Coinbase has postponed its planned direct listing on the NASDAQ exchange until April as the Securities and Exchange Commission (SEC) reviews its plan
The leading US cryptocurrency exchange Coinbase has postponed its highly anticipated listing until April. The company was scheduled to go public via a direct listing this month, but changed its plans due to certain issues.
Coinbase did not provide any reasons for the delay. However, in its report, Bloomberg cited people close to the matter and noted that the SEC’s review of the San Francisco-based exchange’s plan for a direct listing by the SEC had influenced the process.
The crypto exchange first announced that it would go public on the NASDAQ exchange in January and was valued at over $ 70 billion. Last week, Coinbase registered 114.9 million shares to be traded on the stock exchange once the company goes public.
Coinbase chose to go public instead of the usual initial public offering (IPO) that most companies use. Direct listing allows early investors to sell their holdings as soon as the company starts trading on the stock exchange. In contrast to the IPO, investors do not have to wait for a lock-up period to expire before they can dispose of their holdings.
According to last week’s SEC filing, stocks in securities firms like Andreessen Horowitz and Union Square Ventures are among those that would trade after Coinbase went public. Coinbase’s direct listing is among the largest the NASDAQ exchange has ever seen, as most companies prefer to go public via an IPO.
Last week Coinbase settled its case with the Commodity Futures Trading Commission (CFTC). The regulator had ordered the crypto exchange to pay $ 6.5 million for false, misleading, or inaccurate reporting and laundry detergent trading. According to the Consent Regulation published by the CFTC, Coinbase was involved in these activities between 2015 and 2018.