Cryptocurrency exchange Coinbase is delaying its initial public offering in the United States and exchange listing announcement with the CFTC because of regulatory issues.
Management changed its projections and is now anticipating that the IPO would occur sometime in March.
A few days earlier, the CFTC had fined Coinbase to the tune of $6.5 million.
A firm allegedly operated two high-frequency tradings (HFT) services between January 2015 and September 2018, Hedger and Replicator.
It revealed that they were utilizing a trading software, though not which ones.
The CFTC ruling also mentions that an employee deliberately carried out corresponding Litecoin/Bitcoin trades over a six-week stretch in 2016 to draw attention to the cryptocurrency. CFTC ruled that Coinbase was directly responsible for these wash trades.
Details of the Direct Listing
The company has spent over $11.4 billion on expansion and has produced 114.9 million shares for sale through a direct public offering that will be worth more than $100 billion.
The company reported in a final amendment to its S-1 registration statement that it expects to issue between 113.9 million and 114.9 million shares in order to be listed on the Nasdaq. Coinbase intends to list on Nasdaq under the ticker “COIN.” It first announced its intention to list its stock publicly in December.
Low and high private trading prices for Coinbase’s A and B shares were $200.01 and $375.01, respectively, for a volume-weighted average price of $343.58 in the first quarter.
As a result, recent sale prices have no impact on the company’s market-opening window. There was no indication of a trading date in the IPO prospectus.
Direct public listings strive to level the playing field for investors and allow new companies to raise funds. The SEC decided to allow floor listings on the New York Stock Exchange at the end of the year.
What is Coinbase?
Coinbase is an American digital currency platform based in San Francisco, California.
They facilitate the trading of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Tezos, and a variety of other cryptocurrencies with fiat currencies in around 32 nations, as well as bitcoin purchases and storage in 190 countries.
Brian Armstrong and Fred Ehrsam created Coinbase in 2012. By market value, it is actually the biggest cryptocurrency exchange in the United States.
Coinbase transfers, which are special transactions that bring cryptocurrency into circulation in proof of work cryptocurrencies, inspired the company’s name.