looking to address a recurrent issue that's plagued it, and other exchanges: downtime during periods of cryptocurrency price volatility. Recent record trading volumes have driven traffic to the exchanges to new heights, putting their infrastructure under strain and causing outages. Coinbase is reportedly planning to break its "monolithic" infrastructure into "separate discrete services" in order to better scale in the event of load surges.
FTX's pre-IPO market for Coinbase
Although the general public needs to wait for the outcome of the SEC review before buying shares in Coinbase, customers on crypto exchange FTX can skip the line with a pre-listing futures contract market for the shares.
Coinbase is now reserving places once more collaborating with CM-Equity, a German capital markets firm that FTX partnered with to launch tokenized stock markets in October, to gauge market compliance.
To buy an early stake in Coinbase, customers need to sign up for IG and their newsletter or call 0208 123 7884 and purchase some of the US-dollar-pegged stablecoin USDC, a coin which is incidentally run by Centre, a consortium that includes Coinbase and Circle.