Cryptocurrency exchange Coinbase choices Goldman Sachs Group Inc to lead its IPO preparations (Initial Public Offering). Business Insider per inside sources interviews this. Coinbase announced that it had confidentially applied with the U.S. SEC (Securities and Exchange Commission) to go public. It would be the first significant U.S. crypto exchange to list on the tunes of the stock market.
Coinbase or Goldman Sachs has not formally verified the news. However, the connections between the two firms intend to support the possibility of the news. Coinbase has strong ties with Goldman Sachs Fred Ehrsam. Moreover, Fred Ehrsam earlier worked at Goldman Sachs as a trader from 2010-2012. He proceeded to establish Coinbase alongside CEO Brian Armstrong. He departed from Coinbase in 2017. However, likely, his industry connections are still in play. Further, Goldman Sachs has led various other techs, including IPOs for the game dev platform Unity, the online rental marketplace Airbnb, and Snowflake’s cloud computing platform.
Coinbase IPO allotment falls short of an appropriate date.
Moreover, Goldman Sachs is friendly towards exploring crypto as an asset class. It also set up the digital currency desk in 2018, making Coinbase a probable candidate for its next IPO. Although Coinbase unveiled yesterday that it has filed the documents necessary for an IPO, it has disclosed only a fraction of the public’s information. Besides, no appropriate date for the IPO has been disclosed.
Furthermore, Coinbase is a significant exchange in the U.S. with over a billion-dollar daily volume, according to the crypto analytics firm Messari. After Coinbase’s decision, Messari also submitted a probability for the IPO’s possible valuation, arriving at an estimated $28 billion valuation. Coinbase is the favored exchange for various novice crypto enthusiasts to the digital currency space. The platform has also accumulated billions of dollars in Institutional crypto foray since the spring. It broadly corresponds with the advent of so-called smart money.
Conclusively, if Coinbase prospers, it will be the biggest crypto exchange to operate a public sale. Binance, the only exchange that exceeds it, has not shown interest in an IPO yet.
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