Coinbase is on its way to an IPO. This was announced by the exchange on its channels, confirming that it has filed the application with the SEC.
Specifically, Coinbase has submitted the request called Form S-1 which is the first step to be able to be listed on the exchange.
The announcement is quite short and doesn’t say anything in particular, just adding that we will have to wait for the SEC to complete its review process.
The crypto world has congratulated Coinbase for its choice. Among the first is Brad Garlinghouse, CEO of Ripple, who tweeted:
„The first but certainly not the last. Congratulations to the Coinbase team on this milestone in its growth.“
Compliments also came from David Marcus, leading the Diem project, formerly of Libra.
He praises the timing Erik Voorhees, CEO of ShapeShift:
Coinbase IPO, but users don’t care
The curious thing is that under the tweet with the announcement the comments have been quite different. Many users in fact have taken advantage of a communication with high visibility to expose their problems with the exchange.
Many users have complained of not being able to login, or of having their accounts blocked.
Others have confirmed that they can’t operate when the market faces periods of high volatility, as happened just in the past few days in conjunction with the record high price of Bitcoin.
The requests have been so massive that Crypto Trader Coinbase support has stepped in to respond.
What is an IPO
IPO is an acronym that stands for Initial Public Offering and is the procedure by which companies list themselves on the stock exchange by putting their shares up for sale.
Companies that go public usually do so in order to have new liquidity from the sale of shares. Making an IPO also means having new investors.
In the United States, the first procedure to go public is to apply to the SEC, a kind of registration. The listing cannot take place without the green light from the authority.
The IPO and the subsequent listing on the stock exchange, while representing a choice of visibility and prestige, are actually a very delicate step because they involve many requirements such as corporate governance rules and various audits.
In any case Coinbase is making history by being the first cryptocurrency company to take a decisive step towards the traditional markets.